Isnin, 12 November 2012

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Lawmakers press for Petraeus testimony on Libya, despite resignation over affair - Fox News

Posted: 12 Nov 2012 08:11 AM PST

Lawmakers and other officials, after getting over the shock of Gen. David Petraeus' sudden resignation Friday, are increasingly coming to at least one consensus -- the former CIA director's personal indiscretions are no reason to prevent him from testifying to Congress about the Libya attack. 

Petraeus had originally been set to testify in a pair of closed hearings Thursday before the House and Senate intelligence committees. In the wake of Petraeus' resignation over an extramarital affair, he is no longer expected to appear at that hearing -- Acting Director Mike Morrell will testify instead. 

Officials now indicate they may seek Petraeus' testimony regardless, perhaps not this week but in the future. 

Former CIA Director Michael Hayden, who served under the George W. Bush administration, told Fox News it's "important" for Petraeus to answer questions on this matter. 

"Petraeus will have a personal insight into this because he did visit Libya after the attack. ... I think he owes it to the committees to share those insights with them," Hayden said Monday. 

Hayden said Petraeus should have some "personal space" this week, adding it's not "critical" he testify Thursday and voicing some confidence in Morrell's ability to answer lawmakers' questions in the near-term. 

But some lawmakers made clear they will aggressively pursue Petraeus' testimony going forward. 

"He's going to have to (testify)," Rep. Trey Gowdy, R-S.C., told Fox News shortly after the resignation was announced. "There's no way we can get to the bottom of Benghazi without David Petraeus. So while he may not be around next week because he's got personal matters, the week after that and the week after that and the week after that, this excuse will run stale." 

Rep. Jason Chaffetz, R-Utah, also said there's "no reason" why Petraeus shouldn't still testify. 

Petraeus is considered important as part of Congress' examination into Libya for several reasons. One of the buildings that was attacked that night, it was later revealed, was a CIA outpost staffed by CIA personnel. Lawmakers may have questions about what the CIA was doing in Benghazi -- but they also have questions about Petraeus' initial Sept. 14 briefing in which, according to sources, he characterized the attack as more consistent with a flash mob, where the militants showed up spontaneously with RPGs. Lawmakers at the briefing said that Petraeus seemed wedded to the narrative that the attack was linked to a demonstration and was spontaneous as opposed to pre-meditated. 

Other administration officials, including Vice President Biden, have indicated that initial claims the attack was spontaneous were based on intelligence at the time. 

Sen. Dianne Feinstein, chairwoman of the Senate Select Committee on Intelligence, said on "Fox News Sunday" she sees "absolutely" no connection between the director's resignations and the unanswered questions about the Sept. 11 attacks in Benghazi, Libya, in which Ambassador Christopher Stevens and three other Americans were killed. 

But she said "we may well" ask to hear from Petraeus himself sometime in the future. 

"I think we should have this first hearing ... and then, the committee will make the decision," she said. 

The California Democrat told "Fox News Sunday" she found out about Petraeus' resignation Friday as the rest of world learned the news and described being shocked and "heartbroken." 

"We will investigate why the committee didn't know," Feinstein said. "We should have been told." 

A similar, closed-door House intelligence committee hearing also is scheduled for Thursday. Plus the House Foreign Affairs Committee has set up a hearing.

How Race Slipped Away From Romney - Wall Street Journal

Posted: 08 Nov 2012 03:24 PM PST

BOSTON—Mitt Romney is one of the wealthiest men ever to run for president. And yet the lack of money earlier this year stalled his campaign, and he never really recovered.

The GOP nominee emerged late last spring from a long and bruising Republican primary season more damaged than commonly realized. His image with voters had eroded as he endured heavy attacks from Republicans over his business record. He also felt compelled to take a hard line on immigration—one that was the subject of debate among his advisers—that hurt his standing with Hispanic voters.

More than that, Mr. Romney had spent ...

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Ahad, 11 November 2012

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Kenanga cuts Unisem target price

Posted: 11 Nov 2012 06:34 PM PST

Kenanga Research cut its target price for electronics company Unisem (M) Bhd to RM0.99 from RM1.32, expecting results for the current quarter to be flat due to weakening consumer sentiment.

Consumers are taking a wait-and-see approach amid headwinds in the global economy, Kenanga said in a report on Monday.

