Friday, April 29, 2011
Friday, April 22, 2011
Wednesday, April 20, 2011
Ten tough years for adopted twins
(CNN) -- There were blood relatives in Houston who wanted to adopt.
There was a guardian ad litem volunteer who had concerns about the adoptive parents.
Child investigators were called on more than one occasion to the home.
Yet early Monday along a Florida interstate, a road ranger pulled up behind a parked truck only to find an exterminator and his 10-year-old son unconscious, soaked in chemicals, and the boy's twin sister dead.
Jorge Barahona -- a 53-year-old father of four children adopted from the state's foster care system -- told police he was distraught over the death of his daughter and had intended to commit suicide by dousing himself with gasoline and setting himself afire -- but didn't go through with it.
The family had been at the center of multiple complaints to Florida's Department of Children and Families, with callers reporting the twins being locked in bathrooms for long periods of time or bound with tape, according to court testimony. Even so, the children were allowed to remain in the house.
This story appears to magnify everything that could go wrong with a child protective system.
In 2004, the siblings were placed with a foster family, according to Sonia Ferrer, circuit director of the guardian ad litem program. That family was Jorge and Carmen Barahona, she says.
As often is the case when children are in the Florida foster system, a volunteer from the guardian ad litem program was assigned to look out for their best interests.
"The guardian was with the children for four years," Ferrer said. "He had concerns about the placement."
Those concerns were brought to the court's attention and investigated before the children were officially adopted by the Barahonas in 2009, Ferrer said. "We did everything we could at the time. A full evidentiary hearing."
The judge on the case sided with the experts who found no problem with the children living with the Barahonas. Ferrer recently spoke to that guardian ad litem, who she says is devastated over what happened to the children.
He is not the only one. The biological father's sister and her husband wanted to adopt the twins, according to their attorney Steven Grossbard.
"Unfortunately, the expert opinion suggested that there was a significant bond and the courts are inclined to go with experts' opinion," Grossbard said.
The bond he refers to is the five years the twins lived with the Barahonas as their foster children before being adopted by them in 2009.
Over the years problems in the Barahona home were brought to officials' attention. "Several times we've been out to the home," Florida Department of Children and Families spokesman Mark Riordan said. He would not elaborate on the nature of the complaints.
The most recent was a call to a child abuse hotline received just days before the twins were found in the truck, according to testimony Wednesday. The testimony came during a Miami placement hearing for the Barahonas' three surviving adopted children.
According to testimony by a Department of Children and Families official, the information in the anonymous hotline call came from the 7-year-old daughter of Carmen Barahona's biological daughter.
"When she would go to this home, where these children were being locked in the bathroom, they were being tied, but they were being untied to eat," a DCF official testified. The granddaughter was told by her mother and grandmother that she was to keep "family secrets" quiet.
This information was corroborated when the granddaughter and the two other adopted children were interviewed, according to testimony. All alleged abuses discussed in the hearing were directed toward the twins, not the two other children.
Jorge Barahona has been charged with aggravated child abuse, the West Palm Beach Police Department said and will likely face other charges.
His wife, Carmen, has not been charged. She tried to hide her face at Wednesday's hearing, where the allegations of abuse were denied by her attorney.
The hotline call was on Thursday, according to court testimony. The DCF investigator, Andrea Fleary, said she went to the house on Friday night but Carmen Barahona would not let her speak to the children.
Fleary testified that she left the house with the intention of following up on Monday.
There was a guardian ad litem volunteer who had concerns about the adoptive parents.
Child investigators were called on more than one occasion to the home.
Yet early Monday along a Florida interstate, a road ranger pulled up behind a parked truck only to find an exterminator and his 10-year-old son unconscious, soaked in chemicals, and the boy's twin sister dead.
Jorge Barahona -- a 53-year-old father of four children adopted from the state's foster care system -- told police he was distraught over the death of his daughter and had intended to commit suicide by dousing himself with gasoline and setting himself afire -- but didn't go through with it.
The family had been at the center of multiple complaints to Florida's Department of Children and Families, with callers reporting the twins being locked in bathrooms for long periods of time or bound with tape, according to court testimony. Even so, the children were allowed to remain in the house.
This story appears to magnify everything that could go wrong with a child protective system.
In 2004, the siblings were placed with a foster family, according to Sonia Ferrer, circuit director of the guardian ad litem program. That family was Jorge and Carmen Barahona, she says.
As often is the case when children are in the Florida foster system, a volunteer from the guardian ad litem program was assigned to look out for their best interests.
"The guardian was with the children for four years," Ferrer said. "He had concerns about the placement."
Those concerns were brought to the court's attention and investigated before the children were officially adopted by the Barahonas in 2009, Ferrer said. "We did everything we could at the time. A full evidentiary hearing."
The judge on the case sided with the experts who found no problem with the children living with the Barahonas. Ferrer recently spoke to that guardian ad litem, who she says is devastated over what happened to the children.
He is not the only one. The biological father's sister and her husband wanted to adopt the twins, according to their attorney Steven Grossbard.
"Unfortunately, the expert opinion suggested that there was a significant bond and the courts are inclined to go with experts' opinion," Grossbard said.
The bond he refers to is the five years the twins lived with the Barahonas as their foster children before being adopted by them in 2009.
