Tuesday, February 26, 2013

Cypriot conservative romps to presidential victory

NICOSIA (Reuters) - Cypriot conservative leader Nicos Anastasiades won an overwhelming victory in a presidential run-off election on Sunday, promising to quickly finalize a financial rescue to stave off the island's bankruptcy.

Eight months of inconclusive talks on a bailout package have turned tiny Cyprus into a big headache for the euro zone, triggering fears of a financial collapse which would reignite the bloc's debt crisis.

Anastasiades immediately pledged to hammer out a quick deal with foreign lenders and bring Cyprus closer to Europe, in a shift from the policies of the outgoing Communist government that first sought aid from Russia before turning to the EU.

"We want Europe on our side. We will be absolutely consistent and meet our promises. Cyprus belongs to Europe," Anastasiades told jubilant supporters waving Greek flags and blowing horns. "We will restore the credibility of Cyprus in Europe and internationally. I promise you."

A sea of Greek flags far outnumbered the few Cypriot flags at an indoor stadium where Anastasiades - whose party is proud of its members' ethnic Greek identity - spoke.

The 66-year-old lawyer, known for his no-nonsense style and hot temper, took 57.5 percent of the vote, 15 points ahead of his anti-austerity Communist-backed rival Stavros Malas.

The decisive outcome showed a clear mandate from Cypriots for an aggressive, pro-bailout approach to resolving the nation's financial quagmire, despite growing despondency over austerity measures that will have to accompany any such rescue.

"It's a triumph," said Stefanos Stefanou, a 62-year-old pensioner as he stood outside Anastasiades's campaign offices. "I won't have the fear of losing my pension and benefits now, along with what we earned after working for 40 years."

Financial markets had been hoping for an Anastasiades victory to speed up a joint rescue by the European Union and International Monetary Fund before the island runs out of cash and derails fragile confidence returning to the euro zone.

Virtually all rescue options - from a bailout loan to a debt writedown or slapping losses on bank depositors - are proving unpalatable because they push Cypriot debt to unmanageable levels or risk hurting investor sentiment elsewhere in the bloc.

German misgivings about the nation's commitment to fighting money-laundering and strong financial ties with Russia have further complicated the negotiations.

Anastasiades, a heavy smoker known for his no-nonsense style and who counts fellow conservative German Chancellor Angela Merkel among his contacts, has stressed his pro-European credentials stand him in better stead to seal a deal than the outgoing president, who is the EU's last Communist leader.

In a clear shift with the policies of his predecessor, Anastasiades said one of his first tasks would be to apply for Cypriot membership of the NATO-affiliated Partnership for Peace.

Cyprus's Communist government strongly objected to any NATO links, holding it responsible for what it says was a conspiracy to split the island in 1974.

"We need a government with weight that can talk to (EU) partners, that is cooperative, that can be heard and do what it pledges to do," Christopher Pissarides, a Cypriot who won the Nobel prize in economics in 2010 told Reuters.

"We hadn't been doing this until now. The most important thing is to signal our willingness to cooperate (with the EU)."

EU Commission president Jose Manuel Barroso said he spoke to Anastasiades after the victory and assured him that the bloc was committed to helping Cyprus overcoming its problems.

SOUR NATIONAL MOOD

Anastasiades takes the reins of a Mediterranean nation ravaged by its worst economic crisis in four decades, with unemployment at a record high of 15 percent. Pay cuts and tax hikes ahead of a bailout have further soured the national mood.

His most immediate task will be to appoint a finance minister who can convince Europeans to agree a swift bailout. It is likely to be Michael Sarris, a widely respected former World Bank economist who ushered Cyprus into the euro zone in 2008 as finance minister under a centre-left government.

European officials want a bailout agreed by the end of March, ensuring no honeymoon period for the new president, who will be sworn in on February 28 and assume power on March 1.

Talks to rescue Nicosia have dragged on since June, after a Greek sovereign debt restructuring saddled its banks with losses. It is expected to need up to 17 billion euros in aid - about the size of its entire economy.

Anastasiades has suggested the island may even need a bridging loan to tide it over until a rescue is nailed down.

Turnout was lower than expected among the half a million Cypriots eligible to vote, with a 19 percent abstention rate blamed on despondency at the country's grim prospects.

Longstanding anger over the island's 40-year-old division into the Greek-speaking south and Turkish north has been relegated to a distant second behind the country's financial quagmire as an election issue this year.

"Cyprus has to move forward," said Marios, an 18-year-old army conscript who declined to give his last name for fear of violating army rules.

"We were prospering but in the last five years we started going backwards."

(Additional reporting by Stelios Orphanides; Writing by Deepa Babington; Editing by Jason Webb)

Source: http://news.yahoo.com/cyprus-votes-president-clock-ticks-bailout-deal-000647202.html

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Monday, February 18, 2013

Correa challenger concedes defeat in Ecuador

QUITO, Ecuador (AP) ? President Rafael Correa's main challenger has conceded defeat in Ecuador's presidential vote.

Parrtial official results show Correa winning his third term with 56.7 percent of the vote compared to Guillermo Lasso's 24 percent.

Lasso congratulated Correa just minutes after the results were released Sunday evening.

He said Correa and his team deserves Ecuadoreans' respect for his triumph.

Source: http://news.yahoo.com/correa-challenger-concedes-defeat-ecuador-012240215.html

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Friday, February 15, 2013

Bawdy billboard ad flusters Mayor Rahm Emanuel

An Arrangement Finders (arrangementfinders.com) billboard near northwest corner Ontario Clark is photographed Wednesday February 13 2013. I Brian Jackson~Sun-Times

An Arrangement Finders (arrangementfinders.com) billboard near the northwest corner of Ontario and Clark is photographed on Wednesday, February 13, 2013. I Brian Jackson~Sun-Times

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Updated: February 14, 2013 3:24AM

Think of Chicago, and no doubt retired porn star Bree Olson and a certain sexual act come to mind.

No?

The new billboard at Clark and Ontario featuring Olson and the caption ??? ?Because the best job is a b--w job? ? was specifically tailored for Chicago, say the brains behind the message, the hook-up dating website ArrangementFinders.com. Olson gained mainstream fame as one of Charlie Sheen?s ?goddesses.?

?We specifically picked Chicago for this website,? said A.J. Perkins, in charge of marketing for the Toronto-based company.

The marketing folks were thinking about the high unemployment rate in the city when they came up with the catchy slogan, Perkins said. Part of the lewd phrase on the billboard is blurred out.

?We wanted to come up with a billboard that had some sort of play on the word, ?jobs,?? Perkins said.

For those who might find the billboard offensive, Perkins explains: ?I can see that opinion on it, but with something like that, it speaks to a certain audience. It speaks to men and women who aren?t looking for a traditional relationship.?

The billboard is apparently having its intended effect.

About 1,300 Chicagoans had signed up for the dating service on Feb. 5. On Feb. 12, the same day the billboard went up, another 1,900 people in the city signed up, Perkins said.

Mayor Rahm Emanuel was taken aback ? and appeared somewhat dumbfounded when asked about the racy billboard after Wednesday?s City Council meeting.

?You are a living example of why people should not have either smartphones or technology,? the mayor told a local television reporter who was holding up a picture of the racy billboard on his cellphone.

