Democrats Urge Obama to Take ‘Any Lawful Steps’ to Avoid Default





WASHINGTON — The Democratic leadership in the Senate asked President Obama on Friday to take “any lawful steps” available to avoid a default on the nation’s debt if Republicans continue to press their demand that an increase in the government’s borrowing limit be accompanied by spending cuts of the same magnitude.




“In the event that Republicans make good on their threat by failing to act, or by moving unilaterally to pass a debt-limit extension only as part of unbalanced or unreasonable legislation, we believe you must be willing to take any lawful steps to ensure that America does not break its promises and trigger a global economic crisis — without Congressional approval, if necessary,” wrote Senators Harry Reid of Nevada, Richard J. Durbin of Illinois, Charles E. Schumer of New York and Patty Murray of Washington.


The letter signaled an escalation in the war of words over the federal debt ceiling, which has already technically been breached, leaving the Treasury Department scrambling to meet the government’s domestic and foreign obligations. Lawmakers believe the bookkeeping flexibility will be exhausted by Feb. 15, at which time Washington would have to either default on its debt or shut down major expenditures.


Already, liberal policy experts have been trying to rally support for measures to go around the Republican blockade, from declaring that the Constitution’s 14th Amendment gives the president unilateral authority to raise the debt ceiling to calling for the minting of a trillion-dollar platinum coin that would be used to pay the nation’s debts.


“All Americans, Democrats and Republicans alike, have a stake in ensuring that our country meets its legal obligations,” the Democratic leaders wrote. “Financial markets have long viewed securities backed by the full faith and credit of the United States as the most trustworthy in the world. This lowers borrowing costs for homes, cars, and college for all Americans and strengthens our economy. If we violate that trust for the first time in history, we will never fully regain it, and every American will suffer.”


Mr. Obama has said he will not negotiate on raising the government’s statutory borrowing limit, but without some extralegal maneuver, it is not clear how he can keep that promise. The House speaker, John A. Boehner, Republican of Ohio, has not backed down on his demand that any increase in the debt limit include cuts at least equal in scope, and Senator Mitch McConnell of Kentucky, the Republican leader, has also said the debt ceiling issue must be used to secure spending reductions.


“Senate Democrats cannot ignore their responsibilities for political convenience — and the American people will not tolerate an increase in the debt limit without spending cuts and reforms,” said Michael Steel, a spokesman for Mr. Boehner.


Conservative Republicans say that even without an increase in the debt ceiling, the administration could continue to pay foreign and domestic creditors by ensuring that incoming tax receipts go first to paying off debts. To do that, however, huge and immediate cuts in government spending would be necessary, and global financial markets would almost certainly be rattled.


The Senate Democratic leaders did not suggest what “lawful steps” they had in mind. A Democratic aide said the senators would be inclined to have the president declare unilateral authority under the 14th Amendment, which says the debt’s validity “shall not be questioned.”


That, the aide said, would be more politically tenable than using the loophole of a trillion-dollar coin, issued under a legal provision that allows the Treasury to mint a platinum coin of any denomination. The coin would be deposited at the Federal Reserve, which in theory would then issue a line of credit against it.


But Democrats worry that the coin option would baffle voters. According to officials familiar with the drafting of the letter, top aides to Mr. Reid, the Senate majority leader, initially favored an explicit reference to the 14th Amendment. But in negotiations over the wording of their letter, the leaders opted for strategic ambiguity, to keep Republicans guessing and the president’s options open.


One of the main reasons for the letter was to bolster the president’s resolve, Senate aides said. In 2011, Mr. Obama dismissed the 14th Amendment option, telling reporters that his lawyers “are not persuaded that that is a winning argument.” This week when asked about the coin, the White House spokesman, Jay Carney, said, “There is no Plan B, there is no backup plan. There is Congress’s responsibility to pay the bills of the United States.”


Democratic leadership aides said the Senate would probably take up legislation in early February that would allow the president to raise the debt ceiling on his own in set increments, perhaps of $1 trillion. Congress would have the ability to reject the increase, but that would take a two-thirds majority.


That plan was first used at the suggestion of Senator McConnell in 2011 to solve the last debt-ceiling impasse. Late last year, Mr. McConnell proposed it on the Senate floor again, but when Democrats called his bluff, he reversed course and blocked his own proposal.