Over the years problems in the Barahona home were brought to officials' attention. "Several times we've been out to the home," Florida Department of Children and Families spokesman Mark Riordan said. He would not elaborate on the nature of the complaints.
The most recent was a call to a child abuse hotline received just days before the twins were found in the truck, according to testimony Wednesday. The testimony came during a Miami placement hearing for the Barahonas' three surviving adopted children.
According to testimony by a Department of Children and Families official, the information in the anonymous hotline call came from the 7-year-old daughter of Carmen Barahona's biological daughter.
"When she would go to this home, where these children were being locked in the bathroom, they were being tied, but they were being untied to eat," a DCF official testified. The granddaughter was told by her mother and grandmother that she was to keep "family secrets" quiet.
This information was corroborated when the granddaughter and the two other adopted children were interviewed, according to testimony. All alleged abuses discussed in the hearing were directed toward the twins, not the two other children.
Jorge Barahona has been charged with aggravated child abuse, the West Palm Beach Police Department said and will likely face other charges.
His wife, Carmen, has not been charged. She tried to hide her face at Wednesday's hearing, where the allegations of abuse were denied by her attorney.
The hotline call was on Thursday, according to court testimony. The DCF investigator, Andrea Fleary, said she went to the house on Friday night but Carmen Barahona would not let her speak to the children.
Fleary testified that she left the house with the intention of following up on Monday.
Wednesday, April 13, 2011
China’s Carrier Poses Mostly Symbolic Threat, U.S. Admiral Says
By Viola Gienger and Tony Capaccio - Apr 13, 2011 6:51 AM GMT+0800
China’s reconstruction of a Soviet- era aircraft carrier, while not a concern to the U.S., is raising alarms in the region as a symbol of the Asian nation’s military expansion, U.S. Navy Admiral Robert Willard said.
China’s state news agency, Xinhua, posted photos of the carrier, the Varyag, on a website last week, according to the New York Times. In a photo caption, Xinhua cited the military analysis magazine Kanwa Asian Defense Review in Canada as saying the ship will set sail this year, the Times reported. The timeline tracks with an estimate made two years ago by the U.S. Office of Naval Intelligence.
Willard, the top U.S. military commander in the Asia- Pacific region, said he is “not concerned” by the project. The carrier sat pier-side for years as China considered making it a tourist attraction before the reconstruction began, Willard said.
“We do expect that they will achieve what they are asserting, which is that perhaps this year it may go to sea,” Willard, who heads U.S. Pacific Command, said today in an interview at Bloomberg’s Washington bureau. “That’s a long way from developing an aircraft carrier capability.”
Still, China’s overall military expansion magnifies the symbolic effect, Willard told the Senate Armed Services Committee at a hearing earlier in the day.
“Based on the feedback that we received from our partners and allies in the Pacific, I think the change in perception by the region will be significant,” Willard said.
‘Mother Ships’
Chinese leaders have talked for decades of plans to acquire what they call “aircraft mother ships” as part of their military modernization. Such a fleet would expand China’s power in the region and enhance its influence in territorial disputes with Japan, South Korea, Vietnam and the Philippines.
The U.S. expects that China, the world’s second-biggest economy, will try to build its own carrier at some point, Willard said in the interview.
“This is a significant choice that they’re making to develop an aircraft carrier capability,” said Willard, 60, whose command is based in Hawaii and covers 36 nations and about half the earth’s surface. “This is their first refit of a boat to give them the very beginning of that, so we’ll watch over it with interest.”
The refurbished aircraft carrier may serve as a test-and- evaluation platform. There must be “a long period of training and development and eventual exercising preceding any operational capability,” Willard told the committee.
Ballistic Missiles
“There’s a lot that goes into aircraft carrier operations,” Willard said in the interview. “We would expect that at some point in time, they’ll attempt to marry some semblance of an air wing to it.”
The Obama administration has pushed for more openness from China, the biggest foreign holder of U.S. Treasuries, over its military intentions, especially as it develops the capacity to restrict U.S. access to sea lanes.
“What we are striving to do is develop a constructive partner in China,” Willard said.
Still, “they have developed a ballistic missile capability” and “most of those missiles are aimed in the direction of Taiwan. That is very formidable,” Willard said.
The missile inventory has the capability to reach allies and “has the region concerned,” he said.
The U.S.-China Economic and Security Review Commission said in its 2010 report that China’s non-nuclear missiles have “the capability to attack” and close down five of six major U.S. Air Force bases in South Korea and Japan.
U.S. Bases in Range
China’s improved inventory of short- and medium-range missiles provides a “dramatic increase” in its ability to “inhibit” U.S. military operations in the western Pacific, the commission said.
China’s current force “may be sufficient” to destroy runways, parked aircraft, fuel and maintenance facilities at the Osan and Kunsan air bases in South Korea and the Kadena, Misawa and Yokota bases in Japan, the report said. Those facilities are within 1,100 kilometers (684 miles) of China.
The commission said Congress should evaluate Pentagon spending to fortify bases from Chinese attack, including missile defenses, early warning systems, runway repairs and hardening buildings and hangars.
“Not regarding China as an enemy, my hope is that we would not ever face that kind of a decision” to heavily invest in improving Pacific base survivability, Willard said.
