How Boehner’s Plan B for the ‘fiscal cliff’ began and fell apart

John A. Boehner’s week on the brink ended in a painfully familiar place.

It began last week when President Obama delivered a stern message to the House speaker: If there was going to be a deal to tame the nation’s debt, it had to happen now. If they went over the “fiscal cliff,” it would only become harder to reach a deal, Obama said.

The next day, Friday, Boehner (R-Ohio) phoned Obama offering what seemed like a major breakthrough: Republicans would agree to raise tax rates for the first time in decades if the president gave a key concession on entitlement reform.

That offer set in motion seven days of dealmaking, posturing and cajoling by Boehner and other House leaders, first on a grand deal with the White House and then on a Plan B with their own House caucus. By Thursday night, both deals had fallen apart, and Boehner was near tears in announcing the failure to his colleagues, Republicans said.

The failure of a grand bargain was the latest oh-so-close moment for Obama and Boehner, who have been dancing around a deal to cut the deficit for the better part of the past two years. And the collapse of Plan B set a new low in Boehner’s sometimes rocky relationship with a House Republican caucus that has long been uneasy about the speaker’s dealmaking with Obama.

Following the latest breakdown in negotiations, Democrats said Boehner should return to the bargaining table with Obama — or just let House Democrats and 25 or so Republicans vote for a Senate-approved plan to extend tax cuts for the middle class. But Republicans said the well has been so poisoned that restarting bipartisan talks would be more difficult than ever.

In a statement late Thursday, Boehner said it was now up to Senate Majority Leader Harry M. Reid (D-Nev.) and Obama to come up with an agreement — without explaining what role he would play. The speaker ignored reporters’ questions and, at 8:04 p.m., he walked out of the Capitol.

A week earlier, the possibility of a deal seemed as promising as it ever had.

As he was heading home to Ohio for the weekend, Boehner called Obama with an offer to allow tax rates for incomes above $1 million to rise from 35 percent to 39.6 percent. In exchange, Boehner demanded a key change to entitlement spending that would lead to reduced benefits.

With a potential $1 trillion in spending cuts, Boehner also suggested that the debt ceiling could be lifted a similar amount and give the Treasury another year of borrowing authority.

The next 72 hours would prove critical. Having offered so much, Boehner hoped he could keep the details quiet long enough for him to get Obama to agree to enough spending cuts to satisfy his caucus — and so that his leadership team could make the case for compromise in person.

But the details did not stay secret for long. Reports leaked out Saturday evening that Boehner had agreed to raise taxes on millionaires. That was followed by a more alarming leak Sunday evening that Boehner was also willing to grant Obama another increase in the federal debt limit. Home in their districts, unsuspecting rank-and-file Republicans were stunned.

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Madoff's brother sentenced to 10 years for fraud

NEW YORK: Peter Madoff, brother of shamed US financier Bernard Madoff, was sentenced on Thursday to 10 years in prison for cooking the books at the family investment firm.

Peter Madoff, 67, pleaded guilty to conspiracy to commit securities fraud during his role as book keeper for Bernard Madoff's once widely heralded but in fact fraudulent Wall Street firm.

The brother has also been slapped with stringent penalties that strip him of virtually everything he owns. Bernard Madoff is serving a 150-year sentence after pleading guilty to the multi-billion-dollar pyramid scheme.

"Peter Madoff was a gatekeeper, who was supposed to guard against fraud, but instead enabled it, facilitating his brother Bernie's breath-taking scheme by falsifying compliance records and lying to both regulators and clients," US Attorney Preet Bharara said in a statement.

"The decade he will spend in prison and the disgorgement of his assets are a just result."

Prosecutors say Peter Madoff did incredibly well through his brother's scheme, in which investors' capital was robbed to pay fake dividends, giving the appearance of an unusually successful Wall Street investment advisory firm.

Peter Madoff insists he had no idea that the whole firm was a fiction. However, he clearly did little to question where the money was coming from -- including his.

The judge ordered Madoff to pay back $143 billion, which represents everything he and his family own, and an enormous, symbolic additional amount.

This includes assets belonging to his wife Marion and daughter Shana. The surrendered items include several homes and a Ferrari sports car.

Bernard Madoff was the toast of Wall Street for years and remained advisor to a multitude of stars and well-connected members of the American-Jewish community, right up until his arrest in December 2008 and the collapse of his scheme.

Two years after that arrest, on December 11, 2010, Bernard Madoff's eldest son Mark was found hanged in his Manhattan apartment.

