John Boehner, leader of the House of Representatives, rewrites bill as America slides closer towards default territory The US Congress remained deadlocked over the debt crisis on Wednesday with Republicans in the House of Representatives unable to muster the votes needed to pass emergency legislation ahead of the deadline of Tuesday 2 August. House leader, John Boehner, faced with a revolt by hardline members of his own party, was having to hastily rewrite a bill he proposed earlier in the week to cut $3tn (£1.8tn) in federal government spending. He is hoping to put his new bill to the vote on Thursday after being forced to cancel a planned vote on Wednesday because of lack of numbers. The deepening internal divisions within Republican ranks add another layer to the uncertainty in Washington. Democratic and Republican leaders have so far been unable to reach any agreement on a deal to prevent America joining Ecuador, Ukraine and a handful of other countries that have defaulted in the last decade. Although the US treasury may be able to conjure up a short-term solution to prevent default on Tuesday, the row and the failure of the US to tackle its burgeoning debt problem could lose the US its triple-A credit rating, which would have damaging consequences for the country’s economy. Boehner needs to secure 217 votes to get his bill through, a job made more difficult by a report by the congressional budget office on Tuesday night that said his proposal would only reduce the deficit initially by $850bn, not $1.2tn as he had claimed. Hardline conservatives are demanding bigger cuts. Even if the bill was passed, the Democratic Senate majority leader, Harry Reid, promised the upper house would kill it and Barack Obama said he would veto it. A solution is likeliest to come from negotiations between Reid and the Republican leader in the Senate, Mitch McConnell. Reid is proposing raising the debt ceiling from $14.3tn until after the 2012 presidential elections in return for spending cuts of $1.7tn. John Boehner US Congress Barack Obama Republicans Democrats US politics United States US economy Global economy Ewen MacAskill guardian.co.uk
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Police arrest 19-year-old man in Shetland Islands who is alleged to be involved in hacker attacks on law enforcement agencies The international hunt for computer hackers linked to attacks on law enforcement agencies has led to the arrest of a teenager in the Shetland Islands. Officers from the Metropolitan police’s e-crime unit arrested a 19-year-old at his home on Wednesday as part of a global hunt for hackers connected to the LulzSec and Anonymous groups. Scotland Yard said the suspect uses the online nickname “Topiary”, who has been presented as a spokesman for the LulzSec collective and one of the most prominent names in the so-called “hacktivist” movement. The teenager is the third person to be arrested in the UK in connection with attacks on the electronics giant Sony, as well as assaults on US government agencies. A 16-year-old from South London was arrested and released on bail last week. Essex teenager Ryan Cleary, 19, is due to appear before a London court on 30 August charged with a number of attacks on websites. Police also said a 17-year-old male is being interviewed under caution, but was not arrested, in connection with the hacking inquiry. A residential address in Lincolnshire is being searched. More details soon … LulzSec Hacking Crime Josh Halliday guardian.co.uk
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Rostam Ghasemi, who is blacklisted by western powers, could have major role in determining global oil price A senior commander of Iran’s revolutionary guards, who is subject to comprehensive international sanctions, has been nominated as the country’s oil minister, a position that currently includes the presidency of Opec. Mahmoud Ahmadinejad, the Iranian president, sent a list of four ministers, including Rostam Ghasemi, commander of the revolutionary guards’ Khatam al-Anbia military and industrial base, to the parliament for approval, the semi-official Fars news agency reported. Should the parliament confirm Ghasemi’s nomination next week, the commander, who is targeted by US, EU and Australian sanctions, will be automatically appointed as head of Opec, giving the revolutionary guards access to an influential international platform. Under Iran’s constitution the president is in charge of appointing cabinet ministers, who take office after the approval of parliament. Iran took the Opec presidency in October last year, its first time at the head of the oil exporters’ cartel since the 1979 Islamic Revolution. Unrest in the Middle East, especially the ongoing war in Libya, has given Opec a crucial role in determining the current oil price. Iran is the second-largest crude oil exporter in Opec. The nomination follows an extraordinary power struggle between Ahmadinejad and Iran’s supreme leader, Ayatollah Ali Khamenei. Ahmadinejad attempted to take over the oil ministry as its temporary head in May but his move was blocked by parliament. He then appointed Mohammad Aliabadi, a close ally, as a caretaker. By involving the revolutionary guards – who are under the control of Khamenei – in his cabinet, Ahmadinejad might be trying to alleviate the tensions with those of Khamenei’s supporters