Showing posts with label state of the union speech. Show all posts
Showing posts with label state of the union speech. Show all posts

Wednesday, February 13, 2013

NEWS,13.02.2013



Many questions raised after nuke test


North Korea's underground nuclear test shows it is making big strides toward becoming a true nuclear power. But the test may also reveal key clues the secretive nation might have hoped to hide about how close, or how far away, it is from fielding a nuclear weapon capable of striking the US or its allies. Hoping to capitalise on a rare opportunity to gauge North Korea's nuclear capabilities, intelligence and military officials around the region are scrambling to glean data to answer three big questions: How powerful was the device Pyongyang tested, what sort of device was it, and what progress does the test indicate the nation has made.North Korea hailed on Tuesday's test as a "perfect" success, saying it used a device that was stronger and more advanced than those in its past two attempts. Add that to its successful rocket launch in December and the threat of a North Korea ready to strike at the US, which it sees as its arch-enemy, would appear to be more real than ever.But just how close is it?The main thing intelligence officials want to figure out is what kind of device was used. Was it a plutonium bomb, like the ones it tested in 2006 and 2009, or one that used highly enriched uranium?James Acton, an analyst with the Carnegie Endowment for International Peace, said North Korea's plutonium stockpile is small and it would be difficult and expensive for the North to produce more. But a test using highly enriched uranium, which is cheaper and easier to produce, would raise the threat that North Korea can expand its nuclear arsenal quickly."A highly enriched uranium test would be a significant development," he said. "Unfortunately, we don't yet have any evidence as to the device's design yield or whether it was made from plutonium or highly enriched uranium."Finding that out is a race against time.Joseph De Trani, former head of the National Counterproliferation Centre, predicted US intelligence would determine the size and composition of the nuclear device in one to three days based partly on radioactive elements released into the environment."Highly enriched uranium is something that degrades quickly, so you would have to collect within a 24-hour period," especially because the traces from an underground explosion will be minimal, he said.Neighbouring Japan may provide some of those answers.Its fighter jets were dispatched immediately after the test to collect atmospheric samples. Japan has also established land-based monitoring posts, including one on its northwest coast, to collect similar data.But experts caution such monitoring doesn't always work because test sites can be sealed to prevent tell-tale leaks. They also note that North Korea has proven it has the ability to mask its tests quite well. No radioactivity was detected after North Korea's test in 2009. The first indication of the latest test was seismic activity at the test site, which US officials estimated at roughly magnitude 5.1. That would be equivalent to a medium-sized earthquake. North Korea's two previous tests registered at magnitude 4.3 and 4.7.Working off that data, South Korean officials estimate the yield of the device a measure of how strong its explosion is in comparison to TNT - to be between 6 and 7 kilotons. The US has estimated it at "several kilotons”.Either way, it would be North Korea's biggest yield yet but far less than that of the weapon dropped on Hiroshima in 1945, which was about 20 kilotons."Because the depth of the test is not known and the geology of the test site is uncertain, translating the seismic magnitude into yield is difficult," said Acton, the Carnegie analyst. "My own back-of-the-envelope calculation suggests a yield of between 4 and 15 kilotons."The size of the blast suggests it was, as North Korea claims, a success.North Korea's first test is largely believed to have fizzled, with a yield of less than 1 kiloton, and the second was between 2 and 7 kilotons."The first test almost failed. The second one showed they could basically do it. The third one showed that this is really working," said Won-Young Kim, a seismologist at Columbia University's Lamont-Doherty Earth Observatory. The final intelligence task will be confirming or debunking North Korea's claim that this time around it tested a smaller, more advanced bomb.That is important because if the North is to field a nuclear weapon on the tip of a long-range missile, it must be lightweight. Making this determination will also depend on what materials leaked from the test, which experts can use to understand what kind of a device was detonated and infer how it was designed.Experts have long been divided on whether North Korea has made much headway on clearing that hurdle, though the general consensus is they are not there yet. David Albright and Andrea Stricker, of the Institute for Science and International Security, said the latest test could be a measure of progress."Although more information is needed to make a sound assessment, this test could, as North Korea has stated, demonstrate this capability," they said in a statement. "ISIS has also assessed that North Korea still lacks the ability to deploy a warhead on an ICBM, although it shows progress at this effort."Even so, they stressed North Korea could be years away from having a credible nuclear weapon that it could launch at the US.They said North Korea will need to conduct missile flight tests with a re-entry vehicle and mock warhead, increase the explosive yield of its warheads, possibly working to make them smaller, and improve the reliability of both its warheads and missiles.