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Canada natives block Harper’s office, threaten unrest






OTTAWA (Reuters) – Aboriginal protesters blocked the main entrance to a building where Canada’s prime minister was preparing to meet some native leaders on Friday, highlighting a deep divide within the country’s First Nations on how to push Ottawa to heed their demands.


The noisy blockade, which lasted about an hour, ended just before Prime Minister Stephen Harper and his aides met with about 20 native chiefs, even as other leaders opted to boycott the session.






Chiefs have warned that the Idle No More aboriginal protest movement is prepared to bring the economy to its knees unless Ottawa addresses the poor living conditions and high jobless rates facing many of Canada’s 1.2 million natives.


Native groups complain that successive Canadian governments have ignored treaties aboriginals signed with British settlers and explorers hundreds of years ago, treaties they say granted them significant rights over their territory.


The meeting was hastily arranged under pressure from an Ontario chief who says she has been subsiding only on liquids for a month. It took place in the Langevin Block, a building near Parliament in central Ottawa where the prime minister and his staff work.


Outside in the freezing rain, demonstrators in traditional feathered headgear shouted, waved burning tapers, banged drums and brandished banners with slogans such as “Treaty rights not greedy whites” and “The natives are restless.”


Until midday on Friday, it was uncertain if the meeting would go ahead, with many native leaders urging a boycott and others saying it was important to talk to the government.


“Harper, if you want our lands, our native land, meaning everyone of us, over my dead body, Harper, you’re going to do this,” said Raymond Robinson, a Cree from Manitoba.


“You’ll have to come through me first. You’ll have to bury me first before you get them,” he shouted toward the prime minister’s office from the steps outside Parliament.


The aboriginal movement is deeply split over tactics and not all the chiefs invited to the meeting turned up. Some leaders wanted Governor-General David Johnston, the official representative of Queen Elizabeth, Canada’s head of state, to participate.


Johnston has declined the invitation, saying it is not his place to get involved in policy discussions. He instead was later hosting a ceremonial meeting with native leaders at his residence.


The elected leader of the natives, Assembly of First Nations National Chief Shawn Atleo, was one of those who attended the meeting with Harper.


He said his people wanted a fundamental transformation in their relationship with the federal government, and would press for a fair share of revenues from resource development as well as action on schools and drinking water.


BANGED ON THE DOOR


Gordon Peters, grand chief of the association of Iroquois and Allied Nations in Ontario, threatened to “block all the corridors of this province” next Wednesday unless natives’ demands were met. Ontario is Canada’s most populous province and has rich natural resources.


Peters told reporters that investors in Canada should know their money was not safe.


“Canada cannot give certainty to their investors any longer. That certainty for investors can only come from us,” he said.


Manitoba Grand Chief Derek Nepinak, who said on Thursday that aboriginal activists have the power to bring the Canadian economy to its knees, was one of the leaders of the protest at the Langevin Block.


“We’re asking him to come out here and explain why he won’t speak to the people,” said Nepinak, who banged on the door at the main entrance to Harper’s offices after choosing to boycott the meeting.


Nepinak and other Manitoba chiefs are also demanding that Ottawa rescind parts of recent budget acts that they say reduce environmental protection for lakes and rivers. The most recent budget act also makes it easier to lease lands on the reserves where many natives live, a change some natives had requested to spur development but which others regard with suspicion.


Ottawa spends around C$ 11 billion ($ 11.1 billion) a year on its aboriginal population, but living conditions for many are poor, and some reserves have high rates of poverty, addiction, joblessness and suicide.


Harper agreed to the meeting with chiefs after pressure from Ontario chief Theresa Spence, who has been surviving on water and fish broth for the last month as part of a campaign to draw attention to the community’s problems. Spence, citing Johnston’s absence, said she would not attend.


“We shared the land all these years and we never got anything from it. All the benefits are going to Canadian citizens, except for us,” Spence told reporters. “This government has been abusing us, raping the land.”


In Nova Scotia, a group of about 10 protesters blockaded a Canadian National Railway Co line near the town of Truro on Friday afternoon, CN spokesman Jim Feeny said.


A truck had been partially moved onto the tracks and was cutting off the movement of container traffic on CN’s main line between the Port of Halifax and Eastern Canada, he said. Passenger services by Via Rail had also been disrupted.