To contact the reporters on this story: Viola Gienger in Washington at vgienger@bloomberg.net; Tony Capaccio in Washington at acapaccio@bloomberg.net.
China’s reconstruction of a Soviet- era aircraft carrier, while not a concern to the U.S., is raising alarms in the region as a symbol of the Asian nation’s military expansion, U.S. Navy Admiral Robert Willard said.
An aircraft carrier known as the Varyag is shown berthed in drydock at a port in Dalian, China, on Sept. 9, 2009. Photographer: Nelson Ching/Bloomberg
China’s state news agency, Xinhua, posted photos of the carrier, the Varyag, on a website last week, according to the New York Times. In a photo caption, Xinhua cited the military analysis magazine Kanwa Asian Defense Review in Canada as saying the ship will set sail this year, the Times reported. The timeline tracks with an estimate made two years ago by the U.S. Office of Naval Intelligence.
Willard, the top U.S. military commander in the Asia- Pacific region, said he is “not concerned” by the project. The carrier sat pier-side for years as China considered making it a tourist attraction before the reconstruction began, Willard said.
“We do expect that they will achieve what they are asserting, which is that perhaps this year it may go to sea,” Willard, who heads U.S. Pacific Command, said today in an interview at Bloomberg’s Washington bureau. “That’s a long way from developing an aircraft carrier capability.”
Still, China’s overall military expansion magnifies the symbolic effect, Willard told the Senate Armed Services Committee at a hearing earlier in the day.
“Based on the feedback that we received from our partners and allies in the Pacific, I think the change in perception by the region will be significant,” Willard said.
‘Mother Ships’
Chinese leaders have talked for decades of plans to acquire what they call “aircraft mother ships” as part of their military modernization. Such a fleet would expand China’s power in the region and enhance its influence in territorial disputes with Japan, South Korea, Vietnam and the Philippines.
The U.S. expects that China, the world’s second-biggest economy, will try to build its own carrier at some point, Willard said in the interview.
“This is a significant choice that they’re making to develop an aircraft carrier capability,” said Willard, 60, whose command is based in Hawaii and covers 36 nations and about half the earth’s surface. “This is their first refit of a boat to give them the very beginning of that, so we’ll watch over it with interest.”
The refurbished aircraft carrier may serve as a test-and- evaluation platform. There must be “a long period of training and development and eventual exercising preceding any operational capability,” Willard told the committee.
Ballistic Missiles
“There’s a lot that goes into aircraft carrier operations,” Willard said in the interview. “We would expect that at some point in time, they’ll attempt to marry some semblance of an air wing to it.”
The Obama administration has pushed for more openness from China, the biggest foreign holder of U.S. Treasuries, over its military intentions, especially as it develops the capacity to restrict U.S. access to sea lanes.
“What we are striving to do is develop a constructive partner in China,” Willard said.
Still, “they have developed a ballistic missile capability” and “most of those missiles are aimed in the direction of Taiwan. That is very formidable,” Willard said.
The missile inventory has the capability to reach allies and “has the region concerned,” he said.
The U.S.-China Economic and Security Review Commission said in its 2010 report that China’s non-nuclear missiles have “the capability to attack” and close down five of six major U.S. Air Force bases in South Korea and Japan.
U.S. Bases in Range
China’s improved inventory of short- and medium-range missiles provides a “dramatic increase” in its ability to “inhibit” U.S. military operations in the western Pacific, the commission said.
China’s current force “may be sufficient” to destroy runways, parked aircraft, fuel and maintenance facilities at the Osan and Kunsan air bases in South Korea and the Kadena, Misawa and Yokota bases in Japan, the report said. Those facilities are within 1,100 kilometers (684 miles) of China.
The commission said Congress should evaluate Pentagon spending to fortify bases from Chinese attack, including missile defenses, early warning systems, runway repairs and hardening buildings and hangars.
“Not regarding China as an enemy, my hope is that we would not ever face that kind of a decision” to heavily invest in improving Pacific base survivability, Willard said.
To contact the reporters on this story: Viola Gienger in Washington at vgienger@bloomberg.net; Tony Capaccio in Washington at acapaccio@bloomberg.net.
Banks Face Sovereign Debt Scrutiny in EU Stress Tests
European regulators will scrutinize banks’ calculations for losses on sovereign debt held to maturity when carrying out this year’s stress tests, Europe’s top banking supervisor said.
Financial watchdogs will “check what banks are doing with reference to some sovereign exposures and see whether they’re taking a conservative attitude” when valuing the assets, Andrea Enria, the chairman of the European Banking Authority, said in an interview in London.
Ninety banks will be expected to maintain a Core Tier 1 capital ratio of at least 5 percent under the stress-test scenarios, the EBA said. Portugal last week became the third euro-area state after Greece and Ireland to succumb to the region’s sovereign-debt crisis and request emergency aid.
“I understand on contacts I’ve had with banks that some of them have already reviewed the valuations of sovereign exposures on the banking book towards certain countries,” Enria said. Banks hold on to bonds in the banking book until the principal is scheduled to be repaid, rather than trading them on the secondary market.
This year’s tests will include a review of how banks would handle a 0.5 percent economic contraction in the euro area in 2011 as well as a 15 percent drop in European equity markets.
