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US disarray hits global stock markets

• President Obama pins hopes on Senate leaders • Spain calls snap general election • Italian bond yields hit 5.89% Barack Obama cleared his diary for the weekend last night to try to find a deal on the US debt crisis as Congress prepared to stay in session ready to vote on any last-gasp compromise. Speaking after dismal figures for US growth increased the pressure on lawmakers to prevent a fresh meltdown in global markets, Obama said: “I am confident we can solve this problem. I am confident we will solve this problem. “For all the intrigue and all the drama that’s taking place on Capitol Hill right now, I’m confident that common sense and cooler heads will prevail.” But Congress remained in disarray Friday with the Republican leader in the House, John Boehner, wounded and in a dangerous mood after failing to quell a humiliating revolt by the Tea Party wing of the party. Boehner scheduled a vote on Thursday on a Republican bill to raise the debt ceiling and cut spending, but hard-core conservatives refused to back it and the vote had to be temporarily abandoned. The febrile mood in Washington was matched on Wall Street and the City, where news that the US grew at an annual rate of just 1.3% in the three months to June prompted renewed concern that the world’s biggest economy could lapse back into recession should it have its credit worthiness downgraded by the ratings agencies. Speculation that the Federal Reserve might need to embark on a third round of quantitative easing – the creation of electronic money – intensified after revisions to past figures for US gross domestic product showed the recession was deeper than originally believed and the subsequent recovery weaker. America’s peak-to-trough drop in output between 2007 and 2009 is now put at 5.1% rather than the 4.1% originally estimated. With the International Monetary Fund warning the US that a continued impasse risks reigniting Europe’s debt crisis, bond yields in Italy and Spain rose. The interest rate on 10-year Italian bonds rose to 5.89%, while that for Spain – where the government called a general election – climbed to 6.09%. Shares in London closed down 1% lower, a drop of 58.02 at 5815.19, while the Dow Jones industrial average was on course to complete a week of daily falls with a loss of 60 points by lunchtime in New York. Sources close to George Osborne said the new figures from the US showed that the American and British experience during and after the global downturn had been similar, weakening the argument for the coalition government to revisit its tough austerity plans. Obama used the growth figures to urge Congress to come to a compromise on raising the US debt ceiling from $14.3tn (£8.7tn) by Tuesday’s deadline. The White House is pinning its hopes for a deal on the Senate, where Obama hopes the Democratic leader Harry Reid and his Republican counterpart Mitch McConnell, a mainstream conservative, can reach a deal. Obama, in a short statement at the White House, said there were multiple ways to resolve the debt stand-off by the Tuesday deadline. If the US does not raise its debt ceiling by 2 August, it risks being unable to continue borrowing and unable to pay its bills. Obama has said that default is not an option so the US treasury would prioritise keeping up interest payments, which could mean cuts elsewhere. The president reiterated that the victims could be people expecting federal cheques for welfare, and payments to military veterans and government contractors. “This is not a situation where the two parties are miles apart,” Obama said. He added: “There are a lot of crises in the world that we can’t always predict or avoid: hurricanes, earthquakes, tornadoes, terrorist attacks. This isn’t one of those crises. The power to solve this is in our hands.” One scenario would be for the Senate to pass a compromise bill over the weekend that would raise the debt ceiling until the end of next year, after the White House election, and make deep cuts in spending. It could then be passed to the House for a vote in the hope that a combination of mainstream Republicans and Democrats would get it through. Tea Party Republicans could vote against, able to return to their districts and tell activists they remained faithful to the cause. Boehner, in an attempt to recover ground after Thursday’s debacle, rewrote his bill to make it more appealing to the Tea Party wing of his party. But even if the House was to pass that version, the Senate would vote it down. The White House, too, promised to veto it because it would only be a stop-gap measure, lasting only through to February or March with the prospect of another crisis then. Reid, speaking on Friday morning in the Senate, described Thursday as a wasted day because of the Republican fiasco in the House and the blamed the crisis on “extremists in the Tea Party”. He called for mainstream Republicans to back a compromise. “Will the Republicans back away from the shrill voice of the Tea Party and return to the Republican party of Ronald Reagan?” he said. He urged McConnell to meet him to resolve the stalemate. “I will listen to any idea to get this done in a way that prevents a default and a dangerous downgrade to America’s credit rating. Time is short, and too much is at stake, to waste even one more minute,” Reid said. He will push to a vote his plan to raise the debt ceiling and to cut about $2.5tn in spending over the next decade. McConnell also took to the floor of the Senate and did not sound encouraging about a deal, though he may be saying something different in private. “Lawmakers should be working a solution to this crisis, not a blocking strategy. Our Democrat friends here in the Senate have offered no solutions to this crisis that could pass either chamber,” McConnell said. He blamed Obama too, accusing him of having blown up a bipartisan compromise last week. US economy Economics Stock markets US politics United States European debt crisis Spain Italy Europe Ewen MacAskill Larry Elliott guardian.co.uk