The incident was the latest in a series of rail blockades staged by protestors in recent weeks to press the demands.


($ 1=$ 0.98 Canadian)


(Additional reporting by Louise Egan in Ottawa and Nicole Mordant in Vancouver; Editing by Vicki Allen and Dan Grebler)


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Britney Spears' fiance resigns as co-conservator


LOS ANGELES (AP) — Britney Spears capped a week of changes Friday with a judge accepting the resignation of her one-time fiance from the conservatorship that oversees many of her personal and financial matters.


Jason Trawick submitted his resignation and it was accepted Friday by Superior Court Judge Reva Goetz, who did not elaborate on a reason for the agent's exit from the case less than a year after he joined it.


Spears and Trawick have reportedly broken up, although attorneys for the singer's father and another co-conservator, Andrew Wallet, declined to discuss their relationship Friday. Emails sent to Spears' publicist, Jeff Raymond, were not immediately returned.


Spears has been under a court-supervised conservatorship since February 2008, with her father and Wallet having control over numerous aspects of her personal life. The case was opened after several incidents of erratic behavior by the pop singer and a pair of hospitalizations, but Spears has recovered and recently served as a judge on Fox's "The X Factor."


Spears ended that relationship this week, informing the network she would not return next season and planned to focus on her music.


Trawick and Spears were engaged in December 2011 and he was appointed a co-conservator along with her father, Jamie, in April. Jamie Spears met with Goetz for about an hour Friday but left before a hearing where Trawick's resignation was announced.


Trawick has served as Spears' agent, and the pair started dating in 2009.


The celebrity website TMZ reported Friday that that the pair had broken up.


Trawick did not have authority over Spears' finances, which have recovered since her public meltdown. Goetz recently reviewed and approved of an accounting that showed Spears ended 2010 with more than $27.5 million in assets, including nearly $15 million in cash.


Attorneys handling the case are expected to file updated financial statements in the coming months.


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Flu Deaths Reach Epidemic Level, but May Be at Peak





Deaths in the current flu season have officially crossed the line into “epidemic” territory, federal health officials said Friday, adding that, on the bright side, there were also early signs that the caseloads could be peaking.




Officials from the Centers for Disease Control and Prevention, speaking on a telephone news conference, again urged Americans to keep getting flu shots. At the same time, they emphasized that the shots are not infallible: a preliminary study rated this year’s vaccine as 62 percent effective, even though it is a good match for the most worrisome virus circulating. That corresponds to a rating of “moderately” effective — the vaccine typically ranges from 50 percent to 70 percent effective, they said.


Even though deaths stepped — barely — into epidemic territory for the first time last Saturday, the C.D.C. officials expressed no alarm, and said it was possible that new flu infections were peaking in some parts of the country. “Most of the country is seeing a lot of flu and that may continue for weeks,” said Dr. Thomas R. Frieden, the C.D.C.’s director.


New outpatient cases — a measure based on what percentage of doctor visits were for colds or flu — dropped off slightly from the previous week, to 4 percent from 6 percent. The trend was more pronounced in the South, where this year’s season began.


Dr. Frieden cautioned that the new flu figures could be aberrations because they were gathered as the holiday season was ending. Few people schedule routine checkups then, so the percentage of visits for severe illness can be pushed artificially high for a week or two, then inevitably drop.


Deaths from pneumonia and the flu, a wavy curve that is low in summer and high in winter, typically touch the epidemic level for one or two weeks every flu season. How bad a season is depends on how high the deaths climb for how long.


So far this season, 20 children with confirmed flu tests have died, but that is presumably lower than the actual number of deaths because not all children are tested and not all such deaths are reported. How many adults die will not be estimated until after the season ends, said Dr. Joseph Bresee, the chief of prevention and epidemiology for the C.D.C.’s flu branch. Epidemiologists count how many death certificates are filed in a flu year, compare the number with normal years, and estimate what percentage were probably flu-related.


Many people are getting ill this year because the country is also having widespread outbreaks of two diseases with overlapping symptoms, norovirus and whooping cough, and the normal winter surge in common colds. Flu shots have no effect on any of those.


