Tuesday, January 31, 2012

Eurozone unemployment ends 2011 at record high (AP)

LONDON ? Unemployment across the 17 countries that use the euro ended 2011 at a record high of one person in every 10, official figures showed Tuesday, a day after EU leaders acknowledged they would have to boost economic growth with the same urgency that they had shown in combating their nations' debts.

Eurostat, the EU's statistics office, said the 10.4 per cent unemployment rate in December was unchanged at its highest level since the euro was launched in 1999, as November's was revised upward from a previous estimate of 10.3 percent. Unemployment has been steadily rising over the past year ? in December 2010, it stood at 9.5 percent ? largely because of Europe's debt crisis.

There are huge disparities across the eurozone, however, with those countries at the front line of Europe's current financial turmoil, such as Greece and Spain, suffering record rates of unemployment that are stoking concerns about the social fabric of their societies ? Spain's unemployment stands at a staggering 22.9 percent and Greece's is not far behind at 19.2 percent.

What even those figures mask is that unemployment among the young is much, much higher. Latest figures from Spain show unemployment among people aged under 25 was 48.7 percent, prompting concerns that an entire generation of people could fail to accumulate the necessary skills and experience for a prosperous life.

At the other end of the scale, some countries like Austria are operating not far off what is considered to be the natural rate of unemployment in an economy of 4.1 per cent, while Germany's rate at a post-unification low of 5.5 per cent.

Since Europe's debt crisis exploded around two years ago, the focus has been on austerity, with governments getting their houses in order with big, often-savage spending cuts, and tax increases.

However, there are growing signs that Europe is changing tack, and that measures to boost growth and jobs are now central to the crisis resolution effort.

On Monday, at a summit in Brussels designed to shore up the euro's budgetary defenses against debt, EU leaders promised to stimulate growth and create jobs across the region.

"Yes we need discipline, but we also need growth," said Jose Manuel Barroso, the president of the European Commission, the EU's executive arm.

The leaders pledged to offer more training for young people to ease their transition into the work force, to deploy unused development funds to create jobs, to reduce barriers to doing business across the EU's 27 countries and ensure that small businesses have access to credit.

The task is hand is massive, with just under 16.5 million people unemployed in the eurozone, up 751,000 on the year before. Across the EU, which includes non-euro countries such as Britain and Poland, the number of unemployed stands at 23.8 million, or 9.9 percent of the potential work force.

Even if reforms to economies across Europe help boost growth and potential employment opportunities, there are many headwinds that will be difficult to overcome, not least the fear that many economies will slip back into recession in the wake of ongoing austerity measures and subdued global demand.

"Governments in these countries urgently need to deliver labor market reforms that make it more attractive to hire workers and ensure that young people in particular are not put at risk of permanent exclusion from the work force," said Tom Rogers, a senior economic adviser at consultants Ernst & Young .

"Such reforms, if swiftly implemented, could have a powerful impact on confidence in the near term, and help ease the burden of the current crisis," Rogers added.

Source: http://us.rd.yahoo.com/dailynews/rss/topstories/*http%3A//news.yahoo.com/s/ap/20120131/ap_on_bi_ge/eu_europe_economy

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Newt's long march (Politico)

LUTZ, Fla. ? Mitt Romney and much of the GOP establishment may be exultant over Newt Gingrich?s likely defeat here Tuesday, but the former speaker has a message for his detractors: He?s not going anywhere.

Gingrich is making the case that Romney can?t get a majority at the convention, his small circle of advisers are already eyeing favorable states in March and April, and those close to the former back-bench bomb thrower are testifying to his legendary perseverance.

Continue Reading

Florida may well be a painful body blow, but Gingrich appears deadly serious about a long, bloody march all the way to Tampa ? a scenario that is giving the GOP establishment nightmares.

At 68 and already 14 years past his speakership, this is likely Gingrich?s last chance at the political prize that he?s been coveting for at least two decades. He?s not Romney circa 2008 or Tim Pawlenty ? being a good soldier and falling in line in hopes of being rewarded four years hence isn?t an option.

And the new rules in which states will distribute their delegates proportionally instead of by winner-take-all rules means that Gingrich can keep accruing a sizable number of delegates even if Romney is besting him.

Further, Gingrich and his team see a wall of opposition among the party?s conservative activists to Romney and the stirrings of the same movement that upended the GOP establishment in the 2010 election. The diehards in the tea party movement may ultimately get behind Romney as the nominee, but not before exhausting their options.

Previewing his post-Florida message, Gingrich told reporters outside a megachurch here Sunday that he would seek to carry the Anybody But Mitt banner.

?When you take all the non-Romney votes, it?s very likely that at the convention there will be a non-Romney majority and maybe a very substantial one,? he said. ?My job is to convert that into a Gingrich majority.?

Such Tampa talk has key party leaders worried.

Even as they breathe a sigh of relief about Romney?s apparent Florida turnaround, some party establishment types are nonetheless bracing for a protracted and ugly fight between factions that the GOP hasn?t seen for decades.

?I think it could go on quite a while, which would not be to our benefit,? Sen. John McCain (R-Ariz.), a Romney backer, said Sunday on NBC?s ?Meet the Press.?

It?s quite possible that, even if they fall short of the nomination, both Gingrich and Ron Paul could go into the convention with enough delegates to enjoy a measure of leverage over speaking roles and party platforms that would at the very least present a distraction.

A convention with a nominee and two empowered losers who won?t fade away quietly would be ?a real pill to swallow,? said one senior Republican.

?I believe multiple candidates are going to have enough delegates that they will expect and require attention at the convention,? the Republican said.

Another GOP veteran said he feared Tampa will resemble Houston in 1992, when Pat Buchanan had already lost to President George H.W. Bush but gave a pugnacious culture-war speech that overshadowed the incumbent?s message.

The topic of the calendar and a complicated convention was on the menu of discussion at a private lunch last week with Republican National Committee Chairman Reince Priebus and a group of past RNC chairmen, according to sources present.

Source: http://us.rd.yahoo.com/dailynews/rss/politics/*http%3A//us.rd.yahoo.com/dailynews/external/politico_rss/rss_politico_mostpop/http___www_politico_com_news_stories0112_72131_html/44351446/SIG=11mfij0ua/*http%3A//www.politico.com/news/stories/0112/72131.html

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Monday, January 30, 2012

Ferroelectric switching discovered for first time in soft biological tissue

Ferroelectric switching discovered for first time in soft biological tissue [ Back to EurekAlert! ] Public release date: 30-Jan-2012
[ | E-mail | Share Share ]

Contact: Hannah Hickey
hickeyh@uw.edu
206-543-2580
University of Washington

The heart's inner workings are mysterious, perhaps even more so with a new finding. Engineers at the University of Washington have discovered an electrical property in arteries not seen before in mammalian tissues.

The researchers found that the wall of the aorta, the largest blood vessel carrying blood from the heart, exhibits ferroelectricity, a response to an electric field known to exist in inorganic and synthetic materials. The findings are being published in an upcoming issue of the journal Physical Review Letters.

"The result is exciting for scientific reasons," said lead author Jiangyu Li, a UW associate professor of mechanical engineering. "But it could also have biomedical implications."

