Senate approves "fiscal cliff" deal, crisis eased


WASHINGTON (Reuters) - The Senate moved the U.S. economy back from the edge of a "fiscal cliff" on Tuesday, voting to avoid imminent tax hikes and spending cuts in a bipartisan deal that could still face stiff challenges in the House of Representatives.


In a rare New Year's session at around 2 a.m. EST (0700 GMT), senators voted 89-8 to raise some taxes on the wealthy while making permanent low tax rates on the middle class that have been in place for a decade.


But the measure did little to rein in huge annual budget deficits that have helped push the U.S. debt to $16.4 trillion.


The agreement came too late for Congress to meet its own deadline of New Year's Eve for passing laws to halt $600 billion in tax hikes and spending cuts which strictly speaking came into force on Tuesday.


But with the New Year's Day holiday, there was no real world impact and Congress still had time to draw up legislation, approve it and backdate it to avoid the harsh fiscal measures.


That will need the backing of the House where many of the Republicans who control the chamber complain that President Barack Obama has shown little interest in cutting government spending and is too concerned with raising taxes.


All eyes are now on the House which is to hold a session on Tuesday starting at noon (1700 GMT).


Obama called for the House to act quickly and follow the Senate's lead.


"While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay," he said in a statement.


"There's more work to do to reduce our deficits, and I'm willing to do it. But tonight's agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans," Obama said.


Members were thankful that financial markets were closed, giving them a second chance to return to try to head off the fiscal cliff.


But if lawmakers cannot pass legislation in the coming days, markets are likely to turn sour. The U.S. economy, still recovering from the 2008/2009 downturn, could stall again if Congress fails to fix the budget mess.


"If we do nothing, the threat of a recession is very real. Passing this agreement does not mean negotiations halt, far from it. We can all agree there is more work to be done," Majority Leader Harry Reid, a Democrat, told the Senate floor.


A new, informal deadline for Congress to legislate is now Wednesday when the current body expires and it is replaced by a new Congress chosen at last November's election.


The Senate bill, worked out after long negotiations on New Year's Eve between Vice President Joe Biden and Senate Republican Minority Leader Mitch McConnell, also postpones for two months a $109 billion "sequester" of sweeping spending cuts on military and domestic programs.


It extends unemployment insurance to 2 million people for a year and makes permanent the alternative minimum tax "patch" that was set to expire, protecting middle-income Americans from being taxed as if they were rich.


'IMPERFECT SOLUTION'


The tax hikes do not sit easy with Republicans but conservative senators held their noses and voted to raise rates for the rich because not to do so would have meant increases for almost all working Americans.


"It took an imperfect solution to prevent our constituents from a very real financial pain, but in my view, it was worth the effort," McConnell said.


House Speaker John Boehner - the top Republican in Congress - said the House would consider the Senate deal. But he left open the possibility of the House amending the Senate bill, which would spark another round of legislating.


"The House will honor its commitment to consider the Senate agreement if it is passed. Decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members ... have been able to review the legislation," Boehner and other House Republican leaders said in a statement.


Boehner has struggled for two years to get control over a group of several dozen Tea Party fiscal conservatives in his caucus who strongly oppose tax increases and demand that he force Obama to make savings in the Medicare and Social Security healthcare and retirement programs.


A campaign-style event held by Obama in the White House as negotiations with Senate leaders were taking place on Monday may have made it more difficult for Republicans to back the deal. In remarks to a group of supporters that resembled a victory lap, the president noted that his rivals were coming around to his way of seeing things.


"Keep in mind that just last month Republicans in Congress said they would never agree to raise tax rates on the wealthiest Americans. Obviously, the agreement that's currently being discussed would raise those rates and raise them permanently," he said to applause before the Senate deal was sealed.


Obama's words and tone annoyed Republican lawmakers who seemed to feel that the Democrat was gloating.


"That's not the way presidents should lead," said Republican Senator John McCain, Obama's rival in the 2008 election.


A deal with the House on Tuesday, while uncertain, would not mark the end of congressional budget fights. The "sequester" spending cuts will come up again in February as will the contentious "debt ceiling," which caps how much debt the federal government can hold.


Republicans may see those two issues as their best chance to try to rein in government spending and clip Obama's wings at the start of his second term.