Emanuel laughed uncomfortably when asked whether the message on the billboard was an appropriate one or met his standards for Chicago.

?Obviously, it?s not one I share,? he said. ?Look, we have a First Amendment. You usually operate under it. There are certain things you say I don?t think [are] appropriate also. But that said, I?m not gonna respond to that because I haven?t seen it. You?re just reading it to me. But we do have a First Amendment, and I?ve got to take a look into it.?

Told that he might turn red from embarrassment when he does see the billboard, Emanuel replied, ?I might. But it will be for other reasons ? not that.?

Source: http://www.suntimes.com/news/18207156-418/bawdy-billboard-ad-flusters-mayor-rahm-emanuel.html

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Microsoft will lose $2.5 billion a year if it doesn't launch Office for the iPad, says Morgan Stanley

Microsoft will forgo serious revenue if it doesn't launch a full-blown version of Office for the iPad -- an estimated $2.5 billion a year, according to a Morgan Stanley analyst. Even though the math is wrong, don't be surprised to eventually see Office for the iPad, no matter what Steve Ballmer has recently said.

Fortune reports that $2.5 billion estimate from Morgan Stanley's Adam Holt. I don't buy the number -- and I'll explain why later in the blog -- but it's wortwhile seeing how he gets there. He claims that 30% to 40% of Mac users install Office, and so assumes that 30% of iPad users would install Office on their iPads if a full-blown version were available.

Here's how he then arrives at the $2.5 billion, according to Fortune:

Assuming a similar 30% attach rate in 2014 on roughly 200 million iPads at an average selling price of $60 comes to more than $2.5 billion in extra revenue per year, even after Apple takes its 30% cut off the top.

Fortune then reports that he said, "The math is compelling, and may drive MSFT to move Office."

The math, though, is wrong. Microsoft is no longer interested in selling single-user versions of Office, and is instead pushing subscriptions to Office 365. With a subscription, you can put Office on up to five different devices for $100 a year. Many people with iPads who want Office will likely have already subscribed for their PCs or Macs. So you can't count on $60 in revenue for each version of Office on iPads -- a good deal of money will have already been spent on a subscription,

Still, a fair number of people may be pushed into subscribing to Office because of iPad availability. And quite a few people may end up buying a single-user version of Office for the iPad as well. So there's no doubt Office for the iPad will be a big money-driver, but not to the tune of $2.5 billion a year. In addition, it will help fend off competition from Google Apps.

Steve Ballmer has hinted that Microsoft won't release a version of Office for the iPad any time soon. He's hinted that because there's a Web-based version of Office, there's no need to develop an iPad Office app. When asked by Reuters about the progress of such an app, he said:

"We do have a way for people always to get to Office through the browser, which is very important. And we'll see what we see in the future."

Given that an Office app for the iPad could help sell subscriptions to Office, I expect that we'll eventually see one, no matter what Ballmer told Reuters. It's just not clear when that might be.

Source: http://blogs.computerworld.com/desktop-apps/21786/microsoft-will-lose-25-billion-year-if-it-doesnt-launch-office-ipad-says-morgan-stanley

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GOP tries to clear Lil' Fella out of the House by making him 2014's sacrificial lamb

Hilarious.

National Review says that Michigan Republican sources tell them Rep. Justin Amash (R-Mich.), the second-termer endorsed by Ron Paul who does a very good job holding down the hardcore libertarian fort in Congress, might try to decamp to the Senate next year:

?People are asking him to look at it, and he hasn?t closed the door,? says a Republican operative familiar with Michigan politics. ?If [incumbent Democrat Carl] Levin steps down, I think he?s going to run.?

Lil' Fella might actually be dumb enough to think that he can win a statewide race, which is why they're trying to talk him into not running for the 3rd District next year so they don't have to spend the money to primary him out of office. Otherwise, I can't imagine a reason why Republicans, who mostly hate the guy, would tell him to run for a Senate seat he'd certainly lose, even if it's Gary Peters.

Source: http://www.michiganliberal.com/diary/20090/gop-tries-to-clear-lil-fella-out-of-the-house-by-making-him-2014s-sacrificial-lamb

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Fantasy Baseball Roundtable Show 2013 - Feb 21,2013

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    On his show, Comedian Rodney Perry covers arts and entertainment, everything from comedy and politics to music and acting, with his signature comedic slant.

  • MashUp Radio is a 30-minute podcast that discusses the fusion of technology, life, culture and science. Host Peter Biddle, engineer and executive for Intel?s Atom Software, dishes up a thought-provoking discussion.

  • Joy Keys provides her listeners with insight to improve their lives mentally, physically, monetarily and emotionally. Past guests on the show have included Meshell Nedegeocello, Blair Underwood, in addition to an impressive list of CEOs, humanitarians and authors.

  • Host Barry Moltz gets small businesses unstuck. He has founded and run small businesses with a great deal of success and failure for more than 15 years. This is a business radio show where he shares all the craziness of small business. It?s that craziness that actually makes it exciting, interesting and totally unpredictable.

  • The Bottom Line Sports Show is hosted by former NBA stars Penny Hardaway, Charles Oakley, Mateen Cleaves. Tune in to get the inside scoop on what's happening in sports today.

  • Deepak Chopra Radio provides an online forum for compelling and thought provoking conversations on success, love, sexuality and relationships, well-being and spirituality.

  • Hits Radio covers basketball, sports culture and entertainment with past guests including Jason Kidd, Robin Lundberg and Chris Herren.

  • Listeners get an earful on The Halli Casser-Jayne Show, Talk Radio for Fine Minds. Whether it?s the current political cocktail or the latest must-read award-winning book, Halli tackles all topics and likes to stir ? and sometimes shakes ? things up.

  • Official Internet radio show of forthcoming epic paranormal investigation book by Eric Olsen and "Haunted Housewife" Theresa Argie.

  • Award-winning World Footprints is a leading voice in socially responsible travel and lifestyle. Hosts Ian & Tonya celebrate culture and heritage and bring a unique voice to the world of travel.

  • Football Reporters Online is a group of veteran football experts in the fields of coaching, scouting, talent evaluation, and writing/broadcasting/media placement. Combined, the group brings well over 100 years of expertise in sports.

  • Host John Martin interviews the nation's leading entrepreneurs and small biz experts to educate small business owners on how to be successful. Past guests have included Emeril Lagasse and Guy Kawasaki.

  • The Movie Geeks share their passion for the art through interviews with the stars of and creative minds behind your favorite flicks and pay tribute to big-screen legends. From James Cameron and Francis Ford Coppola to Ellen Burstyn and Robert Duvall, The Geeks have got'em all.

  • Sylvia Global presents global conversations pertaining to women, wealth, business, faith and philanthropy. Sylvia has interviewed an eclectic mix from CEOs and musicians to fashion designers and philanthropists including Randolph Duke and Ne-Yo.

  • Mr. Media host Bob Andelman goes one-on-one with the hottest, most influential minds from the worlds of film, TV, music, comedy, journalism and literature. That means A-listers like Kirk Douglas, Christian Slater, Kathy Ireland, Rick Fox, Chris Hansen and Jackie Collins.

