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Archive for July 2010

President Barack Obama will deliver a major education reform speech at the National Urban League's 100th Anniversary Convention in Washington Thursday morning.

The president will discuss how his signature Race to the Top program and other initiatives are driving education reform across the country and focusing the nation on the goal of preparing students for college and careers, a statement from White House Press Secretary's office said.

"Now, I know some argue that during a recession, we should focus solely on economic issues," Obama says in prepared remarks released by the White House ahead of the address. "But education is an economic issue -- if not the economic issue of our time."

The Obama education plan champions better teacher pay, but also asks for tangible results.

"I want teachers to have higher salaries. I want them to have more support. I want them to be trained like the professionals they are -- with rigorous residencies like the ones doctors go through," Obama says. "All I'm asking in return -- as a president, and as a parent -- is a measure of accountability.

"Surely we can agree that even as we applaud teachers for their hard work, we need to make sure they're delivering results in the classroom. If they're not, let's work with them to help them be more effective. And if that fails, let's find the right teacher for that classroom."

Race to the Top is funded under the American Recovery and Reinvestment Act to reward states for aggressively reforming their education systems. The $4.35 billion is being awarded in two phases.

Tennessee and Delaware were the only two states to receive funds in the first round of the competition. Eighteen states and the District of Columbia were selected as finalists this week to receive more than $3 billion in the second round of funding for the program.

The second-round finalists will travel to Washington in early August to present their plans to the reviewers who scored their applications, according to the Education Department. The winners will be announced in September.

"Just as in the first round, we're going to set a very high bar because we know that real and meaningful change will only come from doing hard work and setting high expectations," Education Secretary Arne Duncan said in a press release Tuesday.

Not all of the finalists, however, will be awarded grants from the nearly $3.4 billion remaining in program, Duncan said, adding that President Obama has requested $1.35 billion for the program in the administration's fiscal 2011 budget.

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Barack Obama today becomes the first sitting US President to appear on a daytime television chatshow, reflecting on the Gulf of Mexico oil spill, the economic crisis, and the fact his soon-to-be teenage daughters still, for the moment, "like" him.

Obama's third appearance on ABC's The View – he was a guest when a presidential candidate in 2008 and earlier when promoting his book Dreams from My Father in 2004 – was pre-recorded yesterday and will be aired in the US today.

The View has been compared to the UK's Loose Women, but with a harder edge and more focus on news. Obama is not the only person making their return today – the show's creator, executive producer, and co-host Barbara Walters will make her first appearance since having heart surgery in May.

In snippets released by ABC prior to the show airing, Obama walked out to the now seemingly obligatory screams and cheers from the audience before kissing all five of the show's female hosts – including Whoopi Goldberg.

"Well this is fun," Obama exclaimed, before immediately being brought back to earth by the 80-year-old Walters, one of the most revered broadcast journalists in the US.

"Well we hope so," Walters said. "But you know you've gone through a little bit of a beating over the last month, do you really think being on a show with five women who never shut up is going to be calming?"

Unperturbed, the president claimed he had been "trying to find a show that Michelle [Obama] actually watched", adding: "And so I thought this is it, right here."

Despite Walters' warning, the footage released so far suggest the appearance was actually relatively calming, with Obama appearing relaxed, talking about family life in the White House.

Asked by Walters to describe "what has been the rose, and what has been the thorn in the last month", the president was quick to describe his floral moment.

"The rose has to be a couple of days we took in Maine with Michelle, Sasha and Malia, and we went on bike rides and hikes," he said.

"The girls are getting old enough now where they're not quite teenagers yet, so they still like you," he explained, to laughter from the audience.

"They're full of opinions and ideas and observations, and its just a great age."

Describing the thorn, Obama had to think a little harder – protesting "where do I begin here".

"Obviously the country has gone through a tough stretch since I took office," he said.

The president recalled the "non-stop effort" to stabilise the economy over the last 20 months, adding that the oil spill, two wars and the H1N1 pandemic had also had to be managed, however he insisted that "as much as you [Walters] said it's been tough for me, the truth is it's not tough for me".

"I've got people, pundits on the news who may say things about me, but you think what the American people have gone through . . . those are the folks who I draw inspiration from."

"So I don't spend a lot of time worrying about me, I spend a lot of time worrying about them."

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California governor Arnold Schwarzenegger has declared a fiscal state of emergency, putting pressure on lawmakers to pass a state budget that is now more than a month overdue.

California's economy, which is the eighth largest in the world, faces a budget deficit of $19bn (£12bn).

Mr Schwarzenegger said that without a budget in place the state's government would run out of cash by October.

He also ordered most state employees to take three days unpaid leave a month.

Earlier this month, the governor ordered 200,000 state workers to be paid the minimum wage because no budget had been passed.
'Fiscal meltdown'

The "furlough Friday", which will start in August, requires state workers to take three Fridays off a month until a new budget is enacted.

In July 2009, Mr Schwarzenegger also declared a fiscal emergency to address the state's deficit. That also included the furlough Friday, which ran until June 2010.

Employees in agencies involving public safety, including the California Highway Patrol and the Department of Fire and Forestry Protection, and in revenue generation, such as the Franchise Tax Board, are exempt.

"Without a budget in place that addresses our $19bn deficit, every day brings California closer to a fiscal meltdown," Mr Schwarzenegger said in a statement.

"Our cash situation leaves me no choice but to once again furlough state workers until the legislature produces a budget I can sign."

Analysts say it could be several more weeks until a budget is agreed.

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Hello! My name is Ned Collins-Chase, and I will be contributing to the Obama Today blog with Michelle while I work as a State Department intern for the rest of the summer. I have been interested in Obama’s career ever since watching his address at the 2004 Democratic National Convention. More recently however, his stance on healthcare has been of particular interest. As a student who graduates college within a year, I have a lot of questions about how the new healthcare bill will affect me personally, so I was eager to learn more when I heard he was launching a new site.

President Barack Obama released a video today, explaining the new Healthcare.gov website, a part of the new Affordable Care Act signed into law in late March.

The new website, which Obama demonstrates in the video, is designed to make it easier for consumers to view their healthcare options, as well as their rights under the new legislation. It allows users to search for their best insurance options based on their location and employment status, and for businesses to shop for healthcare options for their employees.

Price estimates will be available on the site by October 2010. President Obama expresses hope that users will find Healthcare.gov an easy tool for finding answers to all their healthcare questions in one place. “That’s why we passed this reform,” the President commented in the video. “[T]o put Americans in control of their healthcare.”

More facts on the new website are available at the White House website.

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Warriors point guard Stephen Curry survived the latest cut as Team USA's basketball roster was reduced to 15 on Wednesday.

The guard-heavy group that will play in the world championships features Brook Lopez and Tyson Chandler as its only centers.

Tyreke Evans, O.J. Mayo and Gerald Wallace were cut Wednesday — and Lopez might have joined them if not for his 7-foot frame on a team that badly needs height. The New Jersey Nets center struggled last week during training in Las Vegas as he recovers from mononucleosis, an illness that team leadership wasn't aware of before camp.

"Giving him the benefit of the doubt, he knows he has an awful lot to show in New York to be under consideration to make this team but wanted very much to have that shot, and we're willing to do that for him," USA Basketball chairman Jerry Colangelo said of the former Stanford star.

The roster will be reduced to 12 before the world championships start Aug. 28 in Turkey.

Other point guards making the cut were Chauncey Billups, Derrick Rose, Rajon Rondo and Russell Westbrook. Also traveling to New York when the Mike Krzyzewski-coached team reconvenes Aug. 9 will be Kevin Durant, Jeff Green, Lamar Odom, Eric Gordon, Andre Iguodala, Rudy Gay, Danny Granger and Kevin Love.

Raptors: Chris Bosh's former general manager says the player was "checked out" late last season and chose not to play some of Toronto's final games. Bryan Colangelo said Bosh wasn't the same player toward the end of the season. Colangelo said whether Bosh was "mentally checked out or, just wasn't quite into it down the stretch." Colangelo also asserted Bosh, LeBron James and Dwyane Wade all had planned to play together years ago.

Lakers: Center Andrew Bynum is expected to be limited at the start of training camp Sept. 25 after undergoing surgery on his right knee to repair a partially torn ligament.

Wizards: A person familiar with the deal says Josh Howard has agreed to a one-year contract to return to Washington. He played only four games with the team last season. He was acquired in a trade with Dallas on Feb. 13 but tore a ligament in his left knee Feb. 22. Howard had surgery in mid-March with an expected recovery time of six to eight months.

Clippers: Los Angeles re-signed free agent Rasual Butler, who averaged 11.9 points and 2.9 rebounds per game last season.

Rockets-Raptors trade: Houston sent center David Andersen to Toronto for cash and a future second-round draft pick.

Hawks: Coach Larry Drew added former New Orleans assistant Kenny Gattison to his staff. Gattison played nine seasons in the NBA.