(Additional reporting by Richard Cowan, Mark Felsenthal, Rachelle Younglai, Kim Dixon and Jeff Mason; Writing by Alistair Bell; Editing by Eric Walsh)



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Afghan Army Deaths on the Rise





KABUL, Afghanistan — The Afghan government has hit a grim record in its quest to take over the country’s security from coalition forces: more than 1,000 soldiers died in 2012, a roughly 20 percent increase from 2011.




Though the Afghan Army’s death rates have outstripped those for international forces in recent years, the new figures show the widest margin yet, as more and more Afghan units have taken the field. International forces were reported to have lost about 400 soldiers in 2012, the lowest number since 2008.


The progress of the Afghan National Army in being able to fight the insurgency is crucial to the international coalition’s exit strategy as the formal end of NATO combat operations looms in 2014. Afghan officials say that Afghan forces now plan and lead 80 percent of combat operations across the country. And as the army has filled out its ranks, the number of those killed has risen as well. Since 2008, the number of enlisted soldiers has nearly tripled, to 195,000.


Depending on how one reads the numbers, the latest figures can be both hopeful and troubling. Inasmuch as the uptick in deaths indicates a more active role for the army, the data is encouraging: Afghan-led operations would be expected to result in more Afghan casualties, after all. But for some, the statistics also raise questions about whether the army is ready to take over control of the country’s security.


“These high figures send a message to Afghans as well as the international community that the Afghan security forces are not ready to take over and that we will witness even more severe casualties in the next couple of years,” said Jawid Kohistani, a military analyst based in Kabul. “The only thing preventing the Taliban from taking over a district or a province or carrying out more audacious attacks is the presence of foreign forces who are equipped with modern and advanced technology.”


Progress has been uneven on numerous fronts. Accidents make up a significant number of the Afghan Army deaths. Almost no units can operate without assistance from coalition forces. And defections and low re-enlistment rates are also troubling — the government has to replace about a third of its troops every year.


Even the Defense Ministry acknowledged weaknesses when announcing the updated figures Sunday. Gen. Zahir Azimi, the ministry’s spokesman, said that poor equipment and training left soldiers exposed. Homemade bombs and mines caused about 85 percent of the deaths this year, a figure he said would come down with proper equipment. Intelligence gathering is also a weak spot for the national army.


“We are still heavily relying on foreigners for our intelligence,” he said. “We are hopeful that by the end of 2014 our army is equipped with intelligence capabilities and equipment.”


Among other concerns the government must consider while building the army is how to keep soldiers from being killed by the Taliban. In recent weeks, the Taliban have mounted a campaign to kidnap and kill soldiers who are on leave from their jobs. On Saturday, the Taliban killed a soldier returning from vacation to his base in Laghman Province.


“They take soldiers out of their homes and brutally execute them,” General Azimi said. “Can anyone see even a small bit of respect for human rights?”


But if the general sounded somewhat chastened by the task ahead, commanders on the ground struck a more upbeat note about the future.


“The army is getting better every day and our soldiers will not face any problem next year,” said Gen. Zamarai, commander of the second brigade of the Afghan National Army in Paktika Province, who uses only one name. “As the foreign forces leave, the army is filling the districts and bases, and so far we have managed to provide tight security for the residents of the province.”


Farooq Jan Mangal contributed reporting from Khost Province, Afghanistan.



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Can Samsung survive without Android?






Samsung (005930) is the world’s top Android smartphone vendor by a staggering margin. Aside from LG (066570), which managed a small $ 20 million profit from its mobile division last quarter, no other global Android vendor can figure out how to make money selling Android phones. Meanwhile, Samsung posted a $ 6 billion profit on $ 47.6 billion in sales in the third quarter, thanks largely to record smartphone shipments and a massive marketing budget. Even as industry watchers turn sour on Apple, Samsung is seen steamrolling into 2013 and its stock is up nearly 50% on the year while Apple (AAPL) shares continue to fall from a record high hit in September. As unstoppable as Samsung appears right now, one key question remains: Is Samsung driving Android’s success or is Android driving Samsung’s success? Starting in 2013, we may finally begin to find out.


[More from BGR: Unreleased ‘BlackBerry X10′ QWERTY phone appears again in new photos]






Earlier this year, BGR wrote about Samsung’s effort to look beyond Android. Even with its own UI and application suite — and even with its own content services — Samsung will always rely on Google (GOOG) if it continues to base its devices on Google’s latest Android builds.