A ferroelectric material is an electrically polar molecule with one side positively charged and the other negatively charged, whose polarity can be reversed by applying an electrical field.

Ferroelectricity is common in synthetic materials and used for displays, memory storage, and sensors. (Related research by Li and colleagues seeks to exploit ferroelectric materials for tiny low-power, high-capacity computer memory chips.)

In the new study, Li collaborated with co-author Katherine Zhang at Boston University to explore the phenomenon in biological tissues. The only previous evidence of ferroelectricity in living tissue was reported last year in seashells. Others had looked in mammal tissue, mainly in bones, but found no signs of the property.

The new study shows clear evidence of ferroelectricity in a sample of a pig aorta. Researchers believe the findings would also apply to human tissue.

In subsequent work, yet to be published, they divided the sample into fibrous collagen and springy elastin and studied each one on its own. Pinpointing the source of the ferroelectricity may answer questions about how or whether it plays a role in the body.

"The elastin network is what gives the artery the mechanical property of elasticity, which of course is a very important function," Li said.

Ferroelectricity may therefore play a role in how the body responds to sugar or fat.

Diabetes is a risk factor for hardening of the arteries, or atherosclerosis, which can lead to heart attack or stroke. The team is investigating the interactions between ferroelectricity and charged glucose molecules, in hopes of better understanding sugar's effect on the mechanical properties of the aortic walls.

Another possible application is to treat a condition in which cholesterol molecules stick to the inside of the channel, eventually closing it off.

"We can imagine if we could manipulate the polarity of the artery wall, if we could switch it one way or the other, then we might, for example, better understand the deposition of cholesterol which leads to the thickening and hardening of the artery wall," Li said.

He cautions that medical applications are still speculations, and require more research.

"A lot of questions remain to be answered, that's an exciting aspect of the result," Li said.

###

Co-authors are Yuanming Liu and Qian Nataly Chen at the UW, and Yanhang Zhang and Ming-Jay Chow at Boston University.

The research was funded by the National Science Foundation, the National Institutes of Health, the Army Research Office, the UW's Center for Nanotechnology and a NASA Space Technology Research Fellowship.

For more information, contact Li at 206-543-6226 or jjli@uw.edu.

See also an American Institute of Physics article about the finding.


[ Back to EurekAlert! ] [ | E-mail | Share Share ]

?


AAAS and EurekAlert! are not responsible for the accuracy of news releases posted to EurekAlert! by contributing institutions or for the use of any information through the EurekAlert! system.


Ferroelectric switching discovered for first time in soft biological tissue [ Back to EurekAlert! ] Public release date: 30-Jan-2012
[ | E-mail | Share Share ]

Contact: Hannah Hickey
hickeyh@uw.edu
206-543-2580
University of Washington

The heart's inner workings are mysterious, perhaps even more so with a new finding. Engineers at the University of Washington have discovered an electrical property in arteries not seen before in mammalian tissues.

The researchers found that the wall of the aorta, the largest blood vessel carrying blood from the heart, exhibits ferroelectricity, a response to an electric field known to exist in inorganic and synthetic materials. The findings are being published in an upcoming issue of the journal Physical Review Letters.

"The result is exciting for scientific reasons," said lead author Jiangyu Li, a UW associate professor of mechanical engineering. "But it could also have biomedical implications."

A ferroelectric material is an electrically polar molecule with one side positively charged and the other negatively charged, whose polarity can be reversed by applying an electrical field.

Ferroelectricity is common in synthetic materials and used for displays, memory storage, and sensors. (Related research by Li and colleagues seeks to exploit ferroelectric materials for tiny low-power, high-capacity computer memory chips.)

In the new study, Li collaborated with co-author Katherine Zhang at Boston University to explore the phenomenon in biological tissues. The only previous evidence of ferroelectricity in living tissue was reported last year in seashells. Others had looked in mammal tissue, mainly in bones, but found no signs of the property.

The new study shows clear evidence of ferroelectricity in a sample of a pig aorta. Researchers believe the findings would also apply to human tissue.

In subsequent work, yet to be published, they divided the sample into fibrous collagen and springy elastin and studied each one on its own. Pinpointing the source of the ferroelectricity may answer questions about how or whether it plays a role in the body.

"The elastin network is what gives the artery the mechanical property of elasticity, which of course is a very important function," Li said.

Ferroelectricity may therefore play a role in how the body responds to sugar or fat.

Diabetes is a risk factor for hardening of the arteries, or atherosclerosis, which can lead to heart attack or stroke. The team is investigating the interactions between ferroelectricity and charged glucose molecules, in hopes of better understanding sugar's effect on the mechanical properties of the aortic walls.

Another possible application is to treat a condition in which cholesterol molecules stick to the inside of the channel, eventually closing it off.

"We can imagine if we could manipulate the polarity of the artery wall, if we could switch it one way or the other, then we might, for example, better understand the deposition of cholesterol which leads to the thickening and hardening of the artery wall," Li said.

He cautions that medical applications are still speculations, and require more research.

"A lot of questions remain to be answered, that's an exciting aspect of the result," Li said.

###

Co-authors are Yuanming Liu and Qian Nataly Chen at the UW, and Yanhang Zhang and Ming-Jay Chow at Boston University.

The research was funded by the National Science Foundation, the National Institutes of Health, the Army Research Office, the UW's Center for Nanotechnology and a NASA Space Technology Research Fellowship.

For more information, contact Li at 206-543-6226 or jjli@uw.edu.

See also an American Institute of Physics article about the finding.


[ Back to EurekAlert! ] [ | E-mail | Share Share ]

?


AAAS and EurekAlert! are not responsible for the accuracy of news releases posted to EurekAlert! by contributing institutions or for the use of any information through the EurekAlert! system.


Source: http://www.eurekalert.org/pub_releases/2012-01/uow-fsd013012.php

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Sneak preview of Remarks note-taking and PDF annotating app for iPad

Remarks is a brand new handwriting note-taking, and PDF annotating app for iPad from Readdle. I'm convinced the team at Readdle never sleeps because they release new apps, and update their catalog of existing apps, at pretty fast pace. They've focused on PDF lately, seeing a need for good editing, form filling, and annotating on iPad, and Remarks extends that expertise in a really interesting way.


Source: http://feedproxy.google.com/~r/TheIphoneBlog/~3/Vsa6aGvWbBA/story01.htm

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Sunday, January 29, 2012

Despair, crackdowns breed more violence in Tibet

(AP) ? A young man posts his photo with a leaflet demanding freedom for Tibet and telling Chinese police, come and get me. Protesters rise up to defend him, and demonstrations break out in two other Tibetan areas of western China to support the same cause.

Each time, police respond with bullets.

The three clashes, all in the past week, killed several Tibetans and injured dozens. They mark an escalation of a protest movement that for months expressed itself mainly through scattered individual self-immolations.

It's the result of growing desperation among Tibetans and a harsh crackdown by security forces that scholars and pro-Tibet activists contend only breeds more rage and despair.

That leaves authorities with the stark choice of either cracking down even harder or meeting Tibetan demands for greater freedom and a return of their Buddhist spiritual leader, the Dalai Lama ? something Beijing has shown zero willingness to do.