  • Paula Begoun, best-selling author of Don't Go to the Cosmetics Counter Without Me, separates fact from fiction on achieving a radiant, youthful complexion at any age. She?s regularly joined by health and beauty experts who offer the latest on keeping your skin in tip-top shape.

  • Source: http://www.blogtalkradio.com/fantasy-baseball-roundtable/2013/02/21/fantasy-baseball-roundtable-show-2013

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    Thursday, February 14, 2013

    2014 NFL Predictions: Who Will Win Super Bowl XVLVIII?

    repostus bttn lng repost 2014 NFL Predictions: Who Will Win Super Bowl XVLVIII? Tweet

    The Super Bowl is the biggest game of the year in any sport and in 2014 this sport will be under more scrutiny that it has ever received. The big game will be hosted by New York / New Jersey and with the possibility of bad weather and halftime show difficulties; this could be one of the most interesting Super Bowls in decades.

    Bovada Sportsbook was the first online gaming portal to release odds for the big game. Here is a look at the favorites, and the longshots to win Super Bowl XLVII.

    New England Patriots ?Odds to win Super Bowl XLVIII 15-to-2

    tumblr mhrpaavisN1rge74zo1 500 2014 NFL Predictions: Who Will Win Super Bowl XVLVIII?

    Six Teams That Can Win Super Bowl XLVIII

    The New England Patriots did not even play in the Super Bowl a year ago, yet they are still the favorites to win it this year. Bill Belichick and Tom Brady always find a way to make the Patriots a contender, but there are other teams that are worth a look.

    Bet on the New England Patriots to win Super Bowl XLVIII Here

    Denver Broncos ?Odds to win Super Bowl XLVIII 7-to-1

    The Broncos were a botched play away from hosting the AFC Championship game and with Peyton Manning back and healthy the Broncos are legitimate e contenders to win the Lombardi Trophy.

    Bet on the Denver Broncos to win Super Bowl XLVIII Here

    San Francisco 49ers ?Odds to win Super Bowl XLVIII 7-to-1

    The San Francisco 49ers nearly won the Super Bowl in 2013 and with a young team and a great coaching staff it is no surprise that the 49ers are favorites to add another trophy to the case in San Francisco.

    Bet on the San Francisco 49ers to win Super Bowl XLVIII Here

    2014 Super Bowl Odds-Longshots

    Picking a favorite to win Super Bowl XLVIII is easy, but what about some longshots? Here are three longshots that have a chance to win the Lombardi Trophy in 2014.

    New York Giants ?Odds to win Super Bowl XLVIII 20-to-1

    The Giants have gone through some transition in the off season but they still have Eli Manning under center. As long they have an intimidating defense and Manning throwing the ball they will always have a chance to win it all.

    Bet on the New York Giants to win Super Bowl XLVIII Here

    New Orleans Saints ?Odds to win Super Bowl XLVIII 14-to-1

    The Saints had one of their worst years defensively and it only can get better. Drew Brees still leads one of the best offenses in the NFL and with Sean Payton back to coach the team the Saints can win the Super Bowl. ?

    Bet on the New Orleans Saints to win Super Bowl XLVIII Here

    Arizona Cardinals ?Odds to win Super Bowl XLVIII 66-to-1

    What is a Super Bowl prediction article without a true dark horse? The Arizona Cardinals played impressively on defense but they just needed a suitable quarterback. With a new coaching change the sky is the limit for this franchise.

    Bet on the Arizona Cardinals to win Super Bowl XLVIII Here

    For a complete list of the 2014 odds to win the Super Bowl click here for the breakdown of every team and their chances to win the Super Bowl.

    Want to bet on NFL Futures? Sign up at Bovada and get a 50% Welcome Bonus and $250 to bet on football!

    Source: http://bookieblitz.com/2014-nfl-predictions-who-will-win-super-bowl-xvlviii/

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    Wednesday, February 13, 2013

    Dina Manzo Reality Show: Coming Soon!

    Source: http://www.thehollywoodgossip.com/2013/02/dina-manzo-reality-show-coming-soon/

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    Russians may end up with a web vetted by The League for Internet Safety

    Russia's Internet is facing official efforts to rein it in. Users are in an uproar over suggestions they should soon be sent only to a list of approved websites proposed by The League for Internet Safety.

    By Fred Weir,?Correspondent / February 12, 2013

    Russia's vast and freewheeling Internet, known as Ru.net, is facing stepped up official and semi-official efforts to rein it in.

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    But experts point to a couple of recent clashes in cyberspace to argue that it's not going to be easy to shut down one of the world's most diverse and raucous free-speech zones.

    Many Russian bloggers say they're reluctantly willing to live with the Russian government's often ham-handed attempts to "blacklist" sites deemed to be socially dangerous, such as child pornography, under a?law passed by the State Duma last year.

    But they're in an uproar over suggestions that Russian Internet users should be transferred to a "whitelist" of approved websites proposed by The League for Internet Safety, a new organization that's sponsored by the Russian Orthodox Church, whose directors include an adviser to President Vladimir Putin, and which counts several of Russia's leading telecommunications firms among its members.

    "I certainly support the idea of a safer Internet, but this plan being advanced by the League of a 'whitelist,' which would create a Ru.net composed only of websites that have been vetted and approved, is really hard to like," says Alexei Lukatsky, an Internet expert and consultant to CISCO in Russia.

    "For one thing, it's really hard to realize such a scheme in practice. For another, isn't it against the Constitution? Citizens have a right to information, and it's hard to see how one organization could be allowed to set itself up as judge, jury, and executioner on the web," he says.

    Early this month the League announced it would soon launch an experiment in the central Russian region of Kostroma, which it said has been approved by the governor and 29 local Internet service providers, to provide a sanitized Internet service to everyone.

    The group said it has 20,000 volunteers currently sifting through Ru.net's estimated 4 million websites, and that it had already certified 400,000 of them as completely safe. According to press reports of the original proposal, any Kostroma Internet user who wanted to surf beyond the confines of the whitelist would be required to apply in writing.

    Outrage across the blogosphere

    But after the blogosphere erupted in outrage, League organizers backtracked and said they were still working on the project but now are planning to introduce it as a system of "parental guidance" that would be optional for everyone.

    "Our view is that the Internet has to be made safe, and this will be possible only if all the Internet communities join together, work out the mechanisms and unite our actions," says Valery Ponomaryov, assistant to the League's director, Denis Davydov.

    The League has set off alarm bells because, although it's registered as a nongovernmental organization, it is clearly no ordinary civil society group. It was founded by a wing of the Russian Orthodox Church, and its board?of directors includes former Communications Minister and current Kremlin adviser Igor Shchyogolev. All three of Russia's mobile phone providers are members, and its largest minority shareholder is the giant state-owned telecom firm Rostelecom.

    Mr. Ponomaryov says that an average Internet user would "hardly notice any difference at all" if the filtering system they are proposing were enacted.

    "But [since the experiment in Kostroma was announced] the mass media has failed to understand our idea...? Lots of emotions have been stirred up in the blogosphere, but hardly any rational information at all. However, we're happy that a discussion has been started," he says.

