GOP senator signals fading hopes on health care

0 comments Saturday, August 29, 2009

WASHINGTON – A leading GOP negotiator on health care struck a further blow to fading chances of a bipartisan compromise by saying Democratic proposals would restrict medical choices and make the country's "finances sicker without saving you money."

The criticism from Sen. Michael Enzi, R-Wyo., echoed that of many opponents of the Democratic plans under consideration in Congress. But Enzi's judgment was especially noteworthy because he is one of only three Republicans who have been willing to consider a bipartisan bill in the Senate.

In the Republicans' weekly radio and Internet address on Saturday, Enzi said any health care legislation must lower medical costs for Americans without increasing deficits and the national debt.

"The bills introduced by congressional Democrats fail to meet these standards," he said.

Enzi, together with Republican Sens. Charles Grassley of Iowa and Olympia Snowe of Maine, has held talks with Senate Finance Committee Chairman Max Baucus, D-Mont. But the chance of a bipartisan breakthrough has diminished in the face of an effective public mobilization by opponents of Democratic proposals.

"I heard a lot of frustration and anger as I traveled across my home state this last few weeks," said Enzi, who has been targeted by critics for seeking to negotiate on legislation. "People in Wyoming and across the country are anxious about what Washington has in mind. This is big. This is personal. This is one of the most important debates of our lifetime."

He called for more competition among health insurers, for the ability of small businesses to band together across state lines to negotiate for lower-cost insurance plans, for tax breaks to help people buy insurance and for reducing malpractice lawsuits.

The debate over health care will resume in Washington after Labor Day, just two weeks after White House budget officials projected that deficits would total a staggering $9 trillion over the next 10 years. Though President Barack Obama has said he wants the total health care bill paid for without adding to the deficit, congressional budget officials have estimated that House health care proposals would cost the government more.

"The Democrats are trying to rush a bill through the process that will actually make our nation's finances sicker without saving you money," Enzi said.

Democrats also are calling for cuts in Medicare spending, using some of the savings to help uninsured workers. A House bill would result in a net reduction in Medicare of about $200 billion, though Obama has insisted the reductions would not cut benefits in the health program for the elderly.

But Enzi said: "This will result in cutting hundreds of billions of dollars from the elderly to create new government programs."

He repeated Republican accusations that the Democrats' plans would result in less access to certain medical treatments, citing a proposed government board that would research the most effective medical practices.

"We're a nation of people who want the ability to choose what will best fit our families' needs and it should be that way with health care, too," Enzi said.

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On the Net:

GOP weekly address: http://www.youtube.com/user/gopweeklyaddress

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Japan's ruling heads to elections as underdog

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TOKYO – Japan's ruling conservative party, battered by a laggard economy and voter desire for change after more than half a century of virtual one-party rule, was expected to suffer an overwhelming defeat Sunday in hotly contested elections.

The Liberal Democratic Party, which has governed Japan for all but 11 months since 1955, went into the elections with all major polls projecting they would lose control of the lower house of parliament.

That would likely mean the fall of Prime Minister Taro Aso and his Cabinet and the creation of a new government headed by centrist Democratic Party of Japan chief Yukio Hatoyama — who would become the first prime minister not backed by the LDP since 1994.

The vote is widely seen as a barometer of two related issues — voter frustrations over the ailing economy, which is in one of its worst slumps since World War II, and a loss of confidence in the Liberal Democrats' ability to tackle tough problems such as the rising national debt and rapidly aging population.

But even with severe challenges pressing the nation, many analysts said the vote may not be about the issues so much as voters' general desire for something new after nearly 54 years under the Liberal Democrats.

They also note that although the Democrats promise to change Japan's approach on the economy and make Tokyo's diplomacy less U.S.-centric, their founders are both defectors from the Liberal Democrats and are not likely to present too radical a departure from Japan's current path.

"The election is more about emotions than policies," Tokyo University political science professor Takashi Mikuriya said in a televised interview. "Most voters are making the decision not about policies but about whether they are fed up with the ruling party."

Japanese media predict a high voter turnout.

The Yomiuri, the country's largest newspaper, reported Saturday that analysts and most political parties are expecting turnout to be higher than the 67.5 percent in the previous lower house elections in 2005, and could go as high as 70 percent.

Trying to cut the ruling party's losses, Aso — whose own support ratings have recently sagged to a dismal 20 percent — called on voters in a final pitch Saturday to stick with his party, saying the Democrats are untested and unable to lead.