[More from BGR: RIM teases BlackBerry 10 launch with image of first BB10 smartphone]


This isn’t necessarily a bad thing, but it means Samsung will never truly control the end-to-end experience on its products. It also means Samsung will never truly own its smartphones and tablets. Instead, Samsung’s devices will deliver an experience that is an amalgamation of Google’s vision and its own.


But there are alternative options. One example is the path Amazon (AMZN) has taken. Amazon let Google do the grunt work and then took its open-source Android OS and built its own software and service layer on top. Kindle Fire users don’t sit around waiting for Android updates — many of them don’t even know they’re using an Android-powered tablet.


Samsung could do the same thing, but there is a great deal of prep work that would need to be done first. Amazon’s efforts were so successful (depending on your measure of success) because the company already had a massive ecosystem in place before it even launched its first device. Streaming movies and TV shows, eBooks, retail shopping and a stocked application store were all available on the Kindle Fire from day one.


Samsung doesn’t have this luxury. Yet.


Samsung could also take ownership of a new OS, and Tizen may or may not end up being that OS. Samsung is co-developing the new Linux-based mobile platform with Intel (INTC) and others, and a new rumor from Japan’s The Daily Yomiuri suggests Samsung plans to launch its first Tizen phone in 2013. “Samsung will probably begin selling the [Tizen] smartphones next year and they are likely to be released in Japan and other countries at around the same time,” the site’s sources claim.


This will be a slow process. If Samsung follows the same path it took with Bada, Samsung’s earlier Linux-based OS that was folded into the Tizen project, things will start out slow as Samsung launches regional devices that are restricted to a few Eastern markets. Testing the waters before dumping serious marketing dollars into the project isn’t a bad idea, especially considering the battle at the bottom of the smartphone OS food chain that will already be taking place in 2013.


But one thing is clear: Samsung is looking to broaden its strategy and move beyond a point where it relies entirely on another company for its smartphone software.


This article was originally published by BGR


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Kim Kardashian and Kanye West Expecting a Child






Update








UPDATED
12/31/2012 at 10:05 AM EST

Originally published 12/31/2012 at 03:45 AM EST







Kim Kardashian and Kayne West


Splash News Online


Talk about onstage pyrotechnics!

Kanye West dropped a bombshell during an Atlantic City concert on Sunday night, revealing that he and girlfriend Kim Kardashian are expecting a child.

Kardashian later confirmed the news in a blog post titled,"New Year, New Beginnings."

"It's true!! Kanye and I are expecting a baby. We feel so blessed and lucky and wish that in addition to both of our families, his mom and my dad could be here to celebrate this special time with us.

"Looking forward to great new beginnings in 2013 and to starting a family. Happy New Year!!! Xo."

Twitter also lit up with an outpouring of congratulatory messages from family members.

"Oh BABY BABY BABY!!" shouts Kim's mom Kris Jenner.

Adds sister Kourtney: "Been wanting to shout from the rooftops with joy and now I can! Another angel to welcome to our family. Overwhelmed with excitement!

Kardashian, 32, and West, 35, went public with their relationship last April, about six months after Kardashian filed for divorce from Kris Humphries. The divorce action is still pending.

During Sunday's concert at Revel Resort's Ovation Hall, West was singing "Runaway" when he went into a freestyle ballad with the words "and now she's having my baby." The crowd of 5,000 broke into cheers.

Then on the last song, "Lost in the World," he cut the music and asked the audience to applaud for his baby mama.

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FDA approves 1st new tuberculosis drug in 40 years


WASHINGTON (AP) — The Food and Drug Administration says it has approved a Johnson & Johnson tuberculosis drug that is the first new medicine to fight the deadly infection in more than four decades.


The agency approved J&J's pill, Sirturo, for use with other older drugs to fight hard-to-treat tuberculosis.


Sirturo is the first medicine specifically designed for treating multi-drug-resistant tuberculosis. That's an increasingly common form of the disease that cannot be treated with at least two of the four primary antibiotics used to treat tuberculosis.


The standard drugs used to fight the disease were developed in the 1950s and 1960s.


Roughly one-third of the world's population is estimated to be infected with the bacteria causing tuberculosis.


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Wall Street up slightly in choppy trade over "cliff" worry

NEW YORK (Reuters) - Wall Street edged higher in a choppy session on Monday, with the S&P 500 on track for double-digit gains for the year, as politicians bargained for a deal to avert the "fiscal cliff."