Etc.: Relatives and friends of Lorenzen Wright, 34, grieved for the former NBA player who's been missing for 10 days, as police investigated the discovery of a man's body outside of Memphis, Tenn. Asked if it was Wright, Sgt. Alyssa Macon-Moore wouldn't confirm the victim's identity. The family, though, issued a statement: "Lorenzen's family has come together to mourn his loss and honor his legacy."

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With LeBron James, Dwyane Wade and Chris Bosh focused on building their own NBA Dream Team in Miami, USA Basketball unveiled a Plan B line-up on Wednesday for next month’s world championships.

While James, Wade and Bosh were all key members of the United States’ gold medal-winning team at the Beijing Olympics they will not be part of the American effort in Istanbul.

Neither will Kobe Bryant, Carmelo Anthony or any other member of that gold medal squad except head coach Mike Krzyzewski.

Instead, USA Basketball chairman Jerry Colangelo revealed a young squad that is likely to be led by the NBA’s leading scorer last season, Kevin Durant of the Oklahoma Thunder.

Krzyzewski will bring 15 players to New York for a training camp from August 10-16 but must trim the roster to 12 and submit his roster to FIBA, world basketball’s governing body, the day before the tournament opens on August 28.

“We had some difficult decisions,” Colangelo said during a conference call. “The identity of the team is still evolving but it is pretty obvious we’re going to be very athletic.

“We’re going to be very strong in the back court. We think we’ve got a number of people who can shoot the ball and so we’re pleased with our progress to date.”

While the U.S. line-up lacks big-name pizazz, there will still be plenty of talent on the court, with players putting down their marker for a spot on the 2012 London Olympic squad.

Certainly Krzyzewski will not lack for choice at point guard with Chauncey Billups of the Denver Nuggets, Derrick Rose of the Chicago Bulls and Rajon Rondo of the Boston Celtics.

What the U.S. will not have in Istanbul is size with the Dallas Mavericks’ Tyson Chandler and the New Jersey Nets’ Brook Lopez the only true centers.

“We are concerned about size but we are going to use the three-point shot a lot. It’s much closer than the NBA three and we have some very good shooters,” explained Krzyzewski.

“We don’t know how many bigs we’re going to have… We’re looking at developing a system.”

Krzyzewski said several spots on the team remain up for grabs with “a solid eight or nine” places spoken for and the rest to be settled in New York.

“That’s why New York is so important to us before we make our final decisions,” said Krzyzewski. “There’s a probability, a possibility, we will take more than 12 with us (to Turkey).”

At the 2006 world championships in Japan, the United States beat 2004 Olympic champions Argentina in the bronze medal game.

U.S. Squad:

Chauncey Billups (Denver Nuggets); Tyson Chandler (Dallas Mavericks); Stephen Curry (Golden State Warriors); Kevin Durant (Oklahoma City Thunder); Rudy Gay (Memphis Grizzlies); Eric Gordon (Los Angeles Clippers); Danny Granger (Indiana Pacers); Jeff Green (Oklahoma); Andre Iguodala (Philadelphia 76ers); Brook Lopez (New Jersey Nets); Kevin Love (Minnesota Timberwolves); Lamar Odom (Los Angeles Lakers); Rajon Rondo (Boston Celtics); Derrick Rose (Chicago Bulls); and Russell Westbrook (Oklahoma).

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The latest news linked with Chelsea Clinton’s wedding is the fact that President Obama is not on the guest list. It was announced yesterday by the president himself that he did not receive any invitation to the wedding of Hillary Clinton and Bill Clinton. Obama declared:

I was not invited to the wedding because I think Hillary and Bill, properly, want to keep this thing for Chelsea and her soon-to-be husband,” the president said. You don’t want two presidents at one wedding. All the secret service, guests going through [metal detectors], all the gifts being torn apart.

Chelsea Clinton will get married with Marc Mezvinsky, an investment banker in Rhinebeck on Saturday. The event will be held at Astor Courts, a very attractive estate positioned along Hudson River. It was interesting that the whole village was filled with signs that are congratulating the couple.

The press reported that there are a lot of people attending including: Ted Turner, Steven Spielberg, Barbara Streisand, Harold Ickes and Terry McAuliffe. It was only normal that Barack Obama would not be invited since he is not a friend of the family. Also, not even Al Gore will be there.

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President Obama will break another barrier of sorts: He'll become the first sitting U.S. President to appear on a daytime talk show.

Producers of ABC's '"The View" announced that the President’s interview will be taped Wednesday and broadcast Thursday.

Topics include jobs, the economy, the Gulf Coast oil disaster -- and how Obama’s family is adjusting to life in the White House, the producers said Monday.

Obama appeared on "The View" in March 2008 before he was elected, and his wife, Michelle, was a guest co-host three months later.

Thurday's episode will mark "View" creator Barbara Walters' first appearance on the show since she underwent heart valve replacement surgery in May. Walters, 80, announced that she would return to the show full-time in September.

"We are so pleased and honored that President Obama will be a guest on 'The View,'" Walters said in a statement. "This shows that both the President and First Lady feel that our show is an influential and important source of information and news."

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President Barack Obama is on the verge of creating as much as $300 billion in credit for small businesses as bankers raise doubt about whether there’s demand for new loans and how much will be repaid.

The U.S. Senate may vote this week on a bill to funnel $30 billion of capital to community banks, whose business customers typically are small firms. Banks could leverage the sum to make $300 billion in loans that create jobs, according to a Senate summary. That could more than double the commercial and industrial loans at eligible banks as of the first quarter, according to data compiled by KBW Inc.

Bankers say the problem isn’t scarce credit, it’s lack of demand from creditworthy firms in a weak economy. The result may be more loans given to distressed firms and higher losses. While bank regulators don’t compile default rates, the biggest lenders have charge-offs of 4 percent to 14 percent tied to small businesses. Eliot Stark, managing director at Capital Insight Partners Inc., said their credit record resembles “junk.”

“The highest demand for loans is from the companies least qualified, the companies that have really struggled because of the economic downturn,” said Stark, a former Comerica Inc. executive whose Chicago-based investment bank helps community lenders raise capital. The way lawmakers see it, “everyone’s a good borrower, and that’s just not the case.”

Vote Pending

Obama’s program passed the House last month and is awaiting Senate approval after disputes over the cost, tax breaks added to the bill and concern that it’s another bank bailout like the Troubled Asset Relief Program. Terms call for banks with assets of less than $10 billion to receive U.S. Treasury Department investments in preferred stock or other instruments to promote small-business loans, according to Senate documents.

“If we can help the big banks, then we should certainly be able to help small-business lending,” Obama said June 30. He’s been pushing to increase credit for entrepreneurs since October and summoned leaders of the biggest banks to the White House in December. The Small Business Administration estimates the nation’s 30 million small firms -- defined as those with fewer than 500 employees -- create 64 percent of new jobs.

The Independent Community Bankers of America is “wildly supportive” of the bill, said chief economist Paul Merski, whose Washington-based lobby represents almost 5,000 lenders. The American Bankers Association favors passage and the National Federation of Independent Business, which lobbies for small companies, says it supports financing for “creditworthy” firms that have trouble getting loans.

Cost Estimate

Taxpayers could break even if the program is properly structured so that interest and fees cover losses, Stark said. Banks will be charged an initial interest rate of 5 percent, declining to 1 percent if they increase small-business loans or rising as high as 7 percent if the loans stay the same or decrease, according to Richard Carbo, spokesman for the Senate Small Business and Entrepreneurship committee.

The program will earn $1.1 billion over 10 years, and “this is nothing like TARP,” Carbo said. With no cost to taxpayers, “this is one of the most efficient bang-for-your buck initiatives you can put forward,” Gene Sperling, counselor to the Treasury secretary, said in an interview.

Bank loans to small firms fell 5.6 percent to $670 billion as of March from $710 billion in June 2008, according to the Federal Reserve. First-quarter commercial and industrial loans for commercial banks with $10 billion or less in assets -- the threshold for the U.S. program -- totaled about $240 billion, according to analyst Melissa Roberts at KBW in New York.

Default Rates

Bank of America Corp., the biggest U.S. lender, is trying to “make every good loan we can,” said David Darnell, president of global commercial banking, in a June 3 statement. “Our clients are telling us that until they see sales pick up, they are reluctant to hire and invest.”

Wells Fargo & Co., which says it’s the biggest small- business lender, is “sitting here with tons of liquidity and we’re marching double time in search of more loans,” Chief Executive Officer John Stumpf said in an interview. “In most cases when I hear stories about small businesses not getting loans, it’s the case that more credit will not help them. They need more equity, they need more profitability.”

Nationwide default rates for small businesses aren’t known, say U.S. officials, with spokesmen for the Fed, Treasury and the Federal Deposit Insurance Corp. saying their agencies don’t compile a figure. Among the group of banks surveyed by KBW’s Roberts, 2.81 percent of loans were non-current or charged off as of the first quarter.