Spot shortages of vaccines have been reported, and there will not be enough for all Americans, since the industry has made and shipped only about 130 million doses. But officials said they would be pleased if 50 percent of Americans got shots; in a typical year, 37 percent do.


Dr. Bresee said that this year’s epidemic resembles that of 2003-4, which also began early, was dominated by an H3N2 strain and killed more Americans than usual.


Nevertheless, more Americans now routinely get flu shots than did then, and doctors are much quicker to prescribe Tamiflu and Relenza, drugs that can lessen a flu’s severity if taken early.


The C.D.C.’s vaccine effectiveness study bore out the point of view of a report released last year by the University of Minnesota’s Center for Infectious Disease Research and Policy. It said that the shot’s effectiveness had been “overpromoted and overhyped,” said Michael T. Osterholm, the center’s director.


Although the report supported getting flu shots, it said that new vaccines offering lifelong protection against all flu strains, instead of annual partial protection against a mix-and-match set, must be created.


“But there’s no appetite to fund that research,” Dr. Osterholm said in an interview Friday.


“To get a vaccine across the ‘Valley of Death’ is likely to cost $1 billion,” he added, referring to the huge clinical trials that would be needed to approve a new type of vaccine. “No government has put more than $100 million into any candidate, and the private sector has no appetite for it because there’s not enough return on investment.”


At the same time, he praised the C.D.C. for measuring vaccine effectiveness in midseason.


“We’re the only ones in the world who have data like that,” he said.


“Vaccine effectiveness” is a very different metric from vaccine-virus match, which is done in a lab. Vaccine efficacy is measured by interviewing hundreds of sick or recovering patients who had positive flu tests and asking whether and when they had received shots.


Only people sick enough to visit doctors get flu tests, said Thomas Skinner, a C.D.C. spokesman, so the metric means the shot “reduces by 62 percent your chance of getting a flu so bad that you have to go to a doctor or hospital.”


During the telephone news conference Friday, Dr. Frieden repeatedly described the vaccine as “far from perfect, but by far the best tool we have to prevent influenza.”


Most vaccinations given in childhood for threats like measles and diphtheria are 90 percent effective or better. But flu viruses mutate so fast that they must be remade annually. Scientists are trying to develop vaccines that target bits of the virus that appear to stay constant, like the stem of the hemagglutinin spike that lets the virus break into lung cells.


During the 2009 swine flu pandemic, many elderly Americans had natural protection, presumably from flus they caught in the 1930s or ’40s.


“Think about that,” Dr. Osterholm said. “Even though they were old, they were still protected. We’ve got to figure out how to capture that kind of immunity — which current vaccines do not.”


At Friday’s news conference, Dr. Bresee acknowledged the difficulties, saying: “If I had the perfect answer as to how to make a better flu vaccine, I’d probably get a Nobel Prize.”


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Greece Votes to Raise Tax On Its Higher Earners


ATHENS — Greek lawmakers voted late Friday to increase taxes on middle- to high-income earners, self-employed professionals and businesses despite vehement objections by the political opposition and several ruling coalition deputies who said austerity-weary citizens should not be subjected to further pain.


The change to the tax code, one of a long line of pledges Greece has made to international creditors in exchange for continued bailout money, passed comfortably with at least 162 of the ruling coalition’s 163 members backing the articles in a roll call that came after two days of heated debate in the 300-seat Parliament.


The fragile coalition government of Prime Minister Antonis Samaras hopes to raise 2.3 billion euros in much-needed revenue from the new law, which increases the amount of income tax paid by those earning more than 20,000 euros a year, trims tax benefits for having children, revokes tax breaks for farmers and increases corporate tax to 26 percent from 20 percent. The new law also increases the amount of income tax paid by self-employed professionals like doctors and electricians, who are widely perceived as not paying their share by understating their income. New rules abolishing a tax-exempt threshold means the self-employed would be taxed from the first euro they earn.


Defending the bill in Parliament, Finance Minister Yannis Stournaras called it “a vital fiscal reform” that would avert additional across-the-board cuts to workers and pensioners.


“Every euro collected in tax revenue is one euro saved from salaries, pensions and social benefits,” he said. He rejected a flurry of amendments from members of two junior parties in the coalition and the opposition, noting that such costly changes would throw Greece off the path to economic health and put further bailout money in jeopardy.