    A battle ground

    Russia's Internet has become a battleground since the Internet law came into effect last November. About 230 websites have been blocked, including 90 so far this year, most of them for truly offensive content that even a civil libertarian might have trouble defending.

    But on several occasions officials have taken down an entire platform over one objectionable item,?forcing website organizers to go to court, and spend weeks of effort, to get reinstated.

    That happened again this week, when Roskomnadzor shut down an entire portal, lj.rossia.org, which plays host to hundreds of popular blogs, ostensibly because of two pages of objectionable content.

    The site's administrator, Mikhail Verbitsky, a math professor at Moscow's Higher School of Economics, says it was originally set up to provide a free-speech alternative to Russia's biggest social media platform, LiveJournal. ?The site, he says, began imposing many politically-restrictive rules on bloggers, in earnest after the new Internet law was passed.

    "Essentially, we wanted to create a space where what Americans would call First Amendment rights would be completely respected," says Mr. Verbitsky.

    "Ours is a text-only platform, without pictures, so we didn't think child pornography would be a problem. But our entire site has been closed down now over just these two pages, which do in fact contain unpleasant ? not illegal, but very unpleasant ? material involving children?. ?So, I will remove these two pages, and write to the government with an appeal that our site be restored. We are going to have to accept that when the government tells us to block something, we will probably have to block it," he adds.

    Little to fear

    Some experts say that Russian bloggers probably have little to fear from Roskomnadzor and the League for Internet Safety, if only because it's almost impossible to effectively censor the Internet without killing it.

    "So far, filtering is all about fighting the result," says Andrei Kolesnikov, a leading Russian Internet expert.

    "But the Internet is vast, has almost unlimited means to replicate material, and any number of ways to go around obstacles. Everything is basically three clicks away.?? With certain types of content, such as child porn and criminal material, the only reliable way to shut them down is to find the source, physically, and deal with it," he says.

    "And if you want to block content for political reasons ? if this is, indeed, what Russian authorities want to do ? you pretty much have to create your own Internet and switch off the uplink to the rest of the world. And then you're North Korea."?

    Source: http://rss.csmonitor.com/~r/feeds/csm/~3/0gqUMPb82U8/Russians-may-end-up-with-a-web-vetted-by-The-League-for-Internet-Safety

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    Soccer faces epic fight against match-fixing

    FILE - This July 8, 2007 file photo shows people playing soccer in the mud of the Elbe River near Brunsbuettel, some ten kilometers off the North Sea, northern Germany. Soccer is falling under a cloud of suspicion as never before, sullied by a multibillion-dollar web of match-fixing that is staining increasingly larger parts of the world's most popular sport. (AP Photo/Heribert Proepper, file)

    FILE - This July 8, 2007 file photo shows people playing soccer in the mud of the Elbe River near Brunsbuettel, some ten kilometers off the North Sea, northern Germany. Soccer is falling under a cloud of suspicion as never before, sullied by a multibillion-dollar web of match-fixing that is staining increasingly larger parts of the world's most popular sport. (AP Photo/Heribert Proepper, file)

    FILE - In this Sept. 26, 2011 file photo Chris Eaton, FIFA head of Security, addresses a press conference in Harare, Zimbawe. Soccer is falling under a cloud of suspicion as never before, sullied by a multibillion-dollar web of match-fixing that is staining increasingly larger parts of the world's most popular sport. "Football is in a disastrous state," said Chris Eaton, director of sport integrity at the International Centre for Sport Security (ICSS). "(The) fixing of matches for criminal gambling fraud purposes is absolutely endemic worldwide ... arrogantly happening daily.? (AP Photo/Tsvangirayi Mukwazhi, File)

    FILE - In this Thursday, Jan. 17, 2013 file photo Interpol secretary general Ronald K. Noble listens to journalist's questions during a press conference, in Rome. Soccer is falling under a cloud of suspicion as never before, sullied by a multibillion-dollar web of match-fixing that is staining increasingly larger parts of the world's most popular sport. FIFA bans include some elite figures in the sport. Gambling on sports generates hundreds of billions of dollars a year, and up to 90 percent of that is bet on soccer, Interpol chief Ronald Noble told the AP in an interview. (AP Photo/Andrew Medichini)

    FILE -- In this Oct. 29, 2011 file photo Juventus coach Antonio Conte gestures during the Serie A soccer match between Inter Milan and Juventus at the San Siro stadium in Milan, Italy. Soccer is falling under a cloud of suspicion as never before, sullied by a multibillion-dollar web of match-fixing that is staining increasingly larger parts of the world's most popular sport. FIFA bans include some elite figures in the sport. Antonio Conte, coach of the Italian club Juventus _ a team whose winning tradition rivals that of baseball's New York Yankees _ returned in December after a fourth-month ban for failing to report match-fixing. (AP Photo/Antonio Calanni, File)

    FILE - In this Monday, Jan. 9, 2012 file photo Italian soccer player Simone Farina from 2nd League Club AS Gubbio, left, stands next to FIFA President Joseph Blatter at the FIFA Ballon d'Or awarding ceremony in Zurich, Switzerland. Soccer is falling under a cloud of suspicion as never before, sullied by a multibillion-dollar web of match-fixing that is staining increasingly larger parts of the world's most popular sport. In 2011, Italian defender Simone Farina turned down a fixer's offer of $261,500 to throw a game and reported it to police, setting off an investigation that led to scores of arrests. Despite being honored by FIFA, he found himself shunned by those in Italy who considered him a snitch. (AP Photo/Michael Probst, File)

    (AP) ? Soccer is falling under a cloud of suspicion as never before, sullied by a multibillion-dollar web of match-fixing that is corrupting increasingly larger parts of the world's most popular sport.

    Internet betting, emboldened criminal gangs and even the economic downturn have created conditions that make soccer ? or football, as the sport is called around the world ? a lucrative target.

    Known as "the beautiful game" for its grace, athleticism and traditions of fair play, soccer is under threat of becoming a dirty game.

    "Football is in a disastrous state," said Chris Eaton, director of sport integrity at the International Centre for Sport Security. "Fixing of matches for criminal gambling fraud purposes is absolutely endemic worldwide ... arrogantly happening daily."

    ___

    EDITOR'S NOTE: This story is part of a months-long, multiformat AP examination of how organized crime is corrupting soccer through match-fixing, running over four days this week.

    ___

    At least 50 nations in 2012 had match-fixing investigations ? almost a quarter of the 209 members of FIFA, soccer's governing body ? involving hundreds of people.

    Europol, the European Union's police body, announced last week that it had found 680 "suspicious" games worldwide since 2008, including 380 in Europe.

    Experts interviewed by The Associated Press believe that figure may be low. Sportradar, a company in London that monitors global sports betting, estimates that about 300 soccer games a year in Europe alone could be rigged.

    "We do not detect it better," Eaton said in an interview with the AP. "There's just more to detect."

    Globalization has propelled the fortunes of popular soccer teams like Manchester United and showered millions in TV revenue on clubs that get into tournaments like Europe's Champions League.

    Criminals have realized that it can be vastly easier to shift gambling profits across borders than it is to move contraband.

    "These are real criminals ? Italian mafia, Chinese gangs, Russian mafia," said Sylvia Schenk, a sports expert with corruption watchdog Transparency International.