Sanctions cost Iran $40bn in 2012: IEA


Sanctions by the West on Iran succeeded in slashing Iran's oil export revenue by $40bn in 2012, the International Energy Agency said on Wednesday, as production last month hit a three-decade low point.The IEA, the oil monitoring and policy arm of the Organization of Economic Cooperation and Development, said Iranian oil output fell to 2.65 million barrels per day (mbd) in January, down from the 3.7 mbd in late 2011 before the sanctions imposed on the Islamic Republic by the US and European Union took effect.

Obama to pare tax breaks for big firms


President Barack Obama will renew his bid to curb tax breaks prized by corporations and the wealthiest Americans in a speech on Tuesday laying out his legislative agenda, but the proposals are sure to face familiar roadblocks from congressional Republicans. The president will propose to "reform our business tax code, (lower) the corporate tax rate with an even lower rate for manufacturers," and set a minimum tax on offshore earnings, according to a fact sheet provided by the White House ahead of the annual State of the Union address to Congress.Obama also will back tax reforms that close "loopholes for the wealthy," according to the summary.If the plan sounds familiar, it should, because the ideas largely mirror those Obama pitched in his address a year ago. Since then, he won re-election campaigning on tax fairness and Republicans lost congressional seats, but even the president's backers say they face a tough road."Unless Republicans have a real 'come to Jesus moment,' it is difficult to imagine them supporting many or any of these provisions," said Jim Manley, a former top adviser to Democratic Senate Majority Leader Harry Reid.The speech comes as another fiscal crisis brews in a stand-off between the White House and congressional Republicans, this time over automatic spending cuts set to kick in on March 1. Obama and fellow Democrats back a mix of revenue and tailored spending cuts to avoid what is known as the "sequester," while Republicans oppose any tax increases. Democrats and Republicans both say they want a full-scale revamp of the US tax code - but they are far apart on how to get there. Republican Representative Dave Camp, who chairs the tax-writing House Ways and Means Committee, is working on a plan to revamp the tax code. Senate Finance Committee Chairman Max Baucus, a Democrat, is also working on a proposal.But a full-scale tax code overhaul is a massive endeavor, and it has been somewhat crowded out by issues like immigration and gun control in recent weeks and months."It is not an issue that has much momentum behind it, but having people like the president and Dave Camp talking about it will help that," said Erik Smith, a former adviser to Obama who now advises companies at Blue Engine Media.Obama has also called for review of the corporate tax code - including lowering the top corporate tax rate to 28% from 35%, to be paid for by closing business tax breaks. Republicans back a lower corporate rate, but have resisted the idea of tackling it in isolation because many businesses file taxes through the individual side of the tax code and would be left out.

Obama proposes raising minimum wage


US President Barack Obama proposed on Tuesday to hike the minimum wage by more than 20%, invest $50bn on crumbling roads and bridges and spend $15bn on a construction jobs program in a bid to boost economic growth.In his annual State of the Union address, Obama urged Congress to support his plan, which would include tax and education reforms that the administration believes would help attract manufacturers back to the United States.The complete cost of the program would be offset by spending cuts and tax reforms that will be laid out in Obama's budget proposal in the weeks ahead, senior administration officials told reporters.The minimum wage increase would lift incomes for 15 million Americans and be done in stages, the officials said, noting that an increasing number of corporate chief executives support such a move.The officials said economic studies show increasing the minimum wage is effective at reducing poverty while reducing turnover costs for businesses.Obama is also proposing to raise the tipped minimum wage - the wage for jobs whose compensation includes gratuities - and have it indexed for inflation, a move, the officials noted, that was supported by Obama's 2012 Republican presidential opponent, Mitt Romney.As expected, Obama is announcing in the speech the start of free trade talks between the United States and the 27-nation European Union.As part of his push to give Americans skills to be competitive in a global economy, Obama proposed a new program to create universal access to pre-school for all 4-year-olds.