Calling Mr. Stournaras a “political terrorist,” Panagiotis Lafazanis, a lawmaker of the leftist party Syriza, which opposes the terms of Greece’s bailouts, said the tax bill was “the nail in the coffin of social justice,” adding that “Greek society is more important” than its creditors.


Other opposition lawmakers berated the government for planning to impose additional measures in the coming days, including tighter control of the budgets of ministries and state utilities, the reduction of parliamentary employees’ wages in line with cuts to the wages of other civil servants, and the revision of Greece’s second loan agreement with foreign creditors, in the form of special edicts that do not require parliamentary approval. The loan agreement amendment surrenders the country’s rights to protect its assets from creditors, Syriza complained.


Since 2010, the European Union and the International Monetary Fund have committed to two bailouts for Greece worth 240 billion euros in exchange for austerity measures that have hurt Greek living standards, pushed unemployment close to 27 percent and fueled angry street protests.


The new law is to be followed in spring by a thorough overhaul of the tax system that will introduce jail terms for large-scale evaders instead of the suspended sentences handed down now.


Greece’s failure to crack down on widespread tax evasion came into sharp focus over the holidays after prosecutors revealed that the names of three relatives of the former finance minister George Papaconstantinou had been removed from a list of some 2,000 wealthy Greeks with Swiss bank accounts. Parliament is to vote next Thursday on whether Mr. Papaconstantinou, and his successor as finance minister, Evangelos Venizelos, who leads the coalition’s Socialist party, will face a parliamentary inquiry on whether they should be indicted on charges of criminal tampering and breach of duty.


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Colleges Expect Lower Enrollment





An annual survey of colleges and universities found that a growing number of schools face declining enrollment and less revenue from tuition.




The survey, released by the credit ratings agency Moody’s Investors Service on Thursday, found that nearly half of colleges and universities that responded expected enrollment declines for full-time students, and a third of the schools expected tuition revenue to decline or to grow at less than the rate of inflation.


“The cumulative effects of years of depressed family income and net worth, as well as uncertain job prospects for many recent graduates, are combining to soften student market demand at current tuition prices,” Emily Schwarz, a Moody’s analyst and lead author of the report, said in a statement.


The growing financial challenges for colleges and universities come as students and graduates have amassed more than $1 trillion in student debt, and many are struggling to pay their bills. Nearly one in six people with an outstanding federal student loan balance is in default, the federal government says.


Before the financial crisis of 2008, colleges and universities routinely raised tuition with little effect on the number of prospective students who applied. Some private colleges said that applications actually rose when they increased prices, apparently because families equated higher prices with quality.


But that attitude has changed, in part because family incomes have declined. Ms. Schwarz also noted, “Tougher governmental scrutiny of higher education costs and disclosure practices is adding regulatory and political pressure to tuition and revenue from rising at past rates.”


In addition, she noted that budget negotiations in Congress could lead to cuts in student aid programs while the share of students that depend on government help continued to rise. At public universities, federal loans finance a median of 40 percent of student charges; at private schools, the median is 21 percent.


While nearly half the schools that responded to the survey expected enrollment declines, the changes are expected to be minimal and overall enrollment should remain relatively flat. The enrollment declines are more pronounced among graduate programs; small, lower-rated universities; and public schools in the Northeast and Midwest, where the number of high school seniors is declining.


By comparison, about 15 percent of the schools that responded to the survey in the fall of 2010 reported enrollment declines.


Daniel J. Hurley, director of state relations and policy analysis at the American Association of State Colleges and Universities, said he was not surprised by the findings. He said that after years of cuts, he expected an uptick in state financing for public colleges and universities in the coming year.


In addition, he said states had become more strategic in how they finance higher education, offering incentives for schools that provide more graduates in critical fields, like engineering.


Tony Pals, spokesman for the National Association of Independent Colleges and Universities, which represents nonprofit private schools, said the report confirmed the tough realities of higher education. “Economic, demographic, marketplace and technological trends are converging to cause an unprecedented time of change for higher education. The new reality is that colleges are expecting to have to do more with less for years to come,” he said in an e-mail.


But Mr. Pals noted that his members had a history of resiliency and innovation. “We are seeing a jump in three-year bachelor’s degree programs, so-called no-frills satellite campuses and academic partnerships between four-year private colleges and local community colleges.”