"By not responding constructively when it was faced with peaceful one-person protests, the (Communist) party has created the conditions for violent, large-scale protests," said Robbie Barnett, head of modern Tibetan studies at New York's Columbia University.

This is the region's most violent period since 2008, when deadly rioting in Tibet's capital Lhasa spread to Tibetan areas in adjoining provinces. China responded by flooding the area with troops and closing Tibetan regions entirely to foreigners for about a year. Special permission is still required for non-Chinese visitors to Tibet, and the Himalayan region remains closed off entirely for the weeks surrounding the March 14 anniversary of the riots that left 22 people dead.

Video smuggled out by activists shows paramilitary troops equipped with assault rifles and armored cars making pre-dawn arrests. Huge convoys of heavily armored troops are seen driving along mountain roads and monks accused of sedition being frog-marched to waiting trucks.

For the past year, self-immolations have become a striking form of protest in the region. At least 16 monks, nuns and former clergy set themselves on fire after chanting for Tibetan freedom and the return of the Dalai Lama, who fled to India amid an abortive uprising against Chinese rule in 1959.

China, fiercely critical of the Dalai Lama, says Tibet has been under its rule for centuries, but many Tibetans say the region was functionally independent for most of that time.

In a change from the individual protests, several thousand Tibetans marched to government offices Monday in Ganzi prefecture in Sichuan province. Police opened fire into the crowd, killing up to three people, witnesses and activist groups said.

On Tuesday, security forces opened fire on a crowd of protesters in another area of Ganzi, killing two Tibetans and wounding several more, according to the group Free Tibet.

On Thursday in southwestern Sichuan province's Aba prefecture, a youth named Tarpa posted a leaflet saying that self-immolations wouldn't stop until Tibet is free, the London-based International Campaign for Tibet said. He wrote his name on the leaflet and included a photo of himself, saying that Chinese authorities could come and arrest him if they wished, group spokeswoman Kate Saunders said in an email.

Security forces did so about two hours later. Area residents blocked their way, shouting slogans and warning of bigger protests if Tarpa wasn't released, Saunders said. Police then fired into the crowd, killing a a 20-year-old friend of Tarpa's, a student named Urgen, and wounding several others.

The incident, as with most reported clashes in Tibetan areas, could not be independently verified and exact numbers of casualties were unclear because of the heavy security presence and lack of access. The topic is so sensitive that even government-backed scholars claim ignorance of it and refuse to comment.

The government, however, acknowledged Tuesday's unrest, saying that a "mob" charged a police station and injured 14 officers, forcing police to open fire on them. The official Xinhua News Agency said police killed one rioter and injured another.

"The Chinese government will, as always, fight all crimes and be resolute in maintaining social order," Foreign Ministry spokesman Hong Lei said in comments on the incident.

The harsh response points to a deep anxiety about the self-immolations, said Youdon Aukatsang, a New Delhi-based member of the Tibetan parliament-in-exile.

"They're worried that there is an underground movement in Tibet that is coming to the surface," she said.

Tibetan desperation has been fed both by the harsh crackdown ? security agents reportedly outnumber monks in some monasteries ? along with a deep fear that the Dalai Lama, probably the most potent symbol of Tibet's separate identity, will never return.

The 76-year-old Nobel Peace Prize laureate handed his political powers to an elected assembly last year. That was intended to ensure the Tibetan cause would live on after him, but was met with considerable anxiety among many Tibetans who saw it as a sign he was giving up his role as leader of their struggle.

Dibyesh Anand, a Tibet expert at London's University of Westminster, said resistance to Chinese rule is likely to grow more fierce.

"Protests will get more radicalized since the Tibetans in the region see no concession, no offer of compromise, no flexibility coming from the government," he said.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/3d281c11a96b4ad082fe88aa0db04305/Article_2012-01-28-AS-China-Tibet-Spiral-of-Violence/id-eff7f9cfff0b4d36b9d3bc3d2732bb0d

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Facebook poised to file for IPO next week

Paul Sakuma / AP

Facebook CEO Mark Zuckerberg could be worth $20 billion if current estimates hold true.

By msnbc.com staff and wire

Updated at 5:25 p.m. ET

Facebook is poised to file papers as early as next week for an initial public offering that could be one of the biggest in history, creating hundreds if not thousands of instant millionaires, The Wall Street Journal reported Friday.

The highly anticipated IPO will value the world's largest social networking site?at between $75 billion and $100 billion, the Journal reported on its website. So far the Journal appears to be alone with the report. Facebook declined to comment.

Founded in a Harvard dorm room in 2004 by Mark Zuckerberg and his friends, Facebook has grown into the world's biggest social network with over 800 million members. Facebook earned roughly $1.5 billion in operating profits on $3.8 billion in revenues last year, CNBC's Julia Boorstin reported, citing unidentified sources.

The impending IPO -- expected to raise $10 billion -- is a prized trophy for investment banks, setting up a fierce competition on Wall Street, particularly between Morgan Stanley and Goldman Sachs, which are expected to be the two lead underwriters.

The IPO could come about three to four months after the filing, which likely would put it sometime in May. Facebook is under legal pressure to go public this year because of the so-called ?500 shareholder rule,? which requires companies to disclose financial information by the end of the first quarter the year after the company tops 500 shareholders.

Information about Facebook's ownership structure and employee compensation packages is hard to come by, since the still-private company discloses very little. But that could all change next week if the company files documents required by the Securities and Exchange Commission to offer stock to the public.

It is clear that Facebook's earliest employees, who were given ownership stakes, and early venture capital investors -- such as Accel Partners, Greylock Partners and Paypal co-founder Peter Thiel -- will see the biggest paydays.

The Journal reported that Accel could see a return of $9 billion on an initial investment of $12.7 million. Several other venture capital firms would see their stakes grow to over $1 billion in value. Thiel's current stake could not be determined.

Zuckerberg, 27, is estimated to own a little over a fifth of the company, according to "The Facebook Effect" author David Kirkpatrick, meaning he could be worth $20 billion. The latest Forbes 400 list estimated Zuckerberg was worth $17.5 billion, making him No. 14 on its list of richest Americans.

The wealth will trickle down to engineers, salespeople and other staffers who later joined the company, since most employees receive salary plus some kind of equity-based compensation, such as restricted stock units or stock options.

Facebook's headcount has swelled from 700 employees in late 2008 to more than 3,000 today. Given its generous use of equity-based compensation in past years, people familiar with Facebook say that even by conservative estimates there are likely to be well over?1,000?people who will become instant millionaires, at least on paper,?when the company goes public.

"There will be thousands of millionaires," said a former in-house recruiter at Facebook, who did not want to be identified because of confidentiality agreements.

Would you buy Facebook stock? Vote below and then?share on your thoughts on -- where else? -- Facebook.

Would you buy stock in Facebook?

?

Reuters contributed to this report.

Source: http://bottomline.msnbc.msn.com/_news/2012/01/27/10252182-facebook-poised-to-file-for-ipo-next-week

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Saturday, January 28, 2012

Ford profit hit by commodity costs, Europe

Ford Motor Co posted a lower-than-expected fourth-quarter profit Friday due to disappointing results outside North America and rising commodity costs.