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Markets on Edge As Debt Limit Debate Drags on

The word of the day in financial markets: Anxious. (July 29)

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While our media is focusing on this debt ceiling debacle and debating whether our politicians might willingly default on America’s debt through this crisis of their own making, Sen. Sherrod Brown (D-OH) was on the Senate floor this week discussing the real crisis in America — the jobs crisis. With Release of New Study Showing Record Concern Over State of the Manufacturing Industry, Brown Sends Letter to President Obama Urging Greater Focus on Needs of Domestic Manufacturers : Focus Groups Show Americans Want Washington to Focus on Bringing Back Manufacturing Jobs, See Manufacturing as Key to Economic Strength, and Strongly Support the Implementation of a National Manufacturing Strategy July 28, 2011 WASHINGTON, D.C.—With the release of new poll today showing that Americans believe that the strength of the economy is strongly tied to the strength of our manufacturing industry, U.S. Sen. Sherrod Brown (D-OH) sent a letter to President Barack Obama urging him to devote greater attention to the needs of domestic manufacturers as he spearheads a consolidation and reorganization of the Administration’s trade agencies. The study, conducted for the Alliance for American Manufacturing, showed that Americans want Washington to focus on bringing back manufacturing jobs; that they see manufacturing as key to our nation’s economic strength; and that they strongly support the implementation of a National Manufacturing Strategy. Brown is the author of the bipartisan National Manufacturing Strategy Act of 2011, legislation aimed at bolstering the competitiveness of the American manufacturing industry. The goals of the Strategy are to increase manufacturing jobs, identify emerging technologies to strengthen U.S. competitiveness, and strengthen the manufacturing sectors in which the U.S. is most competitive. “The recovery of our manufacturing industry is critical to our country’s economic recovery. Historically, the manufacturing sector has provided Americans with good-paying, stable jobs—a reliable pathway to the middle class. It’s no wonder that with factories closing down and jobs going to China and Mexico that Americans think that Washington isn’t doing enough to save this vital industry,” Brown said. “But the good news is that we can work to reverse the damage—by closing loopholes for companies that ship jobs abroad and giving businesses strong incentives to Make It In America. We should be vigorously enforcing our trade laws—particularly with countries like China—and cracking down on currency manipulation and duty evasion. And finally, as one of the only developed nations without one, we must implement a National Manufacturing Strategy. A complete economic recovery requires a sustained strategy to ensure long-term job growth and job creation.” According to the American Alliance for Manufacturing, the study included eight focus groups nationwide, as well as a random national survey of 1,202 likely voters. The study found that across the partisan spectrum, Democratic and Republican voters ranked job creation and rebuilding the nation’s manufacturing base at the top of their list of priorities. In addition, 94% of voters say creating manufacturing jobs is either “one of the most important” things government can do or “very important;” 90% support Buy American policies “to ensure that taxpayer-funded government projects use only U.S.-made goods and supplies wherever possible;” and 95% favor keeping “America’s trade laws strong and strictly enforced to provide a level playing field for our workers and businesses.” Earlier this month, GAO released a report—requested by Brown and Sen. Jeff Merkley (D-OR) — entitled Office of Manufacturing and Services Could Better Measure and Communicate Its Contributions to Trade Policy . At the time of requesting the report, Brown was serving as Chairman of the U.S. Senate Banking, House, and Urban Affairs Subcommittee on Economic Policy, where he chaired nine hearings on the state of American manufacturing industry. A copy of the GAO report can be found here . A full copy of the letter to the President is below. Dear Mr. President: In your State of the Union address, you called for consolidating and reorganizing the Administration’s trade agencies. To that end, you tasked the Office of Management and Budget (OMB) to examine the consolidation of export and trade offices managed primarily by the Office of U.S. Trade Representative and the Commerce Department. During this process, I urge you to ensure that this reorganization focuses not only upon export-related efforts but also the non-export policy needs of domestic manufacturers. Currently, the Office of Manufacturing and Services (MAS) is the designated office for supporting the Secretary of Commerce in his role as the federal government’s chief advocate for American manufacturing. This office is within the International Trade Administration (ITA) and primarily supports sectors that have a direct connection to exports or impact trade flows. With more than 90 percent of the world’s customers outside the United States, this focus on exports is clearly a central plank in a national manufacturing strategy and efforts. However, the Government Accountability Office (GAO), in a report I requested, found that MAS set an internal goal for 75 percent of its resources to support the National Export Initiative (NEI). This singular focus upon exports is of great concern, especially when greater challenges face the manufacturing sector than export barriers, including: tax issues; access to credit and financing for viable producers; workforce training; and regulations. These challenges take on new urgency considering that from 2000-2009, fifteen of the nineteen aggregate-level U.S. manufacturing sectors shrank in output while manufacturing jobs fell by 6.1 million, or 34 percent. You have given manufacturing policy significant attention, as outlined in the December 2010 “Framework to Revitalize American Manufacturing” and as evident in your recently announced Advanced Manufacturing Partnership. Further, your efforts to restructure the auto industry have saved thousands of jobs in my state and throughout the country, and now we are seeing new jobs created in the auto sector. I fully support and encourage your efforts, but request that you consider a comprehensive and sustainable structure within the Commerce Department to serve as the voice for domestic manufacturers and the integrator of Federal agency manufacturing efforts within yours and future Administrations. I have proposed legislation that will help to achieve these goals, which with your support has the potential to create a more cohesive and coordinated approach to promoting U.S. manufacturers.