"Can you trust these people? It's a problem if you feel uneasy whether they can really run this country," Aso told a crowd outside Tokyo.

Aso said more time is needed for economic reforms aimed at pulling the country out of its economic doldrums and asked for support "so our government can accomplish our economic measures."

He and the ruling party have stressed that they are the stewards of Japan's rise from the ashes of World War II into one of the world's biggest economic powers, and they are best equipped to get it out of its current morass.

But that argument has taken a beating.

On Friday, the government reported that the nationwide unemployment rate for July hit 5.7 percent — the highest level in Japan's post-World War II era — deflation intensified and families have cut spending, largely because they are afraid of what's ahead and are choosing to save whatever money they can as a safety measure.

Hatoyama has promised to cut wasteful spending, hold off on tax hikes planned by the Liberal Democrats and put more money into consumers' pockets. That is a sharp contrast with the Liberal Democrats' heavy focus on tax-funded stimulus packages that increase government spending and debt.

That approach by the ruling party is seen as problematic by many economists. The Organization for Economic Cooperation and Development predicts the country's public debt, already the highest among member countries, may reach 200 percent of gross domestic product next year.

Making the situation more dire is Japan's rapidly aging demographic — which means more people are on pensions, while there is a shrinking pool of taxpayers paying into the system to support them and other government programs.

Still, doubts remain about whether the Democrats can deliver on their promises.

They are proposing an expensive menu of initiatives: toll-free highways, free high schools, income support for farmers, monthly allowances for job seekers in training, a higher minimum wage and tax cuts. The estimated bill comes to 16.8 trillion yen ($179 billion) when fully implemented starting in fiscal year 2013.

"I've supported the LDP before, but I'm not sure this time," said Eri Sato, a 25-year-old saleswoman in Tokyo. "My concern is whether the Democrats can really achieve their campaign promises."

Recent polls have shown voters want change, however.

Polls by major newspapers, including the Mainichi and the Asahi, said Hatoyama's party is likely to win more than 320 seats in the 480 seat lower house, sharply higher than the 112 it held before parliament was dissolved in July.

If the opposition party wins, Hatoyama will almost certainly be named Japan's next prime minister in a special session of parliament which could come in mid-September.

Japanese media have already started predicting a timeline of events, such as when a new Cabinet will be formed, on the assumption that the opposition party will be victorious.

Along with his fiscal departures from the Liberal Democratic Party, Hatoyama says he will rein in the power of the bureaucracy and wants Japan to be more independent from the United States, Tokyo's key trading partner and military ally.

But Hatoyama, who holds a doctorate in engineering from Stanford University, insists he will not seek dramatic change in Japan's foreign policy, saying the U.S.-Japan alliance would "continue to be the cornerstone of Japanese diplomatic policy.
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Peacekeeping civilians kidnapped in Darfur

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KHARTOUM (Reuters) – Armed men seized two foreign civilians working for Darfur's peacekeeping force on Saturday, the fourth kidnapping in the remote Sudanese region since March.

"They were abducted by armed men from their residence in Zalingei. The incident took place in the early hours of this morning," UNAMID spokesman Noureddine Mezni told Reuters.

It was the first time international staff from the joint United Nations/African Union force had been abducted, he said.

The kidnappers made contact with the peacekeepers soon after the abduction. "They told us of their willingness to talk to UNAMID," Mezni said, without giving details of their demands.

Sudan's State Minister for Humanitarian Affairs Abdel Baqi al-Jailani told Reuters the kidnap victims were a Nigerian man and a Tanzanian woman, saying the kidnappers were bandits.

"They have asked for a ransom. They never claimed to be some sort of rebels," Jailani said.

The kidnapping, in Zalingei in the western part of Darfur, happened two days after the departing commander of the force, Martin Luther Agwai, told reporters that Darfur suffered from banditry but was no longer in a state of war.

Aid workers say they have experienced increased hostility in the region since the International Criminal Court issued an arrest warrant for Sudan's President Omar Hassan al-Bashir on war crimes charges.

Khartoum ordered out 13 foreign groups and shut down three local ones after the ICC issued its warrant in March, accusing them of passing information to the court, which they deny.

Two women from Irish charity GOAL remain in captivity after being snatched in early July. Another aid worker is missing after a raid just over Darfur's border in neighboring Chad this month.

Zalingei, around 100 km (60 miles) from the Chadian border, is the birthplace of some of Darfur's best-known rebels, including Sudan Liberation Army founder Abdel Wahed Mohamed Ahmed al-Nur, and is a hotbed of anti-government sentiment.