Excluding one-time items, Ford's operating profit fell to $1.1 billion, or 20 cents per share, from nearly $1.3 billion, or 30 cents per share, a year earlier.

Analysts, on average, expected an adjusted profit of 25 cents per share, according to Thomson Reuters I/B/E/S. Ford shares fell on the news.

Higher commodity costs, unfavorable exchange rates and worse results in Europe, Asia and South America hurt Ford's profit during the quarter. Ford's commodity costs were $2.3 billion for the year, up slightly from its $2.2 billion forecast.

"We saw the external environment deteriorate and that really affected most regions other than North America, and then we saw slightly greater than we expected impact of commodities, currency and also the Thai floods," Chief Financial Officer Lewis Booth told reporters.

Ford's losses deepened in Europe during the quarter to $190 million compared to a $51 million loss a year ago. Booth said Europe would remain "challenging" for some time. In 2012, Ford expects growth in the region will be tempered by the debt crisis and austerity measures.

Ford faced increased competition in South America, where it reported a pretax operating profit of $108 million, down from $281 million a year earlier.

Production losses due to the flooding in Thailand hurt its results in Asia where reported a quarterly loss of $83 million, compared to a profit of $23 million a year ago.

In the fourth quarter, Ford reported a net income of $13.6 billion, or $3.40 per share, buoyed by a one-time tax-related gain of $12.4 billion. A year earlier, Ford posted net income of $190 million, or 5 cents per share.

The higher net income was the result of an accounting change that Ford said reflects confidence in its long-term profit outlook. The one-time gain resulted in a full-year net income of $20.2 billion, the highest annual profit since 1998.

Copyright 2012 Thomson Reuters. Click for restrictions.

Source: http://www.msnbc.msn.com/id/46161298/ns/business-autos/

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Friday, January 27, 2012

India's 'untouchable' queen faces election test

After driving through a red-carpeted tunnel of plaster elephant tusks in an Ambassador, India's retro-looking national car, the chief minister of India's largest state swept past a coterie of her party's workers, who bowed and touched her feet.

Diamonds adorned the diminutive figure of "the Dalit Queen," encrusting her necklace, a bracelet, her earrings, a nose-ring and her watch, as she accepted a few bouquets of flowers and marched about briskly in the marigold-draped party headquarters.

But the huge crowds of gaping admirers were missing this year; there was no garland of banknotes, no upper-caste Brahmin on hand to symbolically pop a morsel of birthday cake into the mouth of an "untouchable" who has risen from the bottom of India's social pile to become one of the most powerful women in the world.

That's because election campaign rules are now in effect for staggered polls to be held in February and March in Uttar Pradesh.

Mayawati, who uses one name, is far from a sure bet to win another term as chief minister of the northern state whose population of 200 million would rank as the fifth-most populous in the world if it were a country.

Rainbow of castes
If she doesn't, it would be a blow to her undisguised ambition to one day become prime minister of India, a goal that looked reasonable back in 2007 when she won a huge mandate from the state's voters by appealing to a rainbow of castes, which still define the socio-economic status for many of India's 1.2 billion people.

Launching the seventh, gilt-edged volume of an autobiography that runs to thousands of pages and is printed in Hindi and English, Mayawati bemoaned Election Commission rules that obliged her to row back on her usual birthday beneficence.

"Normally, my birthday is an occasion to give away thousands of crores (a crore is 10 million rupees or $188,000) in welfare schemes for Dalits and other backward castes, but because of the election code of conduct we could not do that this year," she said.

Mayawati's nemesis in the election is Rahul Gandhi, scion of the Nehru-Gandhi dynasty that has ruled the country for most of its six decades of independence.

A relative greenhorn in the hurly-burly of Indian politics, Gandhi has staked his future on the performance of the venerable but troubled Congress party in Uttar Pradesh.

Although she presides over one of the most poverty-plagued states of India ? its per-capita income is just above 50 percent of the national average ? Mayawati's extraordinary personal extravagance preserves a tradition set over the centuries by a succession of rulers in the plains of the river Ganges.

Pink marble monuments
In the five years since she took office, she has blanketed hundreds of acres of prime real estate in the state capital Lucknow and elsewhere in pink marble and sandstone monuments.

Statues of marble elephants and icons of the lower castes, including a dozen of herself, occupy memorial parks created on a scale not seen in India since the British built New Delhi in the fading days of their empire.

A federal government report found that Uttar Pradesh lavished more than $400 million on such projects between 2007 and 2009 alone ? and the building continues.

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"She's taken it straight out of the pages of the Mughals and the first British Viceroys who built huge statues. These are abiding icons that the Dalits always hankered after but never had themselves," Ajoy Bose, author of a biography of Mayawati, said.

Like the Nawabs, descendents of Persian courtiers who governed the region in the 18th century, Mayawati likes to flaunt her wealth.

On paper, she is India's richest chief minister, with declared assets of $16 million that include a shopping mall in New Delhi and $169,000 in jewelry.

But unlike many of her peers in other states, she is open about her income and pays taxes on it.

A U.S. diplomatic cable released by WikiLeaks last year recounted how she once sent a private jet to fetch a pair of sandals from Mumbai, 620 miles away.

According to the cable, one minister was forced to do sit-ups in front of Mayawati as a punishment for a minor offence; those wanting to become election candidates for her Bahujan Samaj Party (BSP) had to pay tens of thousands of dollars for the privilege.

US cable: 'First-rate egomaniac'
But, unlike her aristocratic Mughal, Nawab and British predecessors, she hails from India's "Dalit" castes, who were marginalized for centuries on the bottom rungs of Hinduism's social ladder. Still today, the idea that a Dalit could become prime minister is as outlandish for many Indians as the thought of a black president once was in the United States.

One of nine children of a poor government clerk, Mayawati grew up in a Delhi slum and became a school teacher before launching into politics. Aides say she's a news junkie, who obsessively watches the many all-news channels now available in India.

She is often ridiculed by urban middle classes for her monumental personality cult ? the U.S. cable described her as a "first-rate egomaniac" ? and yet Mayawati still has many supporters in Uttar Pradesh, where economic growth has picked up and law and order have improved on her watch.

Mayawati's aides point out that she has spent far more on building roads and joining villages to the electrical grid than she has on the icons to herself and the Dalit people.

"Once you get the infrastructure on the ground, Uttar Pradesh will grow on its own," said a senior official in her inner circle, who asked not to be identified.

Sympathetic analysts even liken her park-building spree to that of the Nawab of Lucknow, Asaf-Ud-Dowlah, who employed 20,000 people to build a shrine during a harsh 1784 famine, a project some historians call an example of pre-Keynesian economics.

Economic growth
That might be a stretch, but electrification and rural welfare projects have undoubtedly contributed to economic growth, which at seven percent annually in her first four years of office, was the state's fastest-ever rate.

A report by the central government's economic Planning Commission last year said Mayawati's pro-Dalit policies had begun to improve the dire nutrition situation in the state, where 42 percent of children under five are underweight.

Even critics admit crime has fallen noticeably since she took over as chief minister in 2007 from Mulayam Singh Yadav, a former wrestler many remember for presiding over a surge in gang violence, with gun-wielding goons threatening shopkeepers.