    Ralf Mutschke, FIFA's security chief, admits that soccer officials had underestimated the scope of match-fixing. He told the AP that "realistically, there is no way" FIFA can tackle organized crime by itself, saying it needs more help from national law enforcement agencies.

    The growing threat has prompted the European Union's 27 nations to unite against match-fixing.

    "The scale is such that no country can deal with the problem on its own," said EU Sport Commissioner Androulla Vassiliou.

    ___

    Gambling on sports generates hundreds of billions of dollars a year, and up to 90 percent of that is bet on soccer, Interpol chief Ronald Noble told the AP in an interview. Eaton, the former FIFA expert, has cited an estimated $500 billion a year.

    The total amount of money generated by sports betting would equal the gross domestic product of Switzerland, ranked 19th in the world.

    Match-fixing ? where the outcome of a game is determined in advance ? is used by gambling rings to make money off bets they know they will win. Matches also are rigged to propel a team into a higher-ranking division where it can earn more revenue.

    FIFA has estimated that organized crime takes in as much as $15 billion a year by fixing matches. In Italy alone, a recent rigging scandal is estimated to have produced $2.6 billion for the Camorra and the Mafia crime syndicates, Eaton said.

    Soccer officials are well aware that repeated match-fixing will undermine the integrity of their sport, driving away sponsors and reducing the billion-dollar value of lucrative TV contracts.

    FIFA earned $2.4 billion in broadcast sales linked to the 2010 World Cup in South Africa and already has agreed to $2.3 billion in deals tied to the 2018 World Cup in Russia. The U.K.'s Premier League earned $2.8 billion in broadcast rights for Britain alone in its last multiyear contract. Membership in Europe's Champions League is worth nearly $60 million a year to each team, according to a lawsuit filed by the Turkish club Fenerbahce.

    FIFA President Sepp Blatter has proclaimed "zero tolerance" for match-fixing, and FIFA has pledged $27 million to Interpol to fight it. Computer experts working for FIFA and UEFA ? the European soccer body ? monitor more than 31,000 European games and thousands of international matches every year, trying to sniff out the betting spikes that can reveal corruption.

    So far, however, sports authorities are "proving to be particularly helpless in the face of the transnational resources" available to organized crime, according to a 2012 study on match-fixing. The report warned that the risk of soccer "falling into decay in the face of repeated scandals is genuine and must not be underestimated."

    Some top soccer officials shy away from the dire warnings of academics and law enforcement officials. UEFA chief Gianni Infantino said in a statement that, on average, 203 games ? 0.7 percent of the matches that UEFA monitors a year ? show some signs of irregularities, "which does not mean they are fixed."

    "It is a small problem, but it's like a cancer," Infantino said. "We don't say 0.7 is nothing. We say 0.7 is 0.7 too much. We can say generally that UEFA competitions are very healthy in this respect."

    Match-fixing has been around for decades, of course, and is not limited to soccer. It has also infected sports like cricket, tennis, horse racing and even volleyball. The U.S. has its own sordid history of gambling scandals, from baseball's Black Sox in the 1919 World Series to a handful of point-shaving schemes in college basketball over the years, to an NBA referee taking money from a professional gambler for inside tips on basketball games, including some that he officiated in 2007.

    Still, nothing approaches the scale of the match-fixing allegations now hitting soccer, because of the sheer number of games played and the enormous Asian betting interest in European games, according to David Forrest, an economist at the U.K.'s University of Salford Business School, one of the co-authors of the 2012 report.

    In January alone, FIFA banned 41 players in South Korea from soccer for life due to match-fixing. That follows 51 worldwide bans last year ? 22 of them for life ? on players, officials and referees from Croatia, Finland, Guatemala, Italy, Nicaragua, Portugal, South Korea and Turkey.

    FIFA bans include some elite figures in the sport. Antonio Conte, coach of the Italian club Juventus ? a team whose winning tradition rivals that of baseball's New York Yankees ? returned in December after a four-month ban for failing to report match-fixing.

    Forrest's report said that after the Sept. 11, 2001, attacks on the U.S., the war on terror relegated the fight against organized crime to a distinct second place, and that allowed gangs "to invest in new areas of the economy with relative impunity for nearly 10 years."

    Eaton attributes the surge in match-fixing to an exponential rise in online gambling ? "at least 500 percent, and likely far more" ? in the last decade.

    Criminals have targeted every level of the game: the World Cup, regional tournaments such as the Champions League, high-powered divisions like England's Premier League and Italy's Serie A, "friendly" exhibition contests between national teams, all the way down to semipro games in the soccer wilderness.

    Criminals are always trying to find the sweet spot between how poorly the players are paid and how much bettors want to wager on a game, Forrest said. That's why fixers don't try too hard to target the Super Bowl, he says, because "the bribes would be so high to convince the athletes to join."

    World Cup and European qualifiers that face uneven matchups are key targets because one team may "have no chance of getting into the tournament," Forrest said in an interview.

    The same scenario applies to early rounds of major tournaments or late-season national leagues, where one team is desperately trying to either win a trophy or avoid being sent down to a lower league. Those situations propel teams upward into a whole new level of revenue or send them tumbling off a financial cliff.

    Match-fixing has also branched out from traditional hotbeds of corruption ? Asia and the Balkans ? to places like Canada, Finland and Norway, which rank among the least corrupt nations in the world. Until recently, no one ? including sports regulators ? thought to look for corruption in lower-level leagues. Still, given the vast amount of soccer betting, there's plenty of money to be made.

    "It's liquidity of the markets," Forrest said. "You can make serious money only if you can put on (bet) serious money. In most sports, the bet you can make is too small."

    Goalkeeper Richard Kingson of Ghana says he was offered ? but declined ? $300,000 to lose a game to the Czech Republic at the 2006 World Cup in Germany.

    But prices have gone up. Italy's Calciopoli investigation found it cost up to $516,000 to fix a match in the top league of Serie A; $155,000 for a fix in the second division and $64,500 for a third-division fixed match.

    In Croatia, court documents show that first-league games in 2010 could be fixed for as little as $25,600.

    There is also a shift in the traditional match-fixing scenario in which players are paid to lose or referees are paid to make sure one team wins. With the rise of online spot betting ? wagers made during the game ? criminal gangs can predetermine not only the outcome of the match but also make money on bets like how many goals are scored, when they are scored, or who will take a penalty kick.

    These live bets can "be particularly advantageous for criminals," according to Forrest's report, because they increase the number of wagers placed on the same fixed game.

    ___

    As former Balkan warlords and Chinese businessmen have discovered, owning a club means players don't need to be paid extra to fix matches; they can just be ordered to lose. Corrupt team officials have also dangled career advancement instead of money before vulnerable young players.

    "There is an increasing worry about gangs taking over football clubs as a way to further match-fixing ... and then they could also use the club to launder money," Forrest said. "It's quite cheap to buy a football club because so many of them are failing."

    An American diplomatic cable released by WikiLeaks quoted the U.S. Embassy in Sofia as reporting that "Bulgarian soccer clubs are widely believed to be directly or indirectly controlled by organized crime figures who use their teams as a way to legitimize themselves, launder money and make a fast buck."