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7 Great Gay Couples In Literature

We know we’re a little late, but in honor of same-sex marriage officially being legalized in New York state and this GOOD post about gay romances in literature, we at HuffPost Books have put together a list of some of the memorable same-sex romances in literature. We know that some of the relationships on this list are simply suggested, but nevertheless, even unconfirmed, they definitely make the cut. Did we miss your favorite same-sex couple in literature? Let us know in the comments!

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Facebook’s Randi Zuckerberg: Anonymity Online ‘Has To Go Away’

Randi Zuckerberg, Facebook’s marketing director, has a fix for cyberbullying: stop people from doing anything online without their names attached. Facebook requires all members to use their real names and email addresses when joining the social network — a policy that has been difficult at times to enforce, as the prevalence of spam accounts or profiles assigned to people’s pets suggest. Zuckerberg, who is Facebook co-founder Mark Zuckerberg’s sister, argued that putting an end to anonymity online could help curb bullying and harassment on the web. “I think anonymity on the Internet has to go away,” she said during a panel discussion on social media hosted Tuesday evening by Marie Claire magazine. “People behave a lot better when they have their real names down. … I think people hide behind anonymity and they feel like they can say whatever they want behind closed doors.” Former Google CEO Eric Schmidt has also made this suggestion, calling online anonymity “dangerous” and predicting that governments will eventually “demand” that people use their names for all online activity. But the proposal to tie real-world identities to online actions is a controversial one, with many privacy and free speech advocates countering that anonymity is necessary to protect dissidents and other individuals, such as sexual abuse victims. Gigaom’s Matthew Ingram wrote recently, “Many people believe that requiring real names will solve the problems of trolls and bad behavior, but they don’t — and that policy can have negative consequences in terms of suppressing dialogue about important topics.” Though pressed several times to name what new features Facebook will offer to better safeguard security on the social networking site, Zuckerberg declined to offer specific examples of forthcoming initiatives. “There’s so much more we can do,” she said. “We’re actively tying to work with partners like Common Sense Media and our safety advisory committee.” Erin Andrews, an ESPN anchor who had a naked video of her posted online by a stalker, joined Zuckerberg as a panelist and addressed her struggles to have the illegally-obtained video removed from the web. She became emotional at points during the conversation and described her frustration working Google and other companies that declined to pull the video from the websites hosting it. Andrews praised Google for its “remarkable” contribution to the campaign against bullying titled “It gets better,” but noted she also found it inconsistent: Google searches for her name still turn up the images and videos posted by her stalker, even as the search giant professes to be taking a stand against online harassment. “So when does it get better? I’m confused,” said Andrews, who suggested that her situation may have been viewed differently because it involves a “woman in her 30s.” “It’s still cyberbullying. Somebody needs to step in. As a family we’re always asking, what is it going to take?”

