US ‘fiscal cliff’ talks go to wire

31 December 2012 Last updated at 03:27 ET

US Congressional leaders have one more day to stop steep tax rises and spending cuts, known as the “fiscal cliff”, after talks ended with no deal.

Senators will continue to seek a compromise deal on Monday to send to the House of Representatives.

Failure to reach agreement by 1 January could push the US back into recession.

President Barack Obama has blamed Republicans for the deadlock. He said their “overriding theme” was protecting tax breaks for the rich.

Fallback plan

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At the scene

Adam Blenford BBC News, Washington

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Few in the US capital could talk of anything but who would win Sunday’s must-win showdown. For most, that meant an NFL game between the Washington Redskins and the Dallas Cowboys; on Capitol Hill the stakes were somewhat higher.

Cliches and aphorisms abounded in the Senate corridors as reports spread of a breakdown in deal-making. “The fat lady hasn’t sung yet,” one Republican declared, obscured by the pack of reporters following him down the hallway. “These things always happen at the end,” said Chuck Schumer, a senior Democrat.

But it was the retiring senators, three days away from their final goodbyes, who spoke the most openly. Failure would “send a message worldwide that we don’t have the capacity to work across political aisles on critical issues”, said Olympia Snowe, Maine’s outgoing Republican.

“The world has gotten used to this so they are no longer shocked,” Ben Nelson, a retiring Nebraska Democrat said. “They see this as just more of the same and hope that one of these days maybe Congress will get its act together.”

Republicans and Democrats have been fighting for months over how to deal with the combination of automatic spending cuts and the expiration of Bush-era tax reductions at the new year.

Without an agreement, higher taxes will rise for virtually every working American and across-the-board cuts in government spending will kick in from Tuesday.

Analysts say this could significantly reduce consumer spending, leading the US economy to fall off the “fiscal cliff”.

After the latest round of intense negotiations in the Senate on Sunday the main sticking points reportedly include such key issues as the income threshold for higher tax rates and inheritance taxes.

If no agreement is reached on Monday, senators are expected to be given the chance to vote on a fallback plan proposed by President Obama.

That would renew tax cuts on earnings under $ 250,000 (£154,000) and extend unemployment benefits, but does not address the spending cuts.

Both the House and Senate are due to convene on Monday in a last-minute attempt to bridge the gap between the two sides. The Republican Speaker of the House, John Boehner, has insisted that the Senate act first.

The current stand-off has its roots in a failed 2011 attempt to tackle the government debt limit and budget deficit.

Republicans and Democrats agreed then to postpone difficult decisions on spending until the end of 2012.

Commentators say that even if a deal is reached, it will do little to reduce the original problem of the deficit and the government debt limit, raising the prospect of further political infighting early in the new year.

Parties divided

Senate Democratic leader Harry Reid and his Republican counterpart Mitch McConnell were locked in negotiations over the weekend.

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What is the fiscal cliff?

• On 1 January 2013, tax increases and huge spending cuts are due to come into force – the so-called fiscal cliff


• Deadline was put in place in 2011 to force president and Congress to agree ways to save money over the next 10 years


• Date coincides with expiry of Bush-era tax cuts, which would affect all income groups and many businesses


• Fear is that raising taxes while massively cutting spending will have a huge impact on households and businesses


• Experts believe it could push the US into recession, and have a global impact on growth

The two senators appeared to admit before the 15:00 deadline (20:00 GMT) that negotiations were at a standstill, with their two parties still divided over core issues.

However late on Sunday, Senate Republicans said they were dropping their proposal to slow the growth of Social Security payments. The plan – which would have led to lower benefits to pensioners and the disabled – had been fiercely resisted by Democrats.

Meanwhile Senator McConnell said he had asked Vice-President Joe Biden for help in breaking the deadlock late on Sunday.

“I’m concerned with the lack of urgency here. There’s far too much at stake,” he said. “There is no single issue that remains an impossible sticking point – the sticking point appears to be a willingness, an interest or courage to close the deal.”

In his interview with NBC’s Meet the Press, broadcast on Sunday, Mr Obama said the priority was to ensure taxes do not rise for middle-class families, saying that would “hurt our economy badly”.

“That’s something we all agree on. If we can get that done, that takes a big bite out of the ‘fiscal cliff’,” he said.

There is also debate over where to set the threshold for tax rises. Democrats say the Bush-era tax cuts should be extended for all Americans except the richest – those with annual earnings of more than $ 250,000 (£155,000).

Republicans – some of whom have pledged never to vote for increased taxes – say the deficit is a consequence of excessive government spending.