The EBA tests will also examine the effect of a 75 basis- point-jump in interest rates on European sovereign bonds and an increase in short-term inter-bank financing costs of 125 basis points.
‘Weaknesses’
Banks that fail the stress tests will have until the end of the year to complete plans to recapitalize or restructure their business, Enria said.
If an institution is found to have “weaknesses in terms of its risk modeling, you intervene as a supervisor, you must act,” Enria said. “This isn’t less important to us than raising capital.”
Enria said lenders with flawed risk models that pass the exams may also be required to address EBA questions.
“Guess what, given all the accountants and lawyers in the room, you can game a static capital buffer,” James Babicz, head of risk at business analytics company SAS U.K., said in a telephone interview. “Risk is unmeasurable by its definition.”
Enria said he may allow some banks more time to submit results because lenders will be measured against stricter capital standards than last year. The EBA will aim to publish the results of the exams at the end of June.
Submission Deadline
Germany’s Bundesbank and financial regulator BaFin called for the stress-test information submission deadline to be extended by two weeks. The original deadline was the end of April.
“If some banks cannot manage, then we’ll be flexible in terms of deadlines,” Enria said.
Regional German banks, including Norddeutsche Landesbank and Landesbank Hessen-Thueringen, have complained that the EBA’s tighter definition of capital may lead to some lenders failing the exams.
Lenders won’t be allowed to use some types of non-voting capital permitted by German bank supervisors, known as silent participations, to calculate the results.
“There are a lot of other instruments in the capital of European banks in other countries that got less attention but have exactly the same features,” Enria said. “There will be pain for banks in almost all countries.”
At least five banks were added to the list of those examined last year. Ireland’s Irish Life and Permanent Plc, Norway’s DnB NOR Bank ASA, Nykredit Bank from Denmark, Slovenia’s Nova Kreditna Banka Maribor and Oesterreichische Volksbank AG from Austria will be tested for the first time.
Core Tier 1, as defined by global regulators in the Basel Committee on Banking Supervision, largely consists of banks common stock and retained earnings. The 2010 tests were conducted against a pass rate of six percent Tier 1 capital, which encompasses a broader range of securities including hybrid instruments such as preference shares.
To contact the reporter for this story: Ben Moshinsky in London at bmoshinsky@bloomberg.net.
To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net.
Regional German banks, including Landesbank Hessen-Thueringen, seen here, have complained that the EBA’s tighter definition of capital may lead to some lenders failing the exams. Photographer: John MacDougall/AFP/Getty Images
Financial watchdogs will “check what banks are doing with reference to some sovereign exposures and see whether they’re taking a conservative attitude” when valuing the assets, Andrea Enria, the chairman of the European Banking Authority, said in an interview in London.
Ninety banks will be expected to maintain a Core Tier 1 capital ratio of at least 5 percent under the stress-test scenarios, the EBA said. Portugal last week became the third euro-area state after Greece and Ireland to succumb to the region’s sovereign-debt crisis and request emergency aid.
“I understand on contacts I’ve had with banks that some of them have already reviewed the valuations of sovereign exposures on the banking book towards certain countries,” Enria said. Banks hold on to bonds in the banking book until the principal is scheduled to be repaid, rather than trading them on the secondary market.
This year’s tests will include a review of how banks would handle a 0.5 percent economic contraction in the euro area in 2011 as well as a 15 percent drop in European equity markets.
The EBA tests will also examine the effect of a 75 basis- point-jump in interest rates on European sovereign bonds and an increase in short-term inter-bank financing costs of 125 basis points.
‘Weaknesses’
Banks that fail the stress tests will have until the end of the year to complete plans to recapitalize or restructure their business, Enria said.
If an institution is found to have “weaknesses in terms of its risk modeling, you intervene as a supervisor, you must act,” Enria said. “This isn’t less important to us than raising capital.”
Enria said lenders with flawed risk models that pass the exams may also be required to address EBA questions.
“Guess what, given all the accountants and lawyers in the room, you can game a static capital buffer,” James Babicz, head of risk at business analytics company SAS U.K., said in a telephone interview. “Risk is unmeasurable by its definition.”
Enria said he may allow some banks more time to submit results because lenders will be measured against stricter capital standards than last year. The EBA will aim to publish the results of the exams at the end of June.
Submission Deadline
Germany’s Bundesbank and financial regulator BaFin called for the stress-test information submission deadline to be extended by two weeks. The original deadline was the end of April.
“If some banks cannot manage, then we’ll be flexible in terms of deadlines,” Enria said.
Regional German banks, including Norddeutsche Landesbank and Landesbank Hessen-Thueringen, have complained that the EBA’s tighter definition of capital may lead to some lenders failing the exams.
Lenders won’t be allowed to use some types of non-voting capital permitted by German bank supervisors, known as silent participations, to calculate the results.
“There are a lot of other instruments in the capital of European banks in other countries that got less attention but have exactly the same features,” Enria said. “There will be pain for banks in almost all countries.”
At least five banks were added to the list of those examined last year. Ireland’s Irish Life and Permanent Plc, Norway’s DnB NOR Bank ASA, Nykredit Bank from Denmark, Slovenia’s Nova Kreditna Banka Maribor and Oesterreichische Volksbank AG from Austria will be tested for the first time.
