MiamiHerald.com HOTEL COPIES: A copy of The Miami Herald will be delivered to your room. A credit of US$0.25 will be posted to your account if delivery is declined.
TUESDAY, NOVEMBER 9, 2010
107TH YEAR, NO. 419 I ©2010 THE MIAMI HERALD
HIS OWN MAN
Marco Rubio carefully unbound by Tea Party’s embrace BY ALEX LEARY AND BETH REINHARD
Times/Herald Staff Writers
WASHINGTON — When a French TV station set out to understand the U.S. phenomenon known as the Tea Party, it sent a reporter overseas to Florida, down a dusty country road, past a bug-swarmed pond, and into a Pasco County pasture ﬁlled with people waving U.S. ﬂags. It was Oct. 30, three days before Election Day. The crowd had come to Hallelujah Acres Ranch to hear Republican Senate nominee Marco Rubio, frequently hailed and claimed as one of the Tea Party’s biggest success stories. But the typically unﬂappable candidate seemed uncomfortable with the French reporter’s questions
about his Tea Party ties, as he did when an admirer asked him to autograph a Tea Party banner. If the Tea Party is expecting Rubio to plant its yellow “Don’t Tread on Me” ﬂag in the hallowed Senate chamber, it’s in for a letdown. This career politician who once carried the state party’s American Express card deﬁnes himself ﬁrst and foremost as a Republican. Rubio’s pollster, Whit Ayers, tactfully put it this way: “I think he’ll carry the banner for hopeful and optimistic co n s e r va tism and whoever wants to follow that banner is welcome to join.” Rubio has already made it clear that he will not be a rogue senator.
One day after the election, he declared his support for the GOP establishment when he said he looked forward to serving under Senate Republican leader Mitch McConnell. He did not mention Sen. Jim DeMint of South Carolina, viewed as the more ideologically pure conservative and alternative power center, who championed Rubio’s campaign early on. Two days later, McConnell tapped Rubio to deliver the weekly GOP address. Rubio, 39, struck a pragmatic tone at the post-election news conference in Miami, saying Republicans and Democrats have to work together to tackle big, immediate problems such as the national debt and the war in Afghanistan. He did not lob salvos at U.S. President Barack Obama, as he usually does, and said he would reach out to Florida’s Democratic Sen. Bill Nelson. “Early on in the primary, a conservative group of passionate, well-intentioned people coincided with his beliefs and somehow he got this Tea Party label, which I don’t think is totally representative,” said Republican fundraiser Jorge Arrizurieta. “Did he embrace and receive the support of the Tea Party? Absolutely,” Arrizurieta said. “But will he move away from being a real Republican candidate? No way.” Tea Party leaders still claim Rubio as their own. Among Florida voters, 39 percent said they supported the Tea Party movement. Rubio got 86 percent of that group. • TURN TO RUBIO, 2A
AL DIAZ/MIAMI HERALD STAFF
MAINTAINING DISTANCE: Marco Rubio had an opportunity to cozy up to Tea Party darling and former vice presidential nominee Sarah Palin, but his campaign never emphasized her support.
Afghan War’s successes set off debate in Washington BY ELISABETH BUMILLER
New York Times Service
WASHINGTON — The recent reports circulating in Washington’s national security establishment about the Afghan battleground of Marjah show glimmerings of progress: Bazaars are open, some 1,000 children are in school, and a new (and only) restaurant even serves goat curry and kebabs. In Kandahar, NATO ofﬁcials say that U.S. and Afghan forces continue to rout the Taliban. In new statistics offered by U.S. commanders in Kabul, Special Operations units have killed 339 midlevel Taliban commanders and 949 of the group’s foot soldiers in the past three months alone. At the Pentagon, the draft of a war assessment to be submitted to Congress this month cites a shift in momentum in some areas of the country away from the insurgency. But as a new White House review of U.S. President Barack Obama’s strategy in Afghanistan and Pakistan gets under way, the rosy signs have opened an intense • TURN TO AFGHAN WAR, 2A
RADICAL YEMENI CLERIC CALLS FOR KILLING U.S. CITIZENS, ARMEY 3A
MUTUAL BENEFIT: U.S. President Barack Obama and India's Prime Minister Manmohan Singh, right, embrace following a joint statement and press conference in New Delhi on Monday.
Obama boosts India for ‘rightful place in world’ shoulder, because we believe in the promise of India.” To Obama, that promise entails shaking up the world order by giving more voice to developing countries that offer lucrative markets for U.S. products and potential help to counterterrorism and a warming planet. India ﬁts Obama’s agenda perfectly because it is the world’s largest democracy and sits in the heart of a pivotal, vexing region. The diplomacy in India also gave Obama a chance to reassert himself on the global stage, far from Washington in the aftermath after humbling congressional elections. His ﬁnal day in India began with a lavish welcome ceremony at the majestic palace residence of India’s president and ended there as Obama and his wife, Michelle, were toasted to a state dinner. The capstone of Obama’s outreach here came when he announced support for India’s long push to achieve a permanent place
BY BEN FELLER
NEW DELHI — Deepening U.S. stake in Asian power politics, U.S. President Barack Obama on Monday endorsed India’s bid to become a permanent member of the U.N. Security Council, hoping to elevate the nation of a billion people to “its rightful place in the world” alongside an assertive China. Obama’s declaration, delivered to the pounding applause of India’s Parliament members, spoke to a mission broader than the makeup of one global institution. By spending three packed days in India, announcing trade deals, dismissing job-outsourcing gripes and admonishing India’s rival Pakistan, Obama went all in for an ally whose support he hopes to bank on for years. “I want every Indian citizen to know: The United States of America will not simply be cheering you on from the sidelines,” Obama said inside the soaring legislative chamber of the capital city. “We will be right there with you, shoulder to • TURN TO OBAMA, 2A
U.S., China shift toward deep mistrust BY KEITH B. RICHBURG
Washington Post Service
BEIJING — When U.S. President Barack Obama came to China a year ago, on his ﬁrst ofﬁcial Asian trip, he spoke of the “deep and even dramatic ties” between the two powers that would work as partners on shared global burdens such as climate change, nonproliferation and the world economy.