"In our view, the company's net profit for the year may only break even at best," said Kenanga, which lowered its growth assumptions for Unisem. It maintained a 'market perform' call on the stock. -- Reuters

Affin raises Gas Malaysia target price

Posted: 11 Nov 2012 06:34 PM PST

Affin Investment Bank raised its target price on Gas Malaysia Bhd shares to RM3 from RM2.80 as the company has secured customers to take up all the additional gas supply for 2013 and 2014 financial years.

About 25 percent extra gas supply kicks in after Petronas Gas starts up its regasification plant in central Malaysia by end-January 2013, Affin said, helping Gas Malaysia lift revenue growth by 8.8 percent for both financial years.

Affin maintained its "add" call on the stock. Gas Malaysia shares were unchanged in morning trade, compared with the broader market that inched lower at 0158 GMT.

Gas Malaysia is the only firm licensed to supply and sell natural gas in mainland Malaysia where demand has been steadily growing. -- Reuters

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Senate panel wants answers from FBI on Petraeus probe - USA TODAY

Posted: 11 Nov 2012 09:11 AM PST

BBC Chief George Entwistle Quits Over Scandal - Wall Street Journal

Posted: 11 Nov 2012 09:01 AM PST

Article Excerpt

LONDON—The British Broadcasting Corp.'s top executive resigned late Saturday on the heels of the company's mishandling of two sex-abuse scandals.

George Entwistle said he was resigning because of "unacceptable journalistic standards" that the BBC program "Newsnight" displayed on Nov. 2, when it aired a flawed report that appeared to accuse a former politician of committing sex abuse of a child in Wales.

On Sunday morning, the chairman of the BBC's oversight body said the broadcaster would need a "thorough, structural, radical overhaul."

Mr. Entwistle's resignation followed a convulsive sequence of events at the broadcaster. For the past few weeks, it ...

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Sabtu, 10 November 2012

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Petraeus, Seen as Invincible, Self-Destructs - New York Times

Posted: 10 Nov 2012 09:27 AM PST

WASHINGTON — David H. Petraeus's "Rules for Living" appeared on The Daily Beast Web site on Monday, posted by his biographer, a fellow West Point graduate 20 years his junior named Paula Broadwell. The fifth rule, beneath his familiar portrait in full military regalia, began: "We all make mistakes. The key is to recognize them and admit them."

Mr. Petraeus took his own advice on Friday and resigned as director of the Central Intelligence Agency after admitting to an extramarital affair; officials identified the woman in question as Ms. Broadwell. The full back story is not yet clear, though his affair came to light after F.B.I. agents conducting a criminal investigation into possible security breaches examined his computer e-mails. The decision to step down was his.

Few imagined that such a dazzling career would have so tawdry and so sudden a collapse. Mr. Petraeus, a gaunt fitness fanatic, is known as a brainy ascetic. He and his wife, Holly, whose father was the superintendent at West Point when Mr. Petraeus graduated in 1974, and their two grown children had long been viewed by military families as an inspiration, a model for making a marriage work despite the separation and hardship of long deployments overseas.

After he began the C.I.A. job in September 2011, the couple settled into a house in the Virginia suburbs and began the closest thing to a normal life together that they had had in years, even if the basement he had designated for a home gym was commandeered for secure C.I.A. communications gear.

After years in war zones, Mr. Petraeus told friends, he was amazed to eat dinner most nights with his wife and to discover weekends again. He told friends that on the day his daughter was married last month, he went for a 34-mile bike ride.

"It's a personal tragedy, of course, but it's also a tragedy for the country," said Bruce Riedel, a C.I.A. veteran and a presidential adviser.

Like many others in jaundiced Washington, Mr. Riedel wondered whether the affair really required Mr. Petraeus, who turned 60 on Wednesday, to step down and leave the agency leaderless. But under the military law that governed his 37-year Army career, adultery is a crime when it may "bring discredit upon the armed forces." And a secret affair can make an intelligence officer vulnerable to blackmail.

The C.I.A. director, Mr. Riedel said, probably felt he had no choice.

"I think Dave Petraeus grew up with a code that's very demanding about duty and honor," he said. "He violated the code."

Ambition and Ability

He was the pre-eminent military officer of his generation, a soldier-scholar blazing with ambition and intellect, completing his meteoric rise as a commander in the Iraq and Afghanistan wars. Worshipful Congressional committees lauded him as a miracle worker for helping turn the war in Iraq around, applying a counterinsurgency strategy he had helped devise and that was widely viewed for a time as the future of warfare. Then, dispatched to Afghanistan to replace Gen. Stanley McChrystal, who had been fired by President Obama, he quietly shifted away from the doctrine he had championed and adopted an aggressive counterterrorism strategy.