They want the tax threshold set higher, at around $ 400,000, and for revenue to be raised by economic growth and cuts in social security and other services states are legally bound to provide.

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Suspected US drone kills 3 al-Qaida men in Yemen

SANAA, Yemen (AP) — Three al-Qaida militants were killed in a suspected U.S. drone strike in southern Yemen, Yemeni security officials said, the fourth such attack this week and a sign attacks from unmanned aircraft are on the upswing in the country.

The officials said the three men were hit as they were riding in a Land Cruiser in el-Manaseh village on the outskirts of Radda in Bayda province. Dozens of local al-Qaida-linked fighters protested the drone strikes after traditional Islamic Friday prayers.

Earlier this week another suspected U.S. drone strike killed two militants in Radda itself, Yemeni security officials say, and seven were killed in two other strikes in the southeastern province of Hadramawt. Four suspected drone strikes a week is uncommon in Yemen.

According to statistics gathered by the Long War Journal before Saturday’s attacks, the United States “is known to have carried out 41 airstrikes” this year against al-Qaida in the Arabian Peninsula (AQAP), as the group’s branch in Yemen is known. That makes for an average of around three to four strikes per month.

The Journal, a product of the Foundation for Defense of Democracies that was founded by former U.S. officials, says that since December 2009, the CIA and the US military’s Joint Special Operations Command are known to have conducted at least 54 air and missile strikes inside Yemen, excluding Saturday’s suspected attack.

AQAP overran entire towns and villages — including Radda — last year by taking advantage of a security lapse during nationwide protests that eventually ousted the country’s longtime ruler. Backed by the U.S. military, Yemen’s army was able to regain control of the southern region but al-Qaida militants continue to launch deadly attacks on security forces that have killed hundreds.

Also on Saturday, two gunmen on a motorbike shot and killed an intelligence officer in the southeast, security officials said. They said that the officer, Mutea Baqutian, was on his way to work in Mukalla, capital of Hadramawt province, when the men stopped his car, gunned him down, and fled.

The government has blamed al-Qaida militants for similar assassinations of several senior military and intelligence officials this year. The bullet-riddled body of Major al-Numeiry Abdo al-Oudi, deputy director of the security department of al-Qitten in Hadramawt, was found in the town’s suburbs last week. He had been kidnapped earlier in the month.

All officials spoke on condition of anonymity according to regulations.

Meanwhile, Maj. Gen. Ahmed Seif, who is commander of Yemen’s central military region, said the Defense Ministry has deployed an infantry brigade in the northeastern province of Marib to stop armed tribesmen who maintain cordial ties with al-Qaida from attacking oil pipelines and power generating stations, as well as to counter al-Qaida militants.

State TV meanwhile aired a meeting between President Abed Rabbo Mansour Hadi and eight Yemeni sailors who were rescued last week by forces of Somalia’s semiautonomous Puntland region after being held for nearly three years by Somali pirates.

The Puntland government says that its forces captured the hijacked Panama-flagged MV Iceberg 1 on Sunday after a siege that lasted two weeks. They freed the eight Yemeni sailors together with five Indians, two Pakistanis, four Ghanaians, two Sudanese and a Filipino. The ship was hijacked March 29, 2010.

Hadi congratulated the eight sailors for their safety and ordered the government to compensate them for their suffering.

Eqbal Yassin, a relative of one of the freed sailors, told The Associated Press that the hijackers had allowed some sailors to phone their relatives and convey the pirates’ demand for $ 5 million ransom. He said he was told by his relative that the hijackers killed a Yemeni sailor who tried to escape. He gave no further details.

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Hot spots draw believers, but not doomsday

As the sun rose from time zone to time zone across the world on Friday, there was still no sign of the world’s end — but that didn’t stop those convinced that a 5,125-year Mayan calendar predicts the apocalypse from gathering at some of the world’s purported survival hot spots.

Many of the esoterically inclined expected a new age of consciousness — others wanted a party. But, in some places said to offer salvation from the end, fewer people showed up than officials had predicted — much to the disappointment of vendors hoping to sell souvenirs.

Here are some key places being marked by the fascination over doomsday rumors:

MEXICO

In an area of Mexico that was once the ancient Mayan heartland, spiritualists gathered in the darkness before dawn on Friday to prepare white clothes, drums, conch shells and incense. They believed the sunrise would herald the birth of a new and better age as a vast cycle in the Mayan calendar comes to an end.

Many people who came to Yucatan for the occasion were already calling it “a new sun” and “a new era.”

FRANCE

According to one rumor, a rocky mountain in the French Pyrenees will be the sole place on Earth to escape destruction. A giant UFO and aliens are said to be waiting under the mountain, ready to burst through and spirit those nearby to safety. But there is bad news for those seeking salvation: French gendarmes, some on horseback, blocked outsiders from reaching the Bugarach peak and its village of some 200 people.

Eric Freysselinard, head of local government, said the security forces had “partially stopped the new age enthusiasts as well as curious people from coming to the area.”

Meanwhile, some Bugarach residents dressed up like aliens, with tinfoil costumes and funnels and fake antenna on their heads, strolling around their village Friday to make light of the rumored UFO prophecy.

RUSSIA

Doomsday rumors have prompted some people across Russia to stock up on candles, water, canned foods and other non-perishable foods. The apocalypse has proven a good business, with some shops selling survival aid packages that include soap and vodka.

In Moscow, salvation has also been promised in the underground bunker for the former Soviet dictator Josef Stalin — with a 50 percent refund if nothing happens. An underground stay was originally priced at 50,000 rubles ($ 1,625) but dropped to 15,000 ($ 490) a week ahead of the feared end.

The bunker, located 65 meters (210 feet) below ground, was designed to withstand a nuclear attack. Now home to a small museum, it has an independent electricity supply, water and food — but no more room, because the museum has already sold out all 1,000 tickets.

BRITAIN

Hundreds of people have converged on Stonehenge for an “End of the World” party that coincides with the Winter Solstice.

Arthur Uther Pendragon, Britain’s best-known druid, said he was anticipating a much larger crowd than usual at Stonehenge this year. But he doesn’t agree that the world is ending, noting that he and fellow druids believe that things happen in cycles.

“We’re looking at it more as a new beginning than an end,” he said. “We’re looking at new hope.”

Meanwhile, end-of-days parties will be held across London on Friday. One event billed as a “last supper club” is offering a three-course meal served inside an “ark.”

SERBIA

Some Serbs are saying to forget that sacred mountain in the French Pyrenees. The place to be Friday is Mount Rtanj, a pyramid-shaped peak in Serbia already drawing cultists.

According to legend, the mountain once swallowed an evil sorcerer who will be released on doomsday in a ball of fire that will hit the mountain top. The inside of the mountain will then open up, becoming a safe place to hide as the sorcerer goes on to destroy the rest of the world. In the meantime, some old coal mine shafts have been opened up as safe rooms.

On Friday a New Age group called “The Spirit of Rtanj” was holding a conference there. Participants, however, said they expect not the end of time but the start of a new time cycle. Locals turned out to sell brandy and herbs.

“There will be no tragedy, no doomsday,” said resident Dalibor Jovic. “It was supposed to happen at 12:12 and I think that time has passed. So, we can now go on with our lives and be happy to be alive.”

TURKEY

A small Turkish village known for its wines, Sirince, has also been touted as the only place after Bugarach that would escape the world’s end. But on Friday journalists and security officials outnumbered cultists. This outcome disappointed local business people who had prepared a range of doomsday products to sell, including a specially labeled Doomsday wine and Turkish delight candy whose “best before” date was Dec. 21, 2012. One restaurant prepared a special “last meal” menu that included a “heaven kebab” and “forbidden fruit dessert.”

ITALY

Another spot said to be spared: Cisternino, a beautiful small town in southern Italy in an area of trulli, traditional dry stone huts with conical roofs. The notion that Cisternino could be a safe haven at world’s end derives from an Indian guru, Babaji, who said “Cisternino will become an island” at world’s end. His followers built a community in Cisternino centered on an ashram built in 1979. Hotel bookings are up this weekend.

Mayor Donato Baccaro told the AP that the beauty of the place has inspired many foreigners to live there. “This confirms that this place has a special energy,” he said.

CHINA

A fringe Christian group has been spreading rumors about the world’s impending end, prompting Chinese authorities to detain more than 500 people this week and seize leaflets, video discs, books and other material.

Those detained are reported to be members of the group Almighty God, also called Eastern Lightning, which preaches that Jesus has reappeared as a woman in central China. Authorities in the province of Qinghai say they are waging a “severe crackdown” on the group, accusing it of attacking the Communist Party and the government.

U.S.

Dozens of Michigan schools canceled classes for thousands of students to cool off rumored threats of violence and problems related to doomsday. The fears were exacerbated by the recent shooting at a Connecticut elementary school, which “changed all of us,” the school system in Genesee County said. “Canceling school is the right thing to do.”

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Associated Press writers Florent Bajrami in Bugarach, France; Mansur Mirovalev in Moscow; Peppino Ciraci in Cisternino, Italy; Suzan Fraser in Ankara, Turkey; Paisley Dodds in London; and Dejan Mladenovic in Mount Rtanj, Serbia, contributed to this report.

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Michigan hospital blazes trail in fight against fungal meningitis

CHICAGO (Reuters) – After his first day working at St Joseph Mercy Ann Arbor hospital’s newly created Fungal Outbreak Clinic, Dr David Vandenberg struggled to describe to his boss the enormity of what lay ahead. He settled on a line from the movie Jaws.

“We’re going to need a bigger boat,” Vandenberg told Dr Lakshmi Halasyamani, chief medical officer of the Michigan hospital, echoing the film’s local police chief after he first eyes a 25-foot (7.5-metre) killer shark.

The St Joseph Mercy clinic has been at the front line of the fight against one of the biggest ever U.S. outbreaks of fungal meningitis, a killer infection that has been traced to tainted steroid shots from a Massachusetts pharmacy.

So far, 620 Americans have developed serious infections related to the outbreak, including 367 cases of deadly meningitis, and 39 people have died. Of the 19 U.S. states affected, Michigan has been worst hit, handling more than one third of the total cases in the outbreak.

St Joseph Mercy – a 537-bed Catholic hospital located in Ypsilanti, on the doorstep of the University of Michigan – has treated 169 of the state’s 223 cases of infections that can cause meningitis, including 7 people who died.

At one point it was so overrun that 87 of its 537 beds, which are usually occupied by patients with cancer or heart ailments and the like, were occupied by patients with fungal meningitis and related infections.

Dr Tom Chiller, the fungal disease expert at the U.S. Centers for Disease Control and Prevention, who has been overseeing the outbreak, praised the work of the hospital in helping to limit deaths from the outbreak.

“They have been incredibly creative in dealing with these complicated patients,” he said.

In all, almost 14,000 people seeking relief from back and joint pain received injections from moldy steroid shots made at the now-bankrupt New England Compounding Center in Massachusetts before they were recalled in late September.

CDC experts initially feared death rates in the 40 to 50 percent range; instead, only about 6 percent of those infected have died, and the CDC credits the creative and dogged efforts of state and local health officials for keeping the death rates so low.

The first wave of the outbreak involved the most severe cases of meningitis – an inflammation of the membranes that cover the brain and spinal cord. But starting in mid-October, patients who had been recovering from meningitis were developing potentially fatal localized infections near the site where contaminated drug was injected to treat back or neck pain.

As they started seeing more cases of these local, secondary infections, the staff at St Joseph‘s devised a bold plan to screen all patients in their database looking for potential new infections that might have been missed in the first wave.

On December 20, the CDC issued an alert to doctors incorporating some of lessons learned by the efforts of doctors at St Joseph’s and other hospitals, calling for increased screening of patients who may be harboring localized infections.

A BEWILDERING FUNGI

Among the patients who developed secondary infections was Bonita Robbins, a 72-year-old retired nurse from Pinckney, Michigan, who received doses of the tainted drug at the Michigan Pain Specialists clinic in the nearby town of Brighton while seeking relief for lower-back pain.

The first shot brought some relief, the second did little to ease her aches, and the third was contaminated. In October, Robbins went to St Joseph’s with a severe headache, back pain and pain in her thighs.

She spent 37 days in the hospital taking two kinds of antifungal drugs.

Dr Anurag Malani, an infectious disease specialist treating Robbins, said the challenge with the outbreak was that there was no medical literature to fall back on.

“No one has ever seen anything of this magnitude related to fungal infections, ever,” he said.

Chiller said U.S. doctors had never treated meningitis caused by Exserohilum rostratum, the environmental mold causing most of the infections.

“It’s just a rare, rare cause of infection.” Seeing that mold in the meninges – membranes covering the brain and spinal cord – is “completely new.”

Initially, St Joseph’s Fungal Outbreak Clinic was started in order to coordinate the care of patients after their discharge, which included overseeing the administration of a complex regime of anti-fungal drugs.

It morphed into something bigger when some of its 53 patients with meningitis started returning with infections near the site in their back or neck where the contaminated drug was injected.

Then came a wave of patients like Robbins, who had been ruled out for meningitis with a spinal tap, but were still complaining of pain near their injection site.

GETTING THE ‘BIGGER BOAT’

“When it became obvious that the number of patients would be a much higher percentage than anticipated by the CDC, we expanded our clinic and started enlisting the help of several other hospitals,” Vandenberg said.

Many of the patients had spinal abscesses, an infection in the space between the outside covering of the spinal cord and the bones of the spine. Others developed arachnoiditis, an infection of nerves within the spinal canal.

The decision to screen all patients in the hospital database who might have received tainted injections was not taken at the recommendation of the CDC.

“That was our own decision,” said Vandenberg, a specialist in internal medicine overseeing the screening effort.

He admitted that the strategy was aggressive, but said that, especially early on, doctors feared the local infections might be precursors to meningitis, making catching them early a potentially life-saving move.

Excluding patients who had already been screened and those who had injections in areas other than the spine, the hospital targeted about 500 patients for MRI scans.

Most so far have had private insurance that covers the screening. For the uninsured, the hospital’s Patient Financial Services department has been helping them to apply for financial support.

“We did over 400 MRIs in about a 4-week period,” Vandenberg said. The hospital screened so many patients, in fact, that the state of Michigan sent in an emergency mobile MRI unit to help.

Vandenberg got the task of reading stacks of MRI reports, sometimes as many as 30 a day.

So far, about 20 percent of the MRIs have shown up as abnormal, meaning that patients have to come back for surgery and treatment.

Vandenberg makes all of those calls personally. Not all of them go smoothly. He likens the gravity of the conversation – learning you have a potentially deadly new disease that requires months of treatment with risky drugs – to telling someone they have cancer.

After one especially tough call, in which a heart patient feared he would not survive the surgery he would need to clear his infection, Vandenberg cracked.

“I started crying. I probably haven’t cried for 15 years.”

SIGNS OUTBREAK IS EASING

But at last, after months of onslaught, there are signs the outbreak is easing.

Attendance at the hospital’s daily support group has begun to taper off. And since the beginning of December, more than 50 patients with fungal infections have been discharged, while only 20 have been admitted, bringing the total number of fungus-related inpatient to 30.

Vandenberg nevertheless cautions that the outbreak is still far from over.

“Every single day of this screening program, we’re finding one or two cases that are abnormal and need to be admitted,” he said.

Vandenberg gave the CDC access to the clinic’s database so the agency could see how the effort turned out, and this month, the CDC issued the alert to doctors incorporating some of the results of the MRI screening program.

The alert warned that some patients who got tainted injections but did not develop meningitis may still be at risk of localized infections.

And it urged doctors to consider ordering an MRI for all patients who still have pain, even if the pain is similar to what sent them in for treatment in the first place.

Chiller said the United States had not yet reached the end of the outbreak.

“Unfortunately, with fungi, the incubation periods are so long and they can remain indolent. I’m definitely concerned that we’re going to continue to see more cases.”

(Reporting by Julie Steenhuysen; Editing by Jilian Mincer, Mary Milliken and David Brunnstrom)

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Most ‘spent less on Christmas’

30 December 2012 Last updated at 02:16 ET

A majority of consumers spent less on their Christmas shopping this year than they did in 2011, according to a survey by the consumers’ association Which?

Nearly half used credit cards, overdrafts and other borrowing to help fund their purchases, the survey of 2,100 people across the UK suggests.

Nine out of 10 agreed that they felt under pressure to spend too much during the festive season.

Just under half – 46% – used some form of debt to help them meet their bills.

Nearly a quarter claimed they would not otherwise have been able to afford their Christmas shopping.

Credit cards were the most popular form of borrowing, although a substantial proportion also relied on authorised overdrafts from their banks.

A majority reported they had found the Christmas period financially tougher than last year, and more than half of those questioned also said that they had cut back on their seasonal spending.

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Most of us like to splash out on family and friends at this time of year, so the news that millions of people have drastically cut back on Christmas spending or taken out loans to cover Christmas costs shows just how squeezed household budgets are right now”

End Quote Richard Lloyd Which?

However, the message from the retail industry so far is that Christmas sales were acceptable, and may have been a little higher than last year.

The survey suggested 54% of consumers expected their Christmas budgets to be even tighter next year.

The average amount put on credit was £301, while for those who went into their savings, the average was £380.

Around 12% of consumers used authorised overdrafts, 8% spent on store cards and 5% simply borrowed money from friends or family.

Nearly half (48%) of those asked said they did not buy as much food and 45% bought less high quality food than last year because of increasing food prices.

Which? executive director Richard Lloyd said: “Most of us like to splash out on family and friends at this time of year, so the news that millions of people have drastically cut back on Christmas spending or taken out loans to cover Christmas costs shows just how squeezed household budgets are right now.

“It also shows how far we are from a consumer spending-led economic recovery.”

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C. African Republic neighbors to send help

BANGUI, Central African Republic (AP) — Central African Republic’s neighbors agreed on Friday to dispatch a contingent of soldiers to intervene in the troubled country, where a coalition of rebel groups is seeking to overthrow the president of nearly a decade.

Representatives from the 10-nation Economic Community of Central African States meeting in Gabon, though, did not specify how many troops they could contribute nor did they outline how quickly the military assistance would arrive.

President Francois Bozize had pleaded for international help Thursday as fears grew that the rebels would attack the capital of 600,000 next. Former colonial power France already has said that its forces in the country are there to protect French interests and not Bozize’s government.

“We are now thinking about the arrangements to make so that this mission can be deployed as quickly as possible, said Gabon’s Foreign Affairs Minister Emmanuel Issoze-Ngondet.

The announcement came as military officials in Central African Republic reported renewed fighting in the third largest city of Bambari, which fell under rebel control five days ago.

The military said it had taken country of the town, located about 385 kilometers (240 miles) from the capital, a claim that could not be immediately corroborated.

The ongoing instability prompted the United States to evacuate about 40 people, including the U.S. ambassador, on an U.S. Air Force plane bound for Kenya, said U.S. officials who insisted on anonymity because they weren’t authorized to discuss the operation.

The United States has special forces troops in the country who are assisting in the hunt for Joseph Kony, the fugitive rebel leader of another rebel group known as the Lord’s Resistance Army. The U.S. special forces remain in the country, the U.S. military’s Africa Command said from its headquarters in Stuttgart, Germany.

The evacuation of the U.S. diplomats came in the wake of criticism of how the U.S. handled diplomatic security before and during the attack on its consulate in Benghazi, Libya, on Sept. 11. The ambassador and three other Americans were killed in that attack.

French diplomats are staying despite a violent demonstration outside its embassy earlier this week. Dozens of protesters, angry about a lack of help against rebel forces, threw rocks at the French Embassy in Bangui and stole a French flag. French Foreign Minister Laurent Fabius spoke via phone with Bozize, asking him to take responsibility for the safety of French nationals and diplomatic missions in Central African Republic.

Bozize on Thursday urgently called on former colonial ruler France and other foreign powers to help his government fend off rebels who are quickly seizing territory and approaching the capital. But French President Francois Hollande said France wants to protect its interests in Central African Republic and not Bozize’s government.

This landlocked nation of some 4.4 million people has suffered decades of army revolts, coups and rebellions since gaining independence in 1960 and remains one of the poorest countries in the world. The current president himself came to power nearly a decade ago in the wake of a rebellion in this resource-rich yet deeply poor country.

Speaking to crowds in Bangui, a city of some 600,000, Bozize pleaded with foreign powers to do what they could. He pointed in particular to France. About 200 French soldiers are already in the country, providing technical support and helping to train the local army, according to the French defense ministry.

“France has the means to stop (the rebels) but unfortunately they have done nothing for us until now,” Bozize said.

Bozize’s government earlier reached out to longtime ally Chad, which pledged to send 2,000 troops to bolster Central African Republic’s own forces.

The rebels behind the most recent instability signed a 2007 peace accord allowing them to join the regular army, but insurgent leaders say the deal wasn’t fully implemented. The rebel forces have seized at least 10 towns across the sparsely populated north of the country, and residents in the capital now fear the insurgents could attack at any time, despite assurances by rebel leaders that they are willing to engage in dialogue instead of attacking Bangui.

The rebels have claimed that their actions are justified in light of the “thirst for justice, for peace, for security and for economic development of the people of Central African Republic.”

Despite Central African Republic’s wealth of gold, diamonds, timber and uranium, the government remains perpetually cash-strapped.

The rebels also are demanding that the government make payments to ex-combatants, suggesting that their motives may also be for personal financial gain.

Paris is encouraging peace talks between the government and the rebels, with the French Foreign Ministry noting in a statement that negotiations are due to “begin shortly in Libreville (Gabon).” But it was not immediately clear if any dates have been set for those talks.

The U.N.’s most powerful body condemned the recent violence and expressed concern about the developments.

“The members of the Security Council reiterate their demand that the armed groups immediately cease hostilities, withdraw from captured cities and cease any further advance towards the city of Bangui,” the statement said.

___

Goma reported from Libreville, Gabon. Associated Press writers Krista Larson in Dakar, Senegal; and Jason Straziuso in Nairobi, Kenya contributed to this report.

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Stahl arrested for investigation of lewd conduct

LOS ANGELES (AP) — Los Angeles police say actor Nick Stahl has been arrested for investigation of lewd conduct.

The 33-year-old “Terminator 3″ star was arrested about 8 p.m. Thursday on Hollywood Boulevard. He was booked on a misdemeanor count of lewd conduct and released from custody.

The Los Angeles Times reports (http://lat.ms/YU6uBO) that Stahl was arrested at an adult movie shop during a routine undercover police operation.

In May, Stahl had been reported missing by his wife, but he later turned up.

Stahl was a child star who performed in the 1993 film “The Man Without a Face.” He also has appeared in the 2003-2005 HBO series “Carnivale’” and starred in “Mirrors 2″ in 2010. An email seeking comment from his publicist was not immediately returned Friday.

___

Information from: Los Angeles Times, http://www.latimes.com

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Humidity Levels Explain U.S. Flu Winter Peak

Title Post: Humidity Levels Explain U.S. Flu Winter Peak
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Obama ‘optimistic’ on cliff deal

28 December 2012 Last updated at 19:11 ET

US President Barack Obama: “An agreement is being discussed as we speak”

US President Barack Obama says he is “modestly optimistic” that a deal to avoid the “fiscal cliff” is possible, after a last-ditch White House meeting.

Mr Obama said Senate leaders were working to craft a bill that could win approval in both chambers of Congress.

But if a compromise was not reached, the president said he would ask for a quick vote on preventing tax rises.

Congress has only four days to reach an agreement before across-the-board tax rises and spending cuts take effect.

Analysts say sliding over the so-called “cliff” could tip the US into recession and set back the global economic recovery.

If Senate majority leader Harry Reid and minority leader Mitch McConnell do not work out a deal, Mr Obama is seeking a vote to prevent tax rises on incomes up to $ 250,000 (£150,000) and ensure unemployment insurance is continued.

He described that as the “bare minimum” Congress should get done before 1 January.

“The hour for immediate action is here, it is now,” Mr Obama said.

‘Imperfect’ deal

Earlier on Friday, Mr Obama met Mr Reid, Mr McConnell, House Speaker John Boehner and House minority leader Nancy Pelosi at the White House for just over an hour.

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“Start Quote

“The American people are watching what we do here – obviously their patience is already thin”

End Quote Barack Obama

Mr McConnell and Mr Reid said they were entering talks shortly after the meeting, and gave relatively upbeat assessments on their task.

Mr McConnell said he was “hopeful and optimistic” that he could present a comprise to his caucus by Sunday, just over 24 hours before the deadline.

His Democratic counterpart said he would “do everything I can” to make the deal happened.

But Mr Reid cautioned that “whatever we come up with is going to be imperfect”.

The renewed effort towards a Senate deal that could pass both chambers comes after much of the focus in negotiations rested on House Speaker John Boehner.

An alternative plan proposed by Mr Boehner – which would have seen taxes rise only on those earning over $ 1m – failed in the House of Representatives late last week.

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What is the fiscal cliff?

• On 1 January 2013, tax increases and huge spending cuts are due to come into force – the so-called fiscal cliff


• Deadline was put in place in 2011 to force president and Congress to agree ways to save money over the next 10 years


• Fear is that raising taxes while massively cutting spending will have huge impact on households and businesses


• Experts believe it could push the US into recession, and have a global impact on growth

Mr Boehner has called the lower chamber into session on Sunday. A staff member in the house speaker’s office told Reuters that the House would consider Senate legislation.

“The Speaker told the president that if the Senate amends the House-passed legislation and sends back a plan, the House will consider it – either by accepting or amending,” the unnamed aide said.

Mr Obama’s plans to increase taxes on the wealthiest Americans have remained a point of division between the two parties since he won re-election in November.

Many Republicans oppose new taxes as a matter of principle, and are demanding cuts to what they see as deficit-inflating public spending, putting at risk healthcare and welfare benefit schemes popular with Democrats.

During the news conference on Friday, Mr Obama said any last minute action on tax rises would form the groundwork for further negotiations in the new year.

“The American people are watching what we do here,” he said. “Obviously their patience is already thin.”

Cuts and benefits

The term fiscal cliff refers to the combination of almost $ 600bn (£370bn) of tax rises and spending cuts due to come into force on 1 January if Congress does not pass new legislation.

Sweeping tax cuts passed during the presidency of George W Bush will expire, eventually affecting people of all income levels, and many businesses.

Other tax cuts and benefits set to expire include:

• A 2010 payroll tax cut, the expiration of which would prompt immediate wage-packet cuts

• Benefits for the long-term unemployed

• Compensation for doctors treating patients on federal healthcare programmes

• Inheritance taxes are also likely to be affected if no deal is reached.

In addition, spending cuts mandated by a law passed to break a previous fiscal impasse in Congress will come into force, affecting both military and domestic budgets.

The cuts are expected to affect federal government departments and the defence sector, as well as hitting unemployment insurance and veterans’ support.

BBC News – Business

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C. African Republic president seeks foreign help

BANGUI, Central African Republic (AP) — The president of Central African Republic on Thursday urgently called on France and other foreign powers to help his government fend off rebels who are quickly seizing territory and approaching the capital, but French officials declined to offer any military assistance.

The developments suggest Central African Republic could be on the brink of another violent change in government, something not new in the history of this resource-rich, yet deeply impoverished country. The current president, Francois Bozize, himself came to power nearly a decade ago in the wake of a rebellion.

Speaking to crowds in Bangui, a city of some 600,000, Bozize pleaded with foreign powers to do what they could. He pointed in particular to France, Central African Republic’s former colonial ruler.

About 200 French soldiers are already in the country, providing technical support and helping to train the local army, according to the French defense ministry.

“France has the means to stop (the rebels) but unfortunately they have done nothing for us until now,” Bozize said.

French President Francois Hollande said Thursday that France wants to protect its interests in Central African Republic and not Bozize’s government. The comments came a day after dozens of protesters, angry about a lack of help against rebel forces, threw rocks at the French Embassy in Bangui and stole a French flag.

Paris is encouraging peace talks between the government and the rebels, with the French Foreign Ministry noting in a statement that negotiations are due to “begin shortly in Libreville (Gabon).” But it was not immediately clear what, if any, dates have been set for those talks.

French Foreign Minister Laurent Fabius, meanwhile, spoke via phone with Bozize, asking the president to take responsibility for the safety of French nationals and diplomatic missions in Central African Republic.

U.S. officials said Thursday the State Department would close its embassy in the country and ordered its diplomatic team to leave. The officials spoke on condition of anonymity because they were unauthorized to discuss the evacuation publicly.

The United Nations Security Council issued a press statement late Thursday reiterating its concern about the situation in the country and condemned the attacks.

“The members of the Security Council reiterate their demand that the armed groups immediately cease hostilities, withdraw from captured cities and cease any further advance towards the city of Bangui,” the statement reads.

Bozize’s government earlier reached out to longtime ally Chad, which pledged to send 2,000 troops to bolster Central African Republic’s own forces. But it was unclear if the Chadian troops had all arrived, and even then, it is far from certain if the combined government forces could withstand rebel attacks.

At least four different rebel groups are involved, though their overall numbers could not immediately be confirmed.

Central African Republic, a landlocked nation of some 4.4 million people, is roughly the size of France. It has suffered decades of army revolts, coups and rebellions since gaining independence in 1960 and remains one of the poorest countries in the world.

The rebels behind the most recent instability signed a 2007 peace accord allowing them to join the regular army, but insurgent leaders say the deal wasn’t fully implemented.

Already, the rebel forces have seized at least 10 towns across the sparsely populated north of the country, and residents in the capital now fear the insurgents could attack at any time, despite assurances by rebel leaders that they are willing to engage in dialogue instead of attacking Bangui.

The rebels have claimed that their actions are justified in light of the “thirst for justice, for peace, for security and for economic development of the people of Central African Republic.”

Despite Central African Republic’s wealth of gold, diamonds, timber and uranium, the government remains perpetually cash-strapped. Filip Hilgert, a researcher with Belgium-based International Peace Information Service, said rebel groups are unhappy because they feel the government doesn’t invest in their areas.

“The main thing they say is that the north of the country, and especially in their case the northeast, has always been neglected by the central government in all ways,” he said.

But the rebels also are demanding that the government make payments to ex-combatants, suggesting that their motives may also be for personal financial gain.

Bozize, a former military commander, came to power in a 2003 rebel war that ousted his predecessor, Ange-Felix Patasse. In his address Thursday, Bozize said he remained open to dialogue with the rebels, but he also accused them and their allies of financial greed.

Those allies, he implied, are outside Central African Republic.

“For me, there are individuals who are being manipulated by an outside hand, dreaming of exploiting the rich Central African Republic soil,” he said. “They want only to stop us from benefiting from our oil, our diamonds, our uranium and our gold.”

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Larson reported from Dakar, Senegal. Associated Press writer Sarah DiLorenzo in Paris contributed to this report.

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