Taxes were set to rise for many Americans this week unless U.S. lawmakers could cut a last-minute deal, an outcome that was possible but seemed unlikely.


Senate Majority Leader Harry Reid said the Senate would reconvene at 11 a.m. Washington time (1600 GMT) to continue discussions on the fiscal cliff - $600 billion in automatic tax hikes and spending cuts that kick in January 1.


The last trading session of the year is expected to be volatile on low volume and as investors keep a close eye on headlines out of Washington.


"Even if we end up with a deal, it will be just a band-aid, not a real fix. So we will see a volatile session today, with all eyes on the debates, comments out of Washington," said Tim Ghriskey, chief investment officer at Solaris Group in Bedford Hills, New York.


"I'm not expecting a major rally or a selloff," Ghriskey added.


Despite recent declines over the stalemated budget talks, the S&P 500 is up about 11.5 percent for the year compared with a nearly flat performance in 2011. The Dow industrials are about 6 percent higher and the Nasdaq composite is up about 14 percent for 2012.


The Dow Jones industrial average <.dji> was up 7.45 points, or 0.06 percent, at 12,945.56. The Standard & Poor's 500 Index <.spx> was up 4.53 points, or 0.32 percent, at 1,406.96. The Nasdaq Composite Index <.ixic> was up 17.63 points, or 0.60 percent, at 2,977.95.


Bank stocks rose after a New York Times report that U.S. regulators are nearing a $10 billion settlement with several banks that would end the government's efforts to hold lenders responsible for faulty foreclosure practices.


Bank of America Corp was up 0.4 percent at $11.41 and Citigroup rose 0.2 percent to $39.08.


While midnight is the deadline for a fiscal deal, the government can pass legislation in 2013 that retroactively cancels or moderates the impact of going over the fiscal cliff.


Investors have remained relatively sanguine about the process, believing it will eventually be solved. In the past two months markets have not shown the kind of volatility that was present during the fight to raise the debt ceiling in 2011.


Rather, equities have largely performed well in the last two months, buoyed by signs of economic recovery, an improving housing market and monetary policy designed to stimulate growth and lower unemployment.


However, U.S. stocks dropped on Friday, with significant losses in the last minutes of trading, as prospects for a deal worsened at the beginning of the weekend.


On Sunday, President Barack Obama said on NBC's "Meet the Press" investors could begin to show greater concerns in the new year.


(Reporting By Angela Moon; Editing by Kenneth Barry)



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Drone War Spurs Pakistan Militants to Deadly Reprisals





ISLAMABAD, Pakistan — They are dead men talking, and they know it. Gulping nervously, the prisoners stare into the video camera, spilling tales of intrigue, betrayal and paid espionage on behalf of the United States. Some speak in trembling voices, a glint of fear in their eyes. Others look resigned. All plead for their lives.




“I am a spy and I took part in four attacks,” said Sidinkay, a young tribesman who said he was paid $350 to help direct C.I.A. drones to their targets in Pakistan’s tribal belt. Sweat glistened on his forehead; he rocked nervously as he spoke. “Stay away from the Americans,” he said in an imploring voice. “Stay away from their dollars.”


Al Qaeda and the Taliban have few defenses against the American drones that endlessly prowl the skies over the bustling militant hubs of North and South Waziristan in northwestern Pakistan, along the Afghan border. C.I.A. missiles killed at least 246 people in 2012, most of them Islamist militants, according to watchdog groups that monitor the strikes. The dead included Abu Yahya al-Libi, the Qaeda ideologue and deputy leader.


Despite the technological superiority of their enemy, however, the militants do possess one powerful countermeasure.


For several years now, militant enforcers have scoured the tribal belt in search of informers who help the C.I.A. find and kill the spy agency’s jihadist quarry. The militants’ technique — often more witch hunt than investigation — follows a well-established pattern. Accused tribesmen are abducted from homes and workplaces at gunpoint and tortured. A sham religious court hears their case, usually declaring them guilty. Then they are forced to speak into a video camera.


The taped confessions, which are later distributed on CD, vary in style and content. But their endings are the same: execution by hanging, beheading or firing squad.


