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Fiscal Cliff Deal Vote Likely in Senate













The so-called "fiscal cliff" came tonight -- but now there is a specific deal on the table to try to soften it after the fact, according to congressional sources.


Senate Majority Leader Harry Reid, D-Nev., said the deal -- brokered by Vice President Joe Biden and Senate Minority Leader Mitch McConnell -- would get a vote in the Senate sometime after midnight. The House would not vote before Tuesday afternoon at the earliest, sources said.


"I feel really very, very good about this vote," Biden told reporters leaving the meeting with Senate Democrats, "but having been in the Senate for as long as I have there's two things you shouldn't do: You shouldn't predict how the Senate is going to vote before they vote....[and] you surely shouldn't predict about how the House is going to vote."


The proposal would extend Bush-era tax cuts permanently for people making less than $400,000 per year and households making less than $450,000, the sources said.


The steep "sequester" budget cuts scheduled to go into effect with the New Year would be postponed two months, said sources. They said half the money would come from cuts elsewhere, and the other half from new revenue.


The deal also would affect taxes on investment income and estates, and extend unemployment benefits for a year, the congressional sources added.


"The end is in sight," said a Democratic aide with Senate Majority Leader Harry Reid's office. "If everyone cooperates, it's possible things can move pretty quickly."


After the Biden meeting, Sen. Charles Schumer, D-N.Y., said there was "strong" support for the plan among Senate Democrats.


"There is a feeling that it's not that this proposal is regarded as great or as loved in any way, but it's a lot better than going off the cliff," he said.


Sen. Dianne Feinstein, D-Calif., called the compromise the "best" that could be done.


Even with progress in the Senate tonight, the "cliff" deadline will pass without action by the House, where Republican leaders said they would "consider" the deal starting tomorrow.








'Fiscal Cliff': Lawmakers Scramble for Last-Minute Deal Watch Video









"Decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members -- and the American people -- have been able to review the legislation," said House Speaker John Boehner, Majority Leader Eric Cantor, Majority Whip Kevin McCarthy, and Republican Conference Chair Cathy McMorris Rodgers in a statement.


The failure of a deal to pass Congress by Jan. 1 technically triggers an income tax hike on all Americans and automatic spending cuts, though lawmakers could still prevent a tax hike by making retroactive any legislation that passes in the weeks ahead, experts said.


The deal at hand will not entirely solve the problem of the "fiscal cliff," however. In fact, it could set up a new showdown over the same spending cuts in just two months that would be amplified by a brewing fight over how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.


Earlier, during a midday news conference, Obama said he was optimistic about compromise in the short-term.


"It appears that an agreement to prevent this New Year's tax hike is within sight, but it's not done," he said. "There are still issues left to resolve, but we're hopeful that Congress can get it done."


In addition to extending current tax rates for households making $450,000 or less, the latest plan would raise the estate tax from 35 to 40 percent for estates larger than $5 million; and prevent the alternative minimum tax from hammering millions of middle-class workers, according to sources familiar with the talks.


Capital gains taxes would rise to 20 percent from 15, according to a senior White House official.


The deal would also extend for one year unemployment insurance benefits set to expire Tuesday, and avert a steep cut to Medicare payments for doctors, congressional sources said.


"I can report that we've reached an agreement on the all the tax issues," said Senate Minority Leader Mitch McConnell in an afternoon speech on the Senate floor.


At the time, McConnell said that federal spending cuts remained a sticking point. That hurdle later appeared to be cleared by postponing the debate two more months, though it is unclear whether House Republicans will go along.


"In order to get the sequester moved, you're going to have to have real, concrete spending cuts," said Rep. Mike Rogers, R-Mich. Without that, he said, "I don't know how it passes the House."


Some Republicans also said Obama unduly complicated progress toward an agreement by seeming to take a victory lap on taxes at his campaign-style event at the White House.


"Keep in mind that just last month Republicans in Congress said they would never agree to raise tax rates on the wealthiest Americans," Obama said, raising the ire of several Republicans. "Obviously, the agreement that's currently discussed would raise those rates, and raise them permanently."


Those words drew a sharp retort from Republican Sen. John McCain.


Rather than staging a "cheerleading rally," McCain said, the president should have been negotiating the finishing touches of the deal.


"He comes out and calls people together and has a group standing behind him, laughs and jokes and ridicules Republicans. Why?" said McCain.


Several Democrats also voiced disappointment with the president and the emerging deal.