Write-Offs

Other gauges show higher defaults, with the SBA reporting a 6.8 percent rate this year on its main “7(a)” loan program through May, higher than junk bonds. Defaults on U.S. corporate speculative-grade debt since 1981 averaged 4.5 percent, according to Standard & Poor’s.

JPMorgan Chase & Co., ranked second by assets, reported small-business charge-offs fell to 4.04 percent in the second quarter from 4.70 percent a year earlier. Charge-offs for all commercial loans at the New York-based bank were 0.74 percent.

Bank of America wrote off 14 percent of small-business loans in 2010’s first half, more than 10 times the rate for other commercial loans. Spokesman Jefferson George declined to comment on the default rate. Citigroup Inc.’s Robert Julavits said the New York bank doesn’t disclose its defaults.

Small-business loans show higher credit losses than larger companies in “good or bad” times, said American Express Co. CEO Kenneth I. Chenault in a June 2 teleconference. Spokesman Tom Sclafani said AmEx, which offers a line of credit cards to small firms, doesn’t release default data.

Borrowers Balk

The biggest card firm dedicated to small business was Advanta Corp., based in Spring House, Pennsylvania. Advanta cut off its approximately 1 million accounts last year after defaults soared to 20 percent. They eventually topped 50 percent as small firms were “devastated” by the recession, according to Advanta, which went bankrupt in November.

Small borrowers are higher risks because their size leaves less room for error, bankers say. Half fail within their first five years, according to the SBA, and the recession eroded the value of hard assets such as property and equipment to pledge as collateral, said Alfred Osborne, senior associate dean of the UCLA Anderson School of Management in Los Angeles.

“We can create lots of jobs making bad loans,” NFIB chief economist William Dunkelberg said. “We did that during the housing bubble.”

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Following the apparent death of cap and trade, a White House aide says that President Barack Obama will veto any bill limiting the EPA's ability to regulate greenhouse gas emissions. That means that for now, the response to climate change will be located in the executive branch, where 60 votes aren't needed to act, but where action comes in the form of blunt regulations rather than a price on carbon.

Meanwhile, revised estimates show the budget deficit topping $1.4 trillion this year. The reason? The economy is still bad, and when the economy is bad, tax revenues fall. Which is why it's very difficult to see the deficit substantially shrinking until the economy has recovered, or at least is doing a faster job of recovering. This year's deficit was projected to be lower because the Obama administration -- and many others -- thought the recovery would have taken more of a hold by now.

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President Barack Obama, who rocketed to the White House promising "change you can believe in," is now telling voters they shouldn't change a thing.

His message for the fall elections, which are looking ominous for his Democrats, is that Republicans caused the nation's economic troubles, but he and the Democrats are starting to fix them. So stick with the Democrats and don't go back to the GOP.

"This is a choice between the policies that led us into the mess or the policies that are leading out of the mess," Obama said recently in Las Vegas.

Trouble is, it's a tough sell to voters who've seen little progress.

Unemployment is stuck near double digits and polls show many voters have decided Obama's policies are to blame, not his predecessor's.

Obama often frames the argument by saying that Republicans had their chance to drive, then drove the car into a ditch and shouldn't get the keys back. But voters may be concluding that Democrats, who control the White House and both chambers of Congress, have had their chance at the wheel, too, and haven't gotten very far.

"From the American public's point of view, the people in charge at this point are the people who own the problem," said Andrew Kohut, head of the nonpartisan Pew Research Center.

Obama's challenge for the next four months is to turn that perception around.

So he's traveled, from Buffalo, N.Y., to San Francisco, reminding voters of the mess he faced when he took office: a shrinking economy, lost jobs, weak markets, an economic crisis becoming international in scope.

Now, even though unemployment hasn't dropped to the 8 percent level the administration once projected, the economy is gradually picking up and adding jobs, the president says. Putting Republicans in power, he contends, would reverse the momentum.

But the White House knows it can't just be about blaming George W. Bush, though the former president's enduring unpopularity helps Obama's case. Obama must try to take it a step further and get voters to view Republicans now running for office as little more than extensions of Bush who would advance the ex-president's same policies.

"This isn't about relitigating history," said Obama senior adviser David Axelrod. "This is about history repeating itself."

Will the strategy work in an election year roiling with anti-incumbent sentiment? That's not yet clear, though it hasn't appeared to boost Democrats' standing much so far. Midterm elections typically deal a drubbing to the president's party anyway, and for Democrats it could mean losing control of the House.

Republicans say they intend to keep the focus on Obama's policies, which they cast as deficit-busting, big-government boondoggles. "Democrats can attempt to spin it any way they want, but unfortunately for them this election is going to be a referendum on the president and his party's failed economic policies," said Rep. Pete Sessions, R-Texas, chairman of the National Republican Congressional Committee.

But Obama's pickings were slim when it came to campaign themes.

The narrative that worked so well when Obama was a presidential candidate offering himself as a transformational figure who could change Washington is no longer at his disposal. He can hardly claim to have delivered on that promise because he hasn't changed Washington, at least not much, as he's acknowledged.

Obama's stacked up a remarkable, if controversial, string of legislative successes, from last year's economic stimulus bill to the health care law and now the financial overhaul bill. But his vaunted eloquence on the campaign trail has often seemed to desert him as he's tried to sell those policies to the public. To the 14.6 million people out of work nothing else much matters anyway.

At the same time, the desire for change that Obama helped ignite is still burning. But this time it may work against him. As Bush recognized shortly before leaving office, calling for change is a luxury denied to incumbents.

"I was the guy in 2000 who campaigned for change. I campaigned for change when I ran for governor of Texas. The only time I really didn't campaign for change is when I was running for re-election," Bush told ABC News in December 2008.

In the end, trying to convince voters that things are moving in the right direction, although not as fast as he or they would like, might be the only message Obama can reach for.

"Is it the best that they can do, I think, is really the question. And I'd have to say yes, it is," said Stephen Hess of the Brookings Institution.

So Obama tells voters every chance he gets that things would be a lot worse if not for the stimulus bill and other steps he took. At least the recession never became a depression, the president says.

Proving a negative is a hard argument to make, but Obama keeps at it. He has little choice.

Sometimes, the president sounds confident the message will get through.

"Americans don't have selective memory," Obama told NBC News recently. They'll remember "the policies that got us into this mess as well."

Other times, he doesn't sound so sure.

"I know that sometimes people don't remember how bad it was, and how bad it could have been," Obama said in Racine, Wis.

So this election year, instead of beckoning voters to change the future, Obama is just hoping they'll remember the past.

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President Barack Obama's deployment of 250 National Guard troops to the 1,254-mile Texas-Mexico border has intensified a politically charged debate over border security just two weeks before Obama visits the state to raise money for Democratic candidates.

Republican Gov. Rick Perry, one of Obama's harshest critics in Texas, has asked to meet with Obama during his Aug. 9 fundraising trip to discuss his concerns about Obama's "grossly insufficient" allocation of Guard troops, Perry spokeswoman Katherine Cesinger said.

Perry chief of staff Ray Sullivan has "reached out" to the White House to request a meeting between Perry and Obama when the president visits Austin and Houston for fundraisers sponsored by the Democratic National Committee and the Senate Democratic Campaign Committee, Cesinger said.

"The scope and magnitude of the threat our nation faces demands a more serious and robust commitment," Perry told Obama in a recent letter.

Obama's administration has announced that it will send 1,200 Guard troops to the four states bordering Mexico beginning next Sunday. Texas, which has more than 60 percent of the 2,000-mile U.S.-Mexico border, will get 20 percent of the allocation, or 250 troops. The Texas allocation equates to one troop for every five miles of the state's border with Mexico.

Arizona, which has 19 percent of the border, will get 524. California will receive 224 troops, New Mexico will get 72, and the rest will go to a national liaison office.

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Authorities say a Pittsburgh-area man robbed a bank wearing a woman's blond wig, fake breasts under a sweater and clown pants.

Swissvale police say 48-year-old Dennis Hawkins of North Braddock was sitting in a parked car covered in red dye from an exploding packet in a bag of money when he was arrested Saturday.

Police Chief Greg Geppert says Hawkins robbed the bank at gunpoint, using a toy BB gun he had shoplifted from a store.

Geppert says Hawkins then entered a woman's car. She got out, took her keys and alerted police. Hawkins was found sitting in the car.

He is being held on $230,000 bail. It's not clear whether he has an attorney.

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The United States has designated as "terrorists" three men who allegedly help raise funds and manage finances for the Taliban and the Pakistan-based Haqqani network.

The decision, announced on Thursdayby the US treasury department, comes days after Hillary Clinton, the US secretary of state, said during a visit to Pakistan that the US plans to designatethe Haqqani network as a "foreign terrorist organisation".

Thursday's designation freezes the US finances of the three men: Gul Agha Ishakzai, Amir Abdullah and Nasiruddin Haqqani.