He was fiercely competitive and carefully protective of his reputation. Asked to throw out the first pitch at the 2008 World Series, he brought his security detail to Washington's stadium to practice getting the ball over the plate.

Mr. Petraeus had seemed all but indestructible. He had been shot in a training accident, broken his pelvis in a skydiving mishap and survived prostate cancer. Criticized by the antiwar group MoveOn.org in 2007 as "General Betray Us," he shrugged off the attack and rallied his indignant supporters. Until Friday, fans speculated that post-C.I.A. he might become president of Princeton University, where he had earned his Ph.D. in international relations in 1987, or conceivably even president of the United States.

But as the news sent astonished Petraeus watchers to the Web on Friday night, many people discovered a January episode of The Daily Show, where Ms. Broadwell, who served on active duty in the Army for a decade and is a reserve lieutenant colonel, appeared to promote her book, "All In: The Education of General David Petraeus."

She recounted how she had first e-mailed Mr. Petraeus about her doctoral dissertation and then showed up in Afghanistan, where he helped her in what she called a mentoring relationship, as he had many young officers. She said she and Mr. Petraeus shared an interest in fitness and that he took her running.

"That was the foundation of our relationship," she said. From time to time, they would go running in Kabul. "For him, I think it was a good distraction from the war."

From her many profiles and interviews, Ms. Broadwell, who was born while Mr. Petraeus was a West Point cadet, emerges as a younger, female version of him: travel to 60 countries; service in intelligence, special operations and with an F.B.I. counterterrorism task force; Harvard degree; wife of a physician; mother of two boys.

In her Charlotte, N.C., neighborhood on Friday night, television trucks converged on her house as curious neighbors stopped by to ask what was happening. One thought it was a crew filming "Homeland," which is shot in that city. A woman on a bicycle rode by, calling out to the crowd of reporters: "Go home. Go home."

Written in the family's driveway in gold-colored chalk was a child's inscription: "Dad ♥Mom."

Ms. Broadwell's book, which reportedly earned her an advance in the mid-six figures, paints a glowing portrait of her mentor. She told associates recently that she was at work on another Petraeus book. She did not respond to requests for comment.)

But inside the military, where Mr. Petraeus compiled such a stunning record, views of him were more complex.

His circle of advisers included iconoclasts from the Army's ranks as well as freethinking civilian analysts, unusual for a military service in which senior officers often surrounded themselves with yes men. Mr. Petraeus was well known for sending e-mails to lower-ranking officers to get a sense of what was happening on the ground instead of relying on reports that filtered up the chain of command.

"P4," as he was called for the four stars he earned, was viewed with respect — but often grudging respect. His celebrity brought positive attention to an all-volunteer force that at times struggled to meet recruitment numbers over a decade of grinding ground conflict. But that same publicity, and the fiercely ambitious man who pursued it, drew private criticism from some officers, who nicknamed him King David.

Biblical Echoes

As word of his resignation resounded across the Pentagon on Friday, more than one officer cited the biblical adultery of King David and Bathsheba.

Yet even officers who criticized the high-profile general acknowledged that he renewed a sense of intellectualism across a muddy-boots Army. The circle of advisers who surrounded Mr. Petraeus before he left for the C.I.A. were called "the smart colonels."

And while the military's new field manual on counterinsurgency — published in 2006 and tested on the battlefields of Iraq and Afghanistan — was written by a number of staff officers and officially had a senior Marine Corps general as a co-author, the document was universally known as Mr. Petraeus's strategy.

Mr. Petraeus grew close to President George W. Bush, with whom he spoke frequently, and clashed with then-Senator Obama about the troop surge in Iraq. When Mr. Obama traveled to Iraq in the summer of 2008 as his party's presumptive nominee, the two men had a spirited argument in private over the future president's plan to withdraw combat forces from Iraq.

Once Mr. Obama took office, he did not speak regularly with Mr. Petraeus, preferring to restore what he considered the normal chain of command. For his part, Mr. Petraeus disdained some of the president's aides, once telling an associate that David Axelrod, Mr. Obama's political guru, was "a complete spin doctor," Bob Woodward later reported in a book. Mr. Petraeus was effectively banned by the administration from Sunday talk shows but maintained private communications with journalists and lawmakers.