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Senate negotiators yet to reach ‘fiscal cliff’ deal as clock winds down



With a New Year’s Eve deadline hours away, Democrats abandoned their earlier demand to raise tax rates on household income over $250,000 a year, as President Obama vowed during the recent presidential campaign.


They also relented on the politically sensitive issue of the estate tax, promising to stage a vote in the Senate that would guarantee that taxes on inherited estates remain at their current low levels, a key GOP demand.

Still, McConnell (R-Ky.) was holding out to set the income threshold for tax increases even higher, at $550,000, according to people close to the talks in both parties. And he was protesting a Democratic proposal to raise taxes on investment profits for households with income above $250,000.

The two sides were also sharply at odds over automatic spending cuts set to decimate budgets at the Pentagon and other federal agencies next month. Democrats were seeking to delay the cuts, known as the “sequester,” until 2015, without identifying other savings to compensate. They were also pressing to extend unemployment benefits, farm subsidies and Medicare payments to doctors, again without offsetting cuts as Republicans demand.

Unless the two sides can reach agreement, historic tax hikes are set to hit virtually every American on Jan. 1, potentially driving the nation back into recession. An impasse would also throw the coming tax filing season into chaos, as nearly 30 million unsuspecting taxpayers would be required to pay the costly alternative minimum tax for the first time.

As Biden and McConnell traded phone calls deep into the night, lawmakers waited anxiously for news. Though members of both parties received lengthy briefings from their respective leaders about the status of the talks, senators were just as likely to predict that the nation was on the verge of a self-inflicted economic crisis as they were to predict that salvation was at hand.

“I think we’re going over the cliff,” Sen. Lindsey O. Graham (R-S.C.) wrote on Twitter in the middle of the day.

“The two parties are so close that they can’t afford to walk away,” Sen. Mike Johanns (R-Neb.) countered hours later. “I continue to be optimistic.”

Biden, a veteran dealmaker who served in the Senate for 36 years, entered the talks Sunday at McConnell’s request after the Republican leader said he had grown “frustrated” by the pace of negotiations with Senate Majority Leader Harry M. Reid (D-Nev.).

Personal relations between the two Senate leaders have deteriorated after two years of draining battles over the budget. On Sunday, their antagonism produced a confusing day when talks seemed to be collapsing even as the two sides were moving closer to agreement on several fundamental issues.

Reid blamed McConnell for the impasse, saying Republicans were insisting on a change in the way inflation is measured that would serve to reduce Social Security benefits — a red flag for Democrats. Early in the day, Democratic aides described McConnell’s continued insistence on the change, known as “chained CPI,” as a ”major setback.”

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Asian markets weighed by US fiscal cliff gridlock






HONG KONG: Asian markets fell in New Year's Eve-shortened trade on Monday as hopes that US lawmakers will reach a deal to avert the fiscal cliff faded just a day before the deadline.

However, there was some bright news out of China, where a survey by HSBC showed manufacturing activity hit a 19-month high in December.

Hong Kong closed flat, edging down 9.67 points to 22,656.92, but it closed out the year 22.91 percent higher.

Sydney closed 0.48 percent lower, shedding 22.4 points to 4,648.9, although the index was up 14.60 percent over the past 12 months.

Wellington was 0.35 percent lower, shedding 14.39 points to 4,066.51, but adding 24.51 percent for 2012.

In the afternoon, Shanghai was up 1.12 percent.

Tokyo, Seoul, Taipei, Jakarta, Bangkok and Manila were all closed for public holidays.

Despite the losses on Monday, all the region's stock markets ended the year higher, with Bangkok the standout performer, surging almost 36 percent, while Shanghai was the weakest, adding less than three percent over the 12 months.

Republicans and Democrats on Capitol Hill ended Sunday without reaching a compromise over a deficit-cutting budget that would be less painful than the deep spending cuts and tax hikes due to take effect on Tuesday.

Leaders remained locked in talks that appeared to be making little headway, with each side blaming the other as analysts warned the measures could tip the economy into recession.

Senate Republican Minority Leader Mitch McConnell warned that, despite through-the-night talks, negotiators were still a long way from success, with Democrats not responding to a "good faith offer" from his party.

Senate Democratic Majority Leader Harry Reid agreed talks were at a standstill, adding: "There is still significant distance between the two sides, but negotiations continue."

If talks fail on Monday, President Barack Obama has demanded a vote on his fallback plan that would preserve lower tax rates for families on less than $250,000 a year and extend unemployment insurance for two million people.

But Stan Shamu, a market strategist at IG in Sydney, said he expected some sort of plan to come out.

"No one knows how this will play out, but the most likely scenario is a patch-up deal to avoid a fiscal catastrophe in the New Year," he told Dow Jones Newswires.