It also bars any person or business in America from doing any business with them.

Haqqani's brother Serajuddin,himself added to the treasury department's blacklist in 2008, is the commander of the so-called Haqqani network, which is considered the deadliest threat to US and Nato forces in Afghanistan.

Fund collection

According to the treasury, Haqqani functions as an emissary for his brother's network and helps to collect funds from drug trafficking profits and donors in the Arabian Gulf and others connected to al-Qaeda.

Abdullah and Ishakzai have both served as financial specialists for the Afghan Taliban,the treasury said.

Ishakzai, a childhood friend of Taliban founder Mullah Mohammed Omar, heads the group's financial commission and belongs to a council that collects taxes from the Balochistan province in Pakistan.

Quetta, the provincial capital of Balochistan, is believed to be the current headquarters of Omar's movement.

The treasury accused Ishakzai of raising money for suicide attacks and disbursing funds to Taliban fighters and their families.

Abdullah served as a treasurer to Mullah Abdul Ghani Baradar, Omar's deputy, who was arrestedin Pakistan in February. Abdullah has travelled to Kuwait, Saudi Arabia, Libya and the United Arab Emirates to raise money for the Taliban, the treasury said.

More radical

While Omar's "Quetta Shura" has shown some interest in negotiating with the Afghan government, the Haqqani network is considered more radical with strong ties to the Pakistani intelligence services.

Some analysts saythat Pakistan is reticent to dismantle the Haqqani network, which is based in the country's restive North Waziristan province, because it views the Haqqanis as a strategic asset against Indian influence in Afghanistan and worries that doing so could trigger a revolt in the northwest tribal areas.

But the United States is wary of the network - nominally led by Serajuddin's father, the ex-mujahideen and reputed former CIA assetJalaluddin Haqqani.

The Haqqani network has been "spearheading insurgent activity" in Afghanistan, according to the treasury department statement.

Shah Mehmood Qureshi, Pakistan's foreign minister, declined to comment directly on the US plan to act against the Haqqanis during Clinton's visit.

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Senator John Kerry of Massachusetts said in an interview on Bloomberg Television’s “Political Capital with Al Hunt” airing this weekend that Democrats still may take up a comprehensive climate-change plan after the November elections.

(This is not a legal transcript. Bloomberg LP cannot guarantee its accuracy.)

AL HUNT: And we begin the program with the Chairman of the Senate Foreign Relations Committee, John Kerry. Senator, you were the architect of the most - one of the most ambitious energy bills. It now appears that that may be dead. The calendar is short, would you bring up Kerry/Lieberman in the lame duck session after the voters have voted?

SENATOR JOHN KERRY: I think what we have to do, Al, is work over these next weeks to see if we find 60 votes. We don’t have one Republican - not one Republican in the United States Senate has stepped forward even though several say they believe in pricing carbon because there is basically sort of a political shutdown going on here in Washington.

And so, you know, we are not going to ask colleagues to go through something for nothing here. I think we have to try to find and continue to find the 60 votes.

HUNT: But when you talk about -

KERRY: But let me just say to you it is not dead, not by any sense of the imagination. First of all, this issue is not going away.

HUNT: Including the possibility of a lame duck session?

KERRY: Including the possibility of a lame duck, sure, absolutely.

HUNT: Okay.

KERRY: When we think it is possible to pass this, Senator Reid is prepared to bring it forward. The president today committed very, very strongly to me and to Senator Reid and others that he is going to be personally engaged in helping to try to find this coalition. We are going to see if it is possible for the interests of our country - not party, this is not Democrat or Republican.

We are losing jobs to China. We are losing to India. We are losing to other countries because we are not in the game. We need to get into the alternative, renewable energy, energy efficiency, and the best way to do it is by pricing carbon, send a signal to the market, let the marketplace do this.

HUNT: Let me get to the president in a moment, but you talked about the Republicans. Fair enough, it is certainly right. But Ben Nelson, Mary Landrieu, Jay Rockefeller -

KERRY: Well, Mary Landrieu is prepared to be supportive. And others are prepared to -

HUNT: But Rockefeller, Nelson, Dorgan -

KERRY: We have a couple of people who don’t support the bill -

HUNT: But I mean -

KERRY: - with their ideas.

HUNT: - wasn’t it your own party that cut the legs out from Kerry/Lieberman?

KERRY: We have several Republicans who have indicated the possibility. Look, are we supposed to do this all alone?

HUNT: Right.

KERRY: You need one or two Democrats. You can’t live in a difficult state and respond to that reality, where others in the country could have stepped up? I do not accept that. We have well over 50 votes, Al, to proceed forward in one fashion or another.

HUNT: Right.

KERRY: And the question now is whether or not we can get together. It is the getting together that is proving difficult.

But I have to tell you, this is not dead. We are going to continue to work. It may well be that after the election - if that is what happens - I mean we will continue to try over the next weeks, but if it is after the election, it may well be that some members are free and liberated and feeling that they can take a risk or do something. Or, you know, the whole political landscape may have changed in some way. I don’t know.

HUNT: You mentioned the president a moment ago. Some environmentalists have been very critical of the White House for not being aggressive enough on this. What specifically do you want President Obama to do now? You said he has committed to you. What do you want him to do?

KERRY: Well, I think we have to have some key meetings with key players from the utilities and others to bring people together, including senators, to work towards the kind of compromise that is necessary here. People have to know it really counts.

HUNT: And he has to be part of that?

KERRY: People - yes, I believe the White House has to be part of that. He doesn’t have to be part of every meeting. But I think it is important for him to weigh in with some colleagues, to be - even to go to some of the difficult states at the right moment and talk to people about why -

HUNT: So public and private?

KERRY: - this is important for America.

HUNT: You are going to bring a scaled back version to the Senate floor I gather in the next -

KERRY: Well, I would not even call it a scaled back version. We are bringing what Harry Reid has determined represents a bipartisan offering that we could do without a lot of complications that gets us started.

HUNT: And what do you think the Senate will do on the oil, on the cap, the liability cap on oil? Something that is really -

KERRY: Well, I think we ought to look -

HUNT: Will you eliminate it or just raise it?

KERRY: Well, I think we ought to raise it.

HUNT: And raise it to what?

KERRY: Oh, I’m not going to throw out a casual number, but I think we ought to find out what the political market here and the Senate will bear and get to a realistic figure.

HUNT: Okay.

KERRY: But I think most people agree that $75 million is -

HUNT: But more likely to raise it than eliminate it?

KERRY: Oh, I would think so.

HUNT: Okay. Let me ask you about Afghanistan. You have spent a lot of time, you have been very, very involved in that, and you have raised recently the possibility we may - that we could have to slow down that troop withdrawal schedule - the beginning of troop withdrawal schedule for next year.

In last week’s Bloomberg poll, three out of five Americans said it was a lost cause. You have acknowledged that that sentiment exists. Should the U.S. be considering then also perhaps accelerating the withdrawal rather than slowing it down?

KERRY: No, I think what the U.S. needs to do - what we need to do is get a policy that works. Make sure that what we are doing works. That is what the American people want. We have very legitimate national security interests.

HUNT: Do we have a clear policy now?

KERRY: I think we have a clearer policy. I am not sure it is fine tuned enough to some of the needs that we have. And I do think it is possible that it might need to be changed somewhat. That does not mean it is not clear. I think what we are doing -

HUNT: What do you mean by change? Can you give me a sense of -

KERRY: Well, I think that the governance component of this is not yet adequate. And -

HUNT: Well, when I talked to you eight months ago, I remember we interviewed you, and you talked about Karzai then and you were pretty darn supportive. You said he was prepared to embrace reforms. You have a very - you know him well.

More recently, you have questioned that government’s - I am quoting you, “willingness to assume ownership,” and you said Karzai must do bigger lifting. Are you disappointed in Karzai?

KERRY: I am disappointed that not enough of the reform agenda has been implemented in Afghanistan. And there is too much corruption within the government itself at various levels. We will be releasing a report shortly in the Foreign Relations Committee that will lay out the specifics of some of that corruption and make some recommendations about it. So that part of things does disappoint me.

What I also think has not happened sufficiently is a linking of Afghan presence to any military operation also linked to the presence of Afghan governance ability also linked to the civilian construction and development ability. The three components - I laid those components out, Al, months ago when the president - before the president even announced what he was going to do.

I said there are three requisites to any kind of additional military operation. One, Afghan presence in the operation; two, sufficient governance capacity at a local level that is identified and present and ready to go immediately underneath the operation; and three, you have got to have a civilian development and construction capacity come in underneath that. We have not had that.

And I think that - I think there are the possibilities of transforming this still in a way that keeps the commitment, which I think is important, but which does not do it in a way that leaves as many questions unanswered or as many doubts in people’s minds -

HUNT: Another key -

KERRY: - about what is feasible.