In the mainly Dalit village of Bhaddi Kheda, an hour's drive from Lucknow, families have been given grants to build modest new houses to replace mud-walled hovels. New toilets improve sanitation, and muddy lanes have been paved.

Most importantly, said villager Saptruhan Das, Dalits who for generations were terrorized by higher castes now feel protected because the police are on their side.

"Yadav people would come and misbehave with the women," Das said, referring to former Chief Minister Yadav's caste. "In some places, they'd give us work but beat us. Now with Mayawati in power, nobody dares."

According to an opinion poll conducted in Uttar Pradesh for India Today magazine last November, 69 percent said that Mayawati had fulfilled the expectations of Dalits.

Ability matters more than caste
But nearly 9 out of 10 voters said competence mattered more than the chief minister's caste, two-thirds wanted a change of guard, and the poll showed that Yadav was more favored than Mayawati as the best person to lead the state.

Indeed, Yadav's Samajwadi Party could well emerge from the election with more seats in the 403-member state assembly than Mayawati, though probably not enough for a majority, forcing him to ally with Gandhi's Congress for a return to power.

It is too soon to write off the wily Mayawati. She has outwitted every opponent who has crossed her path since the 1990s, first forming several short-lived coalition governments and then storming home with a single-party majority in 2007.

She still pulls in crowds of easily 100,000 at election rallies, far more than her opponents, including Gandhi. And she has a knack for turning adversity into advantage.

Take the flap over the life-sized elephant statues Mayawati had erected in a sprawling Lucknow park, which she opened in 2008 and named after the untouchable leader who wrote India's constitution, Dr. B.R Ambedkar.

The Election Commission this month ordered all statues of Mayawati and of elephants ? her party's electoral symbol ? to be covered during the campaign. So now, dozens of hulking elephant statues are clad in yellow plastic sheeting, and plyboard boxes have been built around bronze Mayawati statues.

"I thank the Election Commission for this order," she said. "It is going to benefit the party and has given us free publicity."

Despite her bravado, Mayawati is likely to lose the votes of millions who believe that corruption has gone from bad to worse and the fruits of economic growth have been unevenly spread both across the sprawling state and its castes.

System of bribes
Speaking on condition of anonymity, one businessman in the state described a well-organized system of bribe-paying to bureaucrats and constant harassment of companies for pay-offs.

"You have to be really desperate to do business in Uttar Pradesh. You have to pay for virtually everything," he said. "Since you have to pay out even if you follow the law ? why follow the law?"

Apart from a couple of companies seen as close to her administration including Jaypee Group, which built the track used for India's first Formula One race last year, Uttar Pradesh has missed out on India's industrial growth of the past decade.

Construction, particularly state-funded building of roads, has been the main driver of the state's economy, along with agriculture. Manufacturing has stagnated, hobbled by regular power cuts, high taxes and corruption.

Dalit villager Chote Lal, 28, says life has improved for his caste under Mayawati, but he still does not have enough food to feed his seven children properly.

"There are no jobs, no factories ? she should have brought in industry," he said.

This may be Mayawati's undoing: not the statues and the personal extravagance, but the sense she has not done enough to lift living standards evenly across so vast a population.

"Overall, her performance is a mixed bag," said Bose, her biographer. "She has clearly been disappointing. She had a great chance to do more."

This is especially felt among higher castes and Muslims, whose votes helped propel Mayawati to power with a majority in 2007 but who now feel her pro-Dalit policies have not taken them into account.

"We want a government that works for development, not one that works for one particular caste or religion," said Mohammed Ahmed Khan, a Muslim farmer in the village of Dharai Mafi.

Copyright 2012 Thomson Reuters. Click for restrictions.

Source: http://www.msnbc.msn.com/id/46146380/ns/world_news-south_and_central_asia/

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The big lessons from celebrity estate wars (Reuters)

NEW YORK (Reuters) ? Philanthropist Brooke Astor. The Grateful Dead's Jerry Garcia. There are a few celebrities who, in death, at least in certain circles, have become as known for the litigation over their estates as for how they lived their lives. While the dollars are mind-boggling in these cases, anyone thinking about wealth transfer faces the same issues: dysfunctional families, potentially unequal positions in the family business, perhaps multiple marriages with kids from each.

We spoke with Russell Fishkind, an estate attorney and a partner in the East Coast law firm of Saul Ewing and author of "Probate Wars of the Rich and Famous: An Insider's Guide to Estate Planning and Probate Litigation," about what regular folks can learn from these high-profile estate battles.

Q: What's the most common scenario you see?

A: Hands down, most common was a second marriage, or third marriage, with children from multiple marriages. If the estate plan does not adequately provide for Spouse No. 2 and for the children from the first marriage in a way that tries to achieve equality, you're basically buying a litigation case. The two most notable celebrities were Anna Nicole Smith, who at 26 married an 89-year-old billionaire, and Jerry Garcia, who had numerous children with different women, and then, just before he died, married Wife No. 3. The first turned into the longest estate litigation case we've seen in 100 years. The second led to litigation over custom guitars, Cherry Garcia ice cream and Jerry Garcia ties.

Q: What's happens if the family is in business together?

A: A huge amount of our wealth is from family business owners, and often mom or dad runs the business, and one or two children are in it, and one or two children are not. If I'm a dentist in California, should I not get a share of the business? Or what if the son in the business gets gifted the business? There are a lot of emotional ticking time bombs in family businesses that create litigation. The most shining example of that would be the Koch brothers, who had the largest family-owned business in the United States, and feuded for decades.

Q: In the case of Brooke Astor, there was fraud. Does that happen much?

A: I see a lot of these cases. When mom is alone and weak, and one child starts caring for her, somewhere along the line they start thinking they are entitled to more than their fair share. So the person will go to UBS or Morgan Stanley, and say, 'Mom wants to change title from her to me because I'll be dealing with this day-to-day, and I'm paying for her care, and she wants me to watch her portfolio.' Invariably, what gets left out of the conversation is that because these are now jointly-titled assets, they will pass to that child, and that is also the intent of the antagonist. The titling of accounts trumps the terms of the will.

Q: So you could have a very good will, and it will end up being meaningless?

A: Correct. I can give you an example where there's no glitz and no glamour. I handled a case involving a guy who never had any money, but was an inventor, and when he was 76, his invention hit, the company went public, and he was worth $50 million. The wife had the account retitled for his name and her name. When he died, the kids thought they were going to get the motherlode, but everything went to the wife.

Q: Is litigation over estates going up?

A: There's not a doubt in my mind that it is. I've asked surrogate judges informally in chambers, and they all say the same thing. The incidence of probate litigation is on the rise, and the fact patterns are consistent.

Q: What would you do to avoid these situations?

A: If there's a second spouse, make sure to give that spouse what was bargained for in the (prenuptial agreement). Where there is a likelihood of dissension, appoint an independent fiduciary or trustee. And for the family business, you really want to document your intentions so that if you are giving an interest to one child, and not to the other three, there is no mystery. If you are appointing one child to be CEO, write it down and explain it to everyone. Don't leave it to chance, or to petitions filed in court.

Q: The cases you point to entail significant amounts of money. What about for folks with smaller estates, who won't be affected by any estate-tax issues, and so might not have planned as carefully?