    In 2011, Turkey's venerable Fenerbahce soccer club won 16 of its last 17 national league games to stay in the coveted Champions League ? a benefit it estimated as worth $58.5 million a year. In July 2012, Fenerbahce President Aziz Yildirim was convicted of fixing four of those games and bribing to influence the outcome of three others. He did it by promising rival players a roster spot or arranging for referees who would favor his team.

    Yildirim was one of 93 people who went on trial in Turkey last year for match-fixing ? and only 14 of them were players.

    Serbian player Boban Dmitrovic says he saw many instances in his home country where two clubs simply agreed on the outcome in advance.

    "Right before the match, a note was handed to the players. They had to cooperate because their careers would be jeopardized," Dmitrovic told FIFPro, the soccer players' union.

    This "chairman-to-chairman method" of match-fixing is still common in Russia, Albania and the Balkan nations, according to Forrest's sports corruption report.

    ___

    The vast majority of the world's wagering originates in Asia, according to Forrest, but its own bettors shun that continent's games for those in Europe because Asian soccer has been so corrupt for years.

    In 2011, China's main TV network refused to broadcast the country's soccer games because match-fixing was so widespread. Last year, two former heads of China's soccer federation were sentenced to 10? years in prison.

    In Finland, eight African players with ties to a Singapore crime gang were banned in 2012 for match-fixing. Their handler, Wilson Raj Perumal, was convicted of fixing games in Finland and is being investigated for allegedly fixing other matches in Europe and Africa. On Dec. 15, the South Africa Football Association said Perumal allegedly used tainted referees to manipulate games for betting purposes in 2010.

    Experts say a typical scenario can go like this: Bookies set the odds for a game, not knowing it has been fixed. Right before the game starts, gangs unleash a torrent of bets, sometimes employing hundreds of poor workers on laptops. The wave hides the mastermind of the bet. If there is live wagering ? on what the score will be at halftime or other topics ? several bets can be made on the same fixed game.

    Ninety or so minutes later, the bettors hand over their winnings to the boss.

    ___

    In the past, the perception was that greedy players were behind match-fixing. Yet a study of eastern Europe released last year by the FIFPro union portrayed a region where players often are not paid for months but instead are intimidated, blackmailed or beaten up.

    Many said they had been approached by match-fixers ? an average of 11.9 percent across the region, with spikes in Greece (30 percent) and Kazakhstan (34 percent). In Russia ? host of the 2018 World Cup ? about 10 percent of players had been approached to throw a game.

    In four nations ? the Czech Republic, Greece, Russia and Kazakhstan ? at least 43 percent of players said they knew about tainted games in their leagues.

    Almost 40 percent of the eastern European players who reported being asked to fix a game also said they had been victims of violence.

    Zimbabwe's national team players were threatened at gunpoint in the dressing room and ordered to lose matches by their own soccer officials in 2009, the country's new federation chief, Jonathan Mashingaidze, said in an interview in December.

    Sometimes the threat comes from a teammate. In Italy, a goalkeeper under heavy pressure from organized crime to fix a game in 2010 resorted to drugging several of his teammates so they would play badly. They did ? and one even crashed his car after the match, prompting a police investigation that uncovered the fix.

    Former player Mario Cizmek of Croatia says he agreed to fix one match in 2011 after he and his teammates had not been paid by his club for more than a year. That led to repeated demands by the fixer, a well-known former coach who used to drink at the same bar as Cizmek's team. It was a classic case of a trusted acquaintance approaching a player to throw a match ? a method that Forrest's report says is used often.

    "As a sportsman, I know I destroyed everything, but at the time I was only thinking about my family and setting things right," Cizmek said in an interview.

    Now broke, unemployed and divorced, Cizmek has been sentenced to 10 months in jail by a court in Zagreb.

    ___

    Because scoring in soccer is so low, its referees have an outsized influence on the game. In a Jan. 22 memo, FIFA urged its members to demand that referees tell soccer authorities immediately about "any suspicious situations, contact or information."

    "Our global experience is that referees and assistant referees are the primary target of match-fixers," the memo said.

    FIFA has been trying to improve its referee ranks with more training and taking proactive measures such as paying referees with checks instead of cash.

    Dmitrovic said when fixed games in Serbia were not going according to plan, corrupt referees would step in with questionable calls to "achieve the desired result."

    "The referees always knew what was going on," he said.

    Tainted referees also are believed to be at the heart of one or more games involving South Africa in 2010, with a FIFA report in December finding "compelling evidence" of match-fixing.

    In 2011, two friendly matches in the Turkish beach resort of Antalya ? one between Bolivia and Latvia, the other between Bulgaria and Estonia ? appeared suspicious when all seven goals came from penalty kicks awarded by referees. The German magazine Stern later reported that $6.9 million was wagered on the Bulgarian game alone.

    FIFA banned the six eastern European officials involved in those games for life.

    ___

    Officials who govern the sport can't stop match-fixing by themselves and need the cooperation of law enforcement bodies and governments across borders, said Schenk of Transparency International.

    Noble, the Interpol chief, agreed.

    "It's definitely beyond and above the world of sport, above and beyond FIFA," he said. "It's fair to say we haven't caught up to the scale of the problem."

    During the 2010 World Cup, police in China, Hong Kong, Macau, Malaysia, Singapore and Thailand arrested more than 5,000 people in Interpol-organized raids on nearly 800 illegal gambling dens. Interpol organized other raids in 2011 and 2012, but does not make arrests or conduct national investigations itself.

    Schenk and the players' union say soccer authorities must also make sure their own ranks are free of corruption. One World Cup ticket scandal was linked to the family of a senior FIFA vice president while the former head of Zimbabwe's soccer federation is accused in a corruption scam.

    "There is a strong link between good governance in the bodies that run sports and the sport organizations' credibility in the fight against match-fixing," Schenk wrote in a commentary. "Unless sport organizations are accountable and transparent, they will not have the authority to tackle the problem."

    Both Schenk and FIFA chief Blatter say whistleblowers must also be protected better.

    In 2011, Italian defender Simone Farina turned down a fixer's offer of $261,500 to throw a game and reported it to police, setting off an investigation that led to scores of arrests. Despite being honored by FIFA, he found himself shunned by many in Italy who considered him a snitch.

    "I said no because my immediate thoughts were of my wife, son and daughter," Farina said. "How could I look them in the eye if I said yes? What kind of husband and father would I be?"

    Cizmek ? the Croatian player who said he took $26,100 but handed back all but about $650 to police ? says his scars from match-fixing will last a lifetime.

    "This turned my life upside down," he said. "I should have just taken my football shoes and hung them on the wall and said 'Thank you, guys' and gone on to do something else."

    ___

    John Leicester in Paris, Graham Dunbar in Geneva, Gerard Imray in Johannesburg, Mike Corder in Amsterdam and Menelaos Hajicostis in Nicosia, Cyprus, contributed to this report.

    ___

    Norman-Culp is AP's Assistant Europe Editor in London. Prior to that, she covered FIFA for AP in Zurich. Follow her at snormanculp(at)twitter.com

    Associated Press

    Source: http://hosted2.ap.org/APDEFAULT/cae69a7523db45408eeb2b3a98c0c9c5/Article_2013-02-12-SOC-The-Dirty-Game/id-3e3f679b43204b07bae10c41ef53826c

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    Tuesday, February 12, 2013

    Chicago girl's parents to sit with first lady

    WASHINGTON (AP) ? A White House official says the parents of a Chicago teenager slain just days after performing during President Barack Obama's inauguration will attend his State of the Union speech.