HUNT: Another key issue for your committee is the proposed treaty with Russia to cut nuclear weapons. What are the odds the Senate will pass that before the November elections?

KERRY: I don’t want to get into the odds-making on it. What is important is the Senate will pass it.

HUNT: This year?

KERRY: I believe we will pass it this year.

HUNT: Okay.

KERRY: And we are going to press very hard to meet the concerns of many of our colleagues on the Republican side who want to have certain questions answered, which we have requested and they are coming in now - those answers. They want a certain kind of access, whether it is a summary or otherwise is being negotiated -

HUNT: Right.

KERRY: - on the negotiating record. And they want assurances with respect to the modernization program on nuclear weapons. They ought to have that and we are willing - you know, I am going to try and get two out of three of those and the third is really up to the administration. The question on the negotiating record is the administration’s decision.

HUNT: Right. Your committee is going to hold a hearing on whether BP pressured the British government to release the Lockerbie terrorist. David Cameron acknowledges that was a mistake, but says Congress really should not hold an inquiry on this. You are not going to get the guy back. What can you achieve from a hearing?

KERRY: Well, I think what he said - I think what he said is that there should not be an investigation. We are not engaged in an investigation.

HUNT: So what do you think you will accomplish?

KERRY: They are having a hearing. Well, when colleagues of mine who I respect greatly - some of them members of the committee, some of them not - all of them write me letters of concern about their constituents who have deep concerns about what happened. I believe you have to honor that and listen to it and respect it and provide them the opportunity they’ll get some answers.

I have families in Massachusetts who were just devastated by the release of Megrahi. It was just beyond comprehension. They deserve answers. So do the families in New Jersey, in New York, in Connecticut and elsewhere where senators have said they want to find out what happened.

I think they are doing their job on behalf of their constituents and we need to do that. Now it is not going to be a circus. We are not going to allow it become some kind of a zoo. It will be a dignified and appropriate questioning of appropriate people to find out on behalf of those families what happened. And that’s all. I think it is a question of transparency in governance. Let the sun shine in. People have a right to know and I think that is what we are trying to achieve.

HUNT: Mr. Chairman, thank you so much for being with us. When we come back, we’ll talk to our reporters about the new financial regulation bill.

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President Barack Obama has ordered a more patient, deliberative style of governance from his aides and Cabinet members in the wake of a convulsive week surrounding the ouster of Agriculture Department official Shirley Sherrod.

After telling Sherrod he regretted her forced resignation over racial remarks she made to an NAACP audience, Obama said in a nationally broadcast network interview he believes Agriculture Secretary Tom Vilsack "jumped the gun" in sacking the veteran Georgian federal worker.

A furor erupted this week over a conservative blogger's posting of portions of a speech Sherrod gave in which she told of giving short shrift attention 24 years ago to the pleas for financial aid by a poor white farmer. Sherrod is black, and the operator of the website BigGovernment.com posted a portion of her speech. The blogger, Andrew Breitbart, said he did so to illustrate racism within the NAACP, which earlier accused the tea party of having racist elements.

The incident dramatized how the nation's first black president has occasionally struggled with racial tensions since he took office over a year and a half ago, after saying repeatedly during his campaign that he wanted to bridge America's racial divide.

Sherrod argued repeatedly that the Internet posting took her speech out of context, and that the talk actually was about racial reconciliation.

The White House on Thursday morning played a one-way game of telephone tag with the fired Sherrod, even as she hop-scotched from network to network saying it was time she heard from Obama.

When the president finally reached her, he passed along "his regrets" for her horrible week, the White House said, and urged her to accept Vilsack's offer to return to his department.

"He didn't say I'm sorry in those words," Sherrod said Friday of Obama in a CNN interview. "And I really didn't want to hear the president of the United States say I'm sorry to Shirley Sherrod. Just by simply calling me, I felt it was in a way saying 'I'm sorry.' He didn't have to do it."

Obama, according to spokesman Robert Gibbs, urged Sherrod to transform "this misfortune" into a chance to use her life experiences to help people.

Obama had avoided direct involvement in the public spectacle that accompanied Sherrod's ouster from Vilsack's agency. Once it became clear that the speech in question was advocating racial accommodation, not confrontation, Vilsack apologized to her and offered her a new job. Gibbs also apologized publicly "for the entire administration."

Sherrod says she hasn't decided whether she will accept the invitation to come back to the Agriculture Department. But she did accept the apologies.

In an excerpt of an ABC News interview broadcast Thursday night, Obama said Vilsack had been too hasty in pushing Sherrod out.

"He jumped the gun, partly because we now live in this media culture where something goes up on YouTube or a blog and everybody scrambles," Obama said.

The president said he has instructed "my team" to make sure "that we're focusing on doing the right thing instead of what looks to be politically necessary at that very moment. We have to take our time and think these issues through."

Sherrod repeatedly denied that her comments carried on the Internet were racist, and the NAACP — which had at first condemned her remarks, then later apologized — posted the full 43-minute video showing the entire speech. The farmer in question also did interviews and said Sherrod had eventually helped him save his farm.

Of Breitbart, the blogger, she said: "He was willing to destroy me ... in order to try to destroy the NAACP." She said she might consider suing Breitbart for defamation.

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With Tropical Storm Bonnie nearing, efforts to dig a relief well remained suspended Friday as the rig involved in the operation and other boats around BP's ruptured Gulf of Mexico well prepared to evacuate.

"Some of the vessels may be able to remain on site, but we will err on the side of safety," retired Coast Guard Adm. Thad Allen said Thursday night.

Allen, who is leading the federal response to the spill, said many of the vessels and rigs began preparing to move Thursday night.

Earlier on Thursday, officials said the departure of the relief well rig would delay work on the operation -- described as the permanent fix to the ruptured well -- for at least 10 days.

Allen said the cap placed over the damaged well in the Gulf of Mexico will remain sealed and continue to stop oil from escaping even if the more than 2,000 people who have been working at the well site are off the water.

The storm could force officials to temporarily scale back efforts to search beneath the surface for leaking oil. But Allen said Thursday that the remote vehicles used to monitor the area will be the last to leave and the first to return.

Sensors and extensive monitoring have allowed observers to "rule out any indications that there might be a leak," Allen said earlier Thursday, noting that his confidence in the integrity of the well had "improved dramatically" after he examined data over the past few days.

Once the storm passes, a plan to pump mud into the well to force oil back into the reservoir below is in the works. BP has Allen's approval to prepare for the "static kill" process, but would still need the government's final go-ahead before proceeding, BP Senior Vice President Kent Wells said.

Meanwhile, officials monitoring the spill say they continue to track the tropical weather and communicate with the Federal Emergency Management Agency, which is ultimately responsible for the safety of the more than 40,000 people currently assisting in recovery and response efforts in the Gulf region.

"The protection of the equipment and crew is paramount to ensure maximum ability to respond to any new challenges a storm may pose to the enormous mission," Rear Adm. Paul Zukunft, the federal on-scene coordinator, said in a news release Thursday.

"We are repositioning assets away from low-lying areas to higher-ground staging areas to protect our ability to respond to the dynamic requirements of the incident," Zukunft said.

Tropical Storm Bonnie is expected to pass the southern tip of Florida on Friday afternoon before making landfall Sunday between New Orleans and southeastern Texas.

At 11 p.m. ET Thursday, it was moving northwest at 14 miles an hour as it approached northwestern Bahamas, according to the National Hurricane Center.

It could pick up strength as it moves over the long stretch of open water in the Gulf of Mexico, but the latest computer models do not show it becoming a hurricane, according to CNN meteorologist Chad Myers.

Forecasters had predicted that it would cross over central Florida, but the models now show it passing farther south, over the Florida Keys or the Straits of Florida and then into the Gulf.

If the storm continues on its path, it could slam into the area of the BP oil spill and possibly put more oil to shore.

The tropical weather system could diminish or erase encouraging signs of recovery from the BP oil spill, according to a scientist who spearheaded the first major examination of the Louisiana coast wetlands.

"Early marsh regrowth could easily be taken away with high winds and waves," said Tom Bianchi, a Texas A&M oceanography professor who has spent his career researching marshes.

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North Korea today threatened a "physical response" to planned military exercises by the US and South Korea this weekend, as tensions on the Korean peninsula dominated a regional security forum in Hanoi.

The regime did not specify what that response might be, but said it interpreted the launch on Sunday of four days of naval and air drills in the Sea of Japan as another sign of US "hostility".

"It is a threat to the Korean peninsula and the region of Asia as a whole," a North Korea spokesman, Ri Tong-il, told reporters at the Asean regional forum.

Ri said the drills harked back to 19th-century gunboat diplomacy and violated North Korea's sovereignty. "And [our] position is clear: there will be physical response to the threat imposed by the United States militarily," he said.

Operation Invincible Spirit will involve 8,000 US and South Korean troops, 200 aircraft and 20 ships, including the nuclear-powered aircraft carrier the USS George Washington.