Scandal set to spur tougher food tests


European countries demanded more DNA testing of meat products and tougher labelling rules over a scandal involving horsemeat sold as beef that has shocked the public and raised concerns over the safety of the continent's food supply chains. Officials have said there is no risk to public health from the tainted foods. But the suspected fraud has caused particular outrage in Britain, where many view the idea of eating horsemeat with distaste, and exposed flawed food controls. Ministers from the worst-affected EU nations met in Brussels on Wednesday to discuss their response to the scandal, which erupted after tests in Ireland showed products labelled as beef contained up to 100% horsemeat."This is impacting on the integrity of the food chain, which is a really significant issue for a lot of countries. Now that we know this is a European problem, we need a European solution," Irish Farm Minister Simon Coveney told reporters as he arrived for the meeting.Britain's farm minister said the type of tests that revealed the problem should be carried out routinely in future."I would like to see DNA testing of processed meat products during process and as finished products established as soon as possible right across every member state," Owen Paterson said.Both ministers urged EU authorities to propose changes to labelling rules that would force producers to give the country of origin on processed meat products. Currently the requirement only applies to fresh beef, and will be extended to fresh lamb, pork and poultry from December 2014.The European Commission, which oversees EU labelling rules, said it was studying the option. But officials have warned privately that the complexity of supply chains would make this almost impossible to implement.EU and national authorities are still trying to uncover the source of the suspected fraud. "All those countries through which this meat product has passed of course are under suspicion," EU Health Commissioner Tonio Borg told a news briefing on Wednesday. "By the countries, I mean the companies in those countries which dealt with this meat product."He added that it would be unfair at this stage to point the finger at any organisation in particular.On 15 January routine tests by Ireland's Food Safety Authority found horsemeat in frozen beef burgers produced by firms in Ireland and Britain and sold in supermarket chains including Tesco, Britain's biggest retailer.Concerns grew last week when the British unit of frozen foods group Findus began recalling packets of beef lasagne on advice from its French supplier Comigel, after tests showed up to 100% of the meat in them was horse.The affair has since implicated operators and middlemen in a host of EU countries, from abattoirs in Romania and factories in Luxembourg to traders in Cyprus and food companies in France. Germany said it was investigating a consignment of beef lasagne sent from Luxembourg to an unnamed retailer in North Rhine-Westphalia on suspicion it might contain horsemeat.The first evidence that the labelling scandal could go beyond horsemeat also emerged, as upmarket British grocer Waitrose said its testing found that some of its frozen British beef meatballs might contain pork. The firm, part of the John Lewis Partnership, has withdrawn the product from sale.