Core Tier 1, as defined by global regulators in the Basel Committee on Banking Supervision, largely consists of banks common stock and retained earnings. The 2010 tests were conducted against a pass rate of six percent Tier 1 capital, which encompasses a broader range of securities including hybrid instruments such as preference shares.
To contact the reporter for this story: Ben Moshinsky in London at bmoshinsky@bloomberg.net.
To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net.
Saturday, April 9, 2011
Lawmakers Reach Deal to Cut $38.5 Billion, Avert Shutdown
U.S. Congress leaders reached an accord last night to cut about $38 billion from federal spending this year while jettisoning Republican proposals to defund Planned Parenthood and block environmental rules, pulling the government back from the brink of a shutdown.
The agreement was announced less than two hours before the government’s funding authority was due to expire, which would have started a partial shutdown of services and offices.
“It’s been a grueling process. We didn’t do it at this late hour for drama; we did it because it’s been very hard to arrive at this point,” Senate Majority Leader Harry Reid, a Nevada Democrat, said on the Senate floor with less than an hour to go before the midnight deadline for a shutdown. “Both sides have had to make tough choices.”
The Senate and the House of Representatives quickly passed a stopgap measure that makes $2 billion of the agreed-upon cuts and keeps the government open through April 14 while lawmakers draft legislation implementing a longer-term agreement to fund the government through the Sept. 30 close of the current fiscal year. Both chambers will vote on that measure next week.
House Speaker John Boehner, an Ohio Republican, said he was “pleased” with the outcome of what he called a “long fight” over the 2011 budget.
“We fought to keep government spending down, because it really will affect and help create a better environment for job creators in our country,” he told reporters.
‘Different Beliefs’
At the White House, President Barack Obama, who after weeks on the sidelines stepped in this week to prod an agreement, said the deal was possible because “Americans of different beliefs came together.”
“Like any worthwhile compromise, both sides had to make tough decisions,” Obama said. “Some of the cuts we agreed to will be painful.”
The Washington Monument, honoring America’s first president, loomed through a window behind Obama in his televised comments. He began his remarks with a reference to the landmark, saying, “I’m pleased to announce that the Washington Monument, as well as the entire federal government, will be open for business.”
Policy Riders
The deal came together after days of negotiations at the Capitol and the White House among Boehner, Reid, Obama and their aides over how much spending to cut and from which programs, as well as over so-called policy riders Republicans proposed to direct how federal money could be used.
The final compromise slashes about $38 billion in spending -- about $23 billion less than Republicans had initially sought, yet tens of billions more than Democrats originally said they could accept. It stripped most of the dozens of policy limits Republicans were seeking to impose on the Obama administration, while narrowing a handful of others Democrats said they could tolerate.
A provision barring federal funding for Planned Parenthood, the women’s health provider that offers abortion services in some locations, was dropped in exchange for a commitment that the Senate would vote on defunding the organization.
Republicans dropped their bid to use the measure to cancel funding for the health-care overhaul enacted last year, and Democrats in turn agreed to hold a separate Senate vote on repealing the law, according to a summary of the deal released by Boehner’s office.
Several provisions that would have barred the Environmental Protection Agency from regulating greenhouse gas emissions or other pollutants were abandoned.
Abortion Funding
Among the riders that survived were a ban on taxpayer funding for abortions in the District of Columbia and $2 million for a voucher program that is a personal cause of Boehner’s and provides low-income students in the District with federal money to attend private schools.
As part of the deal, studies will be conducted of the financial regulation measure enacted last year. Critics have said some of the law’s requirements place onerous requirements on business.
The agreement would include funding for National Public Radio, which Republicans had attempted to end. It also would strip Republican riders that sought to block the Federal Communications Commission’s “net neutrality” Internet rules as well as the Education Department’s efforts to clamp down on for- profit colleges.
In a closed-door meeting last night at which he described the agreement to colleagues, Boehner said it was best Republicans could get out of Democrats, according to an aide who spoke on condition of anonymity.
Months-Long Dispute
The months-long dispute over the 2011 budget stemmed from the failure of last year’s Democratic-controlled Congress to enact a spending plan before the fiscal year started Oct. 1. Since then, the government has been funded by a series of stopgap measures.
Republican took control of the House following November’s elections vowing to make deficit reduction one of their prime missions. The spending cuts agreed to yesterday exceed what House Republican leaders had proposed earlier this year before their rank-and-file forced them to push for $61 billion in reductions in the budget bill the chamber passed in February.
Other Battles
The accord clears the way for potentially even tougher battles over the government’s finances. A spending plan for the 2012 fiscal year prepared by House Budget Committee Chairman Paul Ryan, a Wisconsin Republican, and scheduled for a vote in the chamber next week would phase out the traditional Medicare program -- a proposal Democrats have denounced. It also would cut spending by $6 trillion over a decade and reduce the top tax rate to 25 percent.
Also looming is a fight over raising the government’s $14.3 trillion debt limit, expected to be breached by May 16. Many Republicans are demanding that the Obama administration commit to deep spending cuts as the price for their votes to raise the limit.
“In order to raise the debt ceiling, we need to do something significant about the debt,” Senate Minority Leader Mitch McConnell, a Kentucky Republican, said yesterday. “My definition of ‘significant’ is that the markets view it as significant, the American people view it as significant and foreign countries view it as significant.”