The meeting in Hanoi has quickly become the stage for a war of words between the north and the US, although there has been no direct contact between the countries' delegates.

The US secretary of state, Hillary Clinton, said "isolated and belligerent" North Korea would have to end its "campaign of provocative, dangerous behaviour" if it wanted better relations with the US and the rest of Asia.

North Korea has pulled out of six-party talks on its nuclear programme and is blamed for the March sinking of the Cheonan, a South Korean navy vessel, in which 46 sailors died.

The regime denies carrying out the attack and has unleashed a wave of belligerent rhetoric in response to what it calls US aggression.

On Wednesday, Clinton unveiled new sanctions designed to deny luxury goods to North Korean elites and strangle funding for Pyongyang's nuclear programme. The north says it will not return to nuclear negotiations unless the sanctions are lifted.

Today, Clinton urged Asian nations to pressure North Korea into abandoning its nuclear ambitions by enforcing strict UN sanctions imposed after the regime's second nuclear test last year.

"One measure of the strength of a community of nations is how it responds to threats to its members, neighbours and region," Clinton said.

A South Korean newspaper said the new US sanctions would target 200 North Korean-held foreign bank accounts thought to be connected with illegal activities such as nuclear weapons development, drug trafficking and counterfeiting.

"Even before the Cheonan incident, the US was tracking around 200 North Korean bank accounts in banks in China, Russia and even eastern Europe and Africa that are believed to be involved in the development of weapons of mass destruction and the export of drugs, counterfeit money, fake cigarettes and weapons," the Chosun Ilbo newspaper quoted a diplomatic source as saying.

The paper said the North Korean leader, Kim Jong-il, is believed to hold a US$4bn slush fund in secret accounts in Switzerland, Luxembourg and Liechtenstein.

North Korea also rejected South Korean demands to apologise for the sinking of the Cheonan.

"We cannot accept such a claim because they try to use it to shift (their) responsibility on to us," Ri said. He repeated North Korea's position that the cause of the sinking remains unclear and insisted that it be allowed to conduct a joint investigation with the south.

"South Korean authorities bear the responsibility for causing tension ... South Korea is the one who must apologise," he said.

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A painting by a graffiti artist was among the official gifts to Barack Obama from David Cameron on his first trip to Washington as prime minister.

The work, Twenty First Century City, is by Ben Eine, said to be one of the PM's wife Samantha's favourite artists.

The 39-year-old artist recently sprayed the entire alphabet on shop shutters in a London street.

Mr Obama continued the art theme by presenting the Camerons with a signed lithograph by pop artist Ed Ruscha.

The piece, Column with Speed Lines, was chosen for its red, white and blue colours matching the British and American flags.
Beer bet

Writing on his website, Ben Eine said it had been a "weird day" because "David Cameron has given one of my paintings to President Obama in an art swap".

The artist, who has worked with Banksy, began his career by "tagging" his name on buildings and trains around east London, examples of which are featured on his website under the heading "vandalism".

In recent years he has been asked to decorate shutters in cities as far afield as Tokyo and New York.

Other gifts from the Camerons to the Obamas included two pairs of Hunter Wellington boots, one in pink and one in purple, for the first family's two daughters.

For Michelle Obama, there were candles made by London-based perfumer Miller Harris.
David Cameron and Barack Obama Mr Cameron and Mr Obama swapped jokes at a White House news conference

Mr Cameron's six-year-old daughter Nancy was given a silver charm necklace, and his son Elwen, four, was a given a DC United football shirt.

Samantha Cameron, who is expecting a child in September, received a gift basket including a baby blanket.

When Mr Cameron met President Obama at the G8 summit in Tokyo last month, they exchanged bottles of beer, following a bet on England's World Cup clash with the US, which ended in a 1-1 draw.
Classic DVDs

The US president presented Mr Cameron with a bottle of Goose Island 312 from his home city of Chicago, while Mr Cameron gave Obama a bottle of Hobgoblin, made by the Wychwood brewery in his Oxfordshire constituency.

Swapping notes on the beers at a White House news conference on Tuesday, Mr Obama said the British bitter was excellent but confessed: "I did drink it cold."

Mr Cameron joked that the American beer "was obviously very effective" because he had ended up cheering on Germany against Argentina while drinking it, "something that's a big admission for a British person".

Mr Obama was criticised for lack of thought when he presented previous prime minister Gordon Brown with a set of 25 DVDs of classic American films, when Mr Brown visited Washington.

Mr Brown gave the US president a pen holder made from the timbers of a Victorian anti-slavery ship.

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The U.S. said it will intensify sanctions against North Korea for sinking a South Korean warship, targeting members of Kim Jong Il’s regime and the foreign banks that help sustain the country’s weapons industry.

“These measures are not directed at the people of North Korea, who have suffered too long due to the misguided and malign priorities of their government,” Secretary of State Hillary Clinton said at a press briefing in Seoul today. “They are directed at the destabilizing, illicit, and provocative policies pursued by that government.”

Clinton’s sanctions announcement may raise tensions as she heads to Hanoi for a meeting on region security that includes her counterparts from North Korea and China. North Korea, whose economy has been battered by existing trade restrictions, has threatened to retaliate against any punitive actions over an incident it denies any part in.

“The measures seem to be aimed at what would hurt North Korea the most: its cash line,” said Kim Yong Hyun, a professor of North Korean studies at Seoul-based Dongguk University. “It remains to be seen how far the U.S. is willing to push it through, as it wouldn’t want a total collapse in dialogue.”

The U.S. has learned lessons from existing sanctions that will help make the new measures more effective, an administration official traveling with Clinton, who spoke on condition of anonymity, told reporters. Diplomats involved in illegal activities, such as money laundering and counterfeiting, would be targeted, a second official said.

Economic Impact

UN sanctions imposed on North Korea over its defiance of an international ban on missile tests caused the country’s international commerce to shrink 9.7 percent last year, according to Seoul-based trade agency, Kotra. North Korea doesn’t release its own trade figures.

“We have made clear that there is a path open to the DPRK to achieve the security and international respect it seeks,” Clinton said, using the initials of the formal name for North Korea. “If North Korea chooses that path, sanctions will be lifted, energy and other economic assistance will be provided, its relationship with the U.S. will be normalized.”

Continued threats against South Korea and military provocation would only lead to further punishment for the North Korean regime, Clinton said.

The sinking of the Cheonan has prompted the U.S. and South Korea to showcase their military and political alliance. The two countries yesterday said they will conduct joint naval and air exercises off South Korea’s east coast next week.

Show of Force

Secretary of Defense Robert Gates and Admiral Mike Mullen, the Chairman of the Joint Chiefs of Staff, were among senior defense officials who were also in South Korea for what Clinton described as “a real show of solidarity” and to mark the 60th anniversary of the outbreak of the Korean war.

The 97,000-ton aircraft carrier USS George Washington and three of destroyers arrived in the country today.

In a joint statement after the talks, the U.S. and South Korea urged North Korea to acknowledge that it was behind the attack. The North has said that the evidence of its involvement in the sinking was cooked up as an excuse for the U.S. to wage a “war of aggression.”

Containing China

The U.S. drills mask a hidden aim to “pressurize and contain other big powers by force of arms in the region,” the state-run Korea Central News Agency said today.

China, North Korea’s biggest economic partner, said it is “firmly opposed” to foreign military activities off its coastal water that affect the nation’s security interests, the Foreign Ministry said in a statement on its website today.

China has refused to join in international condemnation of North Korea, saying that it has no independent evidence of the North’s role in the ship sinking.

In addition to the U.S., North Korea and China, foreign ministers from South Korea, Japan and Russia will also be in the Vietnamese capital tomorrow to attend Asia’s biggest security forum. Those countries form the so-called six-party talks aimed at ending North Korea’s nuclear weapons program.

Southeast Asian countries will push North Korea to rejoin the talks, Indonesian Foreign Minister Marty Natalegawa said. This week’s meeting of 26 countries and the European Union will be the first to bring together senior envoys from all the six- party participants since the Cheonan sinking.

Asean Seeks Role

“The meeting later this week can provide the necessary political ambiance for things to happen,” Natalegawa said in an interview in Hanoi late yesterday. “We must ensure that we do not allow the situation to regress and develop in such a way that there could be a danger to the peace and stability of northeast Asia.”

Clinton and Gates made an unprecedented joint trip to the armed border dividing the Korean peninsula earlier today, before meeting their counterparts in Seoul this afternoon.

Clinton said that as she looked across the line that divided North from South “it struck me that although it may be a thin line, these two countries are worlds apart.”

In the South, there are leaders of the country “who care about its people,” she said. “The North has not only stagnated in isolation but the people of the North have suffered for so many years.”

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Senate Majority Leader Harry Reid is either holding his cards close to the vest or he is waiting to be dealt a hand.