Iran installs enrichment centrifuges


Iran said on Wednesday that it has begun installing a new generation of centrifuges at its main uranium enrichment facility, a move that will allow it to vastly increase its pace of uranium enrichment in defiance of UN calls to halt such activities. Vice President Fereidoun Abbasi told the official IRNA news agency that the machines will only produce low-level enriched uranium, which is used to make nuclear fuel, but high-level enrichment makes it suitable for use in the core of a nuclear weapon.Abbasi said Iranian nuclear scientists began installing the advanced centrifuges at Natanz about a month ago."We've produced enough of these machines and are installing and starting them up gradually," Abbasi said.The announcement coincided with a new round of talks on Wednesday with senior International Atomic Energy Agency (IAEA) inspectors over allegations that Tehran might have carried out tests on triggers for atomic weapons. It also could affect negotiations planned later this month between Iran and six world powers.Iran has more than 10 000 centrifuges that are enriching uranium at Natanz, 225km southeast of Tehran. But the machines are of the old IR-1 type. Iran told the IAEA last month that it intended to install newer IR-2 centrifuges, machines that can produce more enriched uranium at a shorter period of time."The centrifuges installed at Natanz are first-generation machines based on old technology," the semi-official ISNA news agency quoted Abbasi as saying. "We were able to produce composite materials... We built centrifuge rotors from those materials which make the machines more durable. The new generation of centrifuges is more efficient."Abbasi said Iran would use the new machines to produce 5% level enriched uranium. The visit by the UN team, led by Herman Nackaerts, comes a day after Tehran raised prospects that the IAEA could be allowed to inspect Parchin, a military site where the agency suspects nuclear-related experiments were conducted.But Abbasi said no such visit was on the negotiating table."Parchin is not a nuclear site. We've said this repeatedly. There is no word about visiting Parchin or any other site," he said.Iran says the agency's suspicions are based on forged intelligence provided by the CIA, the Israeli Mossad, Britain's MI-6 and other intelligence agencies."Removing ambiguities requires evidence. If the agency has any documents related to ambiguities about Parchin, it is necessary that they give it to us," IRNA quoted Abbasi as saying.Iranian officials say they have bitter memories of permitting IAEA inspections at Parchin in the past, and replying to a long list of queries over its nuclear programme. Tehran says any new agency investigation must be governed by an agreement that lays out the scope of such a probe.Iran says it cannot allow its security to be compromised by allowing the IAEA access to non-nuclear facilities on the basis of suspicions raised by foreign intelligence agencies that Tehran considers enemies. Abbasi also criticised the IAEA for leaking information on Iran's nuclear programme.