On his return to Asia — a trip that pointedly bypasses China — the talk of partnership and shared burdens has been largely replaced by a deep mutual mistrust, with widespread disappointment on both sides. In the intervening 12 months, Chinese leaders became infuriated when Obama met with the exiled Tibetan spiritual leader,
the Dalai Lama, whom China has branded a separatist criminal, and when Washington announced plans to sell sophisticated weapons to Taiwan. U.S. ofﬁcials tried in vain to get China’s leaders in May to condemn its ally North Korea for the sinking of a South Korean warship, and then became alarmed at Beijing’s bellicose response to
a September incident involving a Chinese ﬁshing boat and a Japanese patrol ship around a group of disputed, uninhabited islands. In between there have been disputes over trade — involving tires, car parts and chicken — and questions of whether China is manipulating its currency. • TURN TO TIES, 2A
Mafia bosses seek therapy to de-stress BY FRANCES D’EMILIO Associated Press
REGGIO CALABRIA, Italy — The maﬁa boss was having a dreadful time dealing with loss. But he wasn’t struggling with the loss of lives, or even the loss of his freedom. “Doc, it’s my hair,” the mobster from the ’ndrangheta crime syndicate confessed to his psychiatrist in jail. “I’m afraid of losing my hair. “And look at these spots on my arm. See them?” he half-pleaded as he rolled up a sleeve and thrust out his arm. “But your hair is ﬁne. Abso-
POST-ELECTION VIOLENCE ROCKS MYANMAR, 6A
lutely ﬁne. And there aren’t any spots,” Dr. Gabriele Quattrone tried to reassure his patient — who had tied himself into a knot of anxiety over the hair he believed to be falling from his head and the imaginary blotches popping up all over his arms. Quattrone is one of a tiny corps of psychotherapists who have treated Italian organized crime bosses or their family members. Patients include dons haunted by nightmares, turncoats tormented after ratting, wives left frigid by rigid codes of loyalty. In exclusive interviews, granted on condition that the identities of the mob-
VIRTUALLY TRUE: Tony Soprano, right, in the TV series The Sopranos tells his therapist, Dr. Jennifer Melfi, ‘I understand therapy as a concept. But in my world it does not go down.’ In reality too, Italian bosses are extremely secretive about seeking medical help. sters not be revealed in line with out world of Italy’s centuries-old doctor-patient conﬁdentiality, the criminal organizations. doctors offered rare insights into the secretive, increasingly strung- • TURN TO MAFIA, 2A
U.S. FACES ‘NEW NORMAL’ OF LOW JOB GROWTH, BUSINESS FRONT
GREEN BAY PACKERS ROUT DALLAS COWBOYS, SPORTS FRONT
INDEX AMERICAS................... 4A U.S. NEWS................... 5A OPINION...................... 7A COMICS & PUZZLES.. 6B
TUESDAY, NOVEMBER 9, 2010
Mafia bosses seek therapy to de-stress • MAFIA, FROM 1A
Quattrone, a neuropsychiatrist, treated his jailed ’ndrangheta patient with tranquilizers — and made some attempts at nurturing introspection. “It’s the stress of 20 years of being a fugitive, of going on trial,” he told the man, a top boss in Reggio Calabria, the toe of Italy’s boot. “Yeah, I’m stressed, all right. I’m stressed because I’m innocent,”’ the boss retorted. These are indeed tense times for Italy’s mobsters. A growing police crackdown and a rebellion among businessmen expected to pay protection money have left some sons of organized crime families wrestling with self-doubt, unsure they are cut out to take their fathers’ and grandfathers’ place in the bloody, vengeful world of the mob. But seeking help is risky business: among mobsters, visiting a psychologist is a weakness you can pay for with your life. Palermo psychologist Girolamo Lo Verso recalled the case of a mobster’s son who told another therapist at a public mental health facility: “If my father knows I come here, he’ll kill us.” “If you’re a maﬁoso, and you’re anxious, you’re not trustworthy and you have to be eliminated,” said Lo Verso. “A maﬁoso is paranoid about everything” — trusting the maﬁa code of silence (“omerta”) more than the medical code of patient conﬁdentiality.
The state’s war on organized crime has put hundreds of bosses behind bars, sometimes for decades, sorely testing the mental health of spouses, children and sometimes the mobsters themselves. Quattrone, the head of neuropsychiatry at a Reggio Calabria hospital, was once summoned to an apartment building in an upscale neighborhood. In the sprawling master bedroom, complete with inlaid swimming pool, lay the maﬁa boss’ severely depressed wife. Doctor and patient looked into each other’s eyes. The husband’s presence made communication hard but the woman’s gaze told Quattrone everything he needed to know. “We understood each other,” Quattrone said. “She was oppressed in her role as a maﬁoso’s wife.” Diagnosis? Existential loneliness. The wife was depressed because she could hardly ever get out of the house — and had a driver and a car with tinted windows on the rare times she did. The psychiatrist prescribed anti-depressants and checked up on her for the next few months. Quattrone scoffed at the notion her husband would ever consider psychotherapy himself. As Tony Soprano put it to his therapist in the TV show: “I understand therapy as a concept. But in my world it does not go down.”
FROM THE FRONT PAGE
Obama backs India’s Security Council bid • OBAMA, FROM 1A
on the Security Council, the elite body responsible for maintaining international peace. It underlined Obama’s contention that the partnership between the U.S. and India could have deﬁning impact on both countries and the world. “The just and sustainable international order that America seeks includes a United Nations that is efﬁcient, effective, credible and legitimate,” Obama said as he called for India to be part of a reformed council. Yet White House aides acknowledge any changes to the council could be messy and years in the making. Attempts to expand the council have long failed because of rivalries between countries. India considered Obama’s move to be an enormous coup regardless. India is part of the socalled Group of Four, with Germany, Japan and Brazil, that has been seeking permanent seats as major economic and political powers. U.S. backing for a permanent seat for India is important, but ofﬁcials here must also win support of the other veto-wielding council members, and the General Assembly has to agree on reform plan. The ﬁve permanent members of the Security Council are the United States, China, France, the United Kingdom and Rus-
sia. The only other country the United States has endorsed for permanent membership is Japan. Pakistan criticized Obama’s statement, accusing India of “blatant violations” of U.N. resolutions and calling on the United States to “take a moral view and not base itself on any temporary expediency or exigencies of power politics.” China has long objected to India’s proposed ascension to the council The dangerous tensions between neighboring Pakistan and India helped frame Obama’s trip. Pakistan is vitally important to Obama’ bid to root out terrorists and win the war in Afghanistan. But India is deeply suspicious of Pakistan and demanding a stronger crackdown on extremist elements within the country’s borders. In another key gesture, Obama went further than he had earlier in addressing the terror threat inside Pakistan. “We will continue to insist to Pakistan’s leaders that terrorist safe havens within their borders are unacceptable, and that the terrorists behind the Mumbai attacks be brought to justice,” the president said. He was referring to the 2008 attacks on the Indian ﬁnancial hub that left 166 people dead at the hands of Pakistani-based extremists. Much of any discussion about India is also seen
through the prism of China — both by the White House and by nations within Asia that are wary of China’s growing might. A higher standing by India is widely seen as a way to keep power in balance in Asia, although Obama is also reaching out to China and will meet with its president later this week. Obama coupled the Security Council endorsement with an admonition for India that “with increased power comes increased responsibility.” He said it is leadership, not intervention, when a country acts to the stop the oppression of another. “Faced with such gross violations of human rights, it is the responsibility of the international community — especially leaders like the United States and India — to condemn it,” Obama said in his Parliament speech. “And if I can be frank, in international fora, India has often shied away from some of these issues.” Earlier Monday, Obama and India’s Prime Minister Manmohan Singh stood in solidarity at a news conference in citing all the ways, from security to education, that their nations’ relationship is growing. On the economy, Singh joined Obama in dismissing criticism of outsourcing work to other countries, saying his nation “is not in the business of stealing jobs from America.”
THE MIAMI HERALD
Afghan War sparks a debate • AFGHAN WAR, FROM 1A
debate at the Defense Department, the White House, the State Department and the intelligence agencies over what they really mean. Are they indications of future success, are they ﬂeeting and not replicable, or are they evidence that Gen. David H. Petraeus, the top United States and NATO commander in Afghanistan, is simply more masterful than his predecessor at shaping opinion? At the White House, so far there is uncertainty and skepticism. “There are tactical cases which seem promising as discrete bits of evidence,” a senior White House ofﬁcial said in an interview over the weekend. “What’s not clear is whether those cases can be put together to create a strategic trend.” Marjah, he added, “looks a lot better than two years ago. But how many Marjahs do we need to do and over what time frame?” The debate centers on the resiliency of the Taliban and the extent to which the group can rebuild from the hammering it is taking. Most involved say that there are positive trends for the Americans, but that the real answer will not be clear until a new ﬁghting season begins as the weather warms next year.