Regardless, the Nevada Democrat's decision to remain silent on what will be in the climate and energy bill he hopes to take to the floor soon has his own party holding its breath.

"We are now waiting for Harry," Sen. Joe Lieberman (I-Conn.) told reporters on the way into yesterday's caucus lunches, where many had expected Reid to finally get specific about the details of his legislative plan.

But Democrats left the lunch with no better handle on what Reid has in mind for his legislation, including whether it will include a controversial plan to cap greenhouse gas emissions from power plants.

"Literally, there was some discussion right at the end for five minutes," Sen. Tom Carper (D-Del.) said of the meeting. "All these other issues took on a life of their own, expanded and left us with relatively little time to talk about energy issues."

Upon leaving yesterday's meeting, Reid's message was a familiar one to those tracking the Senate climate debate.

"We're going to make a decision in the near future," Reid told reporters. He said that Democrats would meet again tomorrow to discuss energy and climate but still he cautioned that the topic would be only one of "a number of things" on the agenda.

Reid said last week that the four-part plan he was working on would directly address carbon dioxide emissions from electric utilities, but he appears to be keeping his distance from the ongoing negotiations between the industry and Lieberman and Sen. John Kerry (D-Mass.) on that issue.

"I know almost nothing about it," Reid said regarding a morning meeting between Kerry, Lieberman and industry representatives.

Reid's evasiveness appears to be frustrating some in his own caucus.

"I assume he's got to make a decision this week because we're about to run out of time," said Senate Energy and Natural Resources Chairman Jeff Bingaman (D-N.M.), who added that he had stopped working with colleagues on legislative proposals for the bill because of the uncertainty.

"I'm not working with anyone," Bingaman said. "I'm waiting for Senator Reid to tell us what he's planning to do."

Lieberman was more gentle in his remarks but nonetheless appeared agitated with the tight time frame that Reid has imposed on the negotiations.

"These are big and important issues regarding energy independence, pollution reduction, job creation," he said. "That requires some time, so I hope that we are not going to force ourselves to be constrained by an artificial schedule."

Lieberman suggested that given everything that still remains in flux, the Senate might be better dealing with energy and climate legislation in a lame-duck session after the November elections. But he conceded that was not his decision to make.

"The schedule is Senator Reid's setting, not mine," Lieberman said.

With Reid aiming to bring a bill to the floor sometime next week, many observers expect him to unveil its specifics this week.

A handful of aides for several key Democrats gathered outside of today's meeting hoping to learn what those details were but, like everyone else, they left Reid's brief press conference still in the dark.

"I'm waiting to find out just like you guys," one aide told reporters.

Republicans, meanwhile, are also questioning Reid's slow pace of play and some are wondering aloud if he is bluffing.

"He's waiting until we have, like, two or three days to tackle a subject that usually takes seven or eight weeks," said Sen. Lamar Alexander (R-Tenn.). "So that makes it very difficult."

Sen. George Voinovich (R-Ohio), once targeted by Democrats as a possible 60th vote for their climate efforts, was even more pessimistic about Reid's chances of rounding up the votes to pass a bill that directly addresses carbon emissions.

"Anybody that has been in the Senate for any period of time knows there is no way, no way, that an energy bill is going to be done between now and the election and now and the end of this year," Voinovich said.

Sen. Olympia Snowe (R-Maine), the sole Republican who has indicated that she is open to the idea of a utility-only cap, said yesterday that she, too, is eager to hear what Reid's plans are.

"I just don't know what they are going to decide, whether or not they can even bring up an energy piece between now and August," Snowe said. "It might be less likely, given the limited time we have and the remaining items on our agenda."

Reid's relative silence and the growing frustration among some in his caucus are a sharp departure in tone from where the party was a month ago.

Reid and other party leaders left a policy lunch late last month with what they hailed as a renewed sense of unity around efforts to boost clean energy and curb greenhouse gas emissions. They called that meeting "inspirational," "powerful" and even "thrilling."

"Whatever form it takes, we're going to move forward," Reid said at the time of Democrats' climate and energy agenda.

But those words were not on Democrats' lips yesterday.

"Everyone has to understand, you can focus all the attention on us, and I appreciate you doing that, but we're still trying to find a Republican, or two or three to help with energy," Reid said.

But even if they do find a couple of Republicans to break with their own party's leadership, Democrats would still need to keep their caucus mostly united, something that is proving difficult. In the past week alone, they have learned that Sen. Ben Nelson (D-Neb.) and newly sworn in Sen. Carte Goodwin (D-W.Va.) will not support any of the current carbon-capping proposals on the table.

"It's one of those ironies where some people won't vote for a bill that doesn't begin to address carbon, and some people won't vote for a bill that does address carbon even in a modest way," Carper said.

Utility sector demands

Lieberman and Kerry held their latest round of talks with representatives from the utility sector early yesterday, and the pair have a long way to go toward winning industry support, Lieberman said.

Lieberman said he and Kerry may need until the fall to strike a deal with the utility sector, something that is seen as a prerequisite for the plan to cap emissions from power plants to win the needed 60 votes to avoid a Republican filibuster.

"I know there is a certain awkwardness in a lame-duck session, but these are big and important issues," Lieberman said.

Reid declined to answer questions about exactly when he would unveil a bill and when it would reach the floor. But according to Carper, who spoke with Reid yesterday morning, the top Senate Democrat is not keen on a lame-duck debate.

"My sense is that he's willing to set aside a couple of weeks to work on energy policy during this work period, but maybe not later," Carper said.

But Lieberman said such a time frame will make it difficult, if not impossible, to win over the utility sector.

"They want to work with us to see if they can negotiate an agreement on a utility-only bill, but as far as they are concerned, they can't do it in 10 days," Lieberman said. "So they pleaded for more time, so I think that is something we should consider."

Lieberman said that utilities would rather see a larger cap like the one he and Kerry proposed earlier this year, but that the industry is open to a carbon limit on just its sector in exchange for industry-friendly emissions allowances and relief from several existing Clean Air Act rules. But Lieberman cautioned that he and Kerry had yet to commit to any of the demands and were discussing them as part of the bargaining process.

"These are all topics of negotiation," the senator said. "That is what we are supposed to be doing here."

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Agriculture Secretary Tom Vilsack said today he is reconsidering his department's decision to fire a Georgia official in wake of new details about her controversial speech to the NAACP.

Vilsack said in a statement early Wednesday morning that he will "conduct a thorough review and consider additional facts" about his decision to ask Shirley Sherrod to resign. Washington's apparent reversal came hours after a video of Sherrod's full speech was released, and the director of rural development in Georgia was defended by the white couple at the center of the controversy.

The full, uncut video of a federal agricultural official's NAACP speech purporting racial scheming, told a different story than the barely-three-minute snippet that cost Sherrod her job.

Despite admitting in the edited version of the taping that she once withheld help to the couple on the basis of race, Sherrod was defended Tuesday by the wife of a white Georgia farmer.

Sherrod, "kept us out of bankruptcy," said Eloise Spooner, 82, of Iron City in southwest Georgia. Spooner, in an interview with The Atlanta Journal-Constitution, added she considers Sherrod a "friend for life." She and her husband, Roger Spooner, approached Sherrod for help in 1986 when Sherrod worked for a nonprofit that assisted farmers.

Sherrod, who is African-American, was asked to resign Monday night by a USDA official after videotaped comments she made in March at a local NAACP banquet surfaced on the Web. Recounting her dealings with the Spooners, Sherrod said she didn't help them as much as she could because of their race.

But a review of the entire 43-minute, 15-second speech -- released Tuesday on the NAACP Web site -- showed that Sherrod was giving a cautionary tale about the evils of racial separation.

"When I made that commitment (at age 17 years old to remain in Georgia and help people), I was making that commitment to black people, and to black people only," Sherrod said nearly 15 minutes into the recording, just seconds before the segment that brought her trouble. "But you know, God will ... put things in your path so that you realize that the struggle was really about poor people."

Next, Sherrod would say the words that eventually led to her losing her job.

"[The white farmer] was trying to show me he was superior to me," she said, recalling the day some 24 years ago. "I knew what he was doing, but he had to come to me for help."

Eloise Spooner said as far as she's concerned Sherrod worked tirelessly to help the couple hold onto their land as they faced bankruptcy.

Spooner said she spoke to Sherrod by phone Tuesday morning after the story hit cable news.

"She's very sad about it," Spooner said. "She told me she was so glad we talked. I just can't believe this is happening to her."

Agriculture Secretary Tom Vilsack issued a statement Tuesday saying the controversy made Sherrod's position as a rural development director, a job she was appointed to last March, untenable. But Vilsack said Wednesday that after learning more about what Sherrod actually said, he would reconsider.

Vilsack said in a statement early Wednesday morning that he will "conduct a thorough review and consider additional facts" about his decision to ask Sherrod to resign.

The NAACP, which had released a statement Monday critical of Sherrod, backtracked Tuesday, saying it was "snookered" by Andrew Breitbart, whose Web site biggovernment.com released the edited video. Breitbart did not respond to a request seeking comment.