To contact the reporters on this story: Julie Hirschfeld Davis in Washington at jdavis159@bloomberg.net; Brian Faler in Washington at bfaler@bloomberg.net
The agreement was announced less than two hours before the government’s funding authority was due to expire, which would have started a partial shutdown of services and offices.
“It’s been a grueling process. We didn’t do it at this late hour for drama; we did it because it’s been very hard to arrive at this point,” Senate Majority Leader Harry Reid, a Nevada Democrat, said on the Senate floor with less than an hour to go before the midnight deadline for a shutdown. “Both sides have had to make tough choices.”
The Senate and the House of Representatives quickly passed a stopgap measure that makes $2 billion of the agreed-upon cuts and keeps the government open through April 14 while lawmakers draft legislation implementing a longer-term agreement to fund the government through the Sept. 30 close of the current fiscal year. Both chambers will vote on that measure next week.
House Speaker John Boehner, an Ohio Republican, said he was “pleased” with the outcome of what he called a “long fight” over the 2011 budget.
“We fought to keep government spending down, because it really will affect and help create a better environment for job creators in our country,” he told reporters.
‘Different Beliefs’
At the White House, President Barack Obama, who after weeks on the sidelines stepped in this week to prod an agreement, said the deal was possible because “Americans of different beliefs came together.”
“Like any worthwhile compromise, both sides had to make tough decisions,” Obama said. “Some of the cuts we agreed to will be painful.”
The Washington Monument, honoring America’s first president, loomed through a window behind Obama in his televised comments. He began his remarks with a reference to the landmark, saying, “I’m pleased to announce that the Washington Monument, as well as the entire federal government, will be open for business.”
Policy Riders
The deal came together after days of negotiations at the Capitol and the White House among Boehner, Reid, Obama and their aides over how much spending to cut and from which programs, as well as over so-called policy riders Republicans proposed to direct how federal money could be used.
The final compromise slashes about $38 billion in spending -- about $23 billion less than Republicans had initially sought, yet tens of billions more than Democrats originally said they could accept. It stripped most of the dozens of policy limits Republicans were seeking to impose on the Obama administration, while narrowing a handful of others Democrats said they could tolerate.
A provision barring federal funding for Planned Parenthood, the women’s health provider that offers abortion services in some locations, was dropped in exchange for a commitment that the Senate would vote on defunding the organization.
Republicans dropped their bid to use the measure to cancel funding for the health-care overhaul enacted last year, and Democrats in turn agreed to hold a separate Senate vote on repealing the law, according to a summary of the deal released by Boehner’s office.
Several provisions that would have barred the Environmental Protection Agency from regulating greenhouse gas emissions or other pollutants were abandoned.
Abortion Funding
Among the riders that survived were a ban on taxpayer funding for abortions in the District of Columbia and $2 million for a voucher program that is a personal cause of Boehner’s and provides low-income students in the District with federal money to attend private schools.
As part of the deal, studies will be conducted of the financial regulation measure enacted last year. Critics have said some of the law’s requirements place onerous requirements on business.
The agreement would include funding for National Public Radio, which Republicans had attempted to end. It also would strip Republican riders that sought to block the Federal Communications Commission’s “net neutrality” Internet rules as well as the Education Department’s efforts to clamp down on for- profit colleges.
In a closed-door meeting last night at which he described the agreement to colleagues, Boehner said it was best Republicans could get out of Democrats, according to an aide who spoke on condition of anonymity.
Months-Long Dispute
The months-long dispute over the 2011 budget stemmed from the failure of last year’s Democratic-controlled Congress to enact a spending plan before the fiscal year started Oct. 1. Since then, the government has been funded by a series of stopgap measures.
Republican took control of the House following November’s elections vowing to make deficit reduction one of their prime missions. The spending cuts agreed to yesterday exceed what House Republican leaders had proposed earlier this year before their rank-and-file forced them to push for $61 billion in reductions in the budget bill the chamber passed in February.
Other Battles
The accord clears the way for potentially even tougher battles over the government’s finances. A spending plan for the 2012 fiscal year prepared by House Budget Committee Chairman Paul Ryan, a Wisconsin Republican, and scheduled for a vote in the chamber next week would phase out the traditional Medicare program -- a proposal Democrats have denounced. It also would cut spending by $6 trillion over a decade and reduce the top tax rate to 25 percent.
Also looming is a fight over raising the government’s $14.3 trillion debt limit, expected to be breached by May 16. Many Republicans are demanding that the Obama administration commit to deep spending cuts as the price for their votes to raise the limit.
“In order to raise the debt ceiling, we need to do something significant about the debt,” Senate Minority Leader Mitch McConnell, a Kentucky Republican, said yesterday. “My definition of ‘significant’ is that the markets view it as significant, the American people view it as significant and foreign countries view it as significant.”
To contact the reporters on this story: Julie Hirschfeld Davis in Washington at jdavis159@bloomberg.net; Brian Faler in Washington at bfaler@bloomberg.net
Sunday, April 3, 2011
Horrific Accident on dubai abu dhabi road
arab driver drive like devil??maybe not?...like hell it is...