Over all, 18 percent of private universities and 15 percent of public schools in the survey projected a decline in net tuition revenue for fiscal 2013. A much larger share, one-third, said net tuition revenue would decline or grow by less than 2 percent.


“Such weak revenue growth often means a college cannot afford salary increases or new program investments unless it cuts spending on staff and existing programs,” the Moody’s report said. By comparison, in fiscal 2008, only 11 percent of private schools and 9 percent of public schools did not increase tuition revenue by 2 percent or more.


Since the financial crisis, tuition at public schools has grown more rapidly than private ones, largely to offset sharp costs in state financing. Public universities have responded by recruiting more out-of-state and international students, who can pay more than in-state students.


Private schools have provided more and more financial aid to students to offset their higher price, a trend that many view as unsustainable.


Moody’s has a more upbeat view of the most elite private schools and flagship public universities, which continue to have strong student demand and, in many instances, many other sources of revenue.


The Moody’s survey included 165 nonprofit private universities and 127 four-year public universities.


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A Tale of 2 Strategies: The Twitter Genius of Chuck Grassley and Cory Booker






If you’re on Twitter and not following Sen. Chuck Grassley, you’re not using Twitter correctly.


The Iowa Republican is known for his colorful and personal Twitter feed. Take a gander: He personally tweets about everything from the History Channel to “Obamacare” to an incident in which he hit a deer with his car  (“assume dead”). Grassley’s tweets take us along for a ride, one that’s often riddled with spelling errors (which he has said is due to his distaste for typing and the iPhone’s auto-correct function).







Pres/Cong need 2work on Wash spending prob. No time 2waste b/4 Mar. Pres promised tax hike is done. Now he needs 2keep promise 4 less spend


— ChuckGrassley (@ChuckGrassley) January 4, 2013



Rained inIowa this weekend. Still 8 inches shortIowa still still listed dangerous drought pray For rain


— ChuckGrassley (@ChuckGrassley) December 17, 2012



Fred and I hit a deer on hiway 136 south of Dyersville. After I pulled fender rubbing on tire we continued to farm. Assume deer dead


— ChuckGrassley (@ChuckGrassley) October 26, 2012


Contrast Grassley’s tweets to another lawmaker known for his active and personal feed: Newark, N.J., Mayor Cory Booker. On Twitter, he’s part mayor, part celebrity. Booker tweets about city services and was widely praised for how he utilized the platform in the aftermath of superstorm Sandy to connect directly with residents. But then he’ll retweet someone who says she’s going to get a Cory Booker quote tattoo or someone who has a “political crush” on him. Sometimes, Booker tweets like a Kardashian.



Think so, call 9737334311. My people will tell u RT @hennybottle: Is the number to get downed wires removed same for all of essex county?


— Cory Booker (@CoryBooker) January 8, 2013



“Hey, Never Met U, Your tweet’s Crazy, I’ll DM My Number, So Call Me Maybe?” MT @ann_ralston: I have a non-sexual, political crush on you!


— Cory Booker (@CoryBooker) January 8, 2013



Wow. An honor I never quite imagined RT @rachelanncohen: deliberating between several Cory Booker quotes for my next tattoo.


— Cory Booker (@CoryBooker) January 8, 2013



I love you too! RT @alwoldegorgeous: I can actually say I am in love with @kimkardashian#girlcrush


— Kim Kardashian (@KimKardashian) December 12, 2012


Obviously, Booker is savvier with Twitter than Grassley, and he’s utilized the platform effectively, as he vies for statewide office. Booker’s a PR genius with social media. Grassley’s himself–typos, rants, and all. So while Booker probably doesn’t need to take Twitter lessons from the six-term senator, there’s something decidedly old school and earnest that’s kind of appealing about Grassley’s feed, something that would be nice to see in Booker’s feed, too.



Welcome to Twitter Pope Benedict. U will find it useful and interesting


— ChuckGrassley (@ChuckGrassley) December 3, 2012


CORRECTION: Grassley has served in the Senate for six terms.  An earlier version of the story incorrectly listed his tenure.