Senator Rubio carefully unbound by Tea Party’s embrace • RUBIO, FROM 1A
“He had a great campaign, a great staff, but if it hadn’t been for the Tea Party, he wouldn’t have had the opportunity to win. The Tea Party gave him exposure,” said Everett Wilkinson, chairman of the South Florida Tea Party. “The movement,” he added, “is looking at Marco to ﬁght for us.” Without a doubt, Rubio owes some of his success to the Tea Party. A year ago when he was down 30 points in the polls in the Republican primary behind Gov. Charlie Crist and shunned by the GOP establishment, Rubio found an eager audience at Tea Party rallies. His ﬁery rhetoric about the direction of the country hit the right notes. “I am here today as a fellow American whose par-
ents were born in a country that lost itself to socialism,” the Cuban-American Rubio said in West Palm Beach on April 15, 2009. “My parents lost their country to a government; I will not lose mine to a government.” He railed about a multitrillion dollar national debt the country’s children will pay “by being taxed into the Third World.” The crowd mobbed him with applause. As the economy continued to falter and anger over Obama’s agenda grew, Rubio’s proﬁle grew along with the Tea Party. The New York Times made a statement when it put Rubio on its Sunday magazine cover with the headline, “The First Senator From the Tea Party ?” Countless news outlets took the cue. It’s no surprise the French reporter picked
Rubio to follow, and no surprise that nearly 300 media outlets showed up in Miami for his victory celebration. But Rubio has long been an insider, involved in Republican Party politics since college, a state legislator who became speaker of the House at age 35 , and the scion of former Gov. Jeb Bush. He’s perhaps the nation’s most successful candidate at bridging the gap between the conservative establishment and the grassroots. “He understands and appreciates the job of leadership,” said Dan Murphy, of the BGR Group lobbying ﬁrm in Washington, which hosted fundraisers for Rubio. “He’ll remember the people who helped bring him to the dance, but as a former speaker of a big body, he’ll have a better appreciation of how to
push his agenda by working with leadership, without marginalizing yourself and being way out there on the fringe,” Murphy said. “He may be the most sophisticated member of the Tea Party to arrive in Washington.” Being branded as a Tea Party politician has its risks. The movement fueled a national debate on government spending but also spawned unconventional ideas like repealing the 17th Amendment and taking the election of U.S. senators out of hands of voters and back into the hands of state legislatures. To some in the Tea Party, government is not just out of control. It is the enemy. Big rallies outside the U.S. Capitol brought strident calls to action and more than a few signs with Obama wearing a Hitler moustache.
Rubio is also not like Kentucky’s senator-elect, Rand Paul, a Tea Party candidate who seems comfortable as an outlier. Populist movements may fade but the Republican Party will not. Rubio is “not one that wants to shake up the establishment just for the sake of shaking it up,” said Nathan L. Gonzales, political editor of the nonpartisan Rothenberg Political Report. Rubio occasionally joined the political fray, once refusing to denounce those who questioned Obama’s citizenship and expressing doubt about the science of global warming. But as his campaign took off, he attended fewer Tea Party events and skipped a big Tea Party convention in Nashville in February. Rubio had an opportunity
to cozy up to Tea Party darling and former vice presidential nominee Sarah Palin, but his campaign never emphasized her support. “Marco, keep up the good work. Call me. Can I help ya?” Palin told a conservative blogger who asked about Rubio at a conservative gathering in New Orleans in April. He never did. In the ﬁnal stretch of the campaign, when it was clear he would win, Rubio showed up to a big rally in Orlando featuring Palin. But he left before she came on stage, denying opponents a photograph that could be used against him in the future. Over the months, Rubio developed a line that neither attached nor distanced himself from the movement, the balancing act of a practiced politician.
Deep mistrust rising between U.S., China • TIES, FROM 1A
What happened over the past year, experts agree, was a case of heightened expectations on both sides crashing into realities on the ground — to the point where relations now between the United States and China are at one of the lowest points in years. President Hu Jintao’s planned state visit to Washington in January could help reset the relationship with China, according to experts on both sides. The deterioration has come against a backdrop of a China that is feeling increasingly emboldened — having weathered the global ﬁnancial crisis while the United States continues to struggle — and that has become more conﬁdent in pressing its interests in the region and around the world, Chinese and U.S. analysts said. Several experts agreed that there was no single issue that caused the downturn, but rather an accumulation of unrelated events combined with some crossed signals and big misunderstandings of each other’s positions. “Each side has been concerned about what it’s seen the other side doing,” said Kenneth Lieberthal, a
China specialist with the Brookings Institution in Washington. “What you have is a cascading set of developments that have no single cause or linear connection.” At the center of the initial misunderstanding, both U.S. and Chinese analysts said, was the Obama administration’s early outreach to China to become a partner in tackling such issues as Iran and North Korea. The U.S. administration saw this as giving China a greater voice in global affairs commensurate with its new status as an economic giant. But the Chinese leaders’ response was essentially: OK, but what do we get out of it? “Early on, when the Obama administration took ofﬁce, they promised China more face and status in global affairs,” said Shi Yinhong, director of the Center on American Studies at Renmin University. “Later, the Chinese government found that the Obama administration wanted so many things from China.” Shi said many of the U.S. demands “can seriously harm China’s interests, for example the appreciation of renminbi, and asking China to sell out Iran.” He added: “A big promise comes with a big price.”
THE MIAMI HERALD
TUESDAY, NOVEMBER 9, 2010
Clinton back home after Asia tour BY MATTHEW LEE
STRIKING A CHORD: South African singer Johnny Clegg’s most popular song has been Asimbonanga, which was written during Nelson Mandela’s imprisonment.
White rockstar of African music marks 30 years BY JENNY GROSS
JOHANNESBURG, South Africa —In a rehearsal studio one afternoon in 1986, a white South African musician wrote an international hit — partly in Zulu, the language of the largest ethnic group in the country. Asimbonanga, which means “we’ve never seen him,” the song refers to the generation of South Africans who grew up under apartheid and had never even seen a photograph of Nelson Mandela, the country’s hope for reconciliation who was imprisoned under South Africa’s apartheid regime. Johnny Clegg, later dubbed the “white Zulu,” was sure his song’s message would be lost. At the time, his new genre of music, a blend of Western pop and Zulu rhythms, was banned from the radio — as Mandela’s photo was banned from newspapers. Clegg’s concerts were routinely broken up, and he and other members of his multiracial band had been arrested several times for challenging a South African law meant to keep whites and blacks apart. Asimbonanga, in which the names of Mandela and other prisoners are spoken aloud in deﬁance of state radio rules of the time, was released in South Africa in 1986 and the government immediately banned the video and restricted the song from radio programming, so most South Africans only got to hear it a few years after its release. They embraced it. SOARING POPULARITY For the 57-year-old Clegg, the pinnacle of his career occurred while performing in Frankfurt, Germany, a few years after Mandela was released and became the country’s ﬁrst black president in 1994. Clegg began to sing Asimbonanga, which had quickly risen to the top of the charts. In the middle of the song, the Frankfurt crowd started cheering loudly. Clegg turned around and to his surprise, saw Mandela dancing on the stage. “I was taken by a wave of such amazing emotions,” Clegg said. “I wrote that in 1986, knowing it was going to be banned and not knowing he [Mandela] was ever going to be released because we were in the middle of a civil war. Eleven years later, in a new South Africa, I’m playing the song, and the very man I wrote it for walks on stage and sings it with me.” Clegg celebrates his 30 years as a musician — with the bands Juluka and Savuka and later as a solo act — in a concert in Johannesburg Saturday. Thousands of people streamed into the concert grounds near Johannesburg’s botanical gardens early Saturday evening, with the multiracial crowd sitting on picnic blankets on the grass. Concert goer Jeremy Stewart, 32, said he remembers his parents taking him and his sister to hear Clegg at the Market Theatre, then the home of anti-apartheid protest theater in Johannesburg, in 1985. “He’s added another dimension to bringing people together and breaking down boundaries between races,” he said. Kaizer Moyane, 38, of Johannesburg, said of Clegg: “I think his music speaks to everyone in the country. He’s a hero.” Sipho Mchunu, Clegg’s musical partner from the days of their legenday Juluka band, will join him Saturday. TOUGH TIMES Under the South Africa’s racially segregated regime, Clegg’s multiracial band performed in small spaces such as churches, university halls and private homes because laws prohibited blacks from performing in white areas and whites from performing in black areas. Radio disc jockeys were banned from playing Clegg’s music, but the live performances spread like wildﬁre. The band, which mixed traditional Zulu high kicks and warrior dress as well as musical elements with Western styles, began to perform unannounced in the townships so that authorities wouldn’t have time to ban shows. Outside of South Africa, the music became an instant hit, and the band toured extensively through North America and Europe during the height of racial tensions in South Africa. Clegg’s African rock stemmed from his childhood when he noticed how a street musician had “Africanized” a guitar, a European instrument: He was immediately hooked. As a student he began to experiment with the cross of English words and Zulu rhythms. Clegg was born in England and lived in Israel, Zimbabwe, South Africa and Zambia during his childhood, attending six primary schools in ﬁve years. He called himself a loner. “I felt like a migrant,” he said. “So when I met migrant workers — Zulu migrant workers — there was something about them that I intuitively connected with because they were also establishing these tenuous connections with different places.” Clegg spent years in Zulu communities, learning the culture, dance and language.