A key moment in the turnaround of the tense relationship between the president and the general came when Mr. Petraeus met with Rahm Emanuel, then Mr. Obama's chief of staff and his lookout for possible rivals. In roundabout ways, not quite explicit but understood by both men, Mr. Petraeus assured Mr. Emanuel that he had no intention of running for president, according to people informed about the conversation.

Mr. Petraeus aspired to the top job in the military, chairman of the joint chiefs of staff, but the White House feared he would resist Mr. Obama's schedule for winding down the war in Afghanistan. When Robert M. Gates, then the defense secretary, told him he would not get that post, Mr. Petraeus floated the idea of becoming C.I.A. director.

Mr. Obama liked the idea but, recognizing the C.I.A.'s institutional suspicion of the military, insisted that Mr. Petraeus retire from the Army. He reluctantly agreed to the condition, sailed through Senate confirmation and, as he had promised, showed up at the agency in Langley, Va., without a single aide from his large military retinue. His office at the C.I.A., however, was decorated with military memorabilia from his multiple tours in Iraq and Afghanistan, including photographs, coins and Iraqi weapons.

He moved smoothly to take over C.I.A. counterterrorism operations, helping smooth conflict over drone strikes between agency Counterterrorism Center officials and State Department diplomats. He pushed the C.I.A. to stay on the frontiers of technology, taking an interest in the agency's high-tech incubator, In-Q-Tel.

He deliberately lowered his profile, rarely saying anything publicly about his new work. But he showed up at embassy parties, where people often had a double take seeing him in a suit instead of a uniform. He attended private Georgetown dinners, where he would sometimes talk about the cultural differences between the C.I.A. and the military he had grown up in.

"His was a short tenure," said Mr. Riedel, the C.I.A. veteran, now at the Brookings Institution. "But he was beginning the transterterrorism only to counterterrorism plus China, plus the euro zone, plus what the world will look like in 15 years."

Jack Keane, the former vice chief of staff of the Army and a mentor to Mr. Petraeus, called the resignation "an absolute tragedy for somebody who has accomplished so much for this country and made such an enormous sacrifice." He said he believed Mr. Petraeus would eventually be rehabilitated: "We have not heard the last of Dave Petraeus, possibly even in a public service role."

The Military Wife

But amid the media storm, many friends and admirers of the family thought of Holly Petraeus, his wife of 38 years, herself descended from a distinguished line of military officers. In a March 2012 profile, USA Today referred to her as "Army royalty," noting that her great-great grandfather fought in the Civil War and the Indian Wars, and that her great-grandfather and grandfather had also served — a point she herself made while testifying before the House Committee on Veterans' Affairs in February 2011.

"I come from a military family, one that has a tradition of service going back to the Revolutionary War," she said then. "My father served in the Army for over 36 years, fighting in both World War II and Vietnam. Two of my brothers also served in Vietnam and, of course, my husband is currently serving. And I'm a military mom as well."

Mrs. Petraeus has carved out a prominent role for herself as an advocate for the financial education of military families. In 2010, after six years running the Military Line, a program of the Better Business Bureau, she joined the Obama administration's Consumer Financial Protection Bureau. There, she runs a branch dedicated to monitoring military families' consumer complaints.

"She is a role model for many of us because she found a way to develop a career for herself outside of her husband's very prestigious career," said Bianca Strzalkowski, who is married to a Marine and visited a military base with Mrs. Petraeus last year. "That is something we all aspire to, not just to be the Marine's wife or the soldier's wife, but to attain our own goals."

But the long separations from her husband seemed to weigh on Mrs. Petraeus. During a 2011 visit to Lackland Air Force Base in San Antonio, she spoke of her dedication to her job. "I really can't think of anything better to be doing while my husband is deployed," she said with a pause, adding, "forever."

In an interview that year, she told Katie Couric of CBS News that during her husband's deployments to Iraq and Afghanistan, they communicated mostly by e-mail. When Ms. Couric asked if she felt as if her husband had done enough to serve his country, she responded, "Every deployment has an ending, so I know he's not going to be there forever."

As news of Mr. Petraeus's affair spread , people who know Mrs. Petraeus reacted with shock and sadness. Amy Bushatz, who writes on military spouse issues (including for the At War blog of The New York Times) said that while the Petraeuses were stationed at Fort Campbell, Ky., Mrs. Petraeus became a beloved figure there.