"Having reviewed the full tape, spoken to Ms. Sherrod, and most importantly heard the testimony of the white farmers mentioned in this story, we now believe the organization that edited the documents did so with the intention of deceiving millions of Americans," NAACP President Ben Jealous said in a statement. "The tape of Ms. Sherrod’s speech at an NAACP banquet was deliberately edited to create a false impression of racial bias, and to create a controversy where none existed. This just shows the lengths to which extremist elements will go to discredit legitimate opposition."

In the video, Sherrod told the crowd at the NAACP banquet in Douglas, Ga., that she didn't do everything she could to help a white farmer whom she said was condescending when he came to her for aid.

"What he didn't know while he was taking all that time trying to show me he was superior to me was, I was trying to decide just how much help I was going to give him," Sherrod said on the video, recorded "I was struggling with the fact that so many black people had lost their farmland, and here I was faced with having to help a white person save their land. So I didn't give him the full force of what I could do. I did enough."

Sherrod, in her first interview after the clip surfaced, told The Atlanta Journal-Constitution the video was selectively edited.

While she soon admitted as she told her story that she referred the Spooners to a white lawyer so "his own kind would help him," she followed that admission with a revelation that was omitted from the two-minute, 36-second excerpt of the speech posted by Breitbart's group.

Sherrod told the crowd that she discovered the white lawyer she had referred the Spooners to took their money for six months, but did nothing to help them.

"This lawyer told them, ‘ya'll are getting old ... why don't you just let go of the farm,'" she said. "I could not believe he said that to them."

Sherrod said she'd learned her lesson.

"It's about the poor," Sherrod said, just over 20 minutes into the speech. "It made me see it really was about those who have, versus those who don't ... black, white or Hispanic.

"It made me realize that I needed to work to help poor people ... those who don't have access the way others have."

She said the incident helped her get beyond issues of race.

"And I went on to work with many more white farmers," she said. "The story helped me realize that race is not the issue, it's about the people who have and the people who don't."

Sherrod accused the USDA of cowering to right-wing media.

"They were just looking at what the Tea Party and what Fox (News) said, and thought it was too [politically] dangerous for them," Sherrod said of her former employer.

The Sherrod video surfaced a week after the NAACP issued a resolution calling some elements of the National Tea Party racist for comments allegedly made against President Obama and African-American congressmen during the health care debate.

Sherrod said it wouldn't have made any sense for her to espouse racist comments before the NAACP audience.

"There were some white people there. The mayor [of Douglas] was there," Sherrod recalled. "Why would I do something racist if they were there?"

Douglas Mayor Jackie Wilson told the AJC she introduced speakers at the banquet but left before Sherrod's speech.

Wilson said she did not hear of any controversy in the weeks following the banquet, adding she was shocked to learn of Sherrod's resignation.

"She's not someone I know extremely well, but I respected her and thought she was doing a good job. And she seemed to be a fair person," said Wilson. "I just hate that this kind of thing happened in Douglas."

Eloise Spooner said she'll stand up for her friend.

"She helped us and we're going to help them," she said.

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The 5,600 vessels taking part in the oil spill operation on the Gulf of Mexico make up the largest fleet assembled since the Allied invasion of Normandy, according to the Coast Guard.

Hordes of helicopters, bulldozers, Army trucks, ATVs, barges, dredges, airboats, workboats, cleanup crews, media, scientists and volunteers have descended on the beaches, blue waters and golden marshes of the Gulf Coast.

That's a lot of propellers, anchors, tires, and feet for a fragile ecosystem to take, and a tough truth is emerging: In many places, the oil cleanup itself is causing environmental damage.

Part of that is inevitable — the oil has to get cleaned up somehow, and BP and the government will be subject to second-guessing no matter what.

"Absolutely nothing you do to respond to an oil spill is without impacts of its own," said Lisa Jackson, administrator of the Environmental Protection Agency.

Since the Deepwater Horizon rig exploded April 20, killing 11, and oil began gushing into the Gulf, federal, state and BP officials say they have been guided in their response by picking the less damaging cleanup method.

Still, environmentalists and veterans of other spills say the torrent of untested cleanup methods rushed into practice by panicked officials and unqualified experts is wreaking havoc and, at least in spots, may be unnecessary.

"The more you disperse (with chemicals), the more you bring in these big machines, the more you bring in inexperienced people and the more sand berms you build, the less chance you have of letting Mother Nature and skimmers and booms do the job," said Mike Brewer of Buras, La., who ran an oil spill response company and is working on the BP cleanup.

For starters, the EPA allowed BP PLC to spray a chemical dispersant, a product called Corexit, to break up oil right as it came out of BP's broken well nearly a mile below the surface. The idea is to save shorelines from being clobbered with vast waves of crude.

In practice, the use of dispersants that had never been tested that far beneath the surface has made the oil much more difficult to track than it would have been in a single, massive slick. And environmentalists and marine biologists still aren't convinced the chemicals are safe for sea life.

The EPA halted underwater spraying while it tested samples collected by BP, then allowed it to resume once the results came back to the agency's satisfaction. Further tests are ongoing, and crews quit spraying dispersant once the well was contained this week, Jackson said.

"Basically, we conducted uncontrolled experiments in the open ocean — that does not seem like a good idea to me," said John Hocevar, the oceans campaign director for Greenpeace USA.

Jackson said there was little evidence that the chemical dispersants had caused damage and called their effects "relatively mild."

Eager to be seen as taking charge, Gov. Bobby Jindal began building a series of untested sand islands and other barriers along the Louisiana coast, making construction of these berms a personal crusade. In theory, sand berms and jetties will stop the oil from entering sensitive estuaries.

But berms and jetties interrupt shrimp and fish migrations as well as tidal flows; the work can even undermine what little is left of Louisiana's gooey and sediment-layered shoreline.

"None of the coastal scientists have signed onto this thing," said Leonard Bahr, a former adviser to both Republican and Democratic governors in Louisiana on coastal restoration issues.

Fishermen and locals, however, almost unanimously agree with Jindal's unorthodox barrier plans.

"We know these (berms) stop the oil. It worked on Fourchon Beach," said Windell Curole, a levee manager in south Lafourche Parish, an area long struggling with erosion. "The people that are pushing for these things are more invested in it than the scientists."

In a move that put its compensation costs toward curtailing the spill's environmental effects, BP hired truckloads of inexperienced oil spill responders — shrimpers, unemployed workers, college students, and migrant workers. The manpower is essential, but their footprint can be huge, especially if they're not used to watching their step.

"It was like the Wild West there for a while, and it still is to some degree," said Drew Wheelan, a wildlife biologist with the American Bird Association Inc., a conservation group.

Wheelan said cleanup crews trampled on numerous nesting bird colonies, including at least one batch of least tern eggs he saw. Wilson's plovers and endangered black skimmers on Louisiana's Grand Isle and East Grand Terre islands were threatened by intensive beach cleanups.

"The whole entire area in the past two weeks has been completely crisscrossed by tire tracks. The entire cleanup there has been entirely sickening," Wheelan said recently of East Grand Terre. "There are tire tracks from the low tide line all the way up into the dune vegetation. Not an inch of that frontal beach has been spared from traffic."

Out on the Gulf, BP brought in a super-sized skimmer from Taiwan — the "A Whale" — capable of sucking up 20 million gallons of water a day, aiming to corral huge quantities of oiled water at once. Like some of the other methods, it had never been tested and scientists worried that it could cause serious damage.

"It will suck in a lot of biology," said James Cowan, a Louisiana State University fisheries scientist.

Coast Guard officials questioned its effectiveness, noting that it would be better for attacking a single huge slick than for the countless smaller pools that the dispersant helped create. Authorities announced last week that the massive ship was dropping out of the spill operation.

Forrest Travirca has seen the cleanup's side effects up close as a land manager for the Wisner estate, a public land trust that includes Fourchon Beach and a large marsh area that has seen some of the heaviest oil so far.

On an airboat cruise through marsh, signs of the messy cleanup jumped out. Reddish-brown and sticky tar coated the blades of marsh grass behind a beach lined with sand baskets brought in by Army dump trucks. Absorbent boom lay washed up against shorelines. Crews had staked down shade tents every few hundred yards.

Almost as soon as he stepped onto the sand, Travirca saw something he didn't like: Two ATV tracks meandering carefree across the sands. Someone with the cleanup had strayed from designated traffic corridors.

"This really upsets me," Travirca said, standing over the fresh set of tracks. "They're not supposed to be driving back here. They've got to drive along the front of the beach. Birds nest back here."

He walked a few paces away and pointed out another set of ATV tracks he discovered a few days before. "This track here was inches from a tern nest with eggs."

At least now, more than three months after the spill, the cleanup is becoming more organized.

In the beginning, he said, the beach "looked like the autobahn."

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