PAGO PAGO, American Samoa — U.S. Secretary of State Hillary Clinton returned to U.S. soil on Monday after a marathon two-week trip to the Asia-Paciﬁc during which the domestic U.S. political landscape dramatically changed amid growing international concerns about China becoming more aggressive. Clinton touched down in American Samoa on her way back to Washington, where Republican gains in Congress in last week’s midterm elections may complicate some key Obama administration foreign policy priorities. She said protecting U.S. interests abroad should not be a partisan matter and has vowed to work with the new Republican leadership. But some GOP lawmakers are threatening deep cuts in foreign affairs funding and it’s unclear if heavy lobbying from the administration will convince the lame-duck Senate to ratify a major arms reduction treaty with Russia. Others have questioned the administration’s strategy in Afghanistan and the Middle East. Despite those differences,
the new Congress and the administration are likely to see eye-to-eye on the main purpose for Clinton’s lengthy tour: checking the inﬂuence of a rising China that has become increasingly assertive as its economic might grows. Beginning Oct. 27, Clinton visited Vietnam, China, Cambodia, Malaysia, Papua New Guinea, New Zealand and Australia to cement ties with China’s wary neighbors, assure them of United States’ commitment to remaining a dominant Asia-Paciﬁc power and press Chinese ofﬁcials to play a more responsible and predictable role on the regional and world stage. “We’ve been here, we are here and we will be here,” she said Monday in Australia, referring to United States’ military, diplomatic and commercial presence in the region. “As China becomes more of a player in regional and global affairs, then we expect that China will be a responsible player and will participate in the international framework of rules that govern the way nations behave and conduct themselves,” Clinton said. She started the jour-
ney in Hawaii, where she and Japan’s foreign minister called on Beijing to clarify its position of the export of rare earth minerals that are vital to the global high-tech industry and to work with Tokyo on resolving competing claims to territory in the East China Sea that have ratcheted up tensions. Two days later, in talks in Vietnam and then on China’s Hainan Island, Clinton won assurances from top Chinese ofﬁcials that they would remain a reliable supplier of the precious metals. But she was unable to interest them in an offer to host talks with Japan over the island dispute. China rejected the proposal and has reacted angrily to U.S. declarations that resolution of such disputes is a U.S. national security concern. The rejection prompted Clinton to renew the offer and restate the U.S. interest in ensuring freedom of navigation and maritime safety in the region. And she made clear that despite China’s assurances on rare earth exports, the international community must diversify its sources for the material. China now supplies 97
percent of the world’s rare earth production and continuing to depend on it would be a strategic mistake, Clinton said. In Cambodia, which is heavily dependent on Chinese investment and trade, Clinton warned against the dangers of over-reliance on any one nation or partner. That theme was also evident in Malaysia and in New Zealand, where she signed a declaration aimed at fully restoring military ties and bringing a ﬁnal end to a lingering nuclear dispute that had dogged relations for 25 years. At her last stop in Melbourne, Australia, she and Defense Secretary Robert Gates, along with their Australian colleagues, agreed to step up military and defense cooperation with the clear goal of expanding the projection of U.S. power in the Asia-Paciﬁc. In a joint statement, the two nations “afﬁrmed the need for peaceful resolution of regional maritime territorial disputes, including in the South China Sea and the East China Sea. They supported negotiation of a more formal, binding code of conduct for the South China Sea.”
Terrorism in Indonesia worries U.S. BY LOLITA C. BALDOR Associated Press
WASHINGTON — The discovery of a militant training camp in Indonesia, along with persistent terrorist attacks there, have increased U.S. concerns that extremists are regrouping and eyeing Western targets in a country long viewed as a counterterrorism success story. With U.S. President Barack Obama set to begin a visit Tuesday to the world’s most populous Muslim country, there is renewed attention on terrorists in Indonesia who in the past year appeared to be banding together into a new al Qaedainﬂuenced insurgency. Recent Pentagon moves to renew a training program with Indonesia’s special forces and bolster military assistance show that the Obama administration believes the country needs more help tracking and rooting out insurgents, particularly those who rejoin the ﬁght once they are released from jail. The United States has praised Indonesia’s efforts to crack down on terrorists. Government police and military authorities have captured or killed more than 100 terrorists over the past year. U.S. defense ofﬁcials, however, worry about the overall threat. They’re watching for any signs of movement or increased communications between Indonesian extremists and al Qaeda leaders in Pakistan and Afghanistan. Obama’s long-promised visit to the nation comes as U.S. defense ofﬁcials said Indonesia has exhibited both the will and the ability to pursue extremists. That includes developing an aggressive rehabilitation program, as well as a consistent string of arrests, these ofﬁcials said. But they also are
HERI JUANDA/AP FILE
CRACKDOWN: The discovery of a terrorist training camp in Indonesia’s Aceh Province this year has heightened U.S. fears about emerging terror threats in the country. Above, police raid a terrorist training camp in Aceh Province. concerned that some jailed militants have returned to the ﬁght after their release. That raises questions about how effective the program is and how well authorities are tracking militants once they are free. “There is a hard core that are not reformable,” agreed Sidney Jones, an expert on the region and analyst with the Brussels-based International Crisis Group. The discovery of a terrorist training camp in the Aceh Province this year heightened U.S. fears that there may be other emerging threats in the country’s remote regions that Indonesia has failed to ferret out. According to Indonesian authorities, the Aceh group was plotting assassinations or an attacks similar to the one in Mumbai, India, in 2008. While recent attacks in Indonesia have focused on government and law enforcement, several high proﬁle strikes in the past eight
years have targeted Western interests. Ofﬁcials said it appears Indonesian militants have been inspired and, on occasion, encouraged by al Qaeda. While they suspect there has been ongoing communication, ofﬁcials say they have little proof. in 2009, a proposed visit to the region by Obama triggered threats of a terrorist attack. Defense and counterterrorism ofﬁcials said they believe the threats were for an attack on Western interests during the visit, but were not necessarily aimed directly at the president. Obama postponed the trip because of other scheduling concerns, according to the White House. But extremists gloated that they had scared the U.S. president away. Counterterrorism ofﬁcials say the threat has remained steady since the Aceh camp was discovered. They worry that other terrorist leaders, such as Umar Patek, who’s
believed to be in the Philippines, may be looking to travel back to Indonesia. Others suggest Patek, who’s wanted in the 2002 Bali bombings, already may have returned. To help better monitor the terrorists’ movement and trafﬁcking in the region, the United States has provided money for helicopters, radars and small boats, to help build an interdiction force. Since 2006, the Pentagon has sent about $60 million in military aid to Indonesia for a new regional maritime warning system; as much as $20 million more is in the pipeline. The move by the U.S. military to reengage with Indonesia’s elite special forces unit, known as Kopassus, may pay dividends, but it has raised alarms from human rights activists. Kopassus troops have been implicated in a range of war crimes and human rights violations. Indonesia ofﬁcials say they have worked to address the problems.