"When you are a general's spouse, it is easy to be kind of untouchable," Ms. Bushatz said. "You live in the big house, nobody ever sees you, you appear at events and give speeches. The feeling here is that she is not untouchable. She spent a lot of time being one of the people."

Jacey Eckhart, the spouse editor for the Web site military.com, said the fact that the Petraeuses had been married for so long, and survived so many separations, was a source of inspiration to younger military couples.

"The sense was they had a strong marriage, that this was a functioning relationship, that they had good kids. It's one of those relationships that you look up to, if they can do it, we can do it; this is what success looks like. So this is shocking. This is what it looks like when a hero falls."

Thom Shanker, Michael R. Gordon and David E. Sanger contributed reporting from Washington, and Viv Bernstein from Charlotte, N.C.

Obama holds onto "revenue" caveat in averting "fiscal cliff" - CBS News

Posted: 10 Nov 2012 09:39 AM PST

Repurposing their respective arguments from Friday's round of press conferences, President Obama and House Speaker John Boehner, R-Ohio, in this week's addresses made their cases for and against extending tax cuts for the wealthiest two percent of Americans, with a view to avoid the so-called "fiscal cliff" at year's end.

For his part, the president pointed at his reelection victory Tuesday as a message "loud and clear" that Americans "won't tolerate dysfunction, or politicians who see 'compromise' as a dirty word - not when so many of your families are struggling."

On Friday, Mr. Obama said that while he's "open to compromise," he won't allow a deal to go through that extends the Bush-era tax cuts - set to expire at the end of the year - for the top two percent of high-income families. Both parties are scrambling to arrange a bargain before a series of tax increases and spending cuts go into effect Jan. 1, potentially hurling the United States into another recession. 

"At the end of this year, we face a series of deadlines that require us to make major decisions about how to pay down our deficit - decisions that will have a huge impact on the economy and the middle class, now and in the future," the president said. "Last year, I worked with Democrats and Republicans to cut a trillion dollars' worth of spending, and I intend to work with both parties to do more.

"But as I said over and over again on the campaign trail... if we're serious about reducing the deficit, we have to combine spending cuts with revenue - and that means asking the wealthiest Americans to pay a little more in taxes," he continued. "That's how we did it when Bill Clinton was president. And that's the only way we can afford to invest in education and job training and manufacturing - all the ingredients of a strong middle class and a strong economy."

The same budget battle in 2011 that eventually led to $1 trillion in cuts also brought the government within minutes of shutting down. On Tuesday, voters elected the same legislative makeup - a split Congress and Democratic White House - that has struggled over the president's term to break free of partisan gridlock and move budget legislation.

While insisting he's "open to compromise and new ideas," and said he's invited leaders of both parties to the White House to discuss solutions next week, the president issued a caveat: "I refuse to accept any approach that isn't balanced," he said. "I will not ask students or seniors or middle-class families to pay down the entire deficit while people making over $250,000 aren't asked to pay a dime more in taxes.

"This was a central question in the election," he continued, "and on Tuesday, we found out that the majority of Americans agree with my approach - that includes Democrats, Independents, and Republicans."

But delivering the Republicans' weekly response, Boehner, too, recycled his gist from Friday's press conferences, arguing that allowing the top two rates to rise would be letting "our nation's economy go off part of the fiscal cliff in January."

Democrats "believe that doing that will generate more revenue for the federal government - but here's the problem with that," the House Speaker said. "Raising those rates on January 1 would, according to the independent firm Ernst & Young, destroy 700,000 American jobs. That's because many of those hit by this tax increase are small business owners - the very people who are the key to job creation in America. I used to be one of them. 

"This week, I offered congratulations to President Obama, along with an alternative to sending our economy over any part of the fiscal cliff," he continued. The pillars of his own framework, Boehner explained, include tax reform "that closes special interest loopholes and lowers tax rates," entitlement reform, and a rejection of "arbitrary" national defense cuts.

"A stronger economy means more revenue - which is exactly what the president is seeking," he said, adding that a brief conversation with Mr. Obama this week left him "hopeful that we can continue those talks and forge an agreement that can pass both chambers of Congress."

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US stocks eke out small gains

Posted: 09 Nov 2012 04:58 PM PST

NEW YORK: US stocks closed slightly higher Friday after upbeat consumer confidence data shaved an edge off fears about the nation's looming "fiscal cliff."