Al-Nur, who is now based in Paris, denied that any of his rebel fighters were responsible for the kidnap, and pointed the finger at government-allied militias.

"This is not our behavior. We are a responsible movement. We fight against terrorists and this kidnapping is a terrorist act," he said.

"This is the continuation of the government's campaign to terrorize people on the ground. They want to complicate the mission of anyone helping the people of Darfur."

Jailani denied government-backed militias were involved.

Al-Nur said the kidnap showed the weakness of UNAMID's mandate.

"UNAMID's first job is to protect civilians but they are not able to protect themselves because of the mandate. We need a mandate for peacemakers, not peacekeepers.
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EU signs trade pact with southeast African nations

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BAGHDAD – Two truck bombs struck separate communities north of Iraq's capital on Saturday, killing at least 16 people in the latest attacks to indicate that insurgents are targeting relatively unprotected areas.

Iraqi security forces have focused on defending cities after the withdrawal of U.S. combat troops from urban areas nearly two months ago. But a recent series of high-profile bombings has killed hundreds in remote areas as well as cities and has raised concerns Iraqi forces are not up to the task of protecting the population.

Saturday's deadliest attack came at about 8 a.m. when a suicide truck bomber attacked a small police station in the remote village of Hamad north of Baghdad, killing at least 12 people, including six police, said officials from the Iraqi army and police.

Police attempted to stop the truck, opening fire and forcing the attacker to change direction and slam into a concrete barrier near a market, they said. The blast damaged the police station and a number of nearby homes and shops, the officials said. Fifteen people were also wounded in the attack, said the police official.

Hamad is a primarily Sunni village on the edge of Shirqat, a town between Saddam Hussein's hometown of Tikrit and Mosul, which the U.S. military considers to be the last urban stronghold of al-Qaida in Iraq.

Iraqi police defused a car bomb in the same area three days earlier, said Shirqat's police chief, Ali al-Jubouri.

"I think this attack is in retaliation for what we did," he said.

The second attack targeted a market near Mosul in the city of Sinjar. A parked truck bomb that exploded at about 10:15 a.m. killed at least four people and wounded 23 others, police said.

A double suicide bombing earlier this month in Sinjar devastated a cafe packed with young people in northwestern Iraq, killing at least 21 people.

The city, which is dominated by members of the Kurdish-speaking Yazidi religious minority, was also hit by four suicide truck bombers nearly simultaneously, killing as many as 500 Yazidis, on Aug. 14, 2007.

Iraqi forces have stepped up security in Baghdad and other cities in Iraq since an Aug. 19 double suicide truck bombing in the Iraqi capital that targeted the foreign and finance ministries. About 100 people were killed.

But remote villages often depend on a small security force for protection. Bombers have been exploiting that vulnerability in villages surrounding Mosul, mainly targeting ethnic minorities.

While there were no immediate claims of responsibility for Saturday's attacks, suicide vehicle bombings are the hallmark of al-Qaida in Iraq. A front group for the terrorist organization has claimed responsibility for the recent ministry bombings.

Iraq has demanded Syria hand over two suspects wanted in those bombings, raising tension between the two countries that led each side to recall their respective ambassadors.

"We are dealing with the crisis, containing it and preventing any further escalation or tension," Iraqi Foreign Minister Hoshyar Zebari said Saturday during a news conference with Iranian Foreign Minister Manouchehr Mottaki.

Mottaki said Iran would work with both countries, who are its allies, to resolve the tension.

"We will spare no efforts to offer support," he said.

Zebari said Iraq's government plans to ask the United Nations to back the creation of an international court to try those accused in the Baghdad bombings.

Saturday's attacks came as thousands of mourners gathered in the streets of the holy city of Najaf, south of Baghdad, for the arrival of the body of Abdul-Aziz al-Hakim, one Iraq's most powerful Shiite leaders, who died Wednesday of lung cancer in Iran.

The casket's arrival ended a three-day mourning tour through Iran, Baghdad and other portions of Iraq's Shiite heartland. The Iranian foreign minister attended the burial.

Al-Hakim led the Iranian-backed Supreme Islamic Iraqi Council, Iraq's largest Shiite party, and was widely revered for helping pave the way for the re-emergence of Shiite power after decades of oppression under Saddam Hussein's Sunni-led regime.

The wooden coffin was buried next to al-Hakim's brother, Ayatollah Mohammed Baqir al-Hakim, who led the party until he was killed in a car bombing in Najaf soon after the brothers returned to Iraq in 2003 after years in exile.