Radical Yemeni cleric calls for killing U.S. citizens BY MAGGIE MICHAEL Associated Press
CAIRO — A U.S.-born Islamic cleric linked to attacks by al Qaeda in Yemen on U.S. targets called for Muslims around the world to kill U.S. citizens in a new video posted on extremist websites Monday. Anwar al Awlaki, 39, is one of the most prominent English-language radical clerics and his sermons advocating jihad, or holy war, against the United States have inﬂuenced militants involved in several attacks or attempted attacks on U.S. soil. Yemeni ofﬁcials say he may have blessed the recent mail bomb
plot, though he may not have taken an active part in it. Al Awlaki has in past messages encouraged Muslims to murder U.S. soldiers and justiﬁed the killings of U.S. civilians by accusing the United States of intentionally killing a million Muslim civilians in Iraq, Afghanistan and elsewhere. But this message appeared stronger, arguing that no justiﬁcation was needed. In his 23-minute message delivered in Arabic, al Awlaki said because all U.S. citizens are the enemy, clerics don’t need to issue any special fatwas or religious rulings allowing them to be killed. He
was dressed in a traditional Yemeni garb — a white robe, turban and a sheathed dagger tucked into his waistband — and wore round spectacles while sitting behind a desk. “Don’t consult with anybody in killing the Americans,” he said. “Fighting the devil doesn’t require consultation or prayers seeking divine guidance. They are the party of the devils,” he added. It is “either us or them.” Al Awlaki, who was born in New Mexico to Yemeni parents, has used his website and English-language sermons to encourage Muslims around the world to kill
U.S. troops in Iraq and has been tied by U.S. intelligence to the 9/11 hijackers and to Umar Farouk Abdulmutallab who tried to blow up an airliner over Detroit on Christmas in 2009 with explosives hidden in his underwear. He was also in contact with Maj. Nidal Malik Hasan, the Army psychiatrist accused of killing 13 people in November at the Fort Hood, Texas military base. U.S. investigators say since he returned to Yemen in 2006, al Awlaki has moved beyond just inspiring militants to becoming an active operative in al Qaeda’s afﬁliate there.
TUESDAY, NOVEMBER 9, 2010
THE MIAMI HERALD
20 killed over weekend in Mexican border city BY OLIVIA TORRES
CIUDAD JUAREZ, Mexico — At least 20 people were killed in drug-gang violence over the weekend in this northern Mexican border city, including seven found dead outside one house. The seven men were believed to have been at a family party when they were gunned down Saturday night, said Arturo Sandoval, a spokesman for the attorney general’s ofﬁce in Chihuahua state, where Ciudad Juarez is located. Five were found dead in a car, and the other two were shot at the entrance of the home. There have been several such massacres in Ciudad Juarez, a city held hostage by a nearly three-year turf battle between the Juarez and Sinaloa cartels. Few residents now venture out to bars and restaurants. And like those attacked on Saturday, others have discovered that they aren’t even safe in their own homes: In October, gunmen stormed two neighboring houses and massacred more
than a dozen young people attending a party for a 15-year-old boy. Eleven other people were killed Saturday in the city, including two whose bodies were found dismembered, Sandoval said. On Sunday, two police ofﬁcers, a man and a woman, were shot to death inside their patrol car. Ciudad Juarez, across the border from El Paso, Texas, has become one of the world’s deadliest cities in the time that the two cartels have been ﬁghting. More than 6,500 people have been killed since the start of 2008. The U.S. Consulate in the northern city of Hermosillo, meanwhile, announced new travel restrictions for its U.S. employees in the states of Sinaloa and Sonora. The U.S. State Department has increasingly taken drastic measures to protect U.S. employees in northern Mexico from rising violence, including temporarily closing some consulates. In southern Mexico, meanwhile, police in Oaxaca city found a human head in a gift-wrapped box left Sat-
urday night on the side of a cliff popular for its view of the picturesque colonial center. Reporters at the scene saw a threatening message left with the head signed, “the last letter Z,” an apparent reference to the Zetas drug gang. An e-mail purportedly from the Zetas claimed responsibility for those slayings and said that the two were killed for falsely representing themselves as members of the gang. Oaxaca state Attorney General Maria de la Luz Candelaria Chinas said the email is suspected to be fake, although she said authorities had not ruled out the possibility that the Zetas sent it. Mexican government ofﬁcials describe the Zetas — former hit men for the Gulf cartel who became independent this year — as a sort of franchise with units across the country. But ofﬁcials say some of those cells are copycats using the Zetas name to intimidate extortion and kidnap victims.
Venezuela wants drug suspect extradited BY CHRISTOPHER TOOTHAKER Associated Press
CARACAS — Venezuela’s President Hugo Chavez is hinting at impatience because Colombia hasn’t extradited a suspected Venezuelan drug trafﬁcker who has accused one of the Chavez’s close aides of accepting bribes. Chavez called fugitive Walid Makled a “bandit” Sunday, saying his government wants Colombia to send the suspect to Venezuela. Makled also is sought in New York on drug trafﬁcking charges. “We are waiting for Colombia’s government and authorities, to proceed and extradite him to Venezuela,” Chavez told state tele-
vision. “We’ve been making requests for more than a month,” he added. Makled claims he paid bribes to the brother of Venezuela’s justice minister, Tareck El Aissami, in exchange for favors, including a government concession that gave him control of warehouses at Venezuela’s busiest cargo port, Puerto Cabello. El Aissami denies any wrongdoing. Chavez reached agreements with Colombia’s President Juan Manuel Santos last week to repair relations and leave behind bitter disputes that severely strained diplomatic relations when Santos’ predecessor, Alvaro Uribe, was in ofﬁce.
But Makled’s extradition could hurt their efforts, especially if Colombia — one of Washington’s closest allies in Latin America — sends the purported drug trafﬁcker to the United States rather than Venezuela. Santos and Chavez did not publicly talk about Makled last week during the Colombian leader’s ﬁrst visit to Venezuela since taking ofﬁce Aug. 7. During an interview with Cuban state television that was also broadcast on Venezuelan state TV, Chavez accused the Central Intelligence Agency of using Makled to attempt to disrupt warmer relations between Venezuela and Colombia.
UNJUST: In July, Venezuela’s President Hugo Chavez announced his government would obtain a minority ownership in Globovision, the last remaining opposition television station. Above, Guillermo Zuloaga, the president of Globovision is seen.