- AFP/al

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Digvijaya Singh gets bail in defamation case filed by Nitin Gadkari

NEW DELHI: Senior Congress leader Digvijaya Singh was today granted bail by a Delhi court in connection with a criminal defamation case filed against him by BJP president Nitin Gadkari.

Singh appeared before metropolitan magistrate Sudesh Kumar in pursuance to the summons issued against him by the court on November 17 and the judge granted bail to him on a personal bond of Rs 50,000 and a surety of the like amount.

Outside the court, Singh told reporters that he will now prove all his charges against Gadkari.

"Now I can say everything in front of the court the way Gadkari has worked as a businessman and how he has links with various other businessmen, which all companies of his were fake and how he earned profits," he said.

The court after finding "prima facie" evidence against Singh had directed him to appear before it to face trial for the offence punishable under section 499 (defamation) and 500 (punishment for defamation) of the IPC.

The defamation case was filed by Gadkari against the Congress general secretary who had allegedly accused him of having business links with his party MP Ajay Sancheti.

It was also alleged in the complaint that Singh accused Gadkari of pocketing huge sum to the tune of Rs 490 crore in the coal block allocation to Sancheti.

Gadkari, in his statement recorded in the court, had denied having any business ties with Sancheti and had said Singh levelled "totally false and defamatory" allegations against him to "give the impression that I have been responsible for allocation of the coal mines" to Sancheti.

The BJP leader, in his petition filed through advocate Ajay Digpaul, had sought Singh's prosecution under sections 499 and 500 of the IPC.

The court had also said Singh will have the opportunity to put his defence during the trial.

In his petition, Gadkari had alleged that Singh had levelled defamatory allegations against him to lower his dignity in the public at large and it was made with wrongful intent to malign and tarnish his image.

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Hollies Get Prickly for a Reason

With shiny evergreen leaves and bright red berries, holly trees are a naturally festive decoration seen throughout the Christmas season.

They're famously sharp. But not all holly leaves are prickly, even on the same tree. And scientists now think they know how the plants are able to make sharper leaves, seemingly at will. (Watch a video about how Christmas trees are made.)

A new study published in the Botanical Journal of the Linnean Society suggests leaf variations on a single tree are the combined result of animals browsing on them and the trees' swift molecular response to that sort of environmental pressure.

Carlos Herrera of the National Research Council of Spain led the study in southeastern Spain. He and his team investigated the European holly tree, Ilex aquifolium. Hollies, like other plants, can make different types of leaves at the same time. This is called heterophylly. Out of the 40 holly trees they studied, 39 trees displayed different kinds of leaves, both prickly and smooth.

Five holly leaves from the same tree.

Photographs by Emmanuel Lattes, Alamy

Some trees looked like they had been browsed upon by wild goats and deer. On those trees, the lower 8 feet (2.5 meters) had more prickly leaves, while higher up the leaves tended to be smooth. Scientists wanted to figure out how the holly trees could make the change in leaf shape so quickly.

All of the leaves on a tree are genetic twins and share exactly the same DNA sequence. By looking in the DNA for traces of a chemical process called methylation, which modifies DNA but doesn't alter the organism's genetic sequence, the team could determine whether leaf variation was a response to environmental or genetic changes. They found a relationship between recent browsing by animals, the growth of prickly leaves, and methylation.

"In holly, what we found is that the DNA of prickly leaves was significantly less methylated than prickless leaves, and from this we inferred that methylation changes are ultimately responsible for leaf shape changes," Herrera said. "The novelty of our study is that we show that these well-known changes in leaf type are associated with differences in DNA methylation patterns, that is, epigenetic changes that do not depend on variation in the sequence of DNA."

"Heterophylly is an obvious feature of a well-known species, and this has been ascribed to browsing. However, until now, no one has been able to come up with a mechanism for how this occurs," said Mike Fay, chief editor of the Botanical Journal of the Linnean Society and head of genetics at the Kew Royal Botanic Gardens. "With this new study, we are now one major step forward towards understanding how."

Epigenetic changes take place independently of variation in the genetic DNA sequence. (Read more about epigenetics in National Geographic magazine's "A Thing or Two About Twins.")

"This has clear and important implications for plant conservation," Herrera said. In natural populations that have their genetic variation depleted by habitat loss, the ability to respond quickly, without waiting for slower DNA changes, could help organisms survive accelerated environmental change. The plants' adaptability, he says, is an "optimistic note" amidst so many conservation concerns. (Related: "Wild Holly, Mistletoe, Spread With Warmer Winters.")

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Fiscal Cliff 'Plan B' Is Dead: Now What?