In his will, al-Hakim called for peaceful coexistence among Iraq's fractured sects, warning that national unity was being targeted by Saddam loyalists and Sunni extremists.

"They see that the only way to achieve their victory is by creating sedition between Iraqi Shiite and Sunnis," he said in the will, which was read by his son and anointed successor, Ammar, at the funeral service.

He also urged Iraqis to vote in January's parliamentary elections, which are likely to be bitterly contested between his party and a rival faction led by Prime Minister Nouri al-Maliki.

Also Saturday, Kurdish authorities distributed 850,000 copies of a proposed constitution along with food rations in Sulaimaniyah, one of three provinces in the Kurds' northern self-ruled region. The move is seen as a step in reviving a referendum on the constitution that Iraq's election commission prevented from occurring in July.

Arabs see the draft constitution as an effort by Kurds to expand their region, escalating tension between the two groups that is seen as a major threat to Iraqi stability.

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Associated Press Writers Sinan Salaheddin and Bushra Juhi in Baghdad and Yahya Barzanji in Sulaimaniyah contributed to this report.

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Karzai increases lead to 46 pct in Afghan election

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KABUL – President Hamid Karzai widened his lead in Afghanistan's presidential race as new vote tallies were released Saturday, inching closer to the 50 percent threshold of votes he needs to avoid a run-off.

As Afghanistan's Independent Election Commission slowly releases partial results from the Aug. 20 presidential election, accusations of fraud have poured into the Electoral Complaint Commission. Videos of alleged fraud have been posted on the Internet, and Karzai's top challenger, Abdullah Abdullah, has made multiple complaints of cheating.

The allegations from Abdullah and other presidential candidates, along with low turnout in the violent south because of Taliban threats of violence, could strip the election of legitimacy in Afghan eyes. Security officials are monitoring tensions among Abdullah supporters for any signs that the election turmoil could ignite violence.

The latest results show Karzai ahead with 46.2 percent of the votes already counted against Abdullah's 31.4 percent. The results are based on 35 percent of the country's polling stations, meaning they could still change dramatically. Karzai must win 50 percent of ballots cast to avoid a runoff.

Final results will not be released until late September after the allegations of fraud have been investigated.

In Abdullah's latest salvo against the Afghan president, he said Karzai was behind "state-crafted, massive election fraud" and called his government "too corrupt" and the "worst in the world."

The U.N.-backed Electoral Complaints Commission has said the number of major fraud complaints that could "materially affect" the outcome had soared to 270.

The lengthy election process has added to strains in U.S.-Afghan relations, which had already cooled since the Obama administration took office.

Abdullah called the Karzai government a "mafia-like regime" in an interview with Italy's RAI State TV broadcast Friday. He denied that he had been approached about any sort of power-sharing deal and said he saw no place for himself in a Karzai-led administration. And while he said he would "resort to peaceful means" to register his election concerns, he left open the possibility that problems may arise.

"The fact is that the foundations of this country have been damaged by this fraud, throwing it open to all kinds of consequences, including instability," Abdullah said. "I have a vision for this country: to put it back on the right track. This regime is too corrupt, the worst in the world."

Top envoys for the Afghanistan-Pakistan region from 27 countries — including President Barack Obama's envoy, Richard Holbrooke — are to meet in Paris on Wednesday to discuss Afghanistan. The French Foreign Ministry sought to play down questions about the timing, saying the gathering is a follow-up meeting to an Afghan donors conference in Paris a year ago.

International officials — including Obama, the top U.N. official in Afghanistan and the European Commission — were quick to congratulate Afghans for carrying off the Aug. 20 vote in the face of Taliban threats and violence.

But the massive allegations of fraud that have surfaced since then have taken the shine off the election, and some officials are holding judgment on whether the process has been credible.

If the country holds a second round run-off, a new president might not be named until November or even later, and there are signs the strung-out process is fraying U.S.-Afghan relations.

On Friday, two officials said Karzai angrily accused the U.S. of pushing for a runoff vote during a heated meeting with Holbrooke the day after the election.

Karzai assured Holbrooke he would accept the election results but bristled when Holbrooke asked if he would also agree to a runoff, according to officials briefed about the meeting who spoke on condition of anonymity because of the sensitivity of the information.

An angry Karzai accused the U.S. of urging a second round before all votes had been counted. Karzai said he would accept the election commission's tabulation as long as it reflected the facts. He did not elaborate, according to the officials.

