Obama talks about renewed leadership in Asia, pact with PH, China dispute

MANILA, Philippines - Below is U.S. President Barack Obama's statement delivered during a press conference in Malacanang with President Benigno Aquino III on Monday, April 28.

Obama, who is on a two-day state visit to the Philippines, discussed about the U.S. move to renew its leadership in the Asia Pacific. Amid Filipino activists' claim of U.S. "expansionism," Obama also stressed that the U.S. had no intention to either reclaim old bases in the Philppines or build new ones.

Moreover, Obama said the U.S. goverment was reaffirming "the importance of resolving territorial disputes in the region peacefully without intimidation or coercions."

READ OBAMA'S FULL STATEMENT.

Mabuhay!

Thank you President Aquino for your warm welcome and your very kind words. With the President’s indulgence, I want to begin by saying a few words about some terrible storms and tornadoes back home in the United States.

Over the weekend, a series of storms claimed at least a dozen of lives and damaged or destroyed homes and businesses and communities across multiple states with the worst toll in areas in Arkansas. So I want to offer my deepest condolences to all those who lost loved ones. I commend the heroic efforts of first responders and neighbors who rushed to help.

I want everyone affected by this tragedy know that FEMA and the Federal government is on the ground and will help our fellow Americans in need, working with state and local officials, and I want everybody to know that your country will be there to help you recover and rebuild as long as it takes.

Now, this is my first visit to the Philippines as President, and I am proud to be here as we mark the 70th anniversary of the Battle of Leyte Gulf when Americans and Filipinos fought together to liberate this nation during World War II. Now, all these years later, we continue to stand shoulder-to-shoulder to uphold peace and security in this region and around the world.

Mr. Benigno, I want to thank you and the Filipino people, not only for your generous hospitality today but for a friendship that has spanned generations. I’d like to add our friendship is deeper and the United States is stronger because of the contributions and patriotism of millions of proud Filipino-Americans.

As I made clear throughout this trip, the United States is renewing our leadership in the Asia Pacific and our engagement is rooted in our alliances, and that includes the Philippines, which is the oldest security treaty alliance that we have in Asia.

As a vibrant democracy, the Philippines reflects the desire of citizens in this region to live in freedom and to have their universal rights upheld. As one of the fastest growing economies in Asia, the Philippines represents new opportunities for the trade and investment that creates jobs in both countries.

And given its strategic location, the Philippines is a better partner on issues such as maritime security and freedom of navigation. Let me add that recent agreement to end the insurgency in the South gives the Philippines a historic opportunity to forge a lasting peace here at home with greater security and prosperity for the people of that region.

I was proud to welcome President Aquino to the White House two years ago, and since then we’ve worked to deepen our cooperation and to modernize our alliances. Our partnership reflects an important Filipino concept: ‘bayanihan’—the idea that we have to work together to accomplish things that we couldn’t achieve on our own.

That’s what we saw last year when Typhoon Yolanda devastated so many communities. Our Armed Forces and civilians from both our countries worked as one to rescue victims and to deliver life-saving aid—that’s what friends do for each other. And Mr. President, I want to say to you and the people of the Philippines, the United States will continue to stand with you as you recover and rebuild. Our commitment to the Philippines will not waver.

Today, I’m pleased that we’re beginning an important new chapter in the relationship between our countries, and it starts with our security with the new defense cooperation agreement that was signed today. I want to be very clear: the United States is not trying to reclaim old bases or build new bases.

At the invitation of the Philippines, American service members will rotate through Filipino facilities. We’ll train and exercise more together so that we’re prepared for a range of challenges, including humanitarian crises and natural disasters like ‘Yolanda’.

We’ll work together to build the Philippines’ defense capabilities, and work with other nations to promote regional stability, such as in the South China Sea. And I’m looking forward to my visit with forces from both our nations tomorrow to honor their service and to look ahead to the future we can shape together.

As we strengthen our bilateral security cooperation, we’re also working together with regional institutions like ASEAN and the East Asia Summit. When we met in the Oval Office two years ago, Benigno and I agreed to promote a common set of rules founded in respect for international law that will help the Asia Pacific remain open and inclusive as the region grows and develops.

Today, we reaffirm the importance of resolving territorial disputes in the region peacefully without intimidation or coercions. And in that spirit, I told him that the United States supports his decision to pursue international arbitration concerning territorial disputes in the South China Sea.

Finally, we agreed to keep deepening our economic cooperation. I congratulated President Aquino on the reforms that he’s pursued to make the Philippines more competitive through our partnership for growth and our Millennium Challenge Cooperation compact. We are going to keep working together to support these efforts so that more Filipinos can share in this nation’s economic progress because growth has to be broad-based and it has to be inclusive.

We discussed the steps that the Philippines could take to position itself for the Trans-Pacific Partnership, and I encouraged the President to seize the opportunity he’s created by opening the next phase of economic reform and growth.

Today, I’m announcing that my Commerce Secretary Penny Pritzker will lead the delegation of American business leaders to the Philippines this June to explore new opportunities. And I add that we’ve also committed to work together to address the devastating effects of climate change and to make Philippine communities less vulnerable to extreme storms like 'Yolanda'.

So Mr. President, let me once again thank you for everything you’ve done to strengthen our alliance and our friendship. I’m looking forward to paying tribute to the bonds between our people at the dinner tonight and on working with you as we write the next chapter in the relationship between our two countries.

source: interaksyon.com

White House unveils plan to end NSA's bulk collection of phone data

WASHINGTON - The Obama administration on Thursday announced details of its plan to end the government's vast bulk collection of data about phone calls made in the United States, including new procedures to get judicial approval before asking companies for such records.

Under the plan, phone companies would have to provide data from their records quickly and in a usable format when requested by the government, a senior administration official told reporters on condition of anonymity.

It would also allow the government to seek the data without a court order in a national security emergency.

"I am confident that this approach can provide our intelligence and law enforcement professionals the information they need to keep us safe while addressing the legitimate privacy concerns that have been raised," President Barack Obama said in a statement about the plan, which needs approval by Congress.