Friday, April 1, 2011
Russian Oil A Strategic Alternative Amid Middle-East Turmoil
Russian Oil A Strategic Alternative Amid Middle-East Turmoil By STEVE AUSTIN for OIL-PRICE.NET, 2011/03/03
Oil prices are always experiencing a little fluctuation. In the past few years, there have quite a few sudden rises in oil prices with a subsequent fall in the stock market. The London Brent has shown a rise above the coveted $110 a barrel mark for the first time in February 2011 after 2008. This time around, no one is too shocked. Global political instability has caused these gruesome ups and downs in stock and oil prices. While it isn't a strange scenario, many companies and countries are ruing the day they started depending on Middle Eastern countries for all their fuel needs.
While most companies are mourning and looking for a way out, one giant publicly traded Russian gas producer Surgutneftegaz "Surgut" [SGTZY] is at the pinnacle of its achievement. The planets are all lining up for Surgut as attention moves to more trustworthy sources of oil and the chain of events couldn't be any better.
Middle East Woes
The 'Jasmine Revolution' of Tunisia is making all the authoritarian regimes in the Middle East quiver in their boots. After the success of Egypt and the stepping down of Hosni Mubarak, Libya is standing at the helm. Gaddafi refuses to be as easily dismissed though and vows to take the country down with him. It is clear for all to see that the situation in the Middle East will be getting a lot worse before it gets any better, if it does. Most of the OECD countries rely on the Middle Eastern nations for most of their fuel needs. They will be in a lurch when matters get worse, if they do not find a trustworthy alternative source of fuel.
With the way the political instability is spreading in the Middle East, no one will be too surprised to see it reaching Saudi Arabia. Analysts claim that if this untoward scenario comes about, oil prices will be expected to reach $200 per barrel!
Burning the Economy
In the current scenario, Italy is one of the countries that will fare badly. Italy is the largest importer of Libyan oil receives 28% of Lybia's production. Ranked 12th oil exporter worldwide, Libya is also the African country with the largest proven reserves at 46.4 billion barrels. Furthermore Lybia accounts for a full 2% of the world's oil production. Countries like Ireland and Italy will suffer greatly due to these crisis situations if some or all of Libya's oil is taken off the market.
Gaddafi, like Saddam Hussein, has covertly decided to burn down the nation's oil pipeline. Who can forget the quagmire the world was in when Saddam burnt more than one billion barrels of crude oil while leaving Kuwait. The fires lasted all of nine months and caused much destruction to life, property and the environment. Something like this happening again is a scary prospect for former colonial powers like France and England as they depend too much on oil from the Middle East. With the rising oil prices and uncertainty of supply, most countries will be less keen on investing their money in the Middle Eastern countries. Diversifying their supplies to more logical and viable options like Russia becomes inevitable as a national security option.
Russia's Reliability
The Russian Federation supplies almost 65% of the European Union's energy needs through oil and natural gas exports. Owing to the fact that Russian oil & gas pipelines are state owned and have been used as political leverage in the past, Europe and other nations were of the opinion that Russian is not a reliable source of oil. This point of view has been undergoing a paradigm shift due to the Middle East woes and steps taken by the Prime Minister of Russia, Vladimir Putin himself.
Times Are Changing
For the longest time Gazprom, Russia's number one oil & gas producer has held monopoly over market and infrastructure, hindering the growth of other Russian oil majors and concerning Wester European nations who perceive Gazprom as a remnant of the cold war era. In February 2011, Putin has set the ball rolling and Gazprom will now have to open their gas pipelines to competitors like Rosneft, Novatek and one of the largest oil producers in the country, Surgutneftegaz. Once this is accomplished, dependence on the Kremlin will ease making Russia the best option for the world to rely on. Middle Eastern Islamic nations are no longer the world's best bet. The ways of capitalism and matters of national security are suggesting a move to greener pastures, which is Russia right now.
Russian Giant Surgutneftegaz
The Russian oil producer best placed to benefit from all these changes is Surgutneftegaz . Surgutneftegaz owns one of the largest oil refineries in Russia, in Kirishi and is responsible for producing more than 13% of the country's crude oil. Surgutneftegaz is also first in line to access the opened pipelines and foreign markets, and stands to increase its domestic gas productions from the existent 25% of all oil companies thanks to its $30 billion cash in the bank. Being in the Kremlin's (and Putin's) good books did not hurt either when the pipeline deal got inked. While Surgutneftegaz' reserves are outstanding at 18.2 billion barrels, the company had a tough time with distribution. This is to alter soon with all the revolutionary changes being brought about in the Russian oil industry so as to attract European attention and maintain credibility and trust. At current levels the stock prices of Surgutneftegaz [SGTZY] is extremely underpriced given the company's predictable surge in revenue when the reach of its abundant gas reserves is extended to global markets via Gazprom's existing pipeline. Surgutneftegaz' stock is expected to trade at several multiples of what it is at currently.
Thriving Oil Industry of Russia
With more and more private Russian oil giants getting linked to the oil and gas pipelines to Europe, the Russian oil industry will predictably continue its upward trend. Earlier this week, French giant Total [TOT] bought a 12% in Russia's number one gas supplier Novatek as a strategic partnership. The keyword here is 'strategic'. The booming Russian oil industry will prove to be divine succor for all European nations as they no longer want to depend on the unstable and hostile mini-Iran countries for their fuel needs.