Tuesday, February 12, 2013

NEWS,11 AND 12.02.2013



Obama speech to focus on economy, guns


President Barack Obama will be looking across a vast partisan divide on Tuesday night as he reports to congress and the nation with his annual State of the Union speech, which is closely monitored as the blueprint for his goals for the year. They include job creation and a push for the ambitious progressive plans he outlined in his second inaugural address three weeks ago.Obama hopes he can encourage lawmakers to join him in reforming laws on gun ownership and immigration and boosting taxes to raise government spending power. The president's priorities also include easing back on spending cuts and addressing climate change.He'll also address the news from North Korea, which said it successfully detonated a nuclear device on Tuesday in defiance of UN warnings. The White House said the president would make the case that the nuclear programme had only further isolated the impoverished nation.Aware of the partisan gridlock gripping Washington, Obama is banking on his popularity and the political capital from his convincing re-election in November as he calls on Americans to join him in his vision for what he calls a fairer country with greater opportunity for all.With Republicans in control of the House of Representatives and exerting influence in the Democratic-controlled Senate, Obama plans immediately afterward to make a two-day, three-state foray to take his message directly to the American people. Congress fought the president to a near standstill on virtually every White House initiative during his first term - though he succeeded in overhauling the health care system.In his second term, Obama has decided that he may stand a better chance of moving his agenda through congress by drawing support from outside the capital rather than from within.Massive federal spending cuts that will hit the US economy on 1 March if a compromise isn't hammered out with Congress will surely colour Obama's speech like nothing else. Some economists predict those cuts could push the US back into recession even before it has fully recovered from the Great Recession - the most serious economic downturn in more than 70 years.The cuts will slice deeply into spending for the Pentagon and a range of social programmes. Obama says he wants "a balanced approach" to tackling the spiralling deficit with a mix of increased tax revenue and cuts in spending.The opposition declares it will not give ground on raising taxes.While the deep cuts, which grew out of a failure to reach a deal in 2011, were conceived as a blow to the budget that is unacceptable to both parties, some Republicans are threatening to let it go forward if Obama does not agree to big cuts in the so-called social safety net programmes such as Medicare and Medicaid, which provide health care and other assistance to the elderly and poor, as well as Social Security retirement benefits.Obama also was expected to refocus on creating jobs in a country where the unemployment rate remains at nearly 8%. He failed to address the issue in any depth in his inaugural address, leaving his political opponents an opening to criticise him for ignoring an issue of over-riding importance.Obama also is deeply invested in pushing for new laws aimed at curbing gun violence. Spurred by the mass shooting in December at a Connecticut school that killed 20 children and six adults, Obama and like-minded Democrats are pushing for tougher regulations requiring universal background checks for gun buyers and bans on military-style assault weapons and high-volume ammunition magazines.He will no doubt return to the issue on Tuesday night in the face of angry opposition from the National Rifle Association gun rights lobbying group, many Republicans and even some moderate Democrats. They say any change in gun laws would violate the Constitution's Second Amendment guarantee of the right to bear arms.To underscore the president's position, first lady Michelle Obama will sit with the parents of a Chicago teenager shot and killed just days after she performed at the president's inauguration. Twenty-two House members have invited people affected by gun violence.On the other side of the issue, Republican Representative Steve Stockman says he's invited rocker Ted Nugent, a long-time gun control opponent who last year said he would end up "dead or in jail" if Obama won re-election.Another presidential priority - and possibly the most likely to succeed in getting passed by congress- is granting illegal residents a pathway to citizenship as part of an overhaul immigration reform. The initiative is deeply unpopular in many House Republicans' districts, but it has the support of some prominent Republican lawmakers who understand that their party needs to soften its stance on immigration if it is to win crucial Hispanic votes.Obama will face continuing opposition to any proposal he puts forward in an effort to curb climate change. Given that any major climate bill is unlikely to pass the divided congress, the White House has said Obama intends to move forward on issuing rules to control carbon emissions from power plants as he relies increasingly on his executive authority instead.Senator Marco Rubio, a fast-rising Republican star, was picked by the party's mainstream leadership to give its traditional response immediately after Obama speaks. The first-term Cuban-American senator is seen as a potential 2016 presidential candidate. Senator Rand Paul of the Republicans' tea party wing, a loose collection of lawmakers determined above all else to shrink government and lower taxes, plans to give an unofficial response.

Global body warns G20 on financial unity

 

The global banking industry on Monday urged the Group of 20 economic powers to deliver on pledges to harmonise financial regulation, warning their commitment appears to be fraying. The Institute of International Finance said its members were "deeply troubled" by the current trend toward "increasingly fragmented financial regulation. "The tendency of nations to act to protect their own financial service sectors and taxpayers against future global risk "is threatening to undo decades of cross-border cooperation," the IIF said in a statement. "If we fail to preserve the spirit and the fact of international harmonisation of financial regulation, we run the risk of inhibiting the global economic regeneration so desperately needed by people everywhere. "In a letter to G20 finance ministers and central bankers to meet on Friday and on Saturday in Moscow, the IIF, which represents more than 450 financial institutions around the world, called on the G20 powers to renew their willingness to work together for the good of the global economy. "We believe the G20 must reinvigorate the policy coordination process and recommit to the cooperative spirit of the London and Pittsburgh G20 Summits," the letter said.