The US government began collecting so-called metadata shortly after the September 11, 2001, attacks on the United States, under part of the Patriot Act known as Section 215.

The program's defenders say it helps the government find connections between people plotting attacks overseas and co-conspirators inside the United States, while critics view it as an infringement of privacy rights.

Obama has been under pressure to rein in surveillance since former National Security Agency contractor Edward Snowden last year disclosed classified details about the breadth of the government's intelligence gathering, sparking an international uproar.

Next step: Congress

Obama announced his initial response to the debate in January, including a ban on eavesdropping on the leaders of allied nations.

On Thursday, the administration provided additional details about its plans for telephone records known as metadata. Such records document which telephone number called which other number, when the calls were made and how long they lasted. Metadata does not include the content of the calls.

Under the proposal, once the Foreign Intelligence Surveillance Court approves gathering records associated with a phone number, phone companies could be required to turn over data associated with that number on an "ongoing and prospective" basis, a senior administration official said on a conference call.

Companies would be compelled to provide technical assistance to the government to query the records, and may be compensated in a way that is consistent with current procedures, the official said.

The administration will ask the court to allow it to operate its existing program for at least another 90 days, as Congress weighs legislation.

"We would hope that the Congress would take something up very expeditiously," the official said.

At least two proposals for ending bulk collection of phone data have already been unveiled by lawmakers.

In October, Patrick Leahy, the Democratic chairman of the Senate Judiciary Committee, and Jim Sensenbrenner, a House Republican, introduced a bill that would require the government to show a request for data was relevant to an ongoing investigation.

Their bill, called the USA Freedom Act, has been endorsed by privacy advocates including the American Civil Liberties Union.

Earlier this week, Republican Mike Rogers and Democrat Dutch Ruppersberger, the top lawmakers on the House of Representatives' intelligence panel, released a plan that would not require the government to first get court approval of a request for data.

Instead, the court could order the data expunged if it was later found not to be linked to suspicious activity.

House Speaker John Boehner, a Republican, has said he supports the bill.

But Obama has been clear that "one of the main attributes" he wanted to see in the overhaul was requiring court approval before data requests are made, the senior administration official said, noting the government has been following that practice since January. (Additional reporting by Mark Felsenthal)

source: interaksyon.com

Google co-founder Larry Page says US online spying threatens democracy

VANCOUVER, March 20, 2014 (AFP) – Google co-founder Larry Page on Wednesday condemned US government snooping on the Internet as a threat to democracy.

His comments came during an on-stage chat at a prestigious Technology Entertainment Design gathering, where a day earlier fellow Google founder Sergey Brin had a virtual encounter with National Security Agency leaker Edward Snowden.

A photo of Brin smiling with a robot remotely controlled by Snowden from a refuge in Russia, where the wanted man is in hiding, was tweeted by TED curator Chris Anderson and became an instant online hit.


“It is tremendously disappointing that the government sort of secretly did all this stuff and didn’t tell us,” Page said.

He reasoned that details of suspected terrorist threats should remain cloaked but that the parameters of what US intelligence agents do, along with how and why they do it, should be public.

“We need to have a debate about that or we can’t have a functioning democracy; it is just not possible,” Page said.

“It is sad that Google is in the position of protecting you and our users from the government doing secret things nobody knows about; it doesn’t make any sense.”

Spying backlash peril

As smartphones and sensors synched to the Internet obtain and share increasing amounts of data about where people are and what they are doing, Page said it was critical for people to be given choices of how it is used.

He was concerned, though, that privacy fears and a backlash to online spying would result in blocking uses of personal information for beneficial purposes.

He noted how shared medical information, on an aggregate scale and made anonymous, could help researchers develop treatments and patients select doctors or map medical care.

“We are not really thinking about the tremendous good that can come from people sharing the right information with the right people in the right ways,” Page said.

Page gave the example of going public with details of trouble with his voice.

“On your show, I kind of lost my voice and I haven’t gotten it back,” Page joked with Rose.

“I am hoping that by talking to you I am going to get it back. Get out your Voodoo doll and do whatever you need to do.”

Web bill of rights

Earlier in the day, on the same TED stage, the father of the World Wide Web urged those in the conference’s influential and innovative community to fight to keep life on the Internet free and open.

Tim Berners-Lee rallied support for creating a bill of rights for the Internet this year in the wake of revelations about extensive government surveillance.

Berners-Lee launched his Web We Want campaign last week as the Web turned 25 years old.

He has repeatedly called for fewer controls on the Web, and has praised Snowden for revealing details of how the US government collects masses of online data.

Berners-Lee conceived the Web 25 years ago in his spare time at Geneva-based CERN, Europe’s top particle physics lab.

“I want to use this anniversary to think about what kind of Web we want,” Berners-Lee said, referring ideas to a Webat25.org website.

NSA to respond

Former intelligence contractor Snowden emerged from his Russian exile Tuesday in the form of a remotely-controlled robot to promise more sensational revelations about US spying programs.

The fugitive’s face appeared on a screen as he maneuvered a wheeled android around the TED gathering, addressing an audience in Vancouver without ever leaving his hideaway.

“There are absolutely more revelations to come,” he said. “Some of the most important reporting to be done is yet to come.”

Snowden used the conference to launch a global call to fight for privacy and Internet freedom.

He endorsed Berners-Lee’s quest for a global Magna Carta laying out values and rights on the Internet.

Berners-Lee briefly joined Snowden’s interview with TED curator Chris Anderson, and put the leaker in the hero camp.

National Security Agency Deputy Director Rick Ledgett will appear at the TED gathering early Thursday via video link as a counterpoint to Snowden’s talk, according to Anderson.

source: interaksyon.com

FBI warns of US government breaches by Anonymous hackers

Activist hackers linked to the collective known as Anonymous have secretly accessed U.S. government computers in multiple agencies and stolen sensitive information in a campaign that began almost a year ago, the FBI warned this week.

The hackers exploited a flaw in Adobe Systems Inc’s software to launch a rash of electronic break-ins that began last December, then left “back doors” to return to many of the machines as recently as last month, the Federal Bureau of Investigation said in a memo seen by Reuters.