Latin American press freedoms threatened BY E. EDUARDO CASTILLO Associated Press
MERIDA, Mexico — Latin American media leaders are warning that press freedoms in the region are under threat from narco-violence in Mexico and political repression in Venezuela, Bolivia and Ecuador. Journalists are attacked with impunity in Mexico, the most dangerous country in Latin America for reporters amid relentless drug-gang violence, columnist Roberto Rock of the Mexican newspaper El Universal said Sunday in presenting a report on his country at the 66th assembly of the Inter American Press Association. At least 11 journalists have been killed in Mexico this year, Rock said. In the past decade more than 65 journalists have been slain, Rock said, citing ﬁgures from Mexico’s National Commission for Human Rights. Many small newspapers in the most violent regions of Mexico, especially the northern areas bordering the United States, acknowledge that they no longer cover druggang violence because their
reporters have been threatened or killed. At a recent debate, Mexican journalists also conceded corruption persists in some newsrooms. Salaries are low, leaving reporters vulnerable to bribes, while government advertising remains a major source of revenue for many publications, raising questions about possible ofﬁcial inﬂuence on news coverage. The president of the Venezuelan Press Bloc, David Natera, said press freedoms in Venezuela are dwindling under the government of President Hugo Chavez, who calls himself a socialist revolutionary. Natera accused Chavez of seeking to control Venezuelans by expropriating property and silencing the media. In July, Chavez announced his government would obtain a minority ownership in Globovision, the last remaining opposition television station with which he has long battled. In August, a court ordered one of Venezuela’s leading newspaper, El Nacional, to stop publishing photographs depicting blood, guns and
other violence for a month. El Nacional responded by replacing front-page photos with the word “censored.” Pro-government groups who requested the ruling cited the need to protect children and adolescents from violent images. Media leaders had similar complaints about the Chavezaligned leftist governments of Ecuador and Bolivia. Pedro Rivera Jordan, of the Bolivian daily El Deber, warned that a new law against racism could be used to close media outlets “that are not aligned with the government.” Bolivia’s President Evo Morales said the law is intended to ﬁght racism against the poor Indian majority. A report on Ecuador criticized the government of President Rafael Correa for ordering private TV stations to air the government channel during a September uprising by the national police protesting cuts in beneﬁts. “Citizens only knew the government’s version of events for many hours,” the report said.
Argentina flights slowed Cuban dissident backs by strikes, cancellations off hunger strike threat BUENOS AIRES — (AP) — A ﬁstﬁght between pilots in an airplane cockpit led to a weekend of chaos for thousands of travelers in Argentina, where authorities were still dealing with the backlog on Monday. Argentina’s main international airport was already struggling to absorb 20,000 more daily travelers due to the closure Thursday of Argentina’s main domestic airport, Aeroparque Jorge Newbery, when the ﬁght between pilots for rival unions
led to a complete shutdown of the country’s main carrier, Aerolineas Argentinas. The ﬁght apparently started when one discovered that the other was carrying a camera to document any problems on their ﬂight, and it became so violent that airport police hauled them off the plane in front of their passengers. Their unions both declared a strike, demanding that neither pilot be punished by the state-owned company.
More than 50 ﬂights were canceled Thursday, causing a backlog that forced the cancellation of 40 percent of ﬂights at the Ezeiza airport through the weekend. Thousands of passengers were stranded, including hundreds whose planes were left sitting on the runway. Ezeiza’s passenger terminals were jammed with a sea of frustrated travelers, and trafﬁc crawled on the already crowded airport highway.
CARIBBEAN BRIEFS • CUBA
Prisoners’ relatives stage protest From Miami Herald Wire Service
The wives and mothers of Cuba’s most prominent political prisoners marched through the leafy streets of the capital Sunday, demanding the government honor an agreement to release their loved ones by the end of the day — or face protests and international condemnation. With the deadline approaching and no word on the men’s fate, a standoff between President Raul Castro and the island’s small but vocal opposition community appeared imminent. One dissident vowed to start a hunger strike if the 13 prisoners are not in their homes by Monday, and a human rights leader warned the Cuban government was playing with ﬁre. • PUERTO RICO U.S HOUSE DELEGATE BACKS HOYER Puerto Rico’s nonvoting delegate to the U.S. House of Representatives said Sunday that he is backing Maryland Rep. Steny Hoyer for the Democrats’ No. 2 leadership
spot when the party becomes a minority. Pedro Pierluisi said in a statement that Hoyer is a unifying leader who will be “effective in uniting House Democrats and defending the Democratic agenda,” while advancing a positive agenda for the U.S. island territory of 4 million people. His spokeswoman Dennise Perez said that although Puerto Rico’s congressional delegate cannot vote on bills, Pierluisi does get a vote in the party’s internal leadership decisions. • GUYANA RIVER BOAT CAPSIZES; 3 DROWN Authorities in Guyana say a recreational boat crowded with at least 20 passengers has capsized in a jungle river, killing three people. Police in the tiny South American nation say the bodies of a 20-year-old teacher and two children ages 7 and 12 have been recovered from the Demerara River. A police statement issued Sunday says the boat was carrying residents of the mining town of Linden on a pleasure cruise Saturday for an annual community outing. As it approached its moorings, the captain turned the vessel sharply and it capsized. Most on board were rescued or managed to swim ashore.
BY PAUL HAVEN
HAVANA — A prominent Cuban dissident has pulled back from a threat to launch a hunger strike to pressure the government to free the last 13 political prisoners jailed in a 2003 crackdown, saying Monday that he was heeding a call for restraint from the men and their wives. Guillermo Farinas said he was postponing the hunger strike, but stood ready to launch one if he is persuaded that authorities will not release the prisoners. He said he was writing a letter to Havana Cardinal Jaime Ortega — who negotiated the releases with Cuba’s President Raul Castro — to see what had gone wrong. Farinas won Europe’s Sakharov human rights prize in October after staging a
134-day hunger strike in support of the prisoners. He had vowed to stop eating again if the remaining dissidents were not in their homes by Monday — one day after a deadline for their release. Even as he withdrew the threat, Farinas said he was pessimistic that the government would make good on its promise to the church. In their July 7 meeting, Castro and Ortega agreed on a timetable for the liberation of 52 prisoners of conscience held since a 2003 sweep against peaceful activists, social commentators and opposition leaders. The church announced that all of them would be out of jail within four months, a period that ended Sunday. At ﬁrst, the releases came quickly. The government freed 39 of the men — as well
as 14 other prisoners arrested separately for violent, but politically motivated, crimes. All were sent into exile in Spain along with their families, though the agreement with the church made no mention of exile being a requirement for release. But progress has stalled recently. The remaining 13 prisoners have refused to leave the island, a direct challenge to the government. Some say they will continue to press for democratic political change the moment they leave jail. Cuban ofﬁcials have declined to comment on the deadline. Cuba considers all its dissidents to be common criminals and says they receive money from the United States to bring down the island’s communist system.
Chavez defends apartments takeover BY CHRISTOPHER TOOTHAKER Associated Press
CARACAS — Facing a wave of criticism from business leaders, Venezuela’s President Hugo Chavez is defending his order for government ofﬁcials to seize control of residential complexes. Chavez promised Sunday to crack down on construction and real estate companies that he accused of unjustly boosting prices, which he labeled “housing fraud.” The president, a self-proclaimed revolutionary who idolizes Cuba’s Fidel Castro and is currently on a visit to Havana, called his deci-
sion last week to order the expropriation of six residential complexes and “the temporary occupation” of eight gated communities in Caracas and other cities “an act of justice.” Venezuela’s consumer protection agency and state prosecutors are investigating complaints that construction companies and real estate ﬁrms are illegally charging buyers high interest on unﬁnished apartments, even though the buyers settled on a price years ago and made down payments. Companies accused of violating regulations deny any wrongdoing.
Apartment owners affected by the measures have had mixed reactions. Some don’t like having soldiers posted near their homes or fear the measure could encourage pro-Chavez squatters to invade buildings still under construction. Others applaud the measure, saying it has protected them from unscrupulous business practices. More than 1 million of Venezuela’s estimated 28 million inhabitants do not have adequate housing while millions more live in dangerous, laberinth-like slums ringing the South American nation’s cities.