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Warner wins legal victory for control of Superman


SAN FRANCISCO (AP) — Just in time for the summer release of a hoped-for blockbuster movie "Man of Steel," Warner Bros. won a second significant legal victory Thursday giving it complete commercial control of the lucrative Superman franchise.


A three-judge panel of the 9th U.S. Circuit of Appeals unanimously ruled that the heirs of Superman's co-creator Jerome Siegel must abide by a 2001 letter written by the family's attorney accepting Warner Bros.' offer for their 50 percent share of Superman. Though the five-page letter was never formalized into a contract, the appeals court said it was still binding.


"Statements from the attorneys for both parties establish that the parties had undertaken years of negotiations, that they had resolved the last outstanding point in the deal during a conversation on Oct. 15, 2001, and that the letter accurately reflected the material terms they had orally agreed to on that day," Judge Stephen Reinhardt wrote for the panel.


The ruling Thursday undoes a 2008 trial court decision ordering Warner Bros. to share an undetermined amount of money earned since 1999 with the heirs, and to give the family control of key components of the Superman story, including his costume. If that decision were to stand, the studio would have had to negotiate a new costly royalty agreement with the family.


"The court's decision paves the way for the Siegel finally to receive the compensation they negotiated for and which DC has been prepared to pay for over a decade," Warner Bros. said in a prepared statement, referring to its DC Comics division. "We are extremely pleased that Superman's adventures can continue to be enjoyed across all media platforms worldwide for generations to come."


The family's attorney, Marc Toberoff, didn't respond to a request for comment.


Toberoff said earlier that he would appeal another significant Warner Bros. victory won in October involving the family of Superman's other creator, Joseph Shuster, and their bid for half the commercial rights. Toberoff also represents the Shuster heirs, who lost their bid to retain a 50 percent share of Superman.


A federal judge in Los Angeles had ruled that Shuster's sister and brother relinquished any chance to reclaim Superman copyrights in exchange for annual pension payments from DC Comics. U.S. District Judge Otis Wright noted in that case that the families of both creators have been paid in excess of $4 million since 1978, plus undefined bonuses and medical benefits.


In April, the $412 check that DC Comics wrote in 1938 to acquire Superman and other creative works by Shuster and Siegel sold for $160,000 in an online auction.


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Children’s Flu Medicine in Short Supply





As influenza cases surge around the country, health officials say they are trying to stem a shortage of treatments for children.




Pharmacies around the country have reported dwindling supplies of liquid Tamiflu, a prescription flu medicine that can ease symptoms if taken within 48 hours of their onset. The drug is available in capsules for adults and a liquid suspension for children and infants.


“There are intermittent shortages of the liquid version (but not the capsule version) due to the supplier’s challenges to meet the current demand,” Carolyn Castel, a spokeswomen for CVS Caremark, said in an e-mail.


Pharmacies around the country are experiencing shortages of the liquid suspension “due to recent increased demand,” Sarah Clark-Lynn, a spokeswoman for the Food and Drug Administration, said on Thursday.


Ms. Clark-Lynn said the F.D.A. was working with the company that markets Tamiflu, Genentech, to increase supplies. The agency is also letting pharmacists know that in emergencies they can compound the adult Tamiflu capsules to make liquid versions for children.


A similar shortage of Tamiflu has hit Canada, which has also been gripped by widespread flu outbreaks, prompting the government there to tap into a national stockpile of the drug.


“That really unexpected increase in demand — far above other influenza seasons — has really depleted the usual stocks which in any other season would have been more than sufficient,” Dr. Barbara Raymond, director of pandemic preparedness for the Public Health Agency of Canada, told The Ottawa Citizen.


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2 Years Into Nokia Turnaround, Some Good News





Nearly two years ago, Stephen A. Elop, Nokia’s new chief executive, spoke of flaming ocean platforms and shark-infested waters to describe the problems he inherited as the company teetered on the brink of irrelevance.




Mr. Elop painted the bleak outlook as he prescribed a radical cure for the Finnish mobile phone pioneer: The rejection of the company’s own Symbian smartphone operating system for a shotgun wedding to Microsoft, itself stumbling badly with smartphone software. After that, sales slumped sharply, losses mounted and huge layoffs followed.


On Thursday, he delivered unexpected good news: a profit. Sales of its new smartphone line, the Lumia, powered by Microsoft’s Windows Phone operating system, soared more than 50 percent in the fourth quarter of last year, according to preliminary financial information.