Dutch minister wants banking pay cuts


Dutch Finance Minister Jeroen Dijsselbloem wants all bank employees to take a pay cut in return for the state support that has been given to most of the country's biggest banks, he told a local newspaper in an interview published on Monday.Dijsselbloem, who is also chair of the Eurogroup of eurozone finance ministers, nationalised the Netherlands' fourth-largest bank and insurance group, SNS Reaal, ten days ago.ABN AMRO was nationalised and both ING and Aegon were bailed out by the state in 2008. The bank rescues and high salaries earned by senior bankers have prompted a public outcry at a time of budget cuts and austerity measures."We have saved jobs partly thanks to state support. Therefore I think it is reasonable for employees to also make a contribution," Dijsselbloem told De Telegraaf, the Netherlands' largest circulation newspaper."It is true that banks' collective labour agreements are quite generous, also for regular employees. I think there is every reason for banks' collective labour agreements to be more sober, and it really has to happen now," he said. Dijsselbloem wants the labour agreements between unions and employer groups, which usually cover one or several years, to be severed and adjusted, he told the paper.Dijsselbloem has no power to lower salaries in a specific sector. He can levy specific taxes on banks, though not their employees."I want the sector to take action on its own. Society wants a clear signal. I will put pressure on this," he said.Dijsselbloem last week defended in parliament the annual salary of €550 000 ($735 900) for the newly appointed SNS Reaal chief executive, Gerard van Olphen, saying the pay was needed to attract a qualified banker.

North Korea sends nuclear message


North Korea's nuclear test may be aimed at showing its foes it can deliver a missile with a warhead but it is still a long way from being able to threaten the US, experts say. The Comprehensive Nuclear Test Ban Treaty Organisation (CTBTO), an international monitoring agency in Vienna, said an "explosion-like" event that North Korea described as a nuclear test had a seismic magnitude of 5. This was bigger than similar tests it carried out in 2006 and 2009.CTBTO executive secretary Tibor Toth said the action "constitutes a clear threat to international peace and security and challenges efforts to strengthen global nuclear disarmament and non-proliferation". North Korea said the test, which drew swift international condemnation, had used a miniaturised device.The secretive Asian state is widely believed to be trying to develop a device that is compact and light enough to fit on top of a ballistic missile "something that has long been considered out of the North's technical reach," the Stockholm International Peace Research Institute (Sipri) said.A successful test would bring it one step closer to having the capability of building a long-range ballistic missile that could deliver a nuclear weapon, Sipri said.Nuclear proliferation expert Mark Fitzpatrick of the International Institute for Strategic Studies in London said: "It won't be possible to confirm from afar, but the claim of a successful miniaturised device is consistent with expectations that the test would be of a warhead that can fit in the nose cone of one of its missiles."Jim Walsh of Massachusetts Institute of Technology said: "It seems as if Pyongyang wants to send the message  true or not that it can employ a missile with a nuclear warhead and that previous problems with their nuclear tests have been overcome."However, North Korea still had a long way to go before it could credibly threaten the US with nuclear weapons, said Daryl Kimball from the Arms Control Association, a US-based research and advocacy group."It is likely to be years away from fielding an ICBM (Intercontinental Ballistic Missile), which could deliver a nuclear warhead to the US mainland. There is still time to halt and reverse current trends before North Korea's nuclear capabilities become more substantial."An international test-ban treaty was negotiated in the 1990s but has not yet taken effect because not all holders of nuclear technology have ratified it. The Vienna-based CBTBO monitors possible breaches, looking out for signs of atomic tests, including seismic waves and radioactive traces.Experts say it can take days or more to detect possible radioactive signs that would confirm with absolute certainty that a nuclear test had taken place.Seen as a cornerstone of efforts to free the world of atomic bombs, the test ban treaty enjoys wide support around the world. But of the five officially recognised nuclear weapon states, the US and China have yet to ratify it."Though confirmation will take some time, given the seismic signature and the important fact North Korea has never lied when it comes to nuclear tests, I think we can take them at their word and assume this was the explosion of a nuclear device," a Western diplomat in the Austrian capital said. Kimball also said the test was an embarrassment for China's leadership and Pyongyang may have jeopardised the aid and diplomatic support it receives from Beijing.China criticised the previous tests but did not roll back on aid. But Beijing had signalled that if North Korea undertook further tests, it would not hesitate to reduce assistance."Indeed, Beijing could do much more to apply pressure. Past Chinese diplomatic and economic support has allowed North Korea to ignore world opinion, in spite of the desperate state of its economy and hunger-ravaged population. It is important that Beijing now demonstrate its last warning was sincere," Kimball said.