On currency markets, the euro rose to $1.3207 from $1.3217 in late US trade on Friday, but the dollar rose to 86.06 yen from 85.98 yen. The Japanese unit continued to be weighed by expectations that the country's central bank will unveil fresh monetary easing measures next month.

The euro edged up to 113.67 yen from 113.62 yen.

News out of Beijing was better, however, with banking giant HSBC saying its final purchasing managers' index (PMI) of the year hit 51.5, up from 50.5 in November and a fourth straight month of improvement.

A reading above 50 indicates expansion in the key sector, while one below signals shrinkage.

The figures reinforce recent indications that the world's second-largest economy is finally emerging from its slumber.

"Such a momentum is likely to be sustained in the coming months when infrastructure construction runs into full speed and property market conditions stabilise," Qu Hongbin, HSBC's chief economist for China, said in the release.

On oil markets, New York's main contract, light sweet crude for delivery in February, shed 28 cents to $90.85 a barrel and Brent North Sea crude for February slipped one cent to $110.61.

Gold was at $1,660.60 at 0445 GMT compared with $1,658.90 late Friday.

- AFP/al



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2012: Impact makers

NIRBHAYA: A city that registers two rapes a day was shocked into outraged protests when this 23-year-old was gangraped and brutalized in a moving bus. The large-scale protests forced the govt to promise a review of rape laws setting up of fast-track courts to deal with rape.

ARVIND KEJRIWAL: Having remained a loyal lieutenant to Anna Hazare through 2011 and the first half of 2012, Kejriwal came into his own in the second part of the year. After taking on many including Robert Vadra, Nitin Gadkari and Reliance Industries with daring 'exposes', he formed the Aam Admi Party.

MARY KOM: In an Olympic in which Indians won their largest tally of six medals, including two silver, there were many heroes but none who captured the public imagination more than M C Mary Kom. The 29-year-old mother of two from Manipur, the only woman boxer to have won a medal at every World Championship, won the Olympic bronze and a billion hearts.

VINOD RAI: Undoubtedly the most high-profile of all the CAGs India has ever had, Rai remained in the headlines for much of the year with CAG reports unveiling many a scam. The most talked-about of them was clearly the scam in allotments of coal blocks to private firms, which became infamous as Coalgate.

NARENDRA MODI: Winning the Gujarat assembly elections for the third successive time and with a near two-thirds, Modi has driven home the fact that he remains unbeatable on home turf. He has also established himself firmly as the front-runner in the race to determine who will lead the BJP in the 2014 Lok Sabha polls.

SAVITA HALAPPANAVAR: The tragic death of Karnataka-born Savita after a miscarriage in an Ireland hospital triggered a global outcry. The fact that the hospital refused to abort the fetus, leading to her death through septicemia, provoked protests against anti-abortion laws and a debate through the Catholic world. Ultimately, Ireland amended its abortion laws.

AAMIR KHAN: Long seen as a choosy film star who invested a lot in his projects, Aamir shone in a new role this year with his TV show Satyamev Jayate. Focusing on social ills like honour killings, caste and gender discrimination and alcoholism, the show became a Sunday must-watch for many families.

MAMATA BANERJEE: Last year, the feisty Bengal leader dealt the Left a blow from which it is still reeling. This year, she trained her guns on the Congress, accusing it of being 'anti-people'. She quit the UPA in September against the decisions to allow FDI in multi-brand retail and hike in fuel prices.

AKHILESH YADAV: Mulayam Singh Yadav's son shepherded the Samajwadi Party to an unprecedented victory, winning 224 seats in the 405-member House. His promise of a new, modern SP, which would not allow the 'goonda raj' of the party's earlier stint in power clearly clicked, but he has largely failed to deliver on that promise.

HONEY SINGH: The 28-year-old Punjabi rapper has been around for several years, but really hit the big league this year. Not only did songs from his album International Villager top lists such as the world iTunes and BBC Asian charts, he became Bollywood's highest-paid pop artiste when he was reportedly paid Rs 70 lakh for a song in Mastaan.

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How to Banish That New Year's Eve Hangover


For those of us who enjoy the occasional cocktail, the holiday season would be incomplete without certain treats of the liquid variety. Some look forward to the creamy charms of rum-laced eggnog; others anticipate cupfuls of high-octane punch or mugs of warm, spiced wine.

No matter what's in your glass, raising one as the year winds down is tradition. What could be more festive? The problem is, one drink leads to two, then the party gets going and a third is generously poured. Soon, the music fades and the morning arrives—and with it, the dreaded hangover. (Explore a human-body interactive.)