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Fareed Zakaria Flat Out Lies About Deficits, Debt Ceiling and U.S. Credit Rating

In a “Fareed Zakaria GPS” segment to be aired on CNN Sunday and posted at the network's website Thursday, the host flat out lies about the current debt ceiling debate as well as when and why credit rating agencies began expressing concern about our nation's finances. “Please understand that none of these things are happening because the United States is running deficits,” Zakaria falsely claims. “We face downgrades and investor panic not because of our deficits” (video follows with transcript and commentary): FAREED ZAKARIA: Since 1960, the debt ceiling has been raised 78 times. My basic point is that this is a crisis that we have manufactured out of whole cloth. We have created a circumstance in which the world doubts our credibility, rating agencies are thinking of downgrading our debt and the dollar's role as the world's reserve currency could be jeopardized. Please understand that none of these things are happening because the United States is running deficits. There was no indication – by any metric – that the United States was having difficulty borrowing money one month ago. In fact, the world has been lending money to the United States more cheaply than ever before. We face downgrades and investor panic not because of our deficits but because we are behaving like deadbeats, refusing to pay our bills, pouting while the bill collector waits at the door. Absolute total nonsense. The high and mighty Zakaria conveniently forgot the downgrade warning Standard & Poor's published on April 18 of this year: * We have affirmed our 'AAA/A-1+' sovereign credit ratings on the United States of America. * The economy of the U.S. is flexible and highly diversified, the country's effective monetary policies have supported output growth while containing inflationary pressures, and a consistent global preference for the U.S. dollar over all other currencies gives the country unique external liquidity. * Because the U.S. has, relative to its 'AAA' peers, what we consider to be very large budget deficits and rising government indebtedness and the path to addressing these is not clear to us, we have revised our outlook on the long-term rating to negative from stable. * We believe there is a material risk that U.S. policymakers might not reach an agreement on how to address medium- and long-term budgetary challenges by 2013; if an agreement is not reached and meaningful implementation is not begun by then, this would in our view render the U.S. fiscal profile meaningfully weaker than that of peer 'AAA' sovereigns. That last sentence warrants repeating: “We believe there is a material risk that U.S. policymakers might not reach an agreement on how to address medium- and long-term budgetary challenges by 2013; if an agreement is not reached and meaningful implementation is not begun by then, this would in our view render the U.S. fiscal profile meaningfully weaker than that of peer 'AAA' sovereigns.” This was issued on April 18, more than three months ago. As you can see, there was nothing in this report about the debt ceiling. In fact, it wasn't even mentioned. Quite the contrary, S&P on that day issued a negative outlook for our debt specifically due to our “very large budget deficits and rising government indebtedness.” Yet Zakaria says in this segment to be aired Sunday, “Please understand that none of these things are happening because the United States is running deficits…We face downgrades and investor panic not because of our deficits.” What Zakaria is doing is depicting the crisis to be about the debt ceiling rather than the debt and the deficit, and this is utter nonsense that is totally indefensible given S&P's warning in April. Is this the kind of blatant misrepresentation that is now tolerated at the self-described “Most trusted name in news?” In any other profession be it law, medicine, financial services, you name it, such a blatant lie by an employee to the public would be met with the harshest of consequences. Why is this allowed in the so-called “news” industry?

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Rosa Parks was almost raped as a young woman, and in a newly surfaced essay she tells the story in painful detail. Her white neighbor, who hired her as a housekeeper, “moved nearer to me and put his hand on my waist. I was very frightened by now,” she wrote…

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Saddest Movie

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Saddest Movie

►Broken Inside (Aurore Gagnon) The saddest movie ever life or death EPISODE 29 (Bella) beckypatriciaa says: tweet me the saddest movie you’ve ever watched – I want to know which movies make you sad and I’m bored so tweet me!

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Was there ever really any doubt about who would win the Old Spice Guy vs. Fabio showdown? After a battle that according to Mashable spanned more than 100 videos , old Old Spice guy Isaiah Mustafa wound up defeating his windblown foe with … time travel? And a baby-blue balloon? You’re just…

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Engadget’s next reader meetup happens in NYC on August 25th!

Oh, hi! How are you? It’s been so long! We know, we’ve been busy, but we’re going to be in town soon. Very soon! In less than a month we’ll be having a get-together for lots and lots (and lots) of our closest friends — and yes, you’re totally invited. We’ll be hosting the event on the evening of August 25th and it takes place at Guastavino’s , a top-shelf venue on 59th Street in New York City . It’ll be an all-ages gig where you and your friends can try out some of the hottest tech you’ve read about here, debate with the editors about Windows Phone vs. Android vs. iOS vs. RIM vs. whatever, and maybe go home with one of the many, many great prizes we’ll be giving away. We’ll have more posts with more details in the coming weeks as we get closer to the day in question, but if you’re a member of the media who would like to attend, an exhibitor who wants to show something off to the fans, or a sponsor who wants to be a part of the insanity, please e-mail us at meetup at engadget dot com . Until then! Engadget’s next reader meetup happens in NYC on August 25th! originally appeared on Engadget on Fri, 29 Jul 2011 18:00:00 EDT. Please see our terms for use of feeds . Permalink

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