A: This is not just about the money. It's about who's living in the house? Where's mom's engagement ring? Where are her photo albums? This is not just something for millionaires. It is day-in and day-out, Main Street-type stuff. It's not unusual nowadays for a grown child to be living with mom and dad. If the second spouse dies, and the kid's still living in the house, the other siblings may battle because the house is worth $300,000. It's not so much about the money, but that the situation is bad. It would be better to have a will that says, the house is valued at $300,000, and the son who is living in it gets it, but he has to take out a mortgage and give the other siblings $150,000. You need to address it. These issues are not unique to people having money. They are common issues.

(Editing by Beth Pinsker Gladstone and Jan Paschal)

(The author is a Reuters contributor. The opinions expressed are her own.)

Source: http://us.rd.yahoo.com/dailynews/rss/celebrity/*http%3A//news.yahoo.com/s/nm/20120126/en_nm/us_taxes_estatewars

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Thursday, January 26, 2012

What You Should Know About Investing In Hedge Funds ? Centired ...

A hedge fund is actually a kind of investment which participates in a wide variety of investments and trading activities when compared with other types of funds. Nonetheless, hedge funds are available to a particular class of investors as specified by regulators. Every person can?t invest in these types of funds. Only specified investors can put their funds in them. Institutions such as university foundations and endowments, pension funds, or individuals with high net worth are permitted to make investments. The money invested in a hedge fund is utilized in a varied range of investments. However, liquid securities are the most typical investment that is usually traded. These funds follow different trading strategies like leverage and short selling in an effort to improve the return on investment.

The investment value of the investor in a particular fund is determined by his actual share of the net asset value of that fund. As a result, the increase and decrease of the value of the fund?s assets plus the fund expenses are reflected in the amount that an investor can take out later.

The tactics of hedge funds are intended for achieving positive return on investment, despite whether the markets are falling or rising. The fund managers are professional and very well qualified in handling finances and investments. They are given a management fee to compensate them for their expertise in addition to a performance fee if the value of the fund increases during the year. Investments worth billions of dollars are invested in these funds. According to one estimate, the size of the worldwide hedge fund industry is about 2 trillion US dollars and it is predicted to grow quickly in the coming years.

Considering that these types of funds aren?t open to the general public, there are actually minimum constraints with regards to investment and the strategies involved in management of these funds compared with funds that are available to the general public. That is the key reason why these types of funds have a lot of flexibility to participate in a diverse variety of investments and trading activities.

Men and women with large sums of cash to invest and are also ready to take big risks prefer to invest in these funds. Because the risks concerned are higher, investors can lose their entire investment really quickly. Similarly, these funds promise massive return on investment and investors can even double their money quickly. As a result, people who love to take risks to generate higher returns prefer to invest in these funds.

Investing in hedge funds offers a very good chance to make big gains in a short time period. However, the risks are just as high. Considering that the funds are professionally managed, these funds promise higher return on investment in spite of the risks related to investments and trading activities.

Are you looking for information on the best hedge fund managers? Be sure to visit Insider Monkey for information on David Einhorn and George Soros.

This entry was posted on Thursday, January 26th, 2012 at 5:22 pm by Jeremy Winters and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

Source: http://centired.com/2012/01/what-you-should-know-about-investing-in-hedge-funds/

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Wingnuts Hoot at Obama Speech, But 91% of Americans Approve (Little green footballs)

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Wednesday, January 25, 2012

House GOP to offer new health plan (Politico)

A top House Republican on Wednesday said GOP lawmakers will put forward an alternative to the health care reform law after the Supreme Court rules on the constitutionality of the law.

?We will be ready to respond to the Supreme Court decision, which is expected in June, with a replacement package,? House Energy and Commerce health subcommittee chairman Joe Pitts (R-Pa.) told a small group of reporters in the Capitol on Wednesday.

Continue Reading

Pitts said he personally anticipates that the court could strike the mandate but is unlikely to strike the entire law. He said House leadership is looking to the timing of a likely court decision to make its case against the Democrats? signature health reform law.

?We?ll have a window of opportunity to ? with everyone looking ? to explain that the Affordable Care Act is not fully implemented yet. A lot of people think it is,? Pitts said. ?So we?ll use that opportunity in that window to discuss the full ramifications of the Affordable Care Act and what we?ll replace it with.?

Pitts pointed to several health policy ideas that Republicans have routinely supported that are likely to be in the plan, such as giving the tax break for health insurance to the employee instead of the employer, medical liability reform, creating high-risk medical ?pools? and allowing insurers to sell their products across state lines.

?There are others we will be discussing and will have ready in response to the Supreme Court decision,? Pitts said. ?We think that a free-market alternative is much better as far as making health insurance affordable and available to everyone.?

The timing, Pitts said, is ?a decision above my pay grade. We anticipate the leadership acting on the replacement package after the decision.?

Any plan would have to be crafted in response to how the court handles the law, Pitts said, as the court could leave the whole law in place, get rid of the whole thing, strike the mandate alone or strike other pieces with the mandate. It could also say that a federal tax law prevents it from ruling on the mandate?s constitutionality until after 2015.

The court is planning to hold oral arguments on the health law in March. If the court rules on the mandate, it is likely to do so before the end of its term in June.

Democrats have routinely criticized Republicans for holding numerous votes to repeal the health law without presenting a complete alternative.

This article first appeared on POLITICO Pro at 2:29 p.m. on January 25, 2012.

CORRECTION: A previous version of this story misstated Joe Pitts's title. He is the chairman of the House Energy and Commerce health subcommittee.

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Source: http://us.rd.yahoo.com/dailynews/rss/politics/*http%3A//us.rd.yahoo.com/dailynews/external/politico_rss/rss_politico_mostpop/http___www_politico_com_news_stories0112_71967_html/44304701/SIG=11mbnfjp5/*http%3A//www.politico.com/news/stories/0112/71967.html

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Administration nominees awaiting next move by GOP

WASHINGTON (AP) ? Senate Republicans are returning to Washington in an angry mood over President Barack Obama's appointments to two key agencies during a year-end break.

More than 70 nominees to judgeships and senior federal agency positions are awaiting the next move from Republicans, who can use Senate rules to block votes on some or all of Obama's picks.

While Republicans return Monday to discuss their next step, recess appointee Richard Cordray is running a new Consumer Financial Protection Bureau, and the National Labor Relations Board ? with three temporary members ? is now at full strength with a Democratic majority.

Obama left more than 70 other nominees in limbo, well aware that Republicans could use Senate rules to block them.

The White House justified the appointments on grounds that Republicans were holding up the nominations to paralyze the two agencies. The consumer protection agency was established under the 2010 Wall Street reform law, which requires the bureau to have a director in order to begin policing financial products such as mortgages, checking accounts, credit cards and payday loans.

The Supreme Court has ruled that the five-member NLRB must have a three-member quorum to issue regulations or decide major cases in union-employer disputes.

Several agencies contacted by The Associated Press, including banking regulators, said they were conducting their normal business despite vacancies at the top. In some cases, nominees are serving in acting capacities.

At full strength, the Federal Deposit Insurance Corp. has five board members. The regulation of failed banks "is unaffected," said spokesman Andrew Gray. "The three-member board has been able to make decisions without a problem." Cordray's appointment gives it a fourth member.