After opening mostly lower, the stock indices crossed into positive territory after a November survey showed consumer confidence rose more than expected and hit the highest level since July 2007.

"That's good news for consumer spending and economic growth," said Jennifer Lee at BMO Capital Markets.

But market sentiment, battered after two days of heavy losses, was fragile and the Dow Jones Industrial Average closed up a mere 4.07 points (0.03 per cent) at 12,815.39.

The S&P 500-stock index gained 2.34 (0.17 per cent) at 1,379.85, while the tech-rich Nasdaq Composite rose 9.29 (0.32 per cent) to 2,904.87.

"The uncertainty surrounding the 'fiscal cliff' is giving most investors pause right now," said Jim Cunningham at Schaeffer's Investment Research.

"We had a see-saw battle throughout the day, and in the end, neither bulls nor bears really took control."

Stocks barely rebounded from a two-day losing streak that had left the Dow industrials 3.3 per cent lower.

Boeing led the Dow higher, soaring 3.2 per cent, and Caterpillar gained 1.5 per cent.

Dow member Disney was the blue-chip laggard. The media and entertainment giant plunged nearly six per cent after reporting fiscal fourth-quarter sales that missed estimates.

Heavyweight Apple, the most valuable US company, helped lift the Nasdaq with a 1.7 per cent gain.

Travel website Kayak surged 27.8 per cent after agreeing to be bought by rival Priceline (-0.3 per cent) in a stock-and-cash deal worth $1.8 billion.

Groupon shares plunged to their lowest level since the online deals giant went public a year ago, as analysts offered a harsh response to a disappointing earnings report.

Groupon tumbled 29.3 per cent to close at US$2.77 -- down some 85 per cent from the US$20 public offering price one year ago. -- AFP

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Republican Soul Searching Probably Mostly Pointless - Fox News

Posted: 09 Nov 2012 07:22 AM PST

"[Embracing fiscal restraint] would help in a host of ways in terms of just ending the notion of Democrats as free-wheeling spenders, 'government solves all your problems.' Because that leads right into the slippery slope of Democrats being lax on moral issues, faith issues. Fiscal issues are a huge opportunity for Democrats."

-- Sen. Mark Warner, D-Va., talking to the New York Times for a Nov. 7, 2004 piece: "Baffled in Loss, Democrats Seek Road Forward."

Heartbroken Republicans would do well to consider how much worse it was for Democrats eight years ago.

In 2004, Democrats lost not only in a bid to unseat an incumbent president much hated by the party's liberal base, but also saw the Republicans solidify what had been tenuous majorities in the House and Senate.

While President Obama's re-election margin was more decisive that President George W. Bush's was in 2004, Democrats failed to roll back the large Republican majority in the House and added only two seats to their Senate majority.

Some over-eager Democrats and deeply depressed Republicans are seeing the collapse of the GOP: a demographic cliff and an eventual unraveling of the conservative party. The conventional wisdom is that Republicans are doomed without a move to the middle.

But in 2004, Democrats were looking at what seemed to be a generational oblivion.

The combination of the Republican advantage on national security and social issues combined with Democrats isolation as the party of the urban poor and costal elites seemed to spell doom for the Blue Team.

The answer offered by party mandarins and the establishment press was that the time had come for Democrats to return to the moderation and centrism of the Clinton era, to reject the anti-war liberalism that had inflamed the party's base and go back to fiscal and social moderation before the party lost all credibility with voters.

Wise men and women assumed that the party was headed back to Clintonism, either in the person of Hillary Clinton, junior senator from New York, or with another southern or border state Democratic moderate like Sen. Mark Warner of Virginia.

The last thing that the smart set would have suggested was that the newly elected senator from Illinois – he of the anti-war left, African parentage, utterly socially liberal and with the middle name Hussein – would be the best bet for 2008.

And yet, Obama won. Twice. And for two years presided over the largest Democratic majority in Congress since the Watergate wipeout for Republicans.

For all the talk of oblivion for Democrats, it was just two years later that thanks to growing frustration with the Iraq war that Democrats would retake the House in a 31-seat swing and erase the Republican gains in the Senate.

Democratic success in 2006 was part of a strategy of finding moderate Democrats who could use opposition to the war and deficit spending to pick off vulnerable Republicans by tying them to Bush policies. The wave John Kerry had hoped to ride into the White House crested two-years too late for the Massachusetts Democrat, who was also too elite and too liberal to connect to heartland voters.