    Hadiya Pendleton, 15, was shot to death Jan. 29 in a park close to the Obama's Chicago home. Police say a gunman hopped a fence and opened fire on a group of young people. She was a majorette with the King College Prep band.

    First lady Michelle Obama attended Hadiya's funeral in Chicago on Saturday. Her parents, Cleopatra and Nathaniel Pendleton, will sit with the first lady during Tuesday's speech, which is expected to mention gun violence.

    Their attendance was first reported by the Chicago Tribune. The White House official spoke on condition of anonymity because the guest list has not been announced.

    Source: http://news.yahoo.com/chicago-girls-parents-sit-first-lady-185529879--politics.html

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    Barclays Boss Jenkins Sharpens Jobs Axe

    By Mark Kleinman, City Editor

    Barclays is to axe thousands of jobs outside its investment bank as part of a streamlining of Britain's second-biggest lender under its new chief executive.

    The cull, which will come alongside roughly 2,000 previously-reported cuts inside Barclays' investment bank, will underline the scale of the transformation planned by Antony Jenkins, who took on the top job five months ago.

    Details of the job cuts are expected to be announced on Tuesday alongside a wider review of the bank's operations.

    The precise number of cuts being planned by Mr Jenkins was unclear on Monday evening, but even 7,000 job losses across the group would represent just 5% of Barclays' 140,000-strong workforce.

    Antony Jenkins
    Barclays Chief Executive Antony Jenkins

    One insider said that the cuts would be "significant" and could reach "double-digit thousands over time", but refused to be specific.

    Mr Jenkins has drawn up a series of plans aimed at rebuilding Barclays' reputation among both shareholders and customers.

    His blueprint will include cutting Barclays' bonus pool to less than ?2bn and forcing senior investment bankers to hold onto their awards for longer.

    The new boss will also, as Sky News revealed on Saturday, take the axe to Barclays' structured capital markets unit, which made hundreds of millions of pounds for the bank through complex tax-led transactions.

    Barclays will announce its annual results for 2012 tomorrow.

    Despite a ?290m fine for Libor-rigging and more than ?1bn being set aside for mis-selling products to customers, the bank is expected to report substantial profits.

    Barclays declined to comment.

    Source: http://news.sky.com/story/1050847

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    Aaron?s Law Takes Shape

    250px-Aaron_Swartz_profileDigital activist Aaron Swartz took his own life on January 11. Swartz was facing federal hacking charges after being arrested for downloading millions of articles from JSTOR from MIT?s network in excess of his access. Since Swartz?s suicide, activists, scholars, and legislators have been at work on reforms to the law under which he was prosecuted?the Computer Fraud and Abuse Act.

    Source: http://feedproxy.google.com/~r/Techcrunch/~3/7mU7n1mbD9o/

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    Monday, February 11, 2013

    How blood vessels regroup after stroke

    Feb. 11, 2013 ? By thinking of cells as programmable robots, researchers at Rice University hope to someday direct how they grow into the tiny blood vessels that feed the brain and help people regain functions lost to stroke and disease.

    Rice bioengineer Amina Qutub and her colleagues simulate patterns of microvasculature cell growth and compare the results with real networks grown in their lab. Eventually, they want to develop the ability to control the way these networks develop.

    The results of a long study are the focus of a new paper in the Journal of Theoretical Biology.

    "We want to be able to design particular capillary structures," said Qutub, an assistant professor of bioengineering based at Rice's BioScience Research Collaborative. "In our computer model, the cells are miniature adaptive robots that respond to each other, respond to their environment and pattern into unique structures that parallel what we see in the lab."

    When brain cells are deprived of oxygen -- a condition called hypoxia that can lead to strokes -- they pump out growth factor proteins that signal endothelial cells. Those cells, which line the interior of blood vessels, are prompted to branch off as capillaries in a process called angiogenesis to bring oxygen to starved neurons.

    How these new vessels form networks and the shapes they take are of great interest to bioengineers who want to improve blood flow to parts of the brain by regenerating the microvasculature.

    "The problem, especially as we age, is that we become less able to grow these blood vessels," Qutub said. "At the same time, we're at higher risk for strokes and neurodegenerative diseases. If we can understand how to guide the vessel structures and help them self-repair, we are a step closer to aiding treatment."

    First, they need to understand how individual cells respond to stimuli. To model the process in a computer requires rules, Qutub said. In these simulations, each cell is a "state machine," a unit that goes from one "state" to the next in time based on input. In the case of these endothelial cells, the input comes from vascular endothelial growth factor and/or brain-derived neurotrophic factor, proteins that encourage angiogenesis.

    "There's a memory in each of these cells that helps define how they emerge into these very elaborate vasculature structures," she said. The cells that quickly differentiate into tip and stalk cells follow particular rules to advance, grow, divide and branch, depending on input from growth factors and from neighboring cells that can dictate how far and how fast they develop.

    For instance, she said, in a chain of endothelial cells, a tip cell at its maximum length can only continue to migrate if the stalk cell immediately behind grows and pushes it forward. Similarly, the team set rules for branching and changes in direction, as well as an "idle" state, all based on observation of real vessel growth.

    The researchers modeled a set of endothelial cells growing from a sphere and exposed them to simulated growth factors. They let them grow for what, in real life, would be a period of 24 hours, but in the computer took fractions of a second. They ran tens of thousands of simulations to see how the cells would migrate, proliferate and branch under various conditions.

    The next step was to figure out which of the computer simulations matched actual behavior. Qutub's lab cultured spheres of human umbilical vein endothelial cells in collagen scaffolds, exposed them to growth factors and took microscope images as they developed networks over several days.

    They compared these images with the simulations. The closest matches -- of which there are only a few amid thousands of simulations -- became the basis for a refined set of rules.

    "We know how cells are connected as a function of the growth factors, and there are very distinct patterns to the way these networks are organized," Qutub said. "So when we compare the simulations with the assays, we find parallels that let us classify what we see in the real networks. This gives us a paradigm where we can start to think of actually programming real cells with chemical signaling.

    "It opens up a lot of doors," she said. "Now we can think about changing things in the cells or giving them drugs that target pathways and growth factors to induce a particular vasculature structure."

    Byron Long, a postdoctoral research associate in the Qutub Group, is lead author of the paper. Co-authors are Rice undergraduates Rahul Rekhi and Jiwon Jung and Amada Abrego, an undergraduate student at the Monterrey Institute of Technology, Mexico, who took part in the Rice Summer Undergraduate Research Program in Biosciences and Bioengineering, funded by the Howard Hughes Medical Institute, and has a complimentary appointment to the Qutub Lab.

    The research was funded in part by a National Academies Keck Future Initiatives grant, a Hamill Innovation Award and a National Science Foundation CAREER award.

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    Story Source:

    The above story is reprinted from materials provided by Rice University. The original article was written by Mike Williams.

    Note: Materials may be edited for content and length. For further information, please contact the source cited above.