Whether it's a pounding headache, a queasy stomach, sweating, or just general misery, the damage has been done. So now it's time to remedy the situation. What's the quickest way to banish the pain? It depends who you ask.

Doctors typically recommend water for hydration and ibuprofen to reduce inflammation. Taking B vitamins is also good, according to anesthesiologist Jason Burke, because they help the body metabolize alcohol and produce energy.

Burke should know a thing or two about veisalgia, the medical term for hangover. At his Las Vegas clinic Hangover Heaven, Burke treats thousands of people suffering from the effects of drinking to excess with hydrating fluids and medications approved by the U.S. Food and Drug Administration.

"No two hangovers are the same," he said, adding that the unfavorable condition costs society billions of dollars-mostly from lost productivity and people taking sick days from work.

Hot Peppers for Hangovers?

So what's the advice from the nonmedical community? Suggestions range from greasy breakfasts to vanilla milkshakes to spending time in a steamy sauna. A friend insists hot peppers are the only way to combat a hangover's wrath. Another swears by the palliative effects of a bloody mary. In fact, many people just have another drink, following the old "hair of the dog that bit you" strategy.

Whether such "cures" actually get rid of a hangover is debatable, but one thing's for sure: the sorry state is universal. The only people immune to hangovers are the ones who avoid alcohol altogether.

So for those who do indulge, even if it's just once in awhile, see our interactive featuring cures from around the world (also above). As New Year's Eve looms with its attendant excuse to imbibe, perhaps it would be wise to stock your refrigerator with one of these antidotes. Pickled herring, anyone?


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Hillary Clinton Hospitalized With Blood Clot


gty hillary clinton jt 121209 wblog Hillary Clinton Hospitalized With Blood Clot

(MICHAL CIZEK/AFP/Getty Images)


By DANA HUGHES and DEAN SCHABNER


Secretary Hillary Clinton was hospitalized today after a doctors doing a follow-up exam discovered a blood clot had formed, stemming from the concussion she sustained several weeks ago.


She is being treated with anti-coagulants and is at NewYork-Presbyterian Hospital so that they can monitor the medication over the next 48 hours, Deputy Assistant Secretary Philippe Reines said.


Her doctors will continue to assess her condition, including other issues associated with her concussion. They will determine if any further action is required, Reines said.


Clinton, 65, originally fell ill from a stomach virus following a whirlwind trip to Europe at the beginning of the month, which caused such severe dehydration that she fainted and fell at home, suffering a concussion. No ambulance was called and she was not hospitalized, according to a state department official.


The stomach virus had caused Clinton to cancel a planned trip to North Africa and the United Arab Emirates, and also her scheduled testimony before Congress at hearings on the attack on the U.S. consulate in Benghazi, Libya.


According to a U.S. official, the secretary had two teams of doctors, including specialists, examine her after the fall.  They also ran tests to rule out more serious ailments beyond the virus and the concussion. During the course of the week after her concussion, Clinton was on an IV drip and being monitored by a nurse, while also recovering from the pain caused by the fall.


Medical experts consulted by ABC News said that it was impossible to know for sure the true nature or severity of Clinton’s condition, given the sparse information provided by the State Department. However, most noted that the information available could indicate that Clinton had a deep venous thrombosis,which is a clot in the large veins in the legs.


“A concussion (traumatic brain injury) in itself increases risk of this clot. Likely the concussion has increased her bed rest,” said Dr. Brian D. Greenwald, Medical Director JFK Jonson Rehabilitation Center for Head Injuries. “Immobility is also a risk for DVT. Long flights are also a risk factor for DVT but the recent concussion is the most likely cause.


“Anticoagulants are the treatment,” he said. “If DVT goes untreated it can lead to pulmonary embolism (PE). PE is a clot traveling from veins in legs to lungs which is life threatening. Many people die each year from this.


“Now that she is being treated with blood thinners her risks of PE are decreased,” he said. “Blood thinners carry risk of bleeding but are common and can be safely used.”


Dr. Allen Sills, associate professor of Neurological Surgery at Vanderbilt University Medical Center, said it was most likely that the clot was not located in Clinton’s brain, since she is being treated with anticoagulants.


“This is certainly not a common occurrence after a concussion, and is most likely related to either inactivity or some other injury suffered in the fall,” he said.


Dr. Neil Martin, the head of Neurovascular Surgery at the University of California, Los Angeles, Medical Center, said blood thinners are often given for blood clots in the legs, and it is “very unusual” for anticoagulants to be given for blood clots in the head.