The Comptroller of the Currency, run by an acting chief, has kept up its regular examinations of banks. The Federal Trade Commission, operating with four board members and one vacancy, usually makes decisions unanimously.

The State Department, however, said it's important to U.S. diplomacy to fill the post of assistant secretary for western hemisphere affairs and the ambassadorships to El Salvador and Ecuador.

"''We value highly our relationship with our hemispheric partners and consider diplomatic representation at the level of ambassador a top priority. This is especially true of the top diplomat charged with hemispheric relations, the assistant secretary," said William Ostick, a State Department spokesman.

Republicans have pledged retaliation for Obama's recess appointments, but haven't indicated what it might be.

"The Senate will need to take action to check and balance President Obama's blatant attempt to circumvent the Senate and the Constitution, a claim of presidential power that the Bush administration refused to make," said Sen. Charles Grassley, an Iowa Republican who is his party's top member on the Senate Judiciary Committee.

Grassley wouldn't go further, and Senate Republican leader Mitch McConnell of Kentucky hasn't tipped his hand after charging that Obama had "arrogantly circumvented the American people." Before the Senate left for its break in December, McConnell blocked Senate approval of more than 60 pending nominees because Obama wouldn't commit to making no recess appointments.

Republicans have to consider whether their actions, especially any decision to block all nominees, might play into Obama's hands.

Obama has adopted an election-year theme of "we can't wait" for Republicans to act on nominations and major proposals like his latest jobs plan. Republicans have to consider how their argument that the president is violating Constitutional checks and balances plays against Obama's stump speeches characterizing them as obstructionists.

Senate historian Donald Ritchie said the minority party has retaliated in the past for recess appointments by holding up specific nominees. "I'm not aware of any situations where no nominations were accepted," he said. The normal practice is for the two party leaders to negotiate which nominations get votes.

During the break, Republicans forced the Senate to convene for usually less than a minute once every few days to argue that there was no recess and that Obama therefore couldn't bypass the Senate's authority to confirm top officials. The administration said this was a sham, and has released a Justice Department opinion backing up the legality of the appointments.

Obama considers the new Consumer Financial Protection Bureau a signature achievement of his first term. Republicans have been vehemently opposed to the bureau's setup. They argued the agency needed a bipartisan board instead of a director and should have to justify its budget to Congress instead of drawing its funding from the independent Federal Reserve.

Cordray is expected to get several sharp questions from Republicans when he testifies Tuesday before a House Oversight and Government Reform panel.

The NLRB has been a target of Republicans and business groups. Last year, the agency accused Boeing of illegally retaliating against union workers who had struck its plants in Washington state by opening a new production line at its non-union plant in South Carolina. Boeing denied the charge and the case has since been settled, but Republican anger over it and a string of union-friendly decisions from the board last year hasn't abated.

Associated Press

Source: http://hosted2.ap.org/apdefault/89ae8247abe8493fae24405546e9a1aa/Article_2012-01-23-Nominations%20Spat/id-5529d7f1c76846ae9adec50b337c8c77

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Tuesday, January 24, 2012

PFT: Ravens botch set up for Cundiff's missed kick

Baltimore Ravens' Evans has the ball stripped from him by New England Patriots' Moore in the end zone during the fourth quarter of the NFL's AFC Championship football game in FoxboroughReuters

Shortly before Ravens kicker Billy Cundiff did his best Gary Anderson impersonation (to the chagrin of Matt Birk), Ravens receiver Lee Evans had the ball in his hands, in the end zone.? But Patriots defensive back Sterling Moore knocked the ball out of Evans? hands, and the ruling on the field was that the would-be touchdown pass was incomplete.

Though it wasn?t a scoring play, fewer than two minutes remained in the game.? Thus, the decision (or not) to review the play was to be initiated by the replay assistant in the booth.? Even though the slow-motion angle shown by CBS seemed to suggest that it may have been a catch, the replay assistant didn?t instruct referee Alberto Riveron to take a look via the on-field portable TV on wheels.

As to whether a catch was made, the standard is simple.? From Rule 8, Section 1, Article 3, Item 3:? ?If a player controls the ball while in the end zone, both feet, or any part of his body other than his hands, must be completely on the ground before losing control, or the pass is incomplete.?

There?s no Calvin Johnson component.? No requirement of a football move.? Possession plus two feet down equals a catch, and a touchdown.

So why didn?t the replay assistant direct Riveron to take another look?? Absent indisputable visual evidence that the call on the field was correct, the replay assistant must tell the referee to look for indisputable visual evidence to overturn it.

The league disagrees.? ?The ruling on the field of an incomplete pass was confirmed by the Instant Replay assistant, correctly, and as a result, there was no need to stop the game,? the league said in a statement forwarded to PFT by spokesman Michael Signora.? ?The receiver did not get his second foot down in the end zone with possession, and as a result, it was an incomplete pass.?

Former V.P. of officiating and current FOX rules analyst Mike Pereira expressed a similar sentiment via text message to PFT.? ?Clearly not a catch,? Pereira said.? ?Ball coming out before second foot clearly down. . . .? No need to review it because it was clearly incomplete.?

But where?s the harm in taking a look at the play?? The left foot may have been down a nanosecond before the ball was dislodged.? Why not have Riveron decide whether or not that was the case?? Moreover, a different camera angle may have shown that Evans had the ball before his left foot previously left the ground.? (There?s no doubt that the right foot was down while Evans had the ball.)

It could be that the replay assistant erred on the side of not giving Riveron a chance to make what could have been another Bill Leavy-style error.? Either way, under the league?s standard for initiating a booth review, we think a booth review should have been initiated.? And if it had been initiated, Riveron would have been faced with a decision that wouldn?t have been quite as easy as the league seems to think it would have been.

Source: http://profootballtalk.nbcsports.com/2012/01/22/ravens-take-a-timeout-back-to-baltimore/related

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Europe should boost bailout fund, consider euro bonds: Lagarde (Reuters)

BERLIN (Reuters) ? The head of the IMF called on European governments to boost the size of their rescue fund and consider financial risk-sharing steps like common euro zone bonds as a way out of their sovereign debt crisis.

In a speech at the German Council on Foreign Relations in Berlin on Monday, International Monetary Fund (IMF) Managing Director Christine Lagarde said the world economy faced a "defining moment" that required quick, collective action.

To help meet the challenge, she urged leading powers to back an increase in resources for the Washington-based lender to help fill a global financing hole that the IMF believes could reach $1 trillion over the coming years.

"The longer we wait, the worse it will get. The only solution is to move forward together," Lagarde said, according to an embargoed copy of her remarks provided by the IMF before delivery.

"We must all understand that this is a defining moment. It is not about saving any one country or region. It is about saving the world from a downward economic spiral."

The IMF has helped fund a series of euro zone bailouts over the past two years, but with big European countries like Italy now under threat, it wants to boost its lending capacity, currently estimated at around $380 billion.

Members of the single currency bloc have agreed to inject close to $200 billion, but countries like the United States, Canada, China and Japan have been cool on channeling more funds to the IMF. Many are keen for Europe to take more decisive steps to resolve its debt crisis first.