The memo, distributed on Thursday, described the attacks as “a widespread problem that should be addressed.” It said the breach affected the U.S. Army, Department of Energy, Department of Health and Human Services, and perhaps many more agencies.

Investigators are still gathering information on the scope of the cyber campaign, which the authorities believe is continuing. The FBI document tells system administrators what to look for to determine if their systems are compromised.

An FBI spokeswoman declined to elaborate.

According to an internal email from Energy Secretary Ernest Moniz’ chief of staff, Kevin Knobloch, the stolen data included personal information on at least 104,000 employees, contractors, family members and others associated with the Department of Energy, along with information on almost 2,0000 bank accounts.

The email, dated October 11, said officials were “very concerned” that loss of the banking information could lead to thieving attempts.

Officials said the hacking was linked to the case of Lauri Love, a British resident indicted on October 28 for allegedly hacking into computers at the Department of Energy, Army, Department of Health and Human Services, the U.S. Sentencing Commission and elsewhere.

Investigators believe the attacks began when Love and others took advantage of a security flaw in Adobe’s ColdFusion software, which is used to build websites.

Adobe spokeswoman Heather Edell said she was not familiar with the FBI report. She added that the company has found that the majority of attacks involving its software have exploited programs that were not updated with the latest security patches.

The Anonymous group is an amorphous collective that conducts multiple hacking campaigns at any time, some with a few participants and some with hundreds. In the past, its members have disrupted eBay’s Inc PayPal after it stopped processing donations to the anti-secrecy site Wikileaks. Anonymous has also launched technically more sophisticated attacks against Sony Corp and security firm HBGary Federal.

Some of the breaches and pilfered data in the latest campaign had previously been publicized by people who identify with Anonymous, as part of what the group dubbed “Operation Last Resort.”

Among other things, the campaigners said the operation was in retaliation for overzealous prosecution of hackers, including the lengthy penalties sought for Aaron Swartz, a well-known computer programmer and Internet activist who killed himself before a trial over charges that he illegally downloaded academic journal articles from a digital library known as JSTOR.

Despite the earlier disclosures, “the majority of the intrusions have not yet been made publicly known,” the FBI wrote. “It is unknown exactly how many systems have been compromised, but it is a widespread problem that should be addressed.”

source: interaksyon.com

US Pinoys rally to aid kababayan post-'Yolanda'

NEW YORK/LOS ANGELES -- Filipinos across the United States rallied to support aid efforts for their homeland on Monday as rescue workers an ocean away struggled to reach remote areas of the country that was ravaged by a deadly typhoon.

Many Filipino-Americans expressed appreciation for early efforts by the US government to respond to Typhoon Haiyan, which killed at least 10,000 people and left 600,000 homeless.

The US government provided immediate support that included 55 tons of food, $100,000 for water and sanitation support and the deployment of 90 Marines and sailors, but some Filipino-Americans expressed concerns that foreign aid could be diverted by corrupt local officials.

In the New York City borough of Queens, where many businesses along a 15-block thoroughfare dubbed "Little Manila" were planning charitable efforts for typhoon victims, the manager of Payag, a Filipino restaurant, said its weekly fundraisers for victims of last month's deadly earthquake in Central Visayas were being expanded to assist typhoon survivors.

"We started these events on November 1 not realizing soon after another calamity would occur," restaurant manager Peter Obac said. "So now it's for earthquake and typhoon victims."

Anne Beryl Corotan, a New York-based campaign coordinator for the National Alliance for Filipino Concerns, said her organization was working to send advance teams to the hard-hit areas of Samar and Leyte.

Reflecting sentiments common in the Filipino-American community, Corotan applauded US government relief efforts but said she hoped American officials would closely monitor disbursement of the aid.

"I would like to ensure that my taxes are going to appropriate provision of social services and not for militarization, corruption and only to those who are powerful, landlords and big business owners," she said.

President Benigno Aquino III came to office on a good governance and anti-corruption platform, but corruption remains endemic in the Southeast Asia nation.

Food and medicine

Efforts among Filipino-Americans to assist with typhoon relief extended across the country.

In San Francisco, the West Bay Pilipino Multi-Service Center, a nonprofit that serves underprivileged Filipino youth, stayed open overnight on Sunday to accept donations of food and medicine for victims of the typhoon.

The center collected about 700 pounds of canned food and medical supplies, said executive director Rudy Asercion, a third generation Filipino-American.

Asercion said the supplies would be shipped this week to Cebu, where Catholic church-affiliated volunteers would distribute them to typhoon victims in hard-hit places like the city of Tacloban.

Maria Hellen Barber De La Vega, consul general for the Philippines in Los Angeles, said that church and volunteer-based relief efforts in southern California were well under way, including $10,000 raised over the weekend in part by a five-kilometer fundraising walk on Sunday.

But she said the needs in the affected areas of central Philippines were nearly overwhelming.

"Right now we need medicines for cold and fever, food and water, but we really need treatment for bones. Many were caught in trees and hurt by flying debris," she said. "The problem is access."

Efforts to help extended beyond the Filipino expatriate community.

At the US Conference of Catholic Bishops assembly in Baltimore on Monday, Bishop Gerald Kicanas, chairman of the board of directors of US-based Catholic Relief Services, urged his colleagues to take up a "second collection" from churches for relief efforts in the Philippines and Vietnam.

"We hope you can send those collections as soon as possible because the crisis is so imminent."

Also speaking at the assembly, CRS President Carolyn Woo said her group had pledged $20 million in typhoon aid that it has not yet raised.

"It's important for people to be buying supplies," she said, adding that her group hoped to help 100,000 affected families.

Philippines Airlines also lent a hand, saying in a statement that it was offering space on its planes to ship certain aid supplies to the country free of charge.

source: interaksyon.com

Treasury secretary warns US shutdown, debt showdown 'can never happen again'

WASHINGTON - The recent US government shutdown and debt limit showdown bruised the nation's economy and "can never happen again," Treasury Secretary Jack Lew said in an interview that aired Sunday.

"We took an economy that is fighting hard to get good economic growth going, to create jobs for the American people, and took it in the wrong direction," Lew said on NBC's "Meet the Press" program.