But he cautioned about speculating too much about Clinton’s condition before more information is available.


“If we don’t know where it is, there is the possibility of several different indications,” he said. “I don’t know if there is any connection between what she’s got now and the concussion. All I can tell you is, at this point, it’s almost impossible to speculate unless we know what’s going on there.”

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Senators trade proposals into night to avoid ‘fiscal cliff’



As the clock ticked toward a Jan. 1 deadline, the halls of the Capitol were dark and silent. The House and the Senate are shuttered until Sunday afternoon, in part to avoid distractions as the talks over averting sharp tax increases for most American taxpayers entered their final hours.


While Senate Majority Leader Harry M. Reid (D-Nev.) monitored developments by telephone, Minority Leader Mitch McConnell (R-Ky.) arrived at the Capitol shortly after noon. Asked whether he and Reid would be able to strike a deal, McConnell smiled and replied: “I hope so.”

As nightfall approached, top Democratic and Republican aides continued shuttling paperwork with the latest proposals back and forth between the two leaders’ offices, about 60 steps apart.

Under negotiation is a deal that would extend George W. Bush-era tax cuts for nearly all taxpayers but increase rates on top earners. It also would extend unemployment benefits set to expire in January for 2 million people and prevent about 30 million Americans from having to pay the alternative minimum tax for the first time.

McConnell left the Capitol shortly before 7 p.m, revealing few details. “We’ve been in discussions all day, and they continue,” he said. He added, “We’ve been trading paper all day and talks continue into the evening.”

Reid and McConnell have set a deadline of about 3 p.m. on Sunday for cinching a deal. That’s when they’re planning to convene caucus meetings of their respective members in separate rooms just off the Senate floor. At that point, the leaders will brief their rank and file on whether there has been significant progress and will determine whether there is enough support to press ahead with a proposal.

“They both know the clock ends Sunday,” said Sen. Mark Begich (D-Alaska).

If all goes according to plan, the leaders would roll out the legislation Sunday night and hold a vote by at least midday Monday, giving the House the rest of New Year’s Eve to consider the measure.

In the House, Speaker John A. Boehner (R-Ohio) huddled Saturday with his senior staff for two hours but remained on the periphery of the negotiations. Passage in the unpredictable chamber is anything but certain. Boehner told President Obama and congressional leaders Friday that he could commit only to considering a Senate-passed bill and suggested that the House may amend that bill and send it back to the Senate.

House consideration of the measure could become another white-knuckle moment. Boehner would like the eventual deal to be passed by a bipartisan coalition that is roughly equally divided between Republicans and Democrats, GOP aides said. Republicans have not supported tax increases since 1990, and conservative activists were already criticizing any deal to raise taxes on the wealthy.

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K Shanmugam stresses protection of women's rights






SINGAPORE: Minister for Law and Foreign Affairs K Shanmugam has condemned the horrific gang rape of a young Indian woman in New Delhi, who died in a hospital in Singapore on Saturday.

He said on his Facebook page that it is a heartbreaking case and added that this is a type of case where the abusers should face the death penalty.

He said he would often cite similar cases in discussions with people who want the death penalty abolished.

Mr Shanmugam also highlighted a letter written by an Indian journalist Deepika Shetty. She had pointed out that in Singapore, young women can go about confidently at any time of the day and night, in spaghetti tops and shorts.

Mr Shanmugam agreed with her that this is a right they should have and added that it's a right which society should protect.

- CNA/ck



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July blasts in Valley a terror strike: Cops

SRINAGAR: The Jammu & Kashmir police have claimed that two Lashkar-e-Taiba terrorists killed in an encounter on Friday in Pulwama were responsible for a blast on a bus that had killed four tourists in Anantnag in July. The claim contradicts their statement that ruled out a terror angle to the blast then and had said that an LPG cylinder inside the bus had exploded and killed the four women from Mumbai.

ADG S M Sahai said the two terrorists had thrown a grenade at the bus."... it seemed to be a gas cylinder blast at that time. However, after forensic examinations, it was termed as a grenade attack," he said.

The surviving tourists had then said "something" was tossed into the bus, which was followed by the explosion. Doctors at Srinagar's Sher-e-Kashmir Institute of Medical Sciences had said that none of the victims had burn injuries, which a cylinder explosion can cause. "It could be splinter injuries of a grenade," a doctor had said.

Separately, separatist leader Mirwaiz Umar Farooq blamed security forces for firing on people after the Pulwama encounter. The separatists have called a bandh on Monday to protest the firing.

Read More..