Lagarde said the IMF was seeking to increase its lending resources by up to $500 billion, including the funds already pledged by Europe. The Fund estimates that up to $1 trillion in global financing could be needed over the coming years.

"I am convinced that we must step up the Fund's lending capacity," Lagarde said.

SOLVENCY CRISIS RISK

She praised decisions by euro zone governments to enforce stricter fiscal discipline and a move by the European Central Bank to provide long-term liquidity to banks, but said these steps formed mere "pieces" of a comprehensive crisis solution.

Lagarde warned specifically about the risks that higher funding costs for Italy and Spain lead to a solvency crisis, saying this would have disastrous consequences for systemic stability.

"Adding substantial real resources to what is currently available by folding the EFSF into the ESM, increasing the size of the ESM, and identifying a clear and credible timetable for making it operational would help greatly," Lagarde said, referring to the euro zone's current and future rescue funds.

She urged European leaders to complement the "fiscal compact" they agreed last month with some form of financial risk-sharing, mentioning euro zone bonds or bills, or a debt redemption fund as possible options.

Lagarde also called for bolder steps from countries outside of Europe, saying the United States had a special responsibility as the world's largest economy.

She said emerging and advanced countries with large current account surpluses should take steps to encourage domestic demand as a way to support global growth.

In an apparent reference to Germany, she said there was a "large core" in Europe where fiscal consolidation could be more gradual. Lagarde also stressed the need for timely easing of monetary policy as euro zone economies and inflation fall.

(Reporting by Noah Barkin)

Source: http://us.rd.yahoo.com/dailynews/rss/business/*http%3A//news.yahoo.com/s/nm/20120123/bs_nm/us_imf_europe_lagarde

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Monday, January 23, 2012

House Republicans look to each other for rebirth (Reuters)

BALTIMORE (Reuters) ? Republicans in the House of Representatives, having seen their 2010 election victory dissolve into a near-suicidal tax fight, are promoting a repackaged jobs message they hope carries them to victory in the 2012 elections.

At a three-day retreat at a harborfront hotel in Baltimore, an hour's drive from Washington, House Speaker John Boehner mobilized prayer sessions, motivational speakers, spin doctors and even colorful New Jersey Governor Chris Christie to cheer up his 242-member House Republican conference.

House Republicans were ebullient when they gathered last year for their annual retreat after wresting control of the House from Democrats in elections a few months earlier. Twelve months later, the party faces a tough fight to hold those gains.

Polls show that Americans blame Republicans more than Democrats for the gridlock in Congress that has paralyzed decision-making on some of the toughest problems facing the country - job creation and dangerously high deficits.

By the time the retreat wrapped up on Saturday after gripe sessions, policy discussions and lectures on tactics and messaging, House Republicans may not have figured out how they will handle those problems, but Boehner proclaimed to reporters that in 2012, "our focus will be on the economy and jobs."

With a national jobless rate of 8.5 percent and millions of long-term unemployed people losing hope, Republicans and Democrats will both try to convince voters in the November presidential and congressional elections that they hold the keys to an improving economy.

President Barack Obama and fellow Democrats want to position themselves as protectors of the poor and middle class and a bulwark against Republicans who want to enrich the already rich.

Republicans counter that a free-spending president who racked up about $5 trillion in government debt wants nothing more than to overregulate job-creating companies and drive the country into the same economic ditch into which Europe is peering.

Emerging from the retreat, House Republicans plan to tout the 30 pieces of legislation they passed last year aimed at spurring job growth. While it is unclear how many jobs those bills would have actually created, Republicans will complain the measures were killed by an uncooperative Democratic majority in the Senate.

'PARTY OF SMALL BUSINESS'

The strategy is clear -- to rebut Obama's concerted efforts to paint Republicans as obstructionist for refusing to pass his own $447 billion jobs bill.

The 30 jobs bills will become a staple of the Republican election rhetoric, but that could open the party to the same accusations they level against Obama - that they are simply rehashing old ideas instead of proposing new ones.

"We must be the party of small business," House Majority Leader Eric Cantor, the No. 2 House Republican, urged fellow lawmakers at the retreat, which was held behind closed doors.

"If you say it once an hour, it's not enough, if you say it every 15 minutes, it's still not enough," Cantor said.

Both parties cast themselves as the champions of small businesses, which economists say are the engines of U.S. economic growth and job creation.

Cantor, who has courted the often rebellious 85 first-term or "freshmen" congressmen, many of them small-government Tea Party activists, acknowledged their disappointment with the slow pace of change in Washington.

Reflecting on his party's year in control of the House - which ended with the U.S. budget being about the same size as when Republicans took power - Cantor told the rank and file, "We learned this year that progress must be more incremental than some of us would have liked."

FOOTBALL AND POLLSTERS

To rally his troops, Boehner recruited former Washington Redskins football coach Joe Gibbs, a three-time Super Bowl winner now involved in NASCAR auto racing, to deliver a pep talk.

"He talked about football and NASCAR and about his life. His message was about the value of teamwork. That is what we are all about, teamwork," said first-term Representative Chuck Fleischmann.

Teamwork is something Boehner's fractious caucus has struggled with since Republicans won control of the House in 2010. Zealous freshmen aligned with the conservative Tea Party movement repeatedly frustrated the speaker's efforts to negotiate compromises with Democrats, raising questions from some about his effectiveness as a leader.

In Baltimore, some of the second-guessing about Boehner's decision-making continued, according to lawmakers who attended, but there was no overall discontent with his leadership.

So if the Republican message to voters this year is all about small business and job creation, the internal Republican message is party unity, something the party lacked in 2011.

"Every (Republican) leader ... talked about unity and working together, communicating to each other better. Unity, unity, unity," said Representative Lee Terry, a 14-year veteran.

The opposite of Republican unity was on display in the U.S. Capitol through much of last year, especially in November and December, as Obama and his Democrats pushed ahead with an extension of a tax cut for 160 million workers to help stimulate the economy.

It was a tax cut that Republicans were cool toward - partly because it was Obama's idea and partly because they had doubts about its effectiveness.

But as workers embraced having more money in their paychecks and economists warned against letting the year-old tax cut lapse, House Republicans fought with one another, first over whether to kill the tax cut and then over how to quell outrage from even the most conservative quarters that their delaying tactics would help re-elect Obama and give congressional Democrats a political boost in November.

Terry, a Nebraska lawyer who has been known to reach across the political aisle to get legislation moving, told reporters: "We've got to get on the same page here. We can't have what happened in December."

Former Republican Party Chairman Ed Gillespie delivered a simple message: "It's a tough year. You have to be ready."

Most political pundits think Democrats face an uphill battle

in November's elections to gain the 25 seats they need to return Democratic leader Nancy Pelosi to the House speaker's job. But Democrats are hoping to get within reach.

Pelosi, who grew up just blocks from where the Republican retreat was held and whose father was mayor of Baltimore, likely will likely do everything she can to poke holes in the new-found unity that Republicans say they forged in this blue-collar city.

(Additional reporting by Thomas Ferraro and David Lawder; Editing by Ross Colvin and Peter Cooney)

Source: http://us.rd.yahoo.com/dailynews/rss/uscongress/*http%3A//news.yahoo.com/s/nm/20120121/pl_nm/us_usa_congress_republicans

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