In what was seen as a make-or-break quarter, Mr. Elop said Nokia would break even or turn a 2 percent profit rather than report a loss as large as 10 percent, as analysts expected.


Nokia will report its earnings on Jan. 24.


Wall Street reacted to the announcement by sending Nokia’s American depositary receipts up 18.67 percent, or 70 cents, to $4.45.


“While we definitely experienced some tough challenges in the first half of 2012, we are managing through these issues,” Mr. Elop said in a conference call with journalists.


What Nokia has accomplished under Mr. Elop is to produce a line of increasingly competitive smartphones that are starting to draw favorable comparisons with those from Samsung and Apple, the two companies most responsible for knocking Nokia from its lofty perch.


“The Lumia smartphones are night-and-day different from Nokia’s old Symbian handsets,” said Francisco Jeronimo, an analyst with the International Data Corporation in London. “I think what we are starting to see now is what will be a steady turnaround in Nokia’s fortunes.”


The company, which dominated the cellphone business until Apple introduced its iPhone in 2007, still has a long way to go to achieve its former stature. In the third quarter, Nokia held on to a 4 percent share of the global smartphone market, and was ranked a distant No. 10 in the sector, according to Strategy Analytics, a research firm.


Samsung and Apple, the No. 1 and No. 2 smartphone makers, together had 50 percent of the global smartphone market, and their sales were growing. While its competitors rose, Nokia has generated nearly 5 billion euros ($6.5 billion) in losses under Mr. Elop, and eliminated a third of its work force.


The key to its turnaround was the introduction in October of the top-of-the-line Lumia 920 and 820, which used the new Windows Phone 8 operating system. Since then, Nokia has spent heavily on advertising in Britain and Europe to promote the models. The company will not disclose how much it had spent on its campaign, but its television ads were ubiquitous over the holidays, said Neil Mawston, an analyst at Strategy Analytics in London.


The heavy promotion, which was aided by Microsoft’s own advertising, has helped the company recapture some of its lost glory, Mr. Mawston said.


But he warned that “Nokia still lacks the true killer phone that will enable it to compete with the iPhone 5 or Samsung Galaxy S III.” He expected Nokia’s share of the global smartphone market to rise to 6 percent by the end of the year.


The company’s financial position is likely to revive even more quickly as a result of the strict cost-cutting imposed by Mr. Elop, who ran Microsoft’s business software division before joining Nokia in late 2010.


Since then, Nokia has shut factories across Europe. Last month, the company sold its 540,000-square-foot glass-and-wood headquarters in the Helsinki suburb of Espoo to Finnish investors, and leased it back. The maneuver netted Nokia 170 million euros.


Besides a more competitive array of phones, Nokia has discarded its market-leader mentality. Employees are now routinely traveling in economy class and sharing rides to airports. Workers no longer use costly telephone conference calling but speak in group teleconferences using less expensive Internet calling services.


“The company is a lot smaller now but people are working better together,” said Susan Sheehan, a Nokia spokeswoman. “Everyone has been pitching in.”


Even at Nokia Siemens, the company’s long-suffering network equipment venture, the future is looking brighter than it was two years ago. On Thursday, Nokia said the unit, which contributes about 40 percent of total sales, would report an operating profit for the quarter, its third consecutive quarterly profit.


Nokia, in its announcement to investors, even revised the operating profit margin forecast at the venture to 13 to 15 percent of sales, up from a range of 4 to 12 percent.


Looking ahead, Nokia said it expected to return to an operating loss of 2 percent of sales because of the first-quarter postholiday buying lull and fierce competition. But the results for the coming three months could vary widely.


Pete Cunningham, an analyst at Canalys, a research firm in Reading, England, said that Nokia still faced challenges. “2013 could still turn out to be another very difficult year for Nokia. It is way too premature to say that the company has made a turnaround.”


Mr. Cunningham said he used the Lumia 920, Nokia’s newest smartphone, during the Christmas holidays and liked it.


“But the more I used the phone, the more apparent it became to me that there are big gaps between Lumia and its competitors in terms of the functionality and usability of its apps,” Mr. Cunningham said.


“I still think there is a lot of work to be done on Lumia.”


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