THE MIAMI HERALD
Climate scientists to take on critics BY NEELA BANERJEE
Tribune Washington Bureau
WASHINGTON — Faced with increasing political attacks, hundreds of climate scientists are joining a broad campaign to push back against congressional conservatives who have threatened prominent researchers with investigations and have vowed to kill regulations to rein in man-made greenhouse gas emissions. The efforts reveal a shift among climate scientists, many of whom have traditionally stayed out of politics and avoided the news media. Many now say they are willing to go toe-to-toe with their critics, some of whom gained new power after the Republicans won control of the House in last Tuesday’s election. On Monday, the American Geophysical Union, the United States’ largest association of climate scientists, was to announce that 700 climate scientists had agreed to speak out as experts on questions about global warming and the role of man-made air pollution. Some are prepared to go before what they consider potentially hostile audiences on conservative talk-radio and television shows. John Abraham of St. Thomas University in Minnesota, who in May 2009 wrote a widely disseminated response to climate-
change skeptics, is organizing a “Climate Rapid Response Team,” which so far has more than three dozen leading scientists to defend the consensus on global warming in the scientiﬁc community. Some are also preparing a handbook on the human causes of climate change, which they plan to start sending to U.S. high schools as soon as this fall. “This group feels strongly that science and politics can’t be divorced and that we need to take bold measures to not only communicate science but also to aggressively engage the denialists and politicians who attack climate science and its scientists,” said Scott Mandia, professor of physical sciences at Suffolk County Community College in New York. “We are taking the ﬁght to them because we are . . . tired of taking the hits. The notion that truth will prevail is not working. The truth has been out there for the past two decades, and nothing has changed.” During the recent election campaigns, skepticism about climate change became a rallying cry for many Republican candidates. Of the more than 100 new Republican members of Congress, 50 percent are climate-change skeptics, according to an analysis
of campaign statements by the Center for American Progress, a liberal research group. Prominent Republican congressmen such as Darrell Issa, R-Calif., Joe L. Barton, R-Texas, and F. James Sensenbrenner Jr., R-Wis., have pledged to investigate the Environmental Protection Agency’s regulation of greenhouse gas emissions. They say they also intend to probe the so-called Climategate scandal, in which thousands of e-mails of leading climate scientists were hacked and released to the public late last year. Climate-change skeptics argued that the sniping in some e-mails showed that scientists suppressed research by skeptics and manipulated data. Five independent panels subsequently cleared the researchers involved and validated the science. “People who ask and accept taxpayer dollars shouldn’t get bent of shape when asked to account for the money,” said James M. Taylor, a senior fellow and a specialist in global warming at the conservative Heartland Institute in Chicago. “The budget is spiraling out of control while government is handing out billions of dollars in grants to climate scientists, many of whom are unabashed activists.”
Ongoing public interest in Climategate has prompted climate scientists to act. The American Geological Union plan has attracted a large number of scientists in a short time because they were eager to address what they see as climate misinformation, said Jeffrey Taylor, research fellow at the National Center for Atmospheric Research in Colorado and manager of the project. Still, the scope of the group’s work is limited, reﬂecting the ongoing reluctance by many scientists to venture into politics. In the week that Abraham and others have been organizing the rapid-response team, 39 scientists agreed to participate, including Richard Feely, senior scientist with the National Oceanic and Atmospheric Administration; Kevin Trenberth, head of the climate analysis section at the National Center for Atmospheric Research; and Michael Oppenheimer, professor of geosciences and international affairs at Princeton University. “People who’ve already dug their heels in, we’re not going to change their opinions,” Mandia said. “We’re trying to reach people who may not have an opinion or opinion based on limited information.”
ANCHORAGE, Alaska — Republican Sen. Lisa Murkowski is on the cusp of vindication after waging a high stakes — and long shot — write-in campaign to keep her job. Initial returns show writein ballots holding a 13,439vote edge over GOP nominee Joe Miller, and though it’s not clear how many of those are for her or will be counted as valid, she’s conﬁdent enough in her winning to tell supporters that they’d “made history.” The write-in count starts Wednesday in Juneau. Murkowski needed broad-based support — from fellow Republicans, Democrats, independents — to be successful in what was a three-way race (Democrat Scott McAdams has conceded). And while a win would return her to Washington, to the colleagues and party leaders who turned their backs on her after her humiliating primary loss to the Sarah Palin-backed Miller, it also raises questions about how she would legislate. “I think so much about representation is trusting me to do what I think is the right thing,” she said. Expectations are high. Many conservatives see the support she won from labor, Alaska Native groups and Democrats as an indication she will be less likely to push for less federal spending, an overhaul of federal contracting that gives Native corporations preferential treatment and an antiabortion agenda.
And some, like independent Bethany Marcum, feel marginalized because Murkowski labeled Miller an extremist — and Marcum shares many of Miller’s limited-government views. “I don’t think I’ll be heard,” Marcum, 44, said. Bob Poe, a nonpartisan who unsuccessfully sought the Democratic nomination for governor this year, hopes the last few months have been a wake-up call for Murkowski and that she’ll reclaim her mantle as a moderate. Murkowski, who shifted right after U.S. President Barack Obama took ofﬁce and as her star within the GOP rose, maintains she will approach issues as they come to her. Though she plans to caucus with Republicans, she said she won’t be beholden to any special interests or party — an initial sign of that perhaps coming in her decision not to try to reclaim her leadership post within the GOP conference . She voluntarily resigned it in deciding to make her outsider run. She said she plans to listen to Alaskans “and hopefully you will recognize that I’m using intellect and judgment [and] while we may disagree on the ﬁnal vote you will at least acknowledge that I gave due consideration.” During the hotly contested campaign, Miller and tea party-minded surrogates like Palin sought to paint Murkowski as an out-oftouch liberal, a Republican in name only. McAdams, meanwhile, called her dangerously conservative, will-
BY MONICA DAVEY AND MICHAEL LUO
New York Times Service
Republicans who have taken over state capitols across the United States are promising to respond to crippling budget deﬁcits with an array of cuts, among them proposals to reduce public workers’ beneﬁts in Wisconsin, scale back social services in Maine and sell off state liquor stores in Pennsylvania, endangering the jobs of thousands of state workers. States face huge deﬁcits, even after several grueling years of them, and just as billions of dollars in stimulus money from Washington is drying up. With some of these new Republican state leaders having taken the possibility of tax increases off the table in their campaigns, deep cuts in state spending will be needed. “We’re going to do what families and businesses all over this country have already had to do, and that is live within their means,” said Brian Bosma, a Republican who will soon become the speaker of the Indiana House. In that state, Bosma said, revenues next year are expected to reach only the levels of about ﬁve years ago, creating an enormous strain. “We’re going to do what is right, and we’ll let the politics land where they may,” he said.
New York Times Service
The trial of Ahmed Khalfan Ghailani has attracted intense interest as a test of the Obama administration’s strategy to try Guantanamo detainees in civilian court. But few have as much personal connection to the case than the group of onlookers who ﬁll several rows of the New York courtroom. Some are family members of those who died in al Qaeda’s 1998 bombings of the U.S. Embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania; others
worked in the embassy at the time. And although a dozen years have passed since the attacks, which killed 224 people — including 12 U.S. citizens in the Nairobi bombing — and wounded thousands, one spectator made clear that she would not have missed this trial. “I felt that it was an obligation to come,” said Sue Bartley, 63, lost two family members in the Nairobi bombing: her husband, Julian L. Bartley Sr., who was the consul general; and her son, Julian L. Bartley Jr., who was a col-
All sorts of candidates make all sorts of promises along campaign trails, but there is a difference after last week’s election: In many states, Republicans have gained such control that when they take ofﬁce in the coming months they will have a much easier time carrying out whatever agenda they choose. In some cases, that may mean not just greatly changing state policies on taxing and spending, but also loosening regulations facing businesses, restricting access to abortion and rights for illegal immigration, and, perhaps, slowing the Obama administration’s health care overhaul. Republicans gained more than 690 seats in state legislatures (leaving them with numbers last seen more than 80 years ago), at least ﬁve more governor seats, and, perhaps most signiﬁcant, acrossthe-board power in the legislatures and governor’s ofﬁces of at least 20 states — more than twice as many as before the election. To solve deﬁcits in the last few years, many states have already made drastic cuts as well as raising taxes. And while there are signs that state revenues may be starting to improve, in most places they are not expected to return to pre-recession levels for a while.