Karzai enjoyed close ties with the Bush administration, which helped propel him to power after the collapse of the Taliban government in the U.S.-led invasion.

Since the Obama administration took office, U.S. officials have accused Karzai of weak leadership as well as tolerating corruption and a flourishing drug trade.

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Stocks edge higher after jump in home sales

0 comments Wednesday, August 26, 2009

NEW YORK – Reports showing jumps in home sales and factory orders are keeping stocks afloat.

Major stock indicators reversed early losses and edged slightly higher in early trading Wednesday after the Commerce Department said new home sales rose 9.6 percent in July — the fourth straight monthly increase. Sales rose to 433,000, the strongest pace since September and well above the 390,000 figure economists expected.

Earlier Wednesday, the Commerce Department said orders for goods expected to last at least three years rose 4.9 percent in July — the biggest jump in two years and more than the 3 percent increase economists had expected.

The day's news followed upbeat readings on consumer sentiment and home prices on Tuesday that sent stocks to fresh highs for the year.

The market's gains on Wednesday were modest, reflecting the caution that still pervades Wall Street. After a five-month run-up in stocks, with little break, investors are unsure how much further the market can go without seeing actual economic growth.

Matt King, chief investment officer at Bell Investment Advisors said much of the improving economic data has already been factored into stocks.

"We're just moving on momentum more than anything else," he said.

In early trading, the Dow Jones industrials moved higher for a seventh straight day, rising 13.45, or 0.1 percent, to 9,552.74, after being down as much as 45 points prior to the home sales data.

The Standard & Poor's 500 index rose 1.15, or 0.1 percent, to 1,029.15, and the Nasdaq composite index rose 3.45, or 0.2 percent, to 2,027.68.

Advancing issues were roughly even with decliners on the New York Stock Exchange, where volume came to 315.2 million shares, compared with 394.9 million shares at the same time on Tuesday.

In other trading, the Russell 2000 index of smaller companies rose 1.19, or 0.2 percent, to 584.41.

Shares of homebuilders surged for a second day after the housing data. Hovnanian Enterprises Inc. rose 36 cents, or 7.9 percent, to $4.93, tacking on to its 6.5 percent jump the day before. DR Horton Inc. rose 67 cents, or 5.1 percent, to $13.72.

Retail stocks were mostly higher after a handful of upbeat earnings reports. Shares of Dollar Tree Inc. rose $2.98, or 6.2 percent, to $50.88 after the company posted a 51 percent jump in its second-quarter profit as its deeply discounted goods attracted cash-strapped consumers.

Government bond prices dipped after the positive economic data and ahead of an auction of $39 billion in five-year notes. The yield on the benchmark 10-year Treasury note rose to 3.45 percent from 3.44 percent late Tuesday.

Stocks got a lift Tuesday after improving data on home prices reinforced the notion that the battered industry is stabilizing. The Standard & Poor's/Case-Shiller U.S. National Home Price Index rose 1.4 percent in the second quarter, the first quarterly increase in three years. Traders also welcomed a more upbeat report on consumer sentiment from the Conference Board.

The dollar rose against other major currencies. Prices for gold and other metals fell.

Overseas, Japan's Nikkei stock average rose 1.4 percent. In afternoon trading, Britain's FTSE 100 declined 0.4 percent, Germany's DAX index fell 0.3 percent, and France's CAC-40 rose 0.1 percent.

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July new US home sales up 9.6 percent

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WASHINGTON – New U.S. home sales surged 9.6 percent in July, rising for the fourth straight month and beating expectations as the housing market marches steadily back from its historic downturn.

The Commerce Department said Wednesday that sales rose to a seasonally adjusted annual rate of 433,000 from an upwardly revised June rate of 395,000. Sales are now up 32 percent from the bottom in January, but off 69 percent from the frenzied peak four years ago.

Last month's sales pace was the strongest since September and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 390,000 units. The last time sales rose so dramatically was in February 2005.

The median sales price of $210,100, however, was still down 11.5 percent from $237,300 a year earlier.

There were 271,000 new homes for sale at the end of July, down more than 3 percent from May. At the current sales pace, that represents 7.5 months of supply — the lowest since April 2007. The decline means builders have scaled back construction to the point where supply and demand are coming into balance.

Buyers, meanwhile, are rushing to take advantage of a federal tax credit that covers 10 percent of the home price, or up to $8,000 for first-time owners. Home sales must be completed by the end of November for buyers to qualify.

Builders and real estate agents are pressing Congress for that credit to be extended. If it isn't, sales could reverse their upward trend.

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