who have been threatening the president with impeachment . The revolutionary guards have won significant economic power since Ahmadinejad took office in 2005. The organisation has signed contracts with the government in fields such as oil, gas and telecommunications. Khatam al-Anbia’s involvement in the country’s gas field developments exceeds $7bn (£4.3bn), according to the Economist Intelligence Unit. In an interview with Fars on Wednesday, Ghasemi said the revolutionary guards would also work as a contractor with the oil ministry if his nomination were approved by parliament. “We have strong and skilful people working for Khatam al-Anbia who are capable of taking up oil-related projects and I don’t have any concerns over the activities of the base,” he was quoted by Fars as saying after the news of his nomination broke out. Khatam al-Anbia, the construction arm of the revolutionary guards which is already in control of some of the country’s most important recent oil and gas contracts, was mentioned in a list of Iranian institutions targeted by UN sanctions. Revolutionary guards’ assets, including those personally owned by Ghasemi and dozens of his colleagues, have been blacklisted by the US Treasury and western powers. Other officials in Ahmadinejad’s cabinet have been also subject to international sanctions including the foreign minister, Ali Akbar Salehi, the defence minister, Ahmad Vahidi, and the vice-president, Fereidoun Abbasi Davani. In a letter addressed to the parliamentary speaker, Ali Larijani, Ahmadinejad also nominated Mohsen Abadi as the minister for sports and youth, Abdolreza Sheikholeslami as the minister for co-operative, labour and social welfare, and Mehdi Gazanfari as the minister of industries, mines and trade. Iran Mahmoud Ahmadinejad Ayatollah Ali Khamenei Middle East Saeed Kamali Dehghan guardian.co.uk
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China’s premier promises train crash report in response to dissent over propaganda directives to journalists Propaganda authorities in China have failed to stem the torrent of public outrage over last Saturday’s high-speed rail crash amid continuing aggressive media reporting and angry online posts. Amid the rancour, China’s premier, Wen Jiabao, ordered a “swift, open and transparent” investigation, adding that its results should be made public. He promised to take resolute steps to strengthen safety, the Xinhua state news agency reported. At least 39 people died and more than 190 were injured in the crash near Wenzhou in Zhejiang province. Six carriages derailed and four plunged from a viaduct after one train smashed into the back of a stationary train. Directives leaked this week ordered journalists to avoid analysing the causes and focus on uplifting stories of the rescue but several outlets continued to attack the handling of the collision and raise awkward questions – such as the whereabouts of the surviving train driver and whether the safety systems had failed. It was also reported that the “miracle” rescue of a toddler happened only because the officer who found her defied orders to halt the search. “Knowing how the railway’s Great Leap was achieved, who can say that the high speed network is safe? … unofficial opinions have been blocked and silence was imposed on dissenting experts. That is why tragedies are unavoidable,” warned an editorial in the Economic Observer. Meanwhile, users posted millions of messages on Sina’s Twitter-like Weibo service and some microbloggers referred to the railways ministry as “iron hooligans”. One created a fake movie poster, spoofing recent propaganda films. Titled The Panicked Train Crew, and featuring images of railway officials, it proclaims: “After the Founding of a Republic and The Beginning of the Great Revival, another epic film to celebrate the 90th anniversary of the Chinese Communist party!” Although critical reporting and online attacks on authorities are often seen after disasters, it is rare for them to continue for so long – particularly in the face of explicit orders. It is especially unusual given that high speed rail is regarded as a matter of national prestige. New media professor Hu Yong said: “The difference this time is how widely it has spread, how sharp the criticism is and how much the various tiers of society are influenced.” He said microblogging had played a major role in spreading information and reaction, but added: “It is still questionable whether this will affect policy-making and the final outcome.” David Bandurski, of the China Media Project at Hong Kong University, predicted that authorities would soon clamp down. He said the sensitivity of the political situation – with jockeying for position ahead of next year’s power transition – had made the issue “too hot to handle”. Others have suggested that leaders may be keen to clip the wings of the overly powerful ministry. Bandurski also suggested journalists might be seeking to push back after a recent media clampdown: “When they do crack down on the story, everyone is going to know what they are not reading. The political blowback is going to be huge,” he added. Propaganda directives are issued by numerous bodies, which might help to explain variations in coverage, although at least one of the orders appeared to be at national level. Southern Metropolitan Daily warned: “Without independent