Obama opens door for talks with GOP on tax-cut extensions BY LORI MONTGOMERY
Washington Post Service
HOPEFUL: Alaska incumbent Sen. Lisa Murkowski is confident enough in her winning to tell supporters that they’d ‘made history.’ ing to put party over policy and apt to veer farther right if elected, out of fear of losing another primary. Murkowski rejected both tags and cast herself as the voice for “all Alaskans,” stressing the beneﬁts her seniority could yield and willingness to work with Democrats as reasons to support her. She defended her move right under Obama and a Democratic-led Congress — a shift that included opposition to key pieces of the Democratic agenda, such as the federal health care overhaul and stimulus — as motivated by concerns of excess spending and government overreach, problems she pledged to continue ﬁghting. Yet, unlike Miller, she’s not staunchly anti-abortion, supporting exceptions for
cases including those involving rape or incest. She doesn’t believe building a wall on the U.S.-Mexico border is a good solution to dealing with illegal immigration. And she believes raising the eligibility age for Social Security is more acceptable than a wholesale transition out of the program. Pollster Marc Hellenthal doesn’t believe Murkowski would return to Washington with a mandate. “That would be a little strong, almost a little egotistical. The only reason we’re doing this is because she screwed up the primary,” said Hellenthal, who polled for Alaskans Standing Together, the PAC formed by Alaska Native corporations that spent nearly $1.3 million to help Murkowski win the general election.
Some Murkowski supporters, like Lori Gonzalez, of Anchorage, felt Miller’s primary win was a “shock to the system” for voters who thought Murkowski would cruise to a victory over the political upstart. Political scientist Carl Shepro doesn’t think Murkowski has to change much, if at all. “I would think that she was basically representing what she perceived to be the majority of Alaskans” before, he said. Murkowski, likewise, believes she has to keep doing what she’s been doing — returning to the state, meeting with voters, listening to them — but be more aggressive in her approach and make sure she truly is hearing all sides. She doesn’t intend to contribute willingly to gridlock in Washington.
Trial of Embassy bombing suspect attracts attention BY BENJAMIN WEISER
GOP takeovers signal budget cuts
Lisa Murkowski on cusp of win; how will she legislate? BY BECKY BOHRER
TUESDAY, NOVEMBER 9, 2010
lege student working as an intern at the embassy. For family members who attended both the 2001 trial GHAILANI and this one, there are stark differences. For one, at the time of the ﬁrst trial, the 9/11 attacks were still months away. Edith Bartley, who has become an advocate and spokeswoman for the families of the U.S. citizens killed in the Nairobi bombing, said
those families, represented by the law ﬁrm Crowell & Moring, have pushed for years to receive compensation like that provided to the victims of the Sept. 11 attacks. But despite bipartisan support, she said, they have been unsuccessful. Most recently, said one of their lawyers, Florence W. Prioleau, a bill pending in the House of Representatives would provide a total of about $11 million for the families, and the hope is that such compensation will be part of a ﬁnal bill. The long debate about
where to try terrorist detainees, in which U.S. President Barack Obama has said his goal is to use federal courts whenever feasible, has not escaped the family members observing Ghailani’s trial. Some of the family members attending the trial said they had been asked by prosecutors for their views on whether the government should seek the death penalty after Ghailani was moved into civilian court. Their opinions varied: Two said they strongly supported it; another opposed it; and another had no strong opinion.
WASHINGTON — U.S. President Barack Obama said a Republican proposal to preserve the full array of Bush administration tax cuts for two more years presents a “basis for conversation” that could lead to a compromise as lawmakers prepare to meet next week for a highstakes showdown over taxes. But a senior House Republican on Sunday ﬂatly rejected the option most favored by the White House: decoupling the Bush tax cuts that beneﬁt the wealthy from the cuts that beneﬁt the vast majority of U.S. citizens by extending each set of provisions for a different period of time. “No, I am not for decoupling the rates,” Rep. Eric Cantor, R-Va., the No.2 Republican in the House, said on Fox News Sunday. He echoed the GOP argument that such a move virtually would guarantee the eventual expiration of tax breaks in the upper brackets, where some of the most successful small businesses pay taxes. “I am not for raising taxes in a recession, especially when it comes to the job creators that we need so desperately to start creating jobs again,” Cantor said. The comments highlighted the shifting political landscape in the wake of a Republican landslide in last week’s midterm elections. Obama, who has argued strenuously that the nation cannot afford to keep the tax cuts for millionaires, has been adopting a conciliatory tone in recent days in hopes of reaching a deal with resurgent Republicans to prevent all the cuts from expiring on schedule - an outcome that would sharply increase IRS withholding in January for virtually every U.S. taxpayer, including the middle-class families Obama has sworn to protect. Republicans, meanwhile, have been less accommodating, with some suggesting that they could simply hold off until January, when they will control the House and hold a stronger hand in the Senate. That would set the stage for a more powerful push to permanently extend all the cuts - the preferred GOP alternative.
TUESDAY, NOVEMBER 9, 2010
THE MIAMI HERALD
Georgian authorities detail nuclear smuggling BY DESMOND BUTLER Associated Press
WASHINGTON — On a dark morning in March, two Armenians slipped aboard a train in the Georgian capital of Tbilisi, unaware they were being watched. They removed a pack of Marlboro Reds hidden in a maintenance box between two cars. Inside the pack, Georgian authorities say, was nuclear bomb grade uranium, encased in lead. Before long, Georgian ofﬁcials seized the uranium and arrested the men, breaking up a ring they say was willing to sell material for nuclear weapons to any bidder. International ofﬁcials see the operation as one victory in the effort to prevent nuclear weapons from falling into terrorists’ hands. The seizure was reported in April, but few details were disclosed. More information has been obtained from Georgian ofﬁcials about an operation involving international smugglers and undercover agents.
For all its apparent success, the investigation highlighted the difﬁculty of stopping nuclear smuggling in the Caucasus. The region has porous borders, widespread corruption and unknown quantities of unsecured materials left over from the Soviet period. Still unanswered is whether the small amount of uranium in the cigarette pack was a sample of a larger stash yet to be found. “The dangerous thing is that there might be more material out there somewhere,” said Archil Pavlenishvili, chief of Georgia’s nuclear smuggling unit in the interior ministry. “This proves that if a criminal or an extremist is wealthy enough, it is possible to obtain material.” Pavlenishvili, who led the team that carried out the operation, provided rare details of the nuclear smuggling underground. According to the account he and other Georgian ofﬁcials gave: The investigation began
with a tip from an informant. The man, an ex-smuggler from a village near the Black Sea coast city of Batumi, was once involved in selling fake radiological materials. He told Georgian authorities he had inﬁltrated a network of smugglers and had learned of an Armenian man trying to sell “serious” nuclear material. The Armenian, investigators learned, was Sumbat Tonoyan. Once a dairy factory owner, he had lost a fortune gambling and turned to smuggling. Authorities had photos of him taken at border crossings on trips to Turkey. An undercover agent contacted Tonoyan about the nuclear material, saying only he was from “a signiﬁcant organization.” In a meeting in Tbilisi, