N. Korea displays Kim Jong Il a year after death






PYONGYANG, North Korea (AP) — North Korea unveiled the embalmed body of Kim Jong Il, still in his trademark khaki jumpsuit, on the anniversary of his death Monday as mourning mixed with pride over a recent satellite launch that was a long-held goal of the late authoritarian leader.


Kim lies in state a few floors below his father, national founder Kim Il Sung, in the Kumsusan mausoleum, the cavernous former presidential palace. Kim Jong Il is presented lying beneath a red blanket, a spotlight shining on his face in a room suffused in red.






Wails echoed through the chilly hall as a group of North Korean women sobbed into the sashes of their traditional Korean dresses as they bowed before his body. The hall bearing the glass coffin was opened to select visitors — including The Associated Press — for the first time since his death.


North Korea also unveiled Kim’s yacht and his armored train carriage, where he is said to have died. Among the personal belongings featured in the mausoleum are the parka, sunglasses and pointy platform shoes he famously wore in the last decades of his life. A MacBook Pro lay open on his desk.


North Koreans paid homage to Kim and basked in the success of last week’s launch of a long-range rocket that sent a satellite named after him to space.


The launch, condemned in many other capitals as a violation of bans against developing its missile technology, was portrayed not only as a gift to Kim Jong Il but also as proof that his young son, Kim Jong Un, has the strength and vision to lead the country.


The elder Kim died last Dec. 17 from a heart attack while traveling on his train. His death was followed by scenes of North Koreans dramatically wailing in the streets of Pyongyang, and of the 20-something son leading ranks of uniformed and gray-haired officials through funeral and mourning rites.


The mood in the capital was decidedly more upbeat a year later, with some of the euphoria carrying over from last Wednesday’s launch. The satellite bears one of Kim Jong Il’s nicknames, Kwangmyongsong, or “Lode Star,” a moniker given to him at birth according to the official lore.


Cameras were not allowed inside the mausoleum, and state media did not release any images of Kim Jong Il’s body.


With the death anniversary came a hint that Kim Jong Un himself might soon be a father.


His wife, Ri Sol Ju, was seen on state TV with what appeared to be a baby bump as she walked slowly next to her husband at the mausoleum, where they bowed to statues of Kim’s father and grandfather.


There is no official word from Pyongyang about a pregnancy. In addition, Ri is shown wearing a billowing traditional Korean dress in black that makes it difficult to know for sure.


North Koreans are reluctant to discuss details of the Kim family that have not been released by the state. Still there are rumors even in Pyongyang about whether the country’s first couple is expecting.


To honor Kim’s father, North Koreans stopped in their tracks at midday and bowed their heads as the national flag fluttered at half-staff along streets and from buildings.


Pyongyang construction workers took off their yellow hard hats and bowed at the waist as sirens wailed across the city for three minutes.


Tens of thousands of North Koreans gathered in the frigid plaza outside, newly transformed into a public park with lawns and pergolas. Geese flew past snow-tinged firs and swans dallied in the partly frozen moat that rings the vast complex in Pyongyang’s outskirts.


“Just when we were thinking how best to uphold our general, he passed away,” Kim Jong Ran said at the plaza. “But we upheld leader Kim Jong Un. … We regained our strength and we are filled with determination to work harder for our country.”


Speaking outside the mausoleum, renamed the Kumsusan Palace of the Sun, the military’s top political officer, Choe Ryong Hae, said North Korea should be proud of the satellite, calling it “a political event with great significance in the history of Korea and humanity.”


Much of the rest of the world, however, was swift in condemning the launch, which was seen by the United States and other nations as a thinly disguised cover for testing missile technology that could someday be used for a nuclear warhead.


The test, which the U.N. Security Council said violated a ban on launches using ballistic missile technology, underlined Kim Jong Un’s determination to continue carrying out his father’s hardline policies even if they draw international condemnation.


Washington said Monday it has no option but to seek to isolate Pyongyang further.


“What’s left to us is to continue to increase pressure on the North Korean regime and we are looking at how to best to do that, both bilaterally and with our partners going forward until they (North Korea) get the message. We are going to further isolate this regime,” U.S. State Department spokeswoman Victoria Nuland said.


Some outside experts worry that Pyongyang’s next move will be to press ahead with a nuclear test in the coming weeks, a step toward building a warhead small enough to be carried by a long-range missile.


Despite inviting further isolation for his impoverished nation and the threat of stiffer sanctions, Kim Jong Un won national prestige and clout by going ahead with the rocket launch.


At a memorial service on Sunday, North Korea’s top leadership not only eulogized Kim Jong Il, but also praised his son. Kim Yong Nam, president of the Presidium of North Korea’s parliament, called the launch a “shining victory” and an emblem of the promise that lies ahead with Kim Jong Un in power.


The rocket’s success also fits neatly into the narrative of Kim Jong Il’s death. Even before he died, the father had laid the groundwork for his son to inherit a government focused on science, technology and improving the economy. And his pursuit of nuclear weapons and the policy of putting the military ahead of all other national concerns have also carried into Kim Jong Un’s reign.


In a sign of the rocket launch’s importance, Kim Jong Un invited the scientists in charge of it to attend the mourning rites in Pyongyang, according to state media.


The reopening of the mausoleum on the anniversary of the leader’s death follows tradition. Kumsusan, the palace where his father, Kim Il Sung, served as president, was reopened as a mausoleum on the anniversary of his death in 1994.


___


Associated Press writers Hyung-jin Kim in Seoul, South Korea, and Matthew Pennington in Washington contributed to this report. Follow Jean Lee, AP’s bureau chief for Pyongyang and Seoul, at www.twitter.com/newsjean.


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What If Nothing or Nobody is to Blame for Adam Lanza? Guns, Video Games, Autism or Authorities






What if there is nobody or nothing to blame for Adam Lanza‘s heinous acts? Other than Lanza, of course.


What if school security and the school psychiatrist kept an eye on Lanza since his freshman year? The Wall Street Journal has a compelling narrative about the red flags addressed.






What if he had a form of autism that has little or no link to violent behavior? Lanza may have had Asperger’s syndrome but, even so, that is not a cause.


(RELATED: How To Make Sense of America’s Confusing Patchwork of Gun Control Laws)


What if it’s too simple to lay the massacre at the feet of the gun lobby? Reader Larry Kelly tweets that shaming Aspies “makes about as much sense at stigmatizing the NRA. Pick an enemy … any enemy. Let outrage and fear rule.”


What if Lanza wasn’t provoked by video games? David Axelrod, a close friend an adviser of President Obama, tweeted last night: “In NFL post-game: an ad for shoot ‘em up video game. All for curbing weapons of war. But shouldn’t we also quit marketing murder as a game.”


When I asked whether he was laying groundwork for a White House initiative, Axelrod said no: “Just one man’s observation.” A senior administration official, speaking on condition of anonymity, said today that Axelrod was not a stalking horse for Obama on this issue.


What if Lanza’s mother did everything she could, short of keeping her guns out her adult son’s reach? What if he wasn’t bullied?


What if there is nobody or nothing to blame? Would that make this inexplicable horror unbearable?


What if we didn’t rush to judgement? What if we didn’t waste our thoughts, prayers and actions on assigning blame for the sake of mere recrimination? What if we calmly and ruthlessly learned whatever lessons we can from the massacre — and prevented the next one?


What if it wasn’t one thing, but everything, that set off Lanza?


Gaming News Headlines – Yahoo! News





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Gabby Douglas, Adele among brightest young stars -Forbes magazine






NEW YORK (Reuters) – Fashion designer Carly Cushnie, actress Kate McKinnon and videogame creator Kim Swift may not be household names yet, but they are destined to do great things and will be tomorrow’s young stars, Forbes magazine said on Monday.


Along with Olympic Gold medalist gymnast Gabby Douglas, rapper Wiz Khalifa and researcher Josh Sommer, they have been chosen by the magazine for its “30 Under 30″ list of top achievers under 30 years old in their fields.






They are considered the top 30 achievers in 15 categories ranging from education, energy, music, science and healthcare to sports, technology games and apps and marketing.


“This is a celebration of youthful ambition and success. These are really amazing people and they are doing amazing things. It makes you very hopeful about the world,” Michael Noer, the executive editor of Forbes, said in an interview.


Many on the list, including singers Bruno Mars and Justin Bieber, as well as actresses Ashley and May Kate Olsen and fashion designer Alexander Wang, the newly appointed creative director at the French fashion house Balenciaga, are already well known.


Some are returnees to the list that was launched last year – like British singer and new mother Adele, the 24-year-old multiple Grammy Award winner, and American entrepreneur Kevin Systrom.


Noer said there has been a 60 percent turnover since 2011, so there are plenty of new faces on the list drawn up by Forbes staff and industry experts.


“I think there are a lot of interesting names on the list,” he said.


In energy, it is 28-year-old Leslie Dewan, a Massachusetts Institute of Technology graduate and co-founder and chief science officer of Transatomic Power.


“They are developing a new type of nuclear reactor that uses nuclear waste,” said Noer.


In music, Pittsburgh-bred Khalifa, 25, topped the list. Swift, the 29-year-old creative director at Airtight Games, was noted for creating hit videogame Portal.


Kate McKinnon, the actress from ‘Saturday Night Live’ who just joined in April is our Hollywood selection. She is being hailed as the next Tina Fey,” Noer said.


Sommer, the executive director of the Chordoma Foundation which raises funds for research into chordoma, a rare, slow-growing bone cancer most commonly found in the spine, is another young achiever, according to Forbes.


Sommer created the foundation with his mother after being diagnosed with the disease while a student at Duke University in North Carolina.


“He was diagnosed with a rare type of bone cancer, dropped out of school to find a cure and he has made some progress,” said Noer.


The full list will be published in the January 21 issue of Forbes and can also be found at www.forbes.com/under 30 .


(Reporting by Patricia Reaney; editing by Paul Casciato and Mohammad Zargham)


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Boehner opens door to tax hikes, shifts U.S. fiscal cliff talks






WASHINGTON (Reuters) – U.S. House of Representatives Speaker John Boehner‘s offer to accept a tax rate increase for the wealthiest Americans knocks down a key Republican road block to a deal resolving the year-end “fiscal cliff.”


The question now boils down to what President Barack Obama offers in return. Such major questions, still unanswered so close to the end of the year suggest, however, that no spending and tax agreement is imminent.






A source familiar with the Obama-Boehner talks confirmed that Boehner proposed extending low tax rates for everyone who has less than $ 1 million in net annual income, meaning tax rates would rise on all above that line.


Under current law, the 35 percent top tax rate is scheduled to expire on January 1, and would automatically go to 39.6 percent. Boehner’s proposal would allow that rate to rise as scheduled at a threshold of $ 1 million – putting it back to where it was during the Clinton administration.


The White House has not accepted the proposal and the source could not confirm any additional talks were held on Sunday between Obama and Boehner.


With just over two weeks before the fiscal cliff’s $ 600 billion in automatic tax hikes and spending cuts are triggered, threatening a new recession, there is little time to craft a comprehensive deal that will satisfy both Democrats and Republicans.


Until the latest Republican offer, made on Friday, Boehner had insisted on extending all of the Bush era’s lower tax rates, resisting Obama’s demand to let the marginal rates rise on income above $ 250,000. A rising chorus of business executives also had urged Republicans to agree to this.


Some lawmakers and congressional aides had predicted that Republicans, once serious negotiations began, might try to raise the $ 250,000 threshold, say to $ 500,000 or $ 1 million. They also speculated that Republicans, if forced into a tax rate hike on the upper-income groups, might seek a smaller increase, say to around 37 percent.


Although the White House has not accepted Boehner’s gambit, it could push negotiations away from entrenched, ideological positions.


“Boehner has now accepted the premise of higher rates. So now we’re just arguing over details. I think it’s a significant step,” said Greg Valliere, chief political strategist at Potomac Research Group.


A framework deal spelling out tax revenue and spending cut targets to be finalized in the new year could be possible, Valliere said.


“Boehner’s offer to allow tax rates to go up for taxpayers earning over $ 1 million fundamentally transforms fiscal cliff negotiations,” added Sean West, U.S. policy analyst at Eurasia Group, a political risk consultancy.


In a note to clients, West wrote that it signals, significantly, that Boehner ultimately believes a deal to avoid the cliff is still possible.


“The political burden is now shifted back to the president, who must be willing to take on his party in order to get a deal Boehner can ultimately pass. We do not think the president will overreach: Obama will work with Boehner to get to a deal.”


There are still several critical elements to a deal besides a tax rate increase on the wealthy, including Republican demands to cut spending on social programs.


Changes to the expensive Medicare and Medicaid health care programs for the elderly and the poor could be central to any deal, which must also include an increase in the federal debt limit needed by the end of February.


DEMANDS SOCIAL PROGRAM CUTS


Boehner conditioned his tax rate increase offer on Obama’s agreement to cuts in social program spending, often called entitlements.


Many Republican lawmakers want to raise the eligibility age for Medicare to 67 from 65. They also want to link Medicare to the income of recipients, making wealthier retirees pay more for their care.


Currently, Medicare does have some means testing, charging higher premiums for coverage of doctors visits and prescription drugs to individuals earning more than $ 85,000 and married couples earning more than $ 170,000. Only about 5 percent of recipients pay these higher premiums.


Thus far, Obama has offered only about $ 400 billion in 10-year entitlement savings, mostly through small adjustments in reining in health care costs – not fundamental changes such as raising the eligibility age.


And just as Boehner faces opposition in his own party to raising any tax rates, Obama faces opposition to cuts to Medicare, Medicaid and Social Security from Democrats, who pledged in election campaigns they would protect these programs.


A major bloc of congressional Democrats has already signaled they will not accept major cutbacks in Medicare as part of any fiscal cliff deal.


House Minority Leader Nancy Pelosi of California and Maryland Representative Chris Van Hollen of Maryland are among the high ranking Democrats in the House who have come out forcefully in recent days against raising the age for eligibility for Medicare to 67 years of age.


“Given the level of savings that is being talked about from Medicare, you can’t get it all from providers and drug makers,” said Paul Heldman, an analyst at Potomac Research, which tracks Washington policy for investors.


“So opponents of raising the eligibility age have reason to believe beneficiaries will take some sort of hit if a mega-deal is cut,” he said.


If Republicans are not successful in securing entitlement program cuts in exchange for a tax-rate increase on the wealthy, they are adamant about using a debt-limit increase as leverage to overhaul Social Security and Medicare.


The U.S. Treasury expects to reach its $ 16.4 trillion statutory debt cap by year-end, and will exhaust its remaining borrowing capacity around mid-February, risking a potential default.


Louisiana Republican Representative John Fleming, a member of the conservative Tea Party caucus who has never voted to increase the debt ceiling, said he would support a debt limit hike if it were part of a deal to make Medicare and Social Security sustainable.


The pace of activity could pick up the coming week.


House Republicans were told to prepare for a possible weekend session next week, potentially interrupting travel plans for the long Christmas holiday weekend.


House Majority Leader Eric Cantor scheduled “possible legislation related to expiring provisions of law,” a reference to the expiring tax cuts, for the end of the week, portending a weekend session. Cantor has said the House would meet through the Christmas holidays and beyond.


(This story was fixed to correct current top tax rate to 35 percent from 36 percent)


(Additional reporting by Thomas Ferraro, Richard Cowan and Kim Dixon; Editing by Fred Barbash, Todd Eastham and Jackie Frank)


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Warning over growing fuel poverty







Around 300,000 extra households could be forced into fuel poverty within weeks, according to a lobby group.






The Fuel Poverty Advisory Group has called on Prime Minister David Cameron to tackle what it describes as a “spiralling” problem.


Energy prices have risen by 7% on average this year, taking the average annual direct debit bill to £1,247.


A household is considered to be in fuel poverty if more than 10% of its income is spent on home heating.


The Fuel Poverty Advisory Group, which is funded by the Department of Energy, estimates that nine million people could meet that criteria by 2016, and that 300,000 additional homes will be added to that figure this winter alone.


Continue reading the main story

The plight of the fuel poor has never been more serious”



End Quote Derek Lickorish FPAG


Consumer groups want the government to use some of the £4bn in annual carbon taxes set to be collected to help tackle this issue – including a more ambitious programme of home insulation.


From next year energy firms will be required to cut the number of different tariffs on offer to four, and place customers on the cheapest available price in their chosen tariff.


The advisory group said the government should create a cross-departmental body to ensure a “joined-up approach” as well as creating a new duty for local authorities to meet fuel poverty targets.


It also said an urgent impact assessment of welfare reforms on fuel poverty was needed.


‘Toxic cocktail’


“With a cold winter, welfare reforms cutting incomes, and all at a time of austerity measures and other rising household costs, the plight of the fuel poor has never been more serious,” said Derek Lickorish, chairman of the FPAG.


“Millions are living in misery due to high energy bills. Yet time is running out for the government to fuel poverty-proof the homes of those on the lowest incomes.


“A toxic cocktail of rising wholesale prices, the high cost of energy reforms and cuts in incomes for many households means fuel poverty levels are set to sky rocket without radical action.”


Last month energy regulator Ofgem and the government outlined proposals for simplifying the energy market.


Under government plans, consumers will be given the chance to choose from one of four types of tariff. These must include a variable rate deal and one with a fixed rate over a certain period of time. Others may include a green tariff or similar, whatever the supplier thinks is competitive.


Suppliers must offer just one price for each of the four tariffs. Customers will be put on the cheapest price of the tariff of their choice.


BBC News – Business





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Egyptians hand Islamists narrow win in constitution vote






CAIRO (Reuters) – Egyptians voted in favor of a constitution shaped by Islamists but opposed by other groups who fear it will divide the Arab world’s biggest nation, officials in rival camps said on Sunday after the first round of a two-stage referendum.


Next week’s second round is likely to give another “yes” vote as it includes districts seen as more sympathetic towards Islamists, analysts say, meaning the constitution would be approved.






But the narrow win so far gives Islamist President Mohamed Mursi only limited grounds for celebration by showing the wide rifts in a country where he needs to build a consensus for tough economic reforms.


The Muslim Brotherhood‘s party, which propelled Mursi to office in a June election, said 56.5 percent backed the text. Official results are not expected until after the next round.


While an opposition official conceded the “yes” camp appeared to have won the first round, the opposition National Salvation Front said in a statement that voting abuses meant a rerun was needed – although it did not explicitly challenge the Brotherhood‘s vote tally.


Rights groups reported abuses such as polling stations opening late, officials telling people how to vote and bribery. They also criticized widespread religious campaigning which portrayed “no” voters as heretics.


A joint statement by seven human rights groups urged the referendum’s organizers “to avoid these mistakes in the second stage of the referendum and to restage the first phase again”.


Mursi and his backers say the constitution is vital to move Egypt’s democratic transition forward. Opponents say the basic law is too Islamist and tramples on minority rights, including those of Christians who make up 10 percent of the population.


The build-up to Saturday’s vote was marred by deadly protests. Demonstrations erupted when Mursi awarded himself extra powers on November 22 and then fast-tracked the constitution through an assembly dominated by his Islamist allies.


However, the vote passed off calmly with long queues in Cairo and several other places, though unofficial tallies indicated turnout was around a third of the 26 million people eligible to vote this time. The vote was staggered because many judges needed to oversee polling staged a boycott in protest.


The opposition had said the vote should not have been held given the violent protests. Foreign governments are watching closely how the Islamists, long viewed warily in the West, handle themselves in power.


“It’s wrong to have a vote or referendum with the country in the state it is – blood and killings, and no security,” said Emad Sobhy, a voter who lives in Cairo. “Holding a referendum with the country as it is cannot give you a proper result.”


INCREASINGLY DIVIDED


As polls closed, Islamists attacked the offices of the newspaper of the liberal Wafd party, part of the opposition National Salvation Front coalition that pushed for a “no” vote.


“The referendum was 56.5 percent for the ‘yes’ vote,” a senior official in the Brotherhood’s Freedom and Justice Party operations room set up to monitor voting told Reuters.


The Brotherhood and its party had representatives at polling stations across the 10 areas, including Cairo, in this round. The official, who asked not to be identified, said the tally was based on counts from more than 99 percent of polling stations.


“The nation is increasingly divided and the pillars of state are swaying,” opposition politician Mohamed ElBaradei wrote on Twitter. “Poverty and illiteracy are fertile grounds for trading with religion. The level of awareness is rising fast.”


One opposition official also told Reuters the vote appeared to have gone in favor of Islamists who backed the constitution.


The opposition initially said its exit polls indicated the “no” camp would win comfortably, but officials changed tack during the night. One opposition official said in the early hours of Sunday that it would be “very close”.


A narrow loss could still hearten leftists, socialists, Christians and more liberal-minded Muslims who make up the disparate opposition, which has been beaten in two elections since Hosni Mubarak was overthrown last year.


They were drawn together to oppose what they saw as a power grab by Mursi as he pushed through the constitution. The National Salvation Front includes prominent figures such as ElBaradei, former Arab League chief Amr Moussa and firebrand leftist Hamdeen Sabahy.


If the constitution is approved, a parliamentary election will follow early next year.


DEADLY VIOLENCE


Analysts question whether the opposition group will keep together until the parliamentary election. The Islamist-dominated lower house of parliament elected earlier this year was dissolved based on a court order in June.


Violence in Cairo and other cities has plagued the run-up to the referendum. At least eight people were killed when rival camps clashed during demonstrations outside the presidential palace earlier this month.


In order to pass, the constitution must be approved by more than 50 percent of those casting ballots. There are 51 million eligible voters in the nation of 83 million.


Islamists have been counting on their disciplined ranks of supporters and on Egyptians desperate for an end to turmoil that has hammered the economy and sent Egypt’s pound to eight-year lows against the dollar.


The army deployed about 120,000 troops and 6,000 tanks and armored vehicles to protect polling stations and other government buildings. While the military backed Mubarak and his predecessors, it has not intervened in the present crisis.


(Additional reporting Yasmin Saleh and Marwa Awad; Writing by Edmund Blair and Giles Elgood; Editing by Tom Pfeiffer)


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Apple says China iPhone 5 sales in first weekend top two million






(Reuters) – Apple Inc sold more than 2 million of its new iPhone 5 in China during the three days after its launch there on Friday, marking China’s best-selling iPhone rollout ever, the company said late on Sunday.


“Customer response to iPhone 5 in China has been incredible, setting a new record with the best first weekend sales ever in China,” Apple Chief Executive Tim Cook said in a statement.






Apple’s latest iPhone, which offers a larger 4-inch screen and 4G capability, was launched in the United States and 30 other countries in September, when the company sold more than 5 million of the devices in the first three days.


The device’s highly anticipated release in China, Apple’s second-biggest market, failed to stop the recent share slide of the world’s most valuable technology company, and analysts said Apple’s longer-term China hopes may hinge on a partnership with China Mobile Ltd, the country’s top telecoms carrier.


(Reporting by Sakthi Prasad in Bangalore; Editing by Edmund Klamann)


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Jack Hanlon, actor in Our Gang films, dies in NV






RENO, Nev. (AP) — Jack Hanlon, who had roles in the 1926 silent classic “The General” and in two 1927 “Our Gang” comedies, died Thursday in Las Vegas at the age of 96.


His niece, Wendy Putnam Park of Las Vegas, says the precocious, freckle-faced Hanlon was a natural as a child actor from 1926 to 1933.






After a small role with Buster Keaton in “The General,” he played mischievous kids in two of Hal Roach’s “Our Gang/Little Rascals” films: “The Glorious Fourth” and “Olympic Games.”


Hanlon also played an orphan in the 1929 drama “The Shakedown,” and got an on-screen kiss from Greta Garbo in the 1930 film “Romance.”


After leaving Hollywood, Hanlon became a furniture mover and moved to Las Vegas in 1994.


Burial will be in Santa Monica, Calif.


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White House won’t accept new tax offer from Republican leader






WASHINGTON (Reuters) – President Barack Obama is not ready to accept a new offer from the Republican leader of the U.S. the House of Representatives to raise taxes on top earners in exchange for major cuts in entitlement programs, a source said late Saturday.


The shape and details of Boehner‘s offer were uncertain Saturday night, as was the exact reason the president was prepared to reject it.






The source said Obama sees the offer made on Friday by U.S. House Speaker John Boehner as a sign of progress, but simply believes it is not enough and there is much more to be worked out before Obama can reciprocate.


Tax rates and entitlements are the two most difficult issues in the so-far unproductive negotiations to avert the “fiscal cliff” of steep tax hikes and spending cuts set for the new year unless Congress and the president reach a deal to avoid them.


The Boehner offer is the first significant sign of a shift in the Republican insistence that low tax rates set to expire on December 31 be extended for all taxpayers, and comes at some risk to the speaker.


Conservatives, particularly Tea Party-supported Republicans, see opposition to tax increases for anyone as an abandonment of party principles, and of the Republican base.


Obama wants high earners – those earning roughly $ 250,000 a year or more – to pay higher taxes in order to put the burden of deficit reduction on those he says can best afford it.


Republicans have privately spoken of coming back at Obama with a threshold of $ 1 million. Obama has previously called that unacceptable because it would not raise enough money on its own to cut the deficit significantly or provide enough money to avert across-the-board spending cuts.


On entitlements, the president faces pressures of his own from Democrats, who see protecting Medicare, the government health insurance program for seniors, as a bedrock principle.


A major bloc of congressional Democrats has already signaled they will not accept major cutbacks in Medicare as part of any deal.


It was unclear on Saturday if the president had communicated his response to Boehner.


NOT A COMPLETE SURPRISE


Boehner’s shift did not come as a complete surprise. Recent polls have suggested little public support for his position and he has been getting pressure from Senate Republicans to be more flexible.


The massacre in Connecticut silenced fiscal cliff talk in public on Saturday as the both sides got ready for a final scramble, with sessions of the House now scheduled just days before Christmas.


Obama canceled a trip he had planned to make next Wednesday to Portland, Maine, to press his case for tax hikes for the wealthy. He is heading on Sunday to Newtown, the site of Friday’s school shootings, in which a gunman killed 20 children and six adults before taking his own life. The gunman also killed his mother, according to police.


Boehner of Ohio canceled the standard Republican radio response on Saturday to Obama “so that President Obama can speak for the entire nation at this time of mourning,” he said in a statement issued late on Friday.


The moratorium on cliff pronouncements masked a growing recognition the two sides could remain deadlocked at the end of the year on the key sticking points – taxes and entitlements.


Senate Republicans prodded their counterparts in the House to beat a retreat on tax hikes, in a fashion that would allow Obama’s proposal to pass the Republican-controlled House while allowing Republicans to cast a face-saving vote against it.


Republicans could then shift the debate onto territory they consider more favorable to them, cutting government spending to reduce the deficit.


“Just about everyone is throwing stuff on the wall to see if anything sticks,” one Republican aide said in reference to various proposals being discussed on how to proceed.


Alluding to public opinion polls, the aide added: “We know if there is no deal, we will get blamed.”


“We could win the argument on spending cuts,” said a Republican senator who asked not to be identified. “We aren’t winning the argument on taxes.”


However, Republican leaders in both chambers are leery about seeming to cave on taxes. “There’s concern that if we did that, Obama would simply declare victory and walk away and not address spending,” said one aide. “We don’t trust these guys.”


‘A BALANCED PLAN’


Some of the prodding was coming from Senate Minority Leader Mitch McConnell of Kentucky.


Don Stewart, a McConnell spokesman, said the minority leader in the Democratic-controlled Senate hasn’t embraced any single plan, but has discussed and circulated measures offered by fellow Senate Republicans.


“Senator McConnell does not advocate raising taxes on anybody or anything,” Stewart said.


“We’re focused on getting a balanced plan from the White House that will begin to solve the problem of our debt and deficit to improve the economy and create American jobs,” said Boehner spokesman Michael Steel.


“Right now, all the president is offering is massive tax hikes with little or no spending cuts and reforms,” Steel said.


House Majority Leader Eric Cantor scheduled “possible legislation related to expiring provisions of law,” a reference to the expiring tax cuts, for the end of the week, portending a weekend session.


Cantor has said the House would meet through the Christmas holidays and beyond.


Hopes expressed after the November 6 general election of some “grand bargain” on deficit reduction have all but disappeared, at least for this year.


This is partly because time is running out and partly the result of growing warnings from Democrats in Congress that they would not support big changes in the Medicare program, the government-run health insurance program for seniors that is a major contributor to the government’s debt.


House Democratic Minority Leader Nancy Pelosi of California ruled out one frequently mentioned proposal – raising the age of eligibility for Medicare, in a December 12 CBS television interview.


Asked if she was drawing a “red line” around that idea, Pelosi said her comments were “something that says, ‘don’t go there,’ because it doesn’t produce money.


(Reporting by Thomas Ferraro, Richard Cowan and Kim Dixon; Editing by Fred Barbash and Todd Eastham)


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Hungary government, central bank in “alliance” from 2013






BUDAPEST (Reuters) – A leadership change at Hungary‘s central bank next year will allow the government to build a strategic alliance with the bank to boost the economy, Economy Minister Gyorgy Matolcsy said on Saturday.


Matolcsy, a member of Prime Minister Viktor Orban‘s government that has often clashed with the bank over policy, also said the bank would have to focus on helping growth and employment as well as curbing inflation.






“I don’t think that in these crisis years any central bank in the world would and could keep only one aspect in the forefront: the aspect of inflation,” Matolcsy told public radio.


“Just look at how the European Central Bank has switched to an entirely different monetary philosophy in the crisis years post-2008.”


Orban’s government has put pressure on the central bank to do more to help the recession-hit economy and some analysts have said the appointment of a new governor at the National Bank of Hungary in March 2013 could usher in an era of unconventional steps, after a series of rate cuts this year.


Citing inflation risks, outgoing governor Andras Simor and his two deputies have opposed the bank’s recent rate cuts, which were pushed through by the four other rate-setters appointed by Orban’s party in parliament last year.


Simor’s six-year term expires in March, and his two deputies will also leave the bank next year. Orban is expected to pick a new governor loyal to his government.


Matolcsy’s name as a candidate has also emerged in the market and local media. When asked about this, he said:


“There are many names floating around these days and weeks, but I myself have not received such a request, but I am sure, as this has been mentioned, that next year Hungary‘s central bank will have a leadership that will be in a strategic partnership with the government.”


ECB President Mario Draghi said last week in Budapest that Hungary’s central bank must retain its independence to be credible – a rare public warning about undue political influence.


Matolcsy, who has been the architect of unorthodox policies that included heavy taxes on banks and a nationalisation of private pension funds, also said he was not sure Hungary should tap international markets next year, after it successfully financed debt from domestic issuance in 2012.


“As for myself, I’m not quite sure that we should issue a foreign currency bond in global markets next year,” he said.


Earlier this month, the minister in charge of Hungary’s stalled loan talks with the IMF, flagged a possible foreign currency issue in the first quarter of 2013.


Budapest has rolled over expiring debt from domestic issuance since it last tapped international markets in 2011 and has financing buffers deposited at the central bank.


Matolcsy also said Hungary’s economy could grow faster next year than the government’s current projection for 0.9 percent.


He said the economy could be able to grow faster than 1 percent, perhaps even closer to a rate of 2 percent.


Analysts in a Reuters poll this week forecast stagnation for 2013 after a contraction this year.


(Reporting by Krisztina Than; Editing by Stephen Powell)


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