Liberal Democrats were growing very concerned that the party was lurching rightward and losing sight of its principles. They went to work to make sure that the Clinton wing of the party did not reassert itself and, like 2004 contender Howard Dean, set about mainstreaming and moderating the message, but not changing the ideals, of the left.

The last thing that the smart set would have suggested was that the newly elected senator from Illinois – he of the anti-war left, African parentage, utterly socially liberal and with the middle name Hussein – would be the best bet for 2008.

-

In Obama, Democrats found someone who shared all of the beliefs of the liberal base but who could talk about them in such a way as not to terrify moderate voters. The left knew Obama was their man, freeing him to talk like a moderate. And with a thin voting record in the Senate, he was tough for the Clintons and later Republicans to find fresh evidence of positions outside the mainstream.

With the backing of the left, a Democratic desire for racial justice and a campaign strategy that combined inspirational rhetoric with bare-knuckled tactics, Obama vanquished Clinton and then, thanks in large part to voter fatigue with Republicans and the Panic of 2008, swept past the GOP into the White House.

It's a story that few would have even imagined possible in mid-November 2004. A very liberal senator with little experience, born in Hawaii to a Kenyan father? No chance.

Republicans can't know yet what the opportunities and challenges of the next years will bring. Neither can they tell who will be available to carry the party's banner. Any pundit or Republican operative who can tell you exactly what the GOP ought to be doing now is likely just flattering themselves. Moderates believe the party ought to be more moderate. Conservatives believe the party ought to be more conservative.

But as Obama has proven, politics is about exploiting opportunities foreseeable and unforeseen.

There's no doubt that Republicans need to show moderation and a conciliatory countenance in the wake of Obama's re-election and the split decision by voters. But the direction the party will take in the 2014 midterms and beyond will be about how voters, markets and international foes respond to another term of Obamism and the political gifts of individual Republicans – those well known and still mostly unknown.

And Now, A Word From Charles

"I think one thing he might do if it's not Simpson-Bowles would be to offer the Treasury to Romney.  I'm sure he would probably turn it down but it would be the ultimate gesture.  I don't think it will happen.  I agree John Kerry will probably end up at secretary of State. But I must say that my sources in the Obama White House have been rather quiet since January 2009."

-- Charles Krauthammer on "Special Report with Bret Baier."


Chris Stirewalt is digital politics editor for Fox News, and his POWER PLAY column appears Monday-Friday on FoxNews.com. Catch Chris Live online daily at 11:30amET  at  http:live.foxnews.com.

Iran, Saying Aircraft Trespassed, Confirms Drone Shooting Episode - New York Times

Posted: 09 Nov 2012 08:31 AM PST

TEHRAN — Iran's defense minister on Friday confirmed that Iranian warplanes had fired shots at an American drone last week but said they had taken the action after the unmanned aircraft had entered Iranian airspace.

The assertions by the defense minister, Brig. Gen. Ahmad Vahidi, were the first acknowledgment from Iran that the episode had happened. He spoke less than 24 hours after the Pentagon first disclosed the shooting, involving two Iranian jet fighters and the American aircraft, a Predator surveillance drone based in Kuwait, during what American officials described as a routine surveillance mission on Nov. 1 in international airspace over the Persian Gulf.

It was the first time that Iranian aircraft have been known to fire at an American drone, one of the many ways that the United States has sought to monitor developments in Iran over more than three decades of estrangement between the two countries. The United States said it had protested the shooting via the United States interests section at the Swiss Embassy in Tehran, and had warned the Iranians that the drone flights would continue.

The American officials said the Predator had been flying 16 nautical miles off the Iranian coast. General Vahidi did not specify where the episode took place, but his assertion that it was in Iranian airspace presented a possible new complication to quiet diplomatic efforts by both countries to engage in direct talks following President Obama's re-election.

General Vahidi's version of events also differed with the Pentagon version in another way: He said the two Iranian planes, which the Pentagon had identified as Russian-made Su-25 jets known as Frogfoots, belonged to the Iranian Air Force. The Americans had said the two planes were under the command of the Islamic Revolutionary Guard Corps, whose activities are routinely more aggressive than the conventional Air Force.

General Vahidi, whose account was reported by the Iranian Labor News Agency and other media outlets, said that last week an unidentified plane had entered Iranian airspace over its waters in the Persian Gulf. He said the intruder had been "forced to escape," after action by Iran's air force.

