Selasa, 13 November 2012

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Give greater emphasis to good governance

Posted: 13 Nov 2012 05:56 PM PST

Asia should learn from the economic crises in the United States (US) and the European Union (EU) by giving greater emphasis to
good governance to become stronger and more resilient, says a prominent economist.

Tan Sri Dr Ramon Navaratnam said greater emphasis was needed to become more resilient and less dependent on the economic recovery of the US and the EU or even the sustainability of China.

"Asia needs to ensure its economy was properly governed and has strength and resilience to be able to move forward, regardless of economic shocks that would likely continue or increase," he told Bernama at the end of the fourth World Chinese Economic Forum in Melbourne, Australia on Wednesday.

Ramon said Malaysia should be more cautious in addressing deficit and debt problems as well as spending wisely amid uncertain and declining global economy.


He said that while it was difficult to trim down expenditures, the Malaysian government should have greater priority in addressing corruption, crime and cronyism (3Cs).

Ramon said although Asia led by China would continue to give confidence in the global economic outlook in the short-term, there was still doubts and uncertainties on whether the US could bring proper policies to ensure that its economy becomes more stable.

Asia-Pacific Chief Economist at IHS Global Insight Rajiv Biswas said Asia-Pacific led by China would experience faster real gross domestic product growth by 2020.

The three major economic drivers in the Asia-Pacific region would be China, India and the 10-member Asean regional grouping, he said in his presentation entitled "Global Economic Shocks: Can China Be the Saviour in a Perfect Economic Storm?".

The new attention within Asean by 2030 could be Indonesia, Malaysia, the Philippines and Thailand, which would help boost regional economic growth, he added. Bernama

US stocks slide on US, Greece concerns

Posted: 13 Nov 2012 05:00 PM PST

NEW YORK: US stocks closed lower Tuesday as worries about Greece's debt crisis and the US "fiscal cliff" took the shine off strong quarterly results from home-improvement giant Home Depot.

The Dow Jones Industrial Average dropped 58.90 points (0.46 percent) to 12,756.18.

The broad-market S&P 500 shed 5.50 (0.40 percent) at 1,374.53, while the tech-rich Nasdaq Composite fell 20.37 (0.70 percent) to 2,883.89.

After opening lower, stocks clawed back into positive territory but were unable to stay there.

"Gains incurred from upbeat comments about the housing recovery from Dow component Home Depot dissipated in late-day action as the continued anxiety over the looming fiscal cliff and eurozone uncertainty appeared too much for investors to overcome," Charles Schwab & Co. analysts said.

Congress came back from recess Tuesday with the "fiscal cliff" at the top of the agenda. The dramatic spending cuts and tax increases are mandated to take effect beginning in January if US politicians cannot find a compromise on deficit reduction to avoid them.

Continued delays in providing Greece with the bailout funds it needs to avoid default also kept investors on edge.

Home Depot was the strongest gainer on the blue-chip index, jumping 3.6 percent after reporting earnings that beat Wall Street estimates and raising its full-year guidance.

"Our third-quarter results were better than we expected and reflected, in part, what we believe is the start of the path toward the healing of the housing market," said Frank Blake, chairman and chief executive.

Microsoft was the steepest Dow loser, down 3.2 percent. The software maker announced the departure of Steven Sinofsky, head of its Windows unit, just weeks after the launch of the Windows 8 operating system.

In the luxury sector, Michael Kors Holdings rose 0.9 percent after posting better-than-expected earnings for the second quarter, while department store chain Saks climbed 0.4 percent after disappointing results.

Printer and copier maker Xerox rose 1.4 percent after lowering its profit forecast for the fourth quarter and saying it planned to increase its dividend by 34 percent next year.

Apple was unchanged at US$542.90, after losing more than US$150 since late September. -- AFP

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Gen. John Allen tied to Jill Kelley, Petraeus affair scandal - Los Angeles Times

Posted: 13 Nov 2012 08:32 AM PST

The top US General in Afghanistan is now under investigation, in a case that's linked to the scandal that forced CIA Director David Petraeus to step down.

WASHINGTON — An FBI investigation that led to the resignation of Gen David Petraeus also turned up evidence that Gen John Allen, the top U.S. commander in Afghanistan, was exchanging potentially inappropriate emails with a Florida woman involved in the scandal, Pentagon officials said.

Defense Secretary Leon Panetta said in a statement early Tuesday that he had ordered an investigation of Allen after the FBI informed the Pentagon it had uncovered thousands of pages of emails between Allen and Jill Kelley, a 37-year old who has been described as an unpaid social liaison at MacDill Air Force Base, Fla., which is headquarters to the U.S. Central Command.

Kelley's complaints to the FBI that she had received anonymous e-mails warning her to stay away from Petraeus led the FBI to open an investigation that ultimately traced the e-mails to Paula Broadwell, Petraeus's biographer, who was involved in an affair with Petraeus.

PHOTOS: Political sex scandals

The latest twist in the scandal investigation, coming only days after Petraeus resigned as CIA director after admitting he had a extramarital affair, has thrown President Obama's national security team into turmoil and focused attention on the private lives of the nation's most senior military commanders.

One official said that Allen who is married, had denied having an inappropriate relationship with Kelley, who is married to a Tampa doctor and known among officers at Central Command for hosting social events and for forging social ties with top commanders in Tampa. Allen was deputy head of Central Command before taking command in Afghanistan last year.

Officials refused to describe the nature of the emails between Kelley and Allen, who replaced Petraeus as the top commander in Afghanistan and was nominated in October by President Obama to take over as Supreme Allied Commander in Europe. Panetta asked the Senate to place Allen nomination on hold until after the investigation is complete.

A spokesman for Allen, who has been in Washington preparing for his confirmation hearings, had no comment on the investigation. Efforts to reach Kelley were also unsuccessful. She was last year given an award for her support to Central Command and was named an honorary ambassador for the command, an unpaid position with no official duties.

But Kelley has angered some senior officers by her persistent efforts to forge close personal ties to successive Central Command four-star officers, by deluging with emails. After being named honorary ambassador, she asked the command for staff at the headquarters to help her organize social functions, a former U.S. official said.

Panetta said that Allen would remain in command in Afghanistan while the investigation into the email by the Defense Department inspector general is conducted.

The FBI's decision to refer the matter to the Pentagon, along with Panetta's decision to allow Allen to continue as commander of U.S. and international forces in Afghanistan, suggested that officials viewed the matter as a possible infraction of military rules rather than a violation of federal criminal law.

"His leadership has been instrumental in achieving the significant progress that ISAF, working alongside our Afghan partners, has made in bringing greater security to the Afghan people, Panetta said. "He is entitled to due process in this matter."

At the same time, Panetta urged the Senate to move ahead on confirmation hearings for Gen. Joseph Dunford, the Marine who has been selected by Obama to succeed Allen in Kabul.

The last three U.S commander in Afghanistan - Petraeus, Allen, and Gen. Stanley McChrystal - have all now come under scrutiny for their personal behavior, although Petraeus's affairs apparently began after he stepped down in Afghanistan. McChrystal was fired by Obama after a magazine article that appeared to show him and his staff criticizing and making crude jokes about Obama's top civilian advisors.

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david.cloud@latimes.com

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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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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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Jumaat, 9 November 2012

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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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