In Sidinkay’s last moments, the camera shows him standing in a dusty field with three other prisoners, all blindfolded, illuminated by car headlights. A volley of shots rings out, and the three others are mowed down. But Sidinkay, apparently untouched, is left standing. For a tragic instant, the accused spy shuffles about, confused. Then fresh shots ring out and he, too, crumples to the ground.


These macabre recordings offer a glimpse into a little-seen side of the drone war in Waziristan, a paranoid shadow conflict between militants and a faceless American enemy in which ordinary Pakistanis have often become unwitting victims.


Outside the tribal belt, the issue of civilian casualties has dominated the debate about American drones. At least 473 noncombatants have been killed by C.I.A.-directed strikes since 2004, according to monitoring groups — a toll frequently highlighted by critics of the drones like the Pakistani politician Imran Khan. Still, strike accuracy seems to be improving: just seven civilian deaths have been confirmed in 2012, down from 68 the previous year, according to the Bureau of Investigative Journalism, which has been critical of the Obama administration’s drone campaign.


And civilian lives are threatened by militants, too. As the American campaign has cut deeply into the commands of both the Taliban and Al Qaeda, drone-fearing militants have turned to the local community for reprisals, mounting a concerted campaign of fear and intimidation that has claimed dozens of lives and further stressed the already fragile order of tribal society.


The video messages from accused spies are intended to send a stark message, regardless of whether innocents are among those caught up in the deadly dragnet. The confessions are delivered at gunpoint, and usually follow extensive torture, including hanging from hooks for up to a month, human rights groups say.


“In every civilized society, the penalty for spying is death,” said a senior commander with the Pakistani Taliban, speaking on the condition of anonymity from Waziristan.


Although each of myriad militant factions in Waziristan operates its own death squads, by far the most formidable is the Ittehad-e-Mujahedeen Khorasan, a shadowy group that experts consider to be Al Qaeda’s local counterintelligence wing. Since it emerged in 2009, the group, which is led by Arab and Uzbek militants, has carefully cultivated a sinister image through video theatrics and the ruthless application of violence.


Black-clad Khorasan militants, their faces covered in balaclavas, roam across North Waziristan in jeeps with tinted windows. In one video clip from 2011, Khorasan fighters are seen searching traffic under a cluster of palm trees outside Mir Ali, a notorious militant hub. Then they move into the town center, distributing leaflets to shoppers, before executing three men outside a gas station.


“Spies, your days are numbered because we are carrying out raids,” chants the video soundtrack.


Thought to number dozens of militants, the Khorasan cooperates closely with the Afghan warlord Jalaluddin Haqqani, who is based in North Waziristan. A sister organization in Afghanistan has been responsible for 250 assassinations and executions, according to American military intelligence.


Reporting was contributed by Ihsanullah Tipu Mehsud from Islamabad; Ismail Khan from Peshawar, Pakistan; Zia ur-Rehman from Karachi, Pakistan; and Scott Shane and Eric Schmitt from Washington.



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NASA Sets Record with Ion Thrusters Test






NASA has completed a 43,000 hour stress test — a record for ion thrusters — on a new rocket propulsion system that could extend future space travel to farther reaches of the solar system.


Developed by NASA’s Evolutionary Xenon Thruster Project, the 7-kilowatt ion thruster can burn 10-12 times longer than the conventional chemical thrusters used today. Though not practical for manned-spaceflight, the system could power exploratory rockets that reach outer planets and their moons.






[More from Mashable: NASA Unveils E-books on Hubble, Webb Space Telescopes]


To find out more, watch the video above and let us know your thoughts in the comments.


Photo courtesy of NASA


[More from Mashable: First ‘Alien Earth’ Will Be Found in 2013]


BONUS: 15 Twitter Accounts Every Space Lover Should Follow


Sunita Williams


Captain Williams is a NASA astronaut who recently completed the first triathlon in space.


Click here to view this gallery.


This story originally published on Mashable here.


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Aloha, Baby! Jessica's Hawaii Holiday




Follow the second-time mom's tropical Christmas vacation – and big pregnancy reveal








Credit: Courtesy of Jessica Simpson



Updated: Saturday Dec 29, 2012 | 06:00 AM EST
By: Brooke Showell




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Kenya hospital imprisons new mothers with no money


NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.


Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.


Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.


"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."


"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."


The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.


Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.


"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.


She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.


A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.


"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.


Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.


One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.


Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.


___


Associated Press reporter Tom Odula contributed to this report.


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