Dec 20, 2012 11:00pm

The defeat of his Plan B — Republicans pulled it when it became clear it would be voted down — is a big defeat for Speaker of the House John Boehner.  It demonstrates definitively that there is no fiscal cliff deal that can pass the House on Republican votes alone.

Boehner could not even muster the votes to pass something that would only allow tax rates on those making more than $1 million to go up.

Boehner’s Plan B ran into opposition from conservative and tea party groups -including Heritage Action, Freedom Works and the Club for Growth – but it became impossible to pass it after Senate Democrats vowed not to take up the bill and the president threatened to veto it.  Conservative Republicans saw no reason to vote for a bill conservative activists opposed – especially if it had no hopes of going anywhere anyway.

Plan B is dead.

Now what?

House Republicans say it is now up to the Senate to act.  Senate Democrats say it is now up to Boehner to reach an agreement with President Obama.

Each side is saying the other must move.

The bottom line:  The only plausible solution is for President Obama and Speaker Boehner to do what they have failed repeatedly to do:  come up with a truly bi-partisan deal.

The prospects look grimmer than ever. It will be interesting to see if the markets react.

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Mexico empties prison of inmates after deadly riot

DURANGO, Mexico: Officials have removed all of the prisoners -- about 500 inmates -- from a prison in northern Mexico, one day after the facility erupted in violence, leaving 15 inmates and nine guards dead.

The prison "has been totally emptied as a preventive measure," Durango public safety spokesman Fernando Rios told AFP, who said the inmates had been distributed to penal facilities throughout the region.

Security forces said Tuesday's uprising, which occurred at the prison in the city of Gomez Palacio, erupted when prison guards foiled an attempted jailbreak by inmates.

Mass jailbreaks have become a recurring problem in Mexico. In September, 131 inmates escaped through the front door of a prison in Piedras Negras, a city on the US border.

A jailbreak at a prison in the northern state of Nuevo Leon in February saw 44 prisoners killed during fighting between two warring drug cartels.

In the last two years, 521 inmates have run free in 14 prison escapes while 352 homicides have been committed inside penitentiaries, according to the National Human Rights Commission.

- AFP

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Nuclear-capable Prithvi-II test successful

BALASORE, (Odisha): India today successfully test-fired its indigenously developed nuclear capable Prithvi-II missile with a strike range of 350 km from a test range at Chandipur near.

The surface-to-surface missile was test fired from a mobile launcher in salvo mode from launch complex-3 of Integrated Test Range at about 9:21 AM, defence sources said.

The launch of the sophisticated missile, conducted as part of operational exercise by the strategic force command (SFC) of the defence services, was successful, they said.

"The missile was randomly chosen from the production stock and the total launch activities were carried out by the specially formed SFC and monitored by the scientists of DRDO as part of practice drill," sources said.

The Prithvi-II missile, developed by the DRDO, is already inducted into the Indian Armed forces.

Prithvi, the first missile developed under India's prestigious Integrated Guided Missile Development Programme (IGMDP), is capable of carrying 500kg to 1000kg of warheads and thrusted by liquid propulsion twine engines, uses advanced inertial guidance system with manoeuvring trajectory.

The last trial of Prithvi-II was successfully carried out from the same base on October 4, 2012.

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Detecting Rabid Bats Before They Bite

A picture is worth a thousand words—or in the case of bats, a rabies diagnosis. A new study reveals that rabid bats have cooler faces compared to uninfected colony-mates. And researchers are hopeful that thermal scans of bat faces could improve rabies surveillance in wild colonies, preventing outbreaks that introduce infections into other animals—including humans.

Bats are a major reservoir for the rabies virus, according to the Centers for Disease Control and Prevention (CDC) in Atlanta. Previous research shows that bats can transmit their strains to other animals, potentially putting people at risk. (Popular Videos: Bats share the screen with creepy co-stars.)

Rabies, typically transmitted in saliva, targets the brain and is almost always fatal in animals and people if left untreated. No current tests detect rabies in live animals—only brain tissue analysis is accurate.

Searching for a way to detect the virus in bats before the animals died, rabies specialist James Ellison and his colleagues at the CDC turned to a captive colony of big brown bats (Eptesicus fuscus). Previous studies had found temperature increases in the noses of rabid raccoons, so the team expected to see similar results with bats.

Researchers established normal temperature ranges for E. fuscus—the bat species most commonly sent for rabies testing—then injected 24 individuals with the virus. The 21-day study monitored facial temperatures with infrared cameras, and 13 of the 21 bats that developed rabies showed temperature drops of more than 4ºC.