Oil prices are always experiencing a little fluctuation. In the past few years, there have quite a few sudden rises in oil prices with a subsequent fall in the stock market. The London Brent has shown a rise above the coveted $110 a barrel mark for the first time in February 2011 after 2008. This time around, no one is too shocked. Global political instability has caused these gruesome ups and downs in stock and oil prices. While it isn't a strange scenario, many companies and countries are ruing the day they started depending on Middle Eastern countries for all their fuel needs.
While most companies are mourning and looking for a way out, one giant publicly traded Russian gas producer Surgutneftegaz "Surgut" [SGTZY] is at the pinnacle of its achievement. The planets are all lining up for Surgut as attention moves to more trustworthy sources of oil and the chain of events couldn't be any better.
Prime minister Putin just forced Russia's largest oil company to open its pipeline to competitors like Surgutneftegaz.
Middle East Woes
The 'Jasmine Revolution' of Tunisia is making all the authoritarian regimes in the Middle East quiver in their boots. After the success of Egypt and the stepping down of Hosni Mubarak, Libya is standing at the helm. Gaddafi refuses to be as easily dismissed though and vows to take the country down with him. It is clear for all to see that the situation in the Middle East will be getting a lot worse before it gets any better, if it does. Most of the OECD countries rely on the Middle Eastern nations for most of their fuel needs. They will be in a lurch when matters get worse, if they do not find a trustworthy alternative source of fuel.
With the way the political instability is spreading in the Middle East, no one will be too surprised to see it reaching Saudi Arabia. Analysts claim that if this untoward scenario comes about, oil prices will be expected to reach $200 per barrel!
Burning the Economy
In the current scenario, Italy is one of the countries that will fare badly. Italy is the largest importer of Libyan oil receives 28% of Lybia's production. Ranked 12th oil exporter worldwide, Libya is also the African country with the largest proven reserves at 46.4 billion barrels. Furthermore Lybia accounts for a full 2% of the world's oil production. Countries like Ireland and Italy will suffer greatly due to these crisis situations if some or all of Libya's oil is taken off the market.
Gaddafi, like Saddam Hussein, has covertly decided to burn down the nation's oil pipeline. Who can forget the quagmire the world was in when Saddam burnt more than one billion barrels of crude oil while leaving Kuwait. The fires lasted all of nine months and caused much destruction to life, property and the environment. Something like this happening again is a scary prospect for former colonial powers like France and England as they depend too much on oil from the Middle East. With the rising oil prices and uncertainty of supply, most countries will be less keen on investing their money in the Middle Eastern countries. Diversifying their supplies to more logical and viable options like Russia becomes inevitable as a national security option.
Russia's Reliability
The Russian Federation supplies almost 65% of the European Union's energy needs through oil and natural gas exports. Owing to the fact that Russian oil & gas pipelines are state owned and have been used as political leverage in the past, Europe and other nations were of the opinion that Russian is not a reliable source of oil. This point of view has been undergoing a paradigm shift due to the Middle East woes and steps taken by the Prime Minister of Russia, Vladimir Putin himself.
Times Are Changing
For the longest time Gazprom, Russia's number one oil & gas producer has held monopoly over market and infrastructure, hindering the growth of other Russian oil majors and concerning Wester European nations who perceive Gazprom as a remnant of the cold war era. In February 2011, Putin has set the ball rolling and Gazprom will now have to open their gas pipelines to competitors like Rosneft, Novatek and one of the largest oil producers in the country, Surgutneftegaz. Once this is accomplished, dependence on the Kremlin will ease making Russia the best option for the world to rely on. Middle Eastern Islamic nations are no longer the world's best bet. The ways of capitalism and matters of national security are suggesting a move to greener pastures, which is Russia right now.
Russian Giant Surgutneftegaz
The Russian oil producer best placed to benefit from all these changes is Surgutneftegaz . Surgutneftegaz owns one of the largest oil refineries in Russia, in Kirishi and is responsible for producing more than 13% of the country's crude oil. Surgutneftegaz is also first in line to access the opened pipelines and foreign markets, and stands to increase its domestic gas productions from the existent 25% of all oil companies thanks to its $30 billion cash in the bank. Being in the Kremlin's (and Putin's) good books did not hurt either when the pipeline deal got inked. While Surgutneftegaz' reserves are outstanding at 18.2 billion barrels, the company had a tough time with distribution. This is to alter soon with all the revolutionary changes being brought about in the Russian oil industry so as to attract European attention and maintain credibility and trust. At current levels the stock prices of Surgutneftegaz [SGTZY] is extremely underpriced given the company's predictable surge in revenue when the reach of its abundant gas reserves is extended to global markets via Gazprom's existing pipeline. Surgutneftegaz' stock is expected to trade at several multiples of what it is at currently.
Thriving Oil Industry of Russia
With more and more private Russian oil giants getting linked to the oil and gas pipelines to Europe, the Russian oil industry will predictably continue its upward trend. Earlier this week, French giant Total [TOT] bought a 12% in Russia's number one gas supplier Novatek as a strategic partnership. The keyword here is 'strategic'. The booming Russian oil industry will prove to be divine succor for all European nations as they no longer want to depend on the unstable and hostile mini-Iran countries for their fuel needs.
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