investigation of the truth, the living will not agree and the dead will not rest.” The Beijing Times said many “puzzles” remained unsolved.The state-run Global Times also attacked officials for failing to answer reasonable questions. “Chinese society is changing and public democracy is booming in the internet era, but the arrogance of certain authorities has stagnated … public opinion in China cannot stand this anymore,” said an editorial. He Weifang, a prominent scholar at Peking University Law School, used his microblog account to call for an independent special commission to investigate the crash and the future development of high speed rail. He pointed out that the ministry of railways was affiliated to the state council, which has set up the current inquiry, adding: “If they investigate, it is hard to demonstrate justice and fairness.” Additional research by Han Cheng China Rail transport Press freedom Tania Branigan guardian.co.uk
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Jury in Swansea crown court delivers 10-2 guilty verdict against Joshua Davies, who attacked ex-girlfriend in wood last October A teenager has been found guilty of luring his ex-girlfriend to a secluded wood and battering her to death with a rock. Rebecca Aylward, 15, from Maesteg, near Bridgend in south Wales, was left lying face down in the rain after the vicious attack by Joshua Davies, 16, last October. Davies led her to a wood in nearby Aberkenfig, then attacked her with a rugby ball-sized rock, Swansea crown court heard. The teenager listened without emotion as the jury delivered its majority guilty verdict of 10-2. Members of Rebecca’s family, sitting in the public gallery, cheered briefly. During a four-week trial, the jury heard that Davies had been promised a free breakfast at a favourite cafe by friends if he carried out the killing. He admitted telling friends that he wanted to kill Rebecca but insisted to the jury he was only joking and would not have carried out his threat. Instead the defendant claimed another friend killed Rebecca in the woods when an elaborate prank went wrong. Crime Wales Steven Morris guardian.co.uk
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enlarge Here’s a dirty little secret: While there’s a wealth gap in general, it is a gaping maw when it comes to minorities and the rest of the world. Pew Research: The median wealth of white households is 20 times that of black households and 18 times that of Hispanic households , according to a Pew Research Center analysis of newly available government data from 2009. These lopsided wealth ratios are the largest since the government began publishing such data a quarter century ago and roughly twice the size of the ratios that had prevailed between these three groups for the two decades prior to the Great Recession that ended in 2009. Unsurprisingly, it’s a combination of Bush era policies and the recession, which caused higher rates of unemployment working in tandem with plummeting home values in Hispanic and black neighborhoods. As a result of these declines, the typical black household had just $5,677 in wealth (assets minus debts) in 2009, the typical Hispanic household had $6,325 in wealth and the typical white household had $113,149. Moreover, about a third of black (35%) and Hispanic (31%) households had zero or negative net worth in 2009, compared with 15% of white households. In 2005, the comparable shares had been 29% for blacks, 23% for Hispanics and 11% for whites. It’s the “why” that’s concerning. Plummeting home values took a far higher toll on minorities. Jack and Jill Politics : What the study makes clear is that the wealth of most black folks and Hispanics is in their homes, whereas the wealth of whites is much more diversified in stocks and other things. So when the value of a black or Hispanic family’s home goes through the floor, that pretty much wipes us out financially because we have nothing else to fall back on. Now add to that a bit of history, referring of course to all those vicious subprime loans that screwed so many families who wound up losing their homes to what was essentially a Wall Street invention. Minorities are also subject to exploitive financial schemes, like payday lending and ridiculous car loans. Colorlines reports: But that’s still more symptom than root cause. Black and Latino families are also far more likely to live in places crawling with expensive, deceptive consumer lending of all sorts, from car loans to refinance mortgages. They are more likely to turn to that lending because they make less money and because they already hold less wealth to cushion themselves in tough times. It’s an ugly cycle: inequality across the economy creates demand for predatory credit to bridge the gap, which in turn worsens inequality. Is it any wonder Republicans are taking aim at any regulation of the financial industry, given how they’ve benefitted from it? It certainly casts a shiny light on their efforts to gut the CFPB . Sidenote: TheGrio has an article with ideas for how minorities can take control of their finances and fight back on their own. And as long as I’m linking it, I’d like to give a big congratulations to my friend Joy-Ann Reid of The Reid Report for being hired as The Grio’s managing editor, which will also involve appearances as an analyst on MSNBC. Congratulations!