    Journal Reference:

    1. Byron L. Long, Rahul Rekhi, Amada Abrego, Jiwon Jung, Amina A. Qutub. Cells as state machines: Cell behavior patterns arise during capillary formation as a function of BDNF and VEGF. Journal of Theoretical Biology, 2012; DOI: 10.1016/j.jtbi.2012.11.030

    Note: If no author is given, the source is cited instead.

    Disclaimer: This article is not intended to provide medical advice, diagnosis or treatment. Views expressed here do not necessarily reflect those of ScienceDaily or its staff.

    Source: http://feeds.sciencedaily.com/~r/sciencedaily/top_news/~3/ksNG6Rw1h6A/130211102310.htm

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    Fiscal realities put Obama agenda in question

    By Tom Curry, National Affairs Writer, NBC News

    Published at 5 a.m. ET: Less than one month into his second term, President Barack Obama looks to complete the outlines of an ambitious agenda in his State of the Union address Tuesday night.

    In his inaugural speech, the president telegraphed several initiatives he wants Congress to pursue and pass this year: gun control legislation, a bill to create a legalization process for many of the nation?s illegal immigrants, subsidies for renewable energy technologies and legislation to respond to climate change.

    Obama will likely return to those topics Tuesday night, but the White House has signaled that this speech will focus more on the themes that dominated the past four years -- jobs and the economy -- with new initiatives aimed at improving the prospects of growth for both, and a particular emphasis on the middle class.

    But any new policies or programs will have a cost to both present and future taxpayers, and it will take some time to figure out that cost because the president hasn?t yet presented his budget proposal to Congress. And when he does, the ongoing standoff between Republicans and Democrats over everything from how to continue funding the government to looming spending cuts still leaves plenty of uncertainty about any fiscal policy in Washington.

    President Obama is set to focus on jobs and the economy during Tuesday's State of the Union. NBC's Peter Alexander reports.

    Due a week ago, but not likely to appear until sometime next month, the president?s budget proposal is the detailed and lengthy (last year?s was 256 pages long) blueprint in which a president gives Congress and taxpayers all the specifics -- how much each new initiative will cost and what tax proposals he is offering to help to pay for his programs.

    The budget document is the president?s attempt to direct spending policy for the coming fiscal year -- the one that starts on Oct. 1 -- and for the ten years beyond that.

    This year there?s an air of unreality about the budget compared to, for instance, 2009 when the president?s Democratic allies controlled both the House and the Senate. Exactly four years ago, when Obama proposed to collect $646 billion in new revenues from auctioning off greenhouse gas emission allowances, there was a reasonable expectation that the proposal would become law and that the $646 billion would flow into the Treasury.

    When Obama does deliver his budget proposal next month, the fiscal path forward will remain in an extraordinarily makeshift and unpredictable state.

    Budget 'harder to predict' than ever
    Veteran budget analyst Stan Collender wrote this week that even former congressional Budget Committee staffers who have spent their careers assessing budgets find that ?the current situation is as complex, hard to read, and even harder to predict than any they?ve ever seen.?

    The federal government is now operating on a six-month continuing resolution which keeps discretionary spending for departments and agencies at the prior year?s levels.

    Mandatory spending for Social Security, Medicare, Medicaid and federal employee retirement benefits is driven by demographics, enrollment, and the cost of medical procedures. It isn?t as controllable by Congress or the president.

    The continuing resolution expires on March 27, leaving Obama and Congress only a few weeks to figure out what to do next. Another stopgap continuing resolution seems quite possible.

    In addition, the Budget Control Act requires $85 billion in spending cuts to begin on March 1.

    Illustrating just how unreal the current fiscal situation is, Defense Secretary Leon Panetta said in his farewell address last week at Georgetown University that if Congress passes another continuing resolution and it allows the spending cuts required by the Budget Control Act to take effect, then his department ?will have to abruptly absorb in a period of about six months? $43 billion in spending cuts (known as the sequester). This will be on top of what Panetta thinks are inadequate spending levels in the continuing resolution -- what he described as ?a $35 billion shortfall in operating funds for our active forces.?

    Kevin Lamarque / REUTERS

    President Barack Obama speaks from the briefing room of the White House in Washington Feb. 5, 2013.

    Panetta explained that the Pentagon has been spending money at a relatively robust rate level so far this fiscal year. ?We assumed, silly us, that we would get a 2013 appropriation, what we requested,? he said. ?And so we're operating on this hope that 2013 appropriations bill will be passed. It hasn't been passed.? And yet the Defense Department has been spending money as if it would be passed.

    With both the sequester and another continuing resolution looking possible, Panetta is now facing, and leaving his successor with, ?a serious disruption in defense programs and a sharp decline in our military readiness.?

    Reminding his audience how big an employer the Department of Defense is and how large an economic effect it has, Panetta said, ?If sequester happens, let me tell you some of the results. We will furlough as many as 800,000 DOD civilians around the country for up to 22 days. They could face a 20 percent cut in their salary.?

    Other departments and agencies would need to take similar steps.

    Given such a crisis atmosphere, one could see why Obama?s proposals for new programs and new spending might get overshadowed and might stand little chance of being adopted.

    Disaster spending
    And yet Obama and members of Congress have been extremely lucky in one sense. The last few years has been a good time to be in charge of fiscal policy, thanks to ultra-low interest rates which mean an ultra-low cost of financing the federal government?s borrowing.

    That will end in the next several years. The Congressional Budget Office, in its annual budget forecast last week, projected that what the federal government must spend on net interest payments will more than double in the next five years and will nearly quadruple by the end of the 10-year budget forecasting period. Instead of spending six cents of every dollar to pay interest on the debt, the government will be spending 14 cents of every dollar on interest payments in 2023.?

    By 2020 the government will be spending more on interest than it will spend on national defense.

    In the short term, the good news for Obama is that the economy is recovering and with that recovery has come a surge in federal tax revenues, which are up 12 percent in the first four months of Fiscal Year 2013. Individual income tax revenues are up by 16 percent so far in FY2013.

    Keep in mind that revenue surge has come even before the full impact of the $700 billion tax increase that Obama signed into law on Jan. 2. The increased revenues from that tax increase will show up in withholding from paychecks in 2013 and also will be seen in the income tax payments Americans must make when they file their tax returns in April 2014.

    Given the need Obama sees for even more revenues, don?t be surprised if you see some of the very same ideas in the State of the Union and the budget blueprint that he proposed back in 2009 in his very first budget proposal, such as taxing a form of investment income called ?carried interest? as if it were ordinary income and eliminating of certain tax preferences for oil and gas firms.

    But while some things might be the same as in 2009, in one part of the budget one thing is quite different: in Obama?s first budget proposal in 2009 he and his number-crunchers projected that in the current fiscal year, FY 2013, the federal government would need to spend $20 billion on disaster relief. That disaster spending prediction will turn out to be far short of reality: Obama has already signed into a law a disaster relief bill for Hurricane Sandy that will cost $50 billion -- and the hurricane season does not being until June 1.

    Source: http://nbcpolitics.nbcnews.com/_news/2013/02/11/16901926-how-will-he-pay-for-it-fiscal-realities-put-obama-agenda-in-question?lite

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