He said borrowing costs went up and economic activity suffered after more than two weeks of a partial government shutdown, as the country came within hours of reaching its legal borrowing limit and defaulting on its debts.

"This one was a little bit scary, because it got so close to the edge," Lew said.

"We need to make sure that the government does not go through another round of brinksmanship. This can never happen again."

The treasury secretary said he was "confident our economy can recover," from the damage done by the budget stalemate.

But he said the economy is hindered by "deep spending cuts that are part of sequestration" --arbitrary, across-the-board spending cuts which came into force in March and will take another cut from the federal budget in January.

This looks to be the next big budget battle, which only earned a temporary reprieve with the deal that ended the showdown last week.

The compromise plan hashed out in the Senate and passed by the House only funds government until January 15 and extends US borrowing authority until February 7.

President Barack Obama has already begun arguing for a roll back of the "sequester" cuts, an argument Lew reiterated Sunday.

"The president has made clear that we think you should replace some of the sequestration cuts with sensible balance, entitlement, and tax reforms that put us in the right direction for the future," he said.

source: interaksyon.com

Obama warns Wall Street over fiscal crisis

WASHINGTON - President Barack Obama sent Wall Street a blunt warning Wednesday that it should be very worried about a political crisis that has shut down the government and could trigger a US debt default.

Obama said he was "exasperated" by the budget impasse in Congress, in an interview with CNBC apparently designed to pressure Republicans by targeting the financial community moments after markets closed.
 




The president then met Republican and Democratic leaders for their first talks since the US government money's ran out and it slumped into a shutdown now well into its second day.

But few informed observers held out much hope for a sudden breakthrough.

Obama was asked in the interview whether Washington was simply gripped by just the latest in a series of political and fiscal crises which reliably get solved at the last minute.

In unusually frank comments on issues that could sway markets, Obama warned that investors should be worried.

"This time's different. I think they should be concerned," Obama said, in comments which may roil global markets.

"When you have a situation in which a faction is willing potentially to default on US government obligations, then we are in trouble," Obama said.

Obama said he would not negotiate with Republicans on budget matters until House lawmakers pass a temporary financing bill to reopen federal operations and raised the $16.7-trillion debt ceiling.

If the borrowing limit is not lifted by the middle of the month, the US government could default on its debts for the first time in history.

"If and when ... that vote takes place and the government reopens, and if and when they vote to make sure Congress pays our bills on time so America does not default on costs it's already accrued, then I am prepared to have a reasonable, civil negotiation around a whole slew of issues," Obama said.

The president said he had "bent over backwards" to accommodate Republicans -- a statement his foes would dispute -- but warned it would set a terrible precedent to allow lawmakers of any party to hold a White House to ransom over raising the debt ceiling.

Exasperated

"Absolutely I am exasperated, because this is entirely unnecessary," Obama said.

The government shutdown has sent 800,000 federal workers home, closed museums, national parks and monuments and crippled government services.

Obama wants a straightforward temporary spending bill to end the first shutdown in 17 years, while Tea Party Republicans have repeatedly tied the measure to a dismantling or delay of his signature health care law.

With neither side willing to budge, hopes of an early exit to the shutdown are fading.

"Most of the time you can see an end game," Republican Senator Johnny Isakson told MSNBC. "Right now there's no end game in sight."

Some signs of incremental movement emerged, with Democrats pledging to appoint negotiators to thrash out a long-term budget -- provided that the Republicans agree to an immediate six-week federal spending measure with no anti-Obamacare provisions.

Obama met at the White House with his chief political rival, House Speaker John Boehner, as well as top Senate Republican Mitch McConnell to address the standoff.

Senate Majority Leader Harry Reid and top House Democrat Nancy Pelosi were also there.

Boehner's office said the fact the talks were taking place was a victory in itself and had the potential to lead to "serious talks between the two parties."

A risk if protracted

European Central Bank chief Mario Draghi warned Wednesday that a US shutdown "is a risk if it is protracted."

"It would be a risk not only for the US, but also the world economy," Draghi said.

Obama on Wednesday gathered a group of high flying CEOs, apparently hoping they would pressure Boehner to pass a straight temporary funding bill.

Goldman Sachs boss Lloyd Blankfein warned that America was getting onto dangerous ground by flirting with not raising the debt ceiling. A previous period of brinkmanship on the issue badly hit the US credit rating.

"There's a precedent for a government shutdown, there's no precedent for a default," he said after meeting Obama.

Furious tourists meanwhile are locked out of Washington museums and monuments, as well as national parks and landmarks like the Statue of Liberty in New York. Cancer research and treatment at the world-class National Institutes of Health has ground to a halt.

The fallout has already caused Obama to shorten his long-planned Asia trip, scrapping stops in Malaysia and the Philippines that were due to begin this weekend, so he could attend to the crisis at home.

The president's attendance at regional summits in Indonesia and Brunei was also in doubt.

A no show in Asia would be seen as a blow to Obama's policy of rebalancing US diplomacy and military might towards the fast growing region.

But James Clapper, Director of National Intelligence warned lawmakers that US security was already being compromised.

Seventy percent of the intelligence workforce had been furloughed, potentially offering an opening to foreign recruiters in the field, Clapper said.

"This seriously damages our ability to protect the safety and security of this nation," Clapper said.

source: interaksyon.com

US govt shuts down

The United States lurched into a dreaded government shutdown early Tuesday for the first time in 17 years, triggering agency closures and hundreds of thousands of furloughs as Congress missed a deadline to pass a budget.

Ten minutes before midnight bells rang throughout a deeply divided Washington, and after a day of furious brinkmanship President Barack Obama's Democrats and rival Republicans, the White House ordered federal agencies to initiate their shutdown procedures.

"We urge Congress to act quickly to pass a Continuing Resolution to provide a short-term bridge that ensures sufficient time to pass a budget for the remainder of the fiscal year," Management and Budget director Sylvia Mathews Burwell said in a memo to agencies.

Lawmakers had hardly haggled over budgetary matters in the final frantic hours before the deadline -- the end of the fiscal year. Instead, they argued over whether to link the budget pact with efforts to delay Obama's health care law.