It is unclear why Iranian officials had kept the episode a secret. It also is unclear, from the Iranian account, whether the warplanes had sought to down the drone and missed, or had fired warning shots to chase it away.

A lawmaker, Mohammad Saleh Jokar, a member of the National Security and Foreign Policy Committee of Iran's parliament, also said the American aircraft had trespassed.

"Early last week, a U.S. drone which had violated Iran's airspace received a decisive response by the armed forces that were stationed in the region," he said in a Friday interview with the Young Journalist Club, an Iranian semiofficial news agency.

Mr. Jokar said the drone had been on a spying mission. "The U.S. drone entered our country's airspace with an aim to gather information because there is no other justification," he said.

The Predator's sensor technology is so sophisticated that it could have monitored activities in Iran from the distance cited by the Pentagon officials in their account.

The Iranian firing on the aircraft had been completely legal, Mr. Jokar said. "Any violation against Iran's airspace, territorial waters and land will receive a strong response by the Islamic Republic of Iran," he said.

Earlier on Friday, Iranian state television ran "breaking news" banners during regular programming saying that the country will confront any foreign aircraft violating its airspace. But there was no specific reference to the Predator drone.

"Iran pledges 'firm response to any air, ground and sea aggression' " and "Iran says will confront any foreign aircraft violating its airspace," one news item on a ticker read. A presenter for state television's English language channel Press TV said that Iran was making this statement "in the face of threats of military action, from Israel mainly."

Two commanders also gave interviews on Friday stressing Iran's right to defend itself. "Defenders of the Islamic Republic of Iran will give a decisive response to any air, land and naval attacks," the deputy commander of Iran's armed forces, Massoud Jazayeri, told the Fars News Agency, which is headed by a former officer of the Revolutionary Guards.

"If any foreign flying objects enter our country's airspace, the armed forces will confront them," he said.

Another officer, the commander of the Khatam al-Anbiya Air Defense Base, told the state Islamic Republic News Agency his forces are capable of countering "all threats."

Rick Gladstone contributed reporting from New York.

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Khamis, 8 November 2012

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Lynas to raise A$208m for Malaysia plant

Posted: 08 Nov 2012 05:57 PM PST

MELBOURNE: Australia's Lynas Corp Ltd plans to raise up to A$200 million (US$208 million) to help fund the start-up of its controversial Malaysian rare earths plant, as it set a timeframe of 3-4 months for the factory to start earning.

The US$800 million plant - the world's biggest outside China - has been ready to fire up since early May, but Lynas has been embroiled in lengthy environmental and safety disputes that had raised questions about whether the firm's cash would last until the plant kicked off.

A court on Thursday lifted a suspension on Lynas's licence to operate the processing plant, sending Lynas shares up 12 percent. The shares are suspended Friday morning.

The plant near the eastern city of Kuantan is considered important to breaking China's grip on the processing of rare earths, which are used in products ranging from smartphones to hybrid cars. But protests over possible radioactive residue have drawn thousands of people.

Lynas said the raising will comprise a fully underwritten institutional placement to raise up to A$150 million, and a share purchase plan to raise about A$50 million.

"Funds raised will be used for working capital and general corporate purposes during commissioning and ramp-up at the Lynas Advanced Materials Plant," Lynas said in a statement to the Australian Stock Exchange.

Lynas said in a presentation it expected it would take 3-4 months to ramp up production from the plant, including shipping material from its Mt Weld mine in Western Australia, processing it and receiving its first cash from sales. - Reuters

Affin cuts target price on Unisem

Posted: 08 Nov 2012 06:24 PM PST

Affin Investment Bank cut its target price on Unisem Berhad to RM1.36 from RM1.38 after the semiconductor firm's third-quarter results came in slightly below the bank's expectations.

Affin said a slower-than-expected recovery in global demand for Unisem products could pose a risk to its 'add' call on the stock.

Unisem returned to the black after registering losses in the three previous quarters. The company reported a 58 percent rise in net profit for the third quarter compared with a year earlier, helped by lower operating expenses, higher foreign exchange gains and changes in product mix, it said in a Bursa Malaysia filing on Thursday.

Affin attributed the turnaround to, among others, "further cost discipline by the group" and "improvement in product mix."

At 10.17am, Unisem was up RM2.63 at RM0.975 while the benchmark composite index was down 0.26 percent at 1,636.84 points.
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