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Wednesday’s New York Times lead story on the debt ceiling standoff by Jennifer Steinhauer and Carl Hulse,
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Police pass file to prosecutors after reviewing a tape recording in which the energy minister and his then wife discussed the matter Police have handed a file to the Crown Prosecution Service following an investigation into allegations that the energy secretary, Chris Huhne, avoided speeding points to escape a driving ban. The Liberal Democrat minister faces claims that he persuaded Vicky Pryce, his then wife, to accept a three-point penalty on his behalf in March 2003 to avoid a driving ban. He denies the allegation. Huhne and Pryce were interviewed again last week after police obtained a court order to take possession of a tape recording in which the former couple apparently discuss the case. A CPS spokesperson said: “We have received a file of evidence from Essex police in relation to allegations involving Christopher Huhne and Vicky Pryce. This file will be reviewed under the code for crown prosecutors and a decision on whether to charge will be made in due course.” The development came on a day that the Lib Dem minister was cleared of wrongdoing over his expenses for last year’s general election following an investigation by the electoral watchdog. The investigation was prompted by complaints that Huhne had under-reported the amount spent on his campaign. The Electoral Commission said it was taking no action against the Eastleigh MP, after finding only minor discrepancies in his election expense returns. Under election law, candidates’ spending is limited for both the “short campaign period” immediately before the vote and the “long campaign period” before it. Mr Huhne reported spending of £18,608.56 for the long campaign against a limit of £28,874.80 and £10,911.05 for the short campaign against a limit of £11,024.80. The Electoral Commission investigation found that the cost of his campaign website was £45.15, rather than the £35 reported, but noted that this still left him well within spending limits. It found that the decision to allocate spending totalling around £5,400 to the national Liberal Democrat campaign, rather than to Huhne’s personal campaign for the Eastleigh seat, was “reasonable and in line with Electoral Commission guidance”. The watchdog wrote to the party asking it to review its procedures, after it emerged that the cash attributed to the national campaign by Huhne’s team was not declared in the national expense returns. The commission also wrote to Huhne asking him to take more care with future campaign literature, after finding that some letters did not accurately carry the name of their printer, as they are required to. In a statement, the commission said: “On the basis of the evidence considered, the commission do not believe that further action is required. Huhne said: “The Electoral Commission is very clear that the campaign was properly within the legal limits, as I always maintained, and I am delighted that we have such a clear conclusion to this investigation. This is the second review caused by misinformed and politically motivated complaints, and it now means that all the complaints concerning my campaign have been rejected.” Chris Huhne Liberal Democrats Liberal-Conservative coalition Hélène Mulholland guardian.co.uk
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Hour-long NHS operation carried out at Royal National Throat, Nose and Ear hospital in London The Labour leader, Ed Miliband, has undergone a successful operation to treat his sleep apnoea. The hour-long NHS operation was carried out at the Royal National Throat, Nose and Ear hospital in central London. In April, Miliband revealed that he suffered from sleep apnoea, which interrupts breathing during sleep, with the condition made worse by a deviated nasal septum. At the time, sources close to the Labour leader dismissed media speculation that he was hoping the operation would make his voice sound less nasal. One who spoke to him after the operation had been carried out said he sounded “exactly the same”. A spokeswoman for the Labour leader said: “Ed Miliband had an operation … to correct a deviated septum in order to help with his sleep apnoea. He is now recovering for a few days before going on holiday with his family.” Ed Miliband guardian.co.uk
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James Harding says some readers cancelled subscriptions in wake of revelations about News of the World’s alleged activities The editor of the Times, James Harding, has admitted that News International’s handling of the phone-hacking crisis was “catastrophic” and that it impacted on the paper’s sales. Harding said readers had cancelled subscriptions to the Times and to digital versions of the paper in the immediate aftermath of the revelations about Millie Dowler’s phone allegedly being hacked by News International sister title the News of the World. Asked whether News International would recover and if he still felt the way the company had reacted had been “catastrophic”, as described by one of his paper’s leader columns, he said: “Yes, I think that would be a pretty descriptive word for what it happened and the struggle they had in getting to grips with it.” But Harding, who has pursued a fiercely independent line on the scandal since the Dowler story broke in early July, said he believed Rupert Murdoch was now back in charge after accepting the resignation of Rebekah Brooks, dropping the bid for BSkyB and apologising to the Dowler family. “You have to own your mistakes, otherwise your mistakes own you,” Harding told Steve Hewlett , presenter of Radio 4′s The Media Show. The Times lost more than 20,000 sales on some days following the Dowler revelation, according to industry sources. “In the first couple of weeks after the Milly Dowler story broke we were acutely concerned about it and with good reason. There were some people who were not just disgusted by the News of the World but wanted to express that anger in any way they could,” Harding said. He was then asked if the Times saw evidence of this in losing its own readers. “Yes we absolutely did,” Harding replied. “We saw small numbers of people cancelling their digital subscriptions or cancelling their print subscriptions – happily those have largely come back.” He said he knew he was in for a “very testing” time when the Dowler story broke more than three weeks ago and that the scrutiny of press behaviour on all newspapers would be a “watershed” moment for British journalism. But he added it would be lamentable if the ambitions of journalists to hold the powerful and privileged to account were in any way stymied. “I think it’s an unpopular position at the moment. But we need to make sure we don’t get into a circular firing squad in Fleet Street, we don’t spend our time in a process of self-flagellation, we believe in a free press,” Harding said. “I was very concerned for the reputation of journalism generally the moment I woke. We are now three and a half weeks, the better part of a month on,” he added. “I think if you went round the country today and you said ‘Do you still think that’s it’s important in a free society that the press hold the powerful and the privileged to account?’ I think they would say yes. If you said ‘Do you think it would be a good idea for David Cameron and Ed Miliband to set the terms of the way in which newspapers work?’, most people would say no.” •
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