"I was surprised to find the bats' faces were cooler because rabies causes inflammation—and that creates heat," said Ellison. "No one has done this before with bats," he added, and so researchers aren't sure what's causing the temperature changes they've discovered in the mammals. (Related: "Bats Have Superfast Muscles—A Mammal First.")

Although thermal scans didn't catch every instance of rabies in the colony, this method may be a way to detect the virus in bats before symptoms appear. The team plans to fine-tune their measurements of facial temperatures, and then Ellison hopes to try surveillance in the field.

This study was published online November 9 in Zoonoses and Public Health.

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Obama Invokes Newtown on 'Cliff' Deal

Invoking the somber aftermath of the school massacre in Newtown, Conn., President Obama today appealed to congressional Republicans to embrace a standing "fair deal" on taxes and spending that would avert the fiscal cliff in 13 days.

"If there's one thing we should have after this week, it should be a sense of perspective about what's important," Obama said at a midday news conference.

"I would like to think that members of that [Republican] caucus would say to themselves, 'You know what? We disagree with the president on a whole bunch of things,'" he said. "'But right now what the country needs is for us to compromise.'"

House Speaker John Boehner's response: "Get serious."

Boehner announced at a 52-second news conference that the House will vote Thursday to approve a "plan B" to a broad White House deal -- and authorize simply extending current tax rates for people earning less than $1 million a year and little more.

"Then, the president will have a decision to make," the Ohio Republican said. "He can call on Senate Democrats to pass that bill or he could be responsible for the largest tax increase in American history."

Fiscal Cliff Negotiations: Trying to Make a Deal Watch Video

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'Fiscal Cliff' Negotiations: Deal Might Be Within Reach Watch Video

Unless Congress acts by Dec. 31, every American will face higher income tax rates and government programs will get hit with deep automatic cuts starting in 2013.

Obama and Boehner have been inching closer to a deal on tax hikes and spending cuts to help reduce the deficit. But they have not yet had a breakthrough on a deal.

Obama's latest plan would raise $1.2 trillion in new tax revenue over 10 years, largely through higher tax rates on incomes above $400,000. He also proposes roughly $930 billion in spending cuts, including new limits on entitlement spending, such as slower annual cost-of-living increases for Social Security beneficiaries.

Boehner has agreed to $1 trillion in new tax revenue, with a tax rate hike for households earning over $1 million. He is seeking more than $1 trillion in spending cuts, with significant changes to Medicare and Social Security.

The president said today that he remains "optimistic" about reaching a broad compromise by Christmas because both sides are "pretty close," a sentiment that has been publicly shared by Boehner.

But the speaker's backup plan has, at least temporarily, stymied talks, with no reported contact between the sides since Monday.

"The speaker should return to the negotiating table with the president because if he does I firmly believe we can have an agreement before Christmas," said Sen. Chuck Schumer, D-N.Y., a White House ally.

Schumer said Obama and Boehner are "not that far apart" in the negotiations.

"If they were to come to an agreement by Friday, they could write this stuff over the Christmas break and then we'd have to come back before the New Year and pass it," Schumer said.

Obama said he is "open to conversations" and planned to reach out to congressional leaders over the next few days to try to nudge Republicans to accept a "fair deal."

"At some point, there's got to be, I think, a recognition on the part of my Republican friends that -- you know, take the deal," he told reporters.

"They keep on finding ways to say no, as opposed to finding ways to say yes," Obama added. "At some point, you know, they've got take me out of it and think about their voters and think about what's best for the country."

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Migrant Workers' Centre reminds employers of their roles

SINGAPORE: The Migrant Workers' Centre has reminded employers of their responsibilities to foreign workers under Singapore's manpower regulations.

These include prompt payment of salaries, providing acceptable housing and adequate care during their stay here.

The reminder came after Tuesday' incident at a Yishun construction site where some workers stopped work as a result of unpaid salaries.

The centre's chairman, Yeo Guat Kwang, also urged the Ministry of Manpower (MOM) to respond swiftly to all foreign worker claims and complaints so that they do not take matters into their own hands out of desperation.

The centre said it has always advocated for stricter enforcement against errant employers, and is encouraged by the ministry's swift response to Tuesday's Yishun incident.

The centre said it received notice of the workers' salary dispute with Sime Chong Construction at 4pm on Tuesday, and quickly sent a team to the site.

The team worked with MOM officials, the employer and workers to reach a satisfactory resolution.

The centre also provided emergency housing for four workers who were not able to have their claims resolved on Tuesday. It will follow up with the ministry on Wednesday and is confident of a favourable resolution for them.

The centre added that it is ready to intervene and provide further assistance to the workers, should the need arise.

- CNA/al

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