"This is an unnecessary blow to America," Senate Majority Leader Harry Reid said on the Senate floor two minutes after the witching hour.

As a mood of crisis enveloped Washington no compromise emerged to head off the first such disaster since 1996.

Instead, the Democratic-led Senate and Republican House of Representatives played a futile game, sending funding bills between them that were doomed to fail.

Obama accused Republicans of holding America at ransom with their "extreme" political demands, while his opponents struck back at his party's supposed arrogance.

Around 800,000 government workers are expected to be sent home, government services are to be slashed and monuments such as the Statue of Liberty and national parks will close.

The crisis is rooted in an attempt by "Tea Party" Republicans in the House to make passage of a new government budget conditional on thwarting Obama's signature health reform law.

The Democratic-led Senate and the president have repeatedly rejected this strategy and urged Republicans to pass an extension to government funding to temporarily stave off the shutdown.

In a deeper sense, the shutdown is the most serious crisis yet in a series of rolling ideological skirmishes between Democrat Obama and House Republicans over the size of the US government and its role in national life.

"One faction of one party in one house of Congress in one branch of government doesn't get to shut down the entire government just to re-fight the results of an election," Obama said, referring to his own re-election.

"You don't get to extract a ransom for doing your job, for doing what you're supposed to be doing anyway," he said, in a stern televised statement at the White House.

But on a day of accelerating brinkmanship, Republicans doubled down on their bid to gut Obamacare, as the health care law, the most sweeping social legislation in decades, is known.

With just three hours to go, House lawmakers passed a bill that would delay the individual mandate, which forces all Americans to buy health insurance under the new law, for a year.

"It's a matter of fairness for all Americans," said Republican House speaker John Boehner, who has struggled to control the riotous anti-government Tea Party faction of his caucus.

But the Senate, which must also sign off on budget measures, immediately rejected the bill.

That led House leaders, less than an hour before midnight, to move to go to conference, meaning the two chambers would appoint formal negotiators to thrash out a budget deal.

That process was already showing signs that it would take hours to coordinate, and Reid sent the Senate into recess until 9:30 am Tuesday.

"We said we'd go to conference if they wouldn't shut the government down, but they're shutting the government down," number two Senate Democrat Dick Durbin told AFP.

Obama warned that a government shutdown could badly damage an economy which has endured a sluggish recovery from the worst recession in decades.

"A shutdown will have a very real economic impact on real people, right away. Past shutdowns have disrupted the economy significantly," Obama said.

Consultants Macroeconomic Advisors said it would slow growth, recorded at a 2.5 percent annual pace in the second quarter.

A two-week shutdown would cut 0.3 percentage point off of gross domestic production.

It would also have a painful personal impact on workers affected -- leaving them to dip into savings or delay mortgage payments, monthly car loan bills and other spending.

Stocks on Monday retreated as traders braced for the shutdown. The Dow Jones Industrial Average was down 128.57 points (0.84 percent) to 15,129.67.

Markets are likely to be even more traumatized if there is no quick solution to the next fast approaching crisis.

Republicans are also demanding Obama make concessions in the health care law to secure a lifting of the current $16.7 trillion debt ceiling, without which the United States would begin to default on its debts for the first time in history by the middle of October.

Polls show more Americans would blame Republicans for the shutdown than Democrats, leaving Boehner torn between his party's wider political interests and a vocal section of his own party.

source: interaksyon.com

PH stock market ekes out modest gain after US fails to break budget impasse

MANILA - Philippine share prices squeezed out marginal gains on Tuesday as the US government partially shut down after Congress failed to reach a deal to fund federal operations. At the Philippine Stock Exchange, the benchmark index inched up 6.04 points, or 0.1 percent, to close at 6,197.84, tracking the modest advance of most Asian markets. Among the sub-indices, only the service and property counters finished in the green with gains of 0.45 percent and 0.35 percent, respectively. Market breadth was negative as decliners beat advancers, 84 to 57, while 41 issues were unchanged. A total of 1.53 billion stocks worth P7.88 billion changed hands. Actively traded stocks were Meralco, Alliance Global, Metrobank, Universal Robina and Ayala Land. Top gainers were Ginebra, Maybank and PAL, while the biggest losers were Keppel Properties, Keppel Holdings and Philex Petroleum. The US government began a partial shutdown for the first time in 17 years after US lawmakers missed the October 1 deadline to agree on the budget for the new fiscal year. The Republican-controlled House of Representatives was pushing for the delay of President Barack Obama's signature healthcare law by a year, while the Senate Democrats refused to do so. "Markets held on to the morning gains for a while, taking time to digest the latest development. Yet as the afternoon session progressed it became evident investors found the sidelines a more enticing place to ride out the uncertainty as to how long the shutdown will last," said Jun Calaycay of Accord Capital Equities Corp. The PSE index fell nearly three percent on Monday as investors braced for a US government shutdown amid a budget impasse. The main gauge jumped to a high of 0.96 percent in early Tuesday trades but succumbed to profit-taking in the afternoon session.

source: interaksyon.com

US Republicans to amend budget bill, return it to Senate

WASHINGTON - The US House will vote Saturday on a Republican plan that funds the government through mid-December and delays implementation of the country's new health care law, a strategy that could lead to a crippling shutdown.

House Speaker John Boehner gathered his caucus and called for a rare Saturday session as Congress struggles to break a funding impasse that, if unresolved, would see federal agencies close after the fiscal year ends Monday night.

Under pressure from his party's far-right conservative wing, Boehner doubled down on his caucus's bid to stop President Barack Obama's signature domestic achievement, his health care law, vowing to send a bill back to the Senate with barely any time for legislative action to avoid a shutdown.

"Later today, the House will vote on two amendments to the Senate-passed continuing resolution that will keep the government open and stop as much of the president's health care law as possible," Boehner said in a statement after the meeting.

"We will do our job and send this bill over, and then it's up to the Senate to pass it and stop a government shutdown."

In addition to a one-year delay of the law that has become known as "Obamacare," one of the amendments would repeal an unpopular medical device tax.

"This is exactly what we wanted," conservative congressman Raul Labrador told reporters.

"We're united on sending (it) back to the Senate," congressman Darrell Issa said after the meeting.

"Obamacare is not ready, and the delay is clearly essential."

Issa argued that a one-year delay "might actually be what saves" the health care law, parts of which are set to take effect on October 1.

"And for those of us who believe there are flaws, it gives the president an opportunity to do what he said he would do afterwards, which is start negotiating absurd things like the medical device tax out of Obamacare."

The move sets up a confrontation with the Senate, where Majority Leader Harry Reid has insisted that no legislation that defunds or delays the health care law would pass the chamber.

He also warned that the only bill that would prevent a shutdown was the stopgap funding measure passed by the Senate on Friday.

"Harry Reid will be shutting down the government if he doesn't accept this pretty sensible solution to the debate that we're having right now," conservative congressman Raul Labrador told AFP.

The Republican plan "is exactly what we wanted," he said.

Boehner and fellow House leaders had struggled to stake out a position palatable to their divided members.

Congress now has less than 60 hours to strike a deal that funds government beyond the current fiscal year.

If lawmakers fail, federal agencies will shut their doors and order hundreds of thousands of employees to stay home, while more than a million soldiers will remain on duty without pay.

As if anticipating a possible shutdown, Boehner said the House would also "vote on a measure that ensures our troops get paid, no matter what."

Obama chided Republicans Friday for their budget brinkmanship, but also warned that while he is prepared to negotiate on ways to reduce spending, "we're not going to do this under the threat of blowing up the entire economy."

source: interaksyon.com

Wall Street falls as U.S. government faces possible shutdown

NEW YORK - U.S. stocks declined on Friday and the S&P 500 and Dow posted their first weekly drop in four, as Democrat and Republican lawmakers struggled to agree on an emergency funding bill to avert a U.S. government shutdown days away.

The S&P 500 declined 1.1 percent for the week and is roughly 2 percent below its record high set September 18 when the Federal Reserve announced it would keep its stimulus program unchanged for the present.

Time was running short for lawmakers to avert a partial shutdown of operations by the U.S. government on October 1. Republicans in the House want to use the spending legislation to gut the new healthcare overhaul, a goal of the conservative Tea Party.

The Senate passed the emergency funding bill on Friday, which will keep U.S. agencies operating after September 30. The measure must now be approved by the Republican-controlled House where it is expected to encounter rough going. The House could vote on a bill in an unusual Saturday or Sunday session.

"I think investors right now are contemplating what is the impact on consumer confidence, revenues and earnings if Washington gets caught up in a quagmire," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon.

Eight of the 10 S&P 500 sectors ended lower, with the materials sector leading losses on the index. The S&P materials index .SPLRCMA declined 1.2 percent.

The Dow Jones industrial average was down 70.06 points, or 0.46 percent, at 15,258.24. The Standard & Poor's 500 Index was down 6.92 points, or 0.41 percent, at 1,691.75. The Nasdaq Composite Index was down 5.83 points, or 0.15 percent, at 3,781.59.

For the week, the Dow was down 1.3 percent and the Nasdaq was up 0.2 percent.

Just before the close, President Barack Obama urged House Republicans to avoid a government shutdown without cuts to his healthcare law or other conditions.

He said he would not agree to delaying or defunding the new healthcare reform law, and that the Senate acted responsibly earlier in the day to keep the government open.

Shares of J.C.Penney fell 13.1 percent to $9.05 and was the worst percentage decliner on the S&P 500 after it said its public offering of 84 million common shares was priced at $9.65 per share.

Shares of Lumber Liquidators Holdings declined 5.2 percent to $107.13 after the company said it was cooperating with authorities after federal agents searched its headquarters and another office in a probe of the import of certain wood flooring products.

Among gainers, Nike Inc jumped 4.7 percent to $73.64, giving the Dow its biggest boost, a day after the maker of sports clothes and shoes reported a stronger-than-expected quarterly profit.

The latest Fed officials to comment on stimulus measures included Federal Reserve Bank of Chicago President Charles Evans, who said the Fed could start reducing its asset purchases this year based on economic forecasts, but the decision to wind back stimulus could be pushed into next year.

Minneapolis Fed President Narayana Kocherlakota told Reuters the Fed needs to speak more clearly and tell the world it will do "whatever it takes" to boost employment.

The day's economic data showed U.S. household spending rose in August as incomes increased at the fastest pace in six months, a sign that momentum could be picking up in the U.S. economy. Another report showed consumer sentiment slid in September to its lowest in five months.

Volume totaled about 5.5 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, below the average daily closing volume of about 6.3 billion this year.

Decliners outpaced advancers on the NYSE by about 2 to 1 and on the Nasdaq by about 1.6 to 1.

source: interaksyon.com

Just what happens if US government shuts down?

WASHINGTON - A US government shutdown is looming. Congress is struggling to pass a stopgap budget measure that would keep the doors open beyond the fiscal year, which ends at midnight September 30.

But with congressional bickering in full swing, and the deadline less than four days away, there is increasing anxiety about who and what will be affected.

During the previous two shutdowns, for six days in November 1995 and 21 days from December that year into early 1996, some 800,000 federal employees were ordered to stay home, according to a congressional report.

Here is a snapshot of what is likely to occur in the event Congress cannot agree on a federal spending bill by October 1.

WHITE HOUSE and CONGRESS: These facilities will remain open, although both are likely to furlough some staff. The State Department has said it will temporarily furlough non-essential staff too.

PENTAGON: Military personnel will remain on duty, although the Department of Defense says there may be delays in their paycheck processing. More than half of the department's 800,000 civilian employees are expected to be furloughed, and the Pentagon has warned of likely "hardships" for many workers.

NATIONAL SECURITY: Such services will remain operational, such as US border patrol and airport screeners. Personnel who are deemed to "protect life and property," such as emergency service providers like disaster response teams, would stay on duty.

MEDICAL RESEARCH: The National Institutes of Health (NIH) could be severely impacted. It would not be allowed to begin new clinical trials or see new patients.

MUSEUMS and PARKS: The Smithsonian museums and all 368 sites in the National Park Service system would close. Seven million tourists were affected during the last shutdown.

ENVIRONMENTAL PROTECTION AGENCY: EPA administrator Gina McCarthy warned that the agency "effectively shuts down." That means virtually no one monitoring or enforcing air and water quality or oil pollution regulations.

POSTAL SERVICE: Since the US Postal Service has its own independent sources of funding, it remains open, as does the Federal Reserve.

SOCIAL SECURITY: Most entitlement programs will continue, although there will be hiccups. Social Security checks will be mailed, but Social Security offices will close. Military veterans will receive their benefits as well, but disability claims will be backlogged. Veterans hospitals will remain open.

WASHINGTON: Congress is granted exclusive jurisdiction over the US capital, and during the 1995-96 shutdown, the city was the focus of embarrassment as it halted its trash collection. Now, Mayor Vincent Gray says he will declare all city employees as "essential personnel" in the event of a shutdown, and use a contingency cash reserve fund to pay wages.

ECONOMY: Senate Majority Leader Harry Reid said Friday that a temporary shutdown would "shatter our economy." That may be hyperbole, but the impact could well be significant. According to Macroeconomic Advisers, the effect on fourth-quarter GDP grown of a two-week shutdown beginning October 1 would be 0.3 percentage points.

source: interaksyon.com

US bailout 5 years ago avoided catastrophe - Treasury

WASHINGTON - The US Treasury said Wednesday the government's massive response to the economic crisis five years ago paid off, avoiding a catastrophic breakdown of the financial system.

In a report marking the anniversary of the bankruptcy of investment bank Lehman Brothers -- which snowballed into the worst crisis since the 1930s -- the Treasury defended deploying hundreds of billions of taxpayer dollars to save other banks, major financial institutions and auto companies.

"Without the government's forceful response, that damage would have been far worse, and the ultimate cost to repair the damage would have been far higher," the report summarized.

While the rescue effort required piling up government debt, it was necessary, said Treasury officials who briefed reporters.

"We prevented a collapse of the financial system," one said on condition of anonymity.

"That's why we did it, and that's the measure of success."

The report says the government recovered what it spent -- or even turned a profit -- in the Troubled Asset Relief Program and the bailouts of housing agencies Fannie Mae and Freddie Mac, both efforts launched late 2008 by the outgoing administration of president George W. Bush.

Of $238 billion pumped into more than 700 vulnerable banks, only $3 billion has yet to be paid back.

From $182 billion allocated to rescue the giant insurer American international Group, the government counts $205 billion in returns, though that includes $17 billion in paper gains still not realized.

In the huge operations to save General Motors and Chrysler from bankruptcy, the government put up $80 billion.

It has since sold Chrysler to Italy's Fiat, and General Motors is back to health, selling cars at pre-crisis levels and relisted on the US stock market.

Even so, the auto sector rescue is likely to come up $15 billion short, the Treasury admitted.

The largest chunk of money went to Fannie and Freddie, whose survival was crucial in turning around the housing sector after it imploded when the recession left millions of Americans unable to pay their mortgages.

The government pumped $187 billion into the two, taking control of them after shareholders were wiped out.

While none of the equity has been recovered, the government has taken $146 billion in dividend payments from them and expects more in the future, the official said.

The downside is a government deficit that rocketed to $1.4 trillion in fiscal 2009 and continued to top $1 trillion until this year. That sent government debt to the current nearly $17 trillion, compared to just $10 trillion five years ago.

Critics of the government say that is why the bailouts were wrong, arguing that taxpayers will continue to bear the cost for years into the future.

But the Treasury officials said keeping the economy together and, especially, keeping the tens of thousands of auto company workers in their jobs were worth the costs.

People "do not really understand what we did," said another Treasury official.

"The run was stopped, the panic was stopped, the system didn't collapse."

"The ripple effects of letting those companies implode would have been huge."

source: interaksyon.com

Obama orders $85-billion spending cuts, blames Republicans

WASHINGTON - President Barack Obama has reluctantly ordered an $85-billion austerity drive that could slow the US economy and slash jobs, after blaming Republicans for refusing to stop the "dumb" spending cuts.

Obama complied with his legal obligations and initiated the automatic, across-the-board cuts in domestic and defense spending Friday, following the failure of efforts to clinch a deal with Republicans on cutting the deficit.

The president signed an order bringing the arbitrary cuts into force, saying they should be made in "strict accordance" to US law, and a report by his Office of Management and Budget (OMB) detailing the cuts to each agency.

The measures could mean long lines at US border posts, reduced military readiness, cuts to special needs education programs, and will trim the resources of some emergency services, according to White House officials.

Obama had earlier blamed the austerity time bomb on Republicans, who refused to close tax loopholes for the rich and corporations combined with more targeted spending cuts, in his "balanced" approach to deficit reduction.

"I am not a dictator. I'm the president," Obama said, warning he could not force his Republican foes to "do the right thing," or make the Secret Service barricade Republicans leaders in a room until a deal is done.

"These cuts will hurt our economy, will cost us jobs and to set it right both sides need to be able to compromise," Obama said, before decrying the budget trimming as "dumb" and "unnecessary."

Only three months after winning re-election, and with the extent of his authority in Washington again constrained, Obama bemoaned his inability to do a "Jedi mind-meld" to get Republicans to change their minds, using imagery from Star Wars and Star Trek.

Obama was bound by law to initiate the automatic, indiscriminate cuts, which could wound the already fragile economy, cost a million jobs and harm military readiness, by the end of Friday.

The hit to military and domestic spending, known as the sequester, was never supposed to happen, but was rather a device seen as so punishing that rival lawmakers would be forced to find a better compromise to cut the deficit.

Both sides agree that the sequester is a blunt instrument to cut spending, as it does not distinguish between essential and wasteful programs -- in what Obama has branded a "meat-cleaver" approach.

New Defense Secretary Chuck Hagel warned that the sequester could endanger the military's capacity to conduct its missions.

"Let me make it clear that this uncertainty puts at risk our ability to effectively all of our missions," said Hagel. The Pentagon's budget is set to be slashed by roughly $46 billion.

The president appeared irritated but combative as he spoke to reporters after meeting with his chief foes -- House Speaker John Boehner and Senate Republican Minority Leader Mitch McConnell -- and allies Democratic Senate Majority Leader Harry Reid and top House Democrat Nancy Pelosi in the Oval Office.

Boehner emerged from the talks to signal to reporters that Republicans would not budge on Obama's key demand for a deal that would raise tax revenues.

"Let's make it clear that the president got his tax hikes on January 1. This discussion about revenue in my view is over," Boehner said.

"It is about taking on the spending problem in Washington."

Even Obama's defeated election rival Mitt Romney got in on the action, slamming the president in a rare interview, complaining he was "blaming and pointing" at Republicans and not leading the country.

In the report to government agencies, the OMB said non-exempt defense programs would be cut by 13 percent this year and domestic programs would be sliced by nine percent.

In cash terms, reductions for the military amount to just over $42 billion, with a similar sum coming from non-defense related spending.

OMB Director Jeffrey Zients told Boehner in a letter accompanying the report that the cuts would be "deeply destructive to national security, domestic investments, and core government functions."

The political stalemate is likely to be prolonged, as the president's tactics are based on a strategy of pinning blame on Republicans for the pain of the sequester, which may take weeks to become evident.

The next point of leverage is likely a bill to fund government operations, which Congress must pass by March 27, or see the government shut down.

Both sides indicated that they would seek to avoid that scenario, meaning that the sequester cuts may remain in place -- unless a way can be found to make equal spending reductions that are less punitive.

Although the cuts trim domestic and defense spending, they do not touch entitlements -- social programs like Medicare health care for the elderly and pension schemes.

Many budget experts say that only cuts to those programs will be able to restore the prospect of long-term fiscal stability.

source: interaksyon.com

Who'll be on Obama's new dream team?

WASHINGTON -- A week after winning reelection President Barack Obama has yet to reveal his new White House dream team amid fierce jostling for coveted posts key to shaping America's foreign and defense policy.

Speculation is heating up in Washington corridors about who will be crowned the new secretaries of state and defense, with veteran Senator John Kerry, Ambassador to the United Nations Susan Rice and National Security Adviser Tom Donilon the odds-on favorites to be among the new cabinet faces.

White House spokesman Jay Carney said Tuesday that Obama "has not made a decision on personnel matters," refusing to discuss any of the rumors.

On Wednesday, Obama will give his first press conference since winning a second term.

But his closely guarded calculations may have been thrown askew by Friday's shock resignation of CIA director David Petraeus, which opened up another job to fill.

Kerry, the longtime chairman of the Senate Foreign Relations Committee with foreign policy stamped into his DNA, is a well-known, respected figure in international circles and has long dreamed of becoming secretary of state.

But the outspoken, feisty Rice is part of Obama's inner circle and has been a loyal champion of US foreign policy at the UN. US dailies reported her nomination to replace Hillary Clinton may almost be in the bag.

Kerry might instead be tapped for the Pentagon to take over from Defense Secretary Leon Panetta, both The New York Times and The Washington Post said, quoting White House officials.

Among his qualifications for the job is his service in the US Navy during the Vietnam War, for which he was decorated with a Silver Star, a Bronze Star with Combat V and three Purple Hearts.

Both nominations could be problematic though.

Rice has come under fire from Republicans who have alleged there was a bid to cover up the circumstances surrounding September's attack on the US mission in Benghazi.

Too many questions remained unanswered and "Susan Rice would have an incredibly difficult time getting through the Senate," veteran Republican Senator Lindsey Graham said Sunday.

"It depends whether the president wants her bad enough in that position to go... fight" for her, Barry Pavel, director of the Brent Scowcroft Center on International Security at the Atlantic Council, told AFP.

Kerry's appointment to a cabinet post would also force an election for his Massachusetts seat in the US Senate, which could see popular Republican Scott Brown -- defeated on November 6 -- make another bid for Congress.

However, analysts said the Democrats had done better than expected in last week's elections by winning a 55-seat majority in the Senate, including two Independents expected to vote with them.

During Kerry's 2004 presidential campaign, some Vietnam veterans launched a controversial smear campaign, alleging false claims about his war record.

But he is widely seen as a safe pair of hands to be entrusted with America's wide-ranging and powerful foreign policy.

"There's a combination of prudence, and knowledge," said Christopher Preble, vice president for defense and foreign policy studies at the Cato Institute.

The veteran senator would bring sober reflection on US intervention in world crises to the table born from the "lessons taken away from the war in Iraq in particular, but also Afghanistan," Preble said.

And there were voices of support for his nomination -- to either post -- as US lawmakers returned to work. Kerry would be "an excellent choice for either of those positions," said Republican Senator Dick Lugar.

Kerry was deflecting all speculation.

"Senator Kerry's only focus right now is his job as senior senator from Massachusetts and chairman of the Foreign Relations Committee," his spokeswoman Jodi Seth said in a statement.

Donilon, who has been Obama's trusted national security adviser since 2010, is said to want the State Department post, but some say he lacks the political stature of either Rice or Kerry.

"The White House would have a sense of tighter control if it were" either Rice or Donilon, Pavel said in a nod to Obama's efforts to keep a tight rein on foreign policy.

And Pavel did not see Rice's famed outspokenness as mitigating against her hopes for top US diplomat.

Obama, however, may also have a surprise in store as in 2008 when he picked Clinton, his fierce foe in the Democratic primary race, and kept defense secretary Robert Gates in his post as a holdover from former president George W. Bush's administration.

Republican names circulating include former secretary of state Colin Powell, Chinese speaker Jon Huntsman -- who was appointed US envoy to Beijing by Obama -- and former Nebraska senator Chuck Hagel.

"It's the kind of thing a pragmatic President Obama might do," Pavel said.

Preble, however, argued that picking a Republican in this partisan climate may not buy Obama much goodwill.

Showing a willingness "to cooperate with the Democrats and particularly the Democratic president" effectively undermines "your credibility among your party," he said.

source: interaksyon.com