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Obama renews calls for nuclear reductions
by JULIE PACE, Associated Press
Jun 19, 2013 | 20 views | 0 0 comments | 1 1 recommendations | email to a friend | print

FILE - In this May 21, 2013 file photo, President Barack Obama speaks in the State Dining Room of the White House in Washington. (AP photo/Pablo Martinez)
FILE - In this May 21, 2013 file photo, President Barack Obama speaks in the State Dining Room of the White House in Washington. (AP photo/Pablo Martinez)
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BERLIN (AP) — Appealing for a new citizen activism in the free world, President Barack Obama renewed his call Wednesday to reduce U.S. and Russian nuclear stockpiles and to confront climate change, a danger he called "the global threat of our time." In a wide-ranging speech that enumerated a litany of challenges facing the world, Obama said he wanted to reignite the spirit that Berlin displayed when it fought to reunite itself during the Cold War. "Today's threats are not as stark as they were half a century ago, but the struggle for freedom and security and human dignity, that struggle goes on," Obama said at the city's historic Brandenburg Gate under a bright, hot sun. "And I come here to this city of hope because the test of our time demands the same fighting spirit that defined Berlin a half-century ago." The president called for a one-third reduction of U.S. and Russian nuclear stockpiles, saying it is possible to ensure American security and a strong deterrent while also limiting nuclear weapons. Obama's address comes nearly 50 years after John F. Kennedy's famous Cold War speech in this once-divided city. Shedding his jacket and at times wiping away beads of sweat, the president stood behind a bullet-proof pane and read his remarks from text before a crowd of about 6,000. It was a stark contrast to the speech he delivered in the city in 2008, when he summoned a crowd of 200,000 to embrace his vision for American leadership. Whereas that speech soared with his ambition, this time Obama came to caution his audience not to fall into self-satisfaction. "Complacency is not the character of great nations," Obama insisted. "Today," he said, "people often come together in places like this to remember history, not to make it. Today we face no concrete walls or barbed wire." The speech came just one week shy of the anniversary of Kennedy's famous Cold War speech in which he denounced communism with his declaration "Ich bin ein Berliner" (I am a Berliner). Obama, clearly aware that he was in Kennedy's historic shadow, asked his audience to heed the former president's message. "If we lift our eyes as President Kennedy calls us to do, then we'll recognize that our work is not yet done," he said. "So we are not only citizens of America or Germany, we are also citizens of the world." Obama spoke repeatedly of seeking "peace with justice" around the world by confronting intolerance, poverty, Middle East conflicts and economic inequality. But even before his speech, White House aides were drawing attention to his call for nuclear reductions, casting it as the centerpiece of his address. "Peace with justice means pursuing the security of a world without nuclear weapons, no matter how distant that dream may be," Obama said. "We can ensure the security of America and our allies and maintain a strong and credible strategic deterrent while reducing our deployed strategic nuclear weapons by up to one-third," he said. Signaling a new effort to pick up his delayed environmental agenda, Obama also issued a call to tackle climate change, an issue he has promised to make a priority since his 2008 presidential campaign. "Peace with justice means refusing to condemn our children to a harsher, less hospitable planet," he said. He said the U.S. has expanded renewable energy from clean sources and is doubling automobile fuel efficiency. But he said that without more action by all countries, the world faces what he called a grim alternative of more severe storms, famine, floods, vanishing coastlines and displaced refugees. "This is the future we must avert," he said. "This is the global threat of our time." Among those in the audience, Doro Zinke, president of the Berlin-Brandenburg trade union federation, said she heard nothing unexpected in Obama's speech. "I think he's really got to deliver now," she said. But others gave him credit for just coming to Berlin, five years into his presidency. "The most important message here was that he came to Berlin and spoke to us and the world," said Catharina Haensch, a Berliner born in the communist east of the city who now works for the Fulbright Commission. "Even If it looks like he isn't able to fulfill all of his promises, you've got to keep on hoping." Obama said he intends to seek negotiated nuclear arsenal cuts with Russia, thus steering away from any unilateral U.S. reductions. Moreover, Obama said he would work with NATO allies to seek "bold reductions" in U.S. and Russian tactical weapons in Europe. Obama could face objections among NATO countries where many strongly oppose removing U.S. nuclear weapons because they worry that the Russians have a far greater number of tactical nuclear weapons within range of their territory. In Washington, reaction was mixed. Rep. Adam Smith of Washington state, the top Democrat on the House Armed Services Committee, welcomed Obama's announcement, saying that reducing nuclear stockpiles "will improve our national security, while maintaining our nuclear triad and our ability to deter and respond to any perceived or real nuclear threat. But Rep. Michael Turner, R-Ohio, a member of the House Armed Services Committee, accused Obama of appeasement in endorsing further reductions in nuclear weapons, saying the president "seems only concerned with winning the approval of nations like Russia, who will applaud a weakened United States." Sen. Bob Corker of Tennessee, the top Republican on the Foreign Relations Committee, said Secretary of State John Kerry called him on Tuesday and reassured him that any further reductions in nuclear weapons would not be done unilaterally. Rather, the cuts would be part of treaty negotiations subject to a Senate vote. Corker criticized Obama's move without additional modernization of the arsenal. "The president's announcement without first fulfilling commitments on modernization could amount to unilateral disarmament," Corker said. "The president should follow through on full modernization of the remaining arsenal and pledges to provide extended nuclear deterrence before engaging in any additional discussions." The president discussed non-proliferation with Russian President Vladimir Putin when they met Monday on the sidelines of the Group of 8 summit in Northern Ireland. During Obama's first term, the U.S. and Russia agreed to limit their stockpiles to 1,550 as part of the New START Treaty. In Moscow, Russian foreign policy aide Yuri Ushakov said that plans for any further arms reduction would have to involve countries beyond Russia and the United States. "The situation is now far from what it was in the '60s and '70s, when only the U.S.A. and the Soviet Union discussed arms reduction," Ushakov said. Obama's calls for cooperation with Moscow come at a time of tension between the U.S. and Russia, which are supporting opposite sides in Syria's civil war. Russia also remains wary of U.S. missile defense plans in Europe, despite U.S. assurances that the shield is not aimed at Moscow. Germany's foreign minister, Guido Westerwelle, is a strong advocate of nuclear disarmament and has long called for the removal of the last U.S. nuclear weapons from German territory, a legacy of the Cold War. The Buechel Air Base in western Germany is one of a few remaining sites in Europe where they are based. Under an agreement drawn up when they formed a coalition government in 2009, German Chancellor Angela Merkel's conservatives and Westerwelle's Free Democratic Party agreed to press NATO and Washington for the nuclear weapons to be withdrawn, but did not set any timeframe. Nuclear stockpile numbers are closely guarded secrets in most nations that possess them, but private nuclear policy experts say no countries other than the U.S. and Russia are thought to have more than 300. The Federation of American Scientists estimates that France has about 300, China about 240, Britain about 225, and Israel, India and Pakistan roughly 100 each. ___ Associated Press writers Frank Jordans and Jim Kuhnhenn contributed to this report.
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Stocks edge lower as investors wait on Fed
by STEVE ROTHWELL, AP Markets Writer
Jun 19, 2013 | 50 views | 0 0 comments | 0 0 recommendations | email to a friend | print
NEW YORK (AP) — Stocks edged lower in early trading on Wall Street Wednesday as investors waited for word from the Federal Reserve. The U.S. central bank will release its latest policy update at 2 p.m. Eastern Daylight Time. Fed chairman Ben Bernanke will speak at a press conference thirty minutes later. The Fed has been buying $85 billion of bonds a month to support an economy that is still struggling to recover following the Great Recession. Comments by Bernanke last month suggesting the central bank may soon ease that support unsettled investors and caused this year's rally in stocks to stall. "All eyes are on Bernanke and markets are being held hostage until he speaks," said Joseph Tanious, Global Market Strategist at J.P. Morgan Funds. The Dow Jones industrial average fell 20 points, or 0.1 percent, to 15,298 in the first half hour of trading. The Standard & Poor's 500 index dropped two points, or 0.1 percent, to 1,649. The Nasdaq composite fell a point, less than 0.1 percent, to 3,481. Bernanke is unlikely to give investors any greater clarity as to when the Fed will start to pull back on its stimulus, Tanious said. Instead, he expects the Fed chairman to reaffirm the bank's view that the U.S. economy is slowly improving and that it will consider reducing the stimulus at some point this year. While stocks may decline in the short term after Wednesday's announcement, they should revive over coming months as investors start to focus on the outlook for the economy and company earnings. "Once we get past Bernanke's testimony today, and once we're past the knee-jerk reaction, whatever it may be, I suspect the markets (to) head higher," said Tanious. The yield on the 10-year Treasury note was unchanged from late Tuesday at 2.19 percent. In commodities trading, the price of oil was little changed at $98.67 a barrel. The price of gold dropped $3.80, or 0.3 percent, to $1,371 an ounce. The dollar edged lower against the euro and the Japanese yen. Among stocks making big moves: — Adobe jumped $2.72, or 6.3 percent, to $46.08 after the software maker said that its Creative Cloud subscriptions continued to climb in its fiscal second quarter. — Sprint Nextel fell 24 cents, or 3.3 percent, to $7.08 after satellite TV operator Dish Network said late Tuesday that it wouldn't submit a revised bid for the wireless carrier. — FedEx rose $2.07, or 2.1 percent, to $101.70 after the company posted earnings that beat the expectations of Wall Street analysts.
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House panel starts rewrite of No Child Left Behind
by PHILIP ELLIOTT, Associated Press
Jun 19, 2013 | 129 views | 0 0 comments | 4 4 recommendations | email to a friend | print
FILE photo (AP Photo/Carolyn Kaster)
FILE photo (AP Photo/Carolyn Kaster)
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WASHINGTON (AP) — House Republicans moved forward Wednesday with a rewrite of GOP President George W. Bush's prized No Child Left Behind Act, pushing a bill that would strip Education Secretary Arne Duncan and his successors of power and give more authority to the states. Members of the Republican-led House Education and the Workforce Committee began to dismantle the existing education law in favor of an alternative they branded the Student Success Act, which would allow state and local school chiefs to decide if students are being well served. Democrats on the panel objected to the proposed revision, saying it shirks Washington's role in guaranteeing support for poor and minority students. Members of the Republican-led panel planned to finish their rewrite on Wednesday and send a fully revamped bill to the full House for a vote in coming weeks. Reducing Washington's role in education is an important plank for the GOP's base, and leaders were eager to show tea partyers they were delivering on promises. "The secretary — or any single federal official — was never intended to have such unprecedented power. And Congress has a responsibility to protect the autonomy of states and school districts," said Rep. Todd Rokita, an Indiana Republican who chairs the subcommittee on early childhood, elementary and secondary education. Republicans and Democrats alike on the panel agreed the Bush-era No Child Left Behind law had problems and said changes were needed. But Democrats objected to the GOP approach that shifts oversight authority to states and sends federal education dollars as a block grants to state leaders to decide how best to spend them. "The Republican bill does a poor job of ensuring all students have access to high quality education," said Rep. Ruben Hinojosa, D-Texas. He said students whose primary language is not English, those from poor areas, Native American and Alaskan Native students, and rural schools would suffer. "This is clearly unacceptable at a time when our nation's schools are becoming increasingly diverse," Hinojosa said. Other Democrats criticized the proposal for giving too much preference to charter schools, reducing the amount of data schools would be required to send to Washington and not emphasizing graduation rates. Republicans dismissed those criticisms as distractions and said the bill included those requirements. "As is always the case, it's important to actually sit down and read the legislation," said Rep. John Kline, the Republican chairman of the panel. The latest development followed by less than 24 hours Duncan's statement telling states they could to be given another year before being required to use student test results to decide whether to keep or fire teachers. That requirement was part of a deal many states made with Duncan in exchange for permission to ignore No Child Left Behind. "Instead of helping Congress fix the law, the Obama administration granted 37 states and the District of Columbia temporary, conditional waivers in exchange for implementing the president's preferred reforms," Kline said. "The result expanded federal control and raised serious questions about what the future could hold for our schools." Most of the debate hinged on how much say Washington could have in schools. "I trust the teacher in the classroom a lot more than I trust anyone on this panel," said Rep. Matt Salmon, R-Ariz. One Democrat on the panel, Rep. Jared Polis of Colorado, said he was sympathetic to frustrations with Washington. "I don't think we need to increase the federal role," Polis said. "It's not about reducing or increasing the federal role. It's about a disruptive federal role." But Polis said Washington must guarantee "opportunity reaches every student in every corner of this land." The Democratic-led Senate education panel already finished work on its rewrite of the law. The Senate version also shifted responsibility away from the one-size-fits-all requirements of the existing No Child Left Behind Act and would allow state officials to write their own school improvement plans. But the Senate version still gives the education secretary the authority to approve or reject reform plans. No vote has been scheduled for the Senate proposal. Aides suggested it could be autumn or later before the full Senate votes on that legislation.
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Senator: IRS to pay $70M in employee bonuses
by STEPHEN OHLEMACHER, Associated Press
Jun 19, 2013 | 130 views | 0 0 comments | 5 5 recommendations | email to a friend | print
FILE: This March 22, 2103 file photo shows the exterior of the Internal Revenue Service building in Washington. (AP Photo/Susan Walsh, File)
FILE: This March 22, 2103 file photo shows the exterior of the Internal Revenue Service building in Washington. (AP Photo/Susan Walsh, File)
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WASHINGTON (AP) — The Internal Revenue Service is about to pay $70 million in employee bonuses despite an Obama administration directive to cancel discretionary bonuses because of automatic spending cuts enacted this year, according to a GOP senator. Sen. Chuck Grassley of Iowa says his office has learned that the IRS is executing an agreement with the employees' union on Wednesday to pay the bonuses. Grassley says the bonuses should be canceled under an April directive from the White House budget office. The directive was written by Danny Werfel, a former budget official who has since been appointed acting IRS commissioner. "The IRS always claims to be short on resources," Grassley said. "But it appears to have $70 million for union bonuses. And it appears to be making an extra effort to give the bonuses despite opportunities to renegotiate with the union and federal instruction to cease discretionary bonuses during sequestration." The IRS said it is negotiating with the union over the matter but did not dispute Grassley's claim that the bonuses are imminent. Office of Management and Budget "guidance directs that agencies should not pay discretionary monetary awards at this time, unless legally required," IRS spokeswoman Michelle Eldridge said in a statement. "IRS is under a legal obligation to comply with its collective bargaining agreement, which specifies the terms by which awards are paid to bargaining-unit employees." Eldridge, however, would not say whether the IRS believes it is contractually obligated to pay the bonuses. "In accordance with OMB guidance, the IRS is actively engaged with NTEU on these matters in recognition of our current budgetary constraints," Eldridge said. The National Treasury Employees Union did not respond to requests for comment. The IRS has been under fire since last month, when IRS officials acknowledged that agents had improperly targeted conservative groups for additional scrutiny when they applied for tax-exempt status during the 2010 and 2012 elections. A few weeks later, the agency's inspector general issued a report documenting lavish employee conferences during the same time period. Three congressional committees and the Justice Department are investigating the targeting of conservative groups. And key Republicans in Congress are promising more scrutiny of the agency's budget, especially as it ramps up to play a major role in implementing the new health care law. Much of the agency's top leadership has been replaced since the scandals broke. President Barack Obama forced the acting commissioner to resign and replaced him with Werfel, who used to work in the White House budget office. In a letter to Werfel on Tuesday, Grassley said the IRS notified the employee union March 25 that it intended to reclaim about $75 million that had been set aside for discretionary employee bonuses. However, Grassley said, his office has learned that the IRS never followed up on the notice. Instead, Grassley said, the IRS negotiated a new agreement with the bargaining unit to pay about $70 million in employee bonuses. Grassley's office said the information came from a "person with knowledge of IRS budgetary procedures." "While the IRS may claim that these bonuses are legally required under the original bargaining unit agreement, that claim would allegedly be inaccurate," Grassley wrote. "In fact, the original agreement allows for the re-appropriation of such award funding in the event of budgetary shortfall." Werfel wrote the directive on discretionary employee bonuses while he was still working in the White House budget office. The directive was part of the Obama administration's efforts to impose across-the-board spending cuts enacted by Congress. The spending cuts, known as "sequestration," are resulting in at least five unpaid furlough days this year for the IRS' 90,000 employees. On these days, the agency is closed and taxpayers cannot access many of the agency's assistance programs. Werfel's April 4 memorandum "directs that discretionary monetary awards should not be issued while sequestration is in place, unless issuance of such awards is legally required. Discretionary monetary awards include annual performance awards, group awards, and special act cash awards, which comprise a sizeable majority of awards and incentives provided by the federal government to employees." "Until further notice, agencies should not issue such monetary awards from sequestered accounts unless agency counsel determines the awards are legally required. Legal requirements include compliance with provisions in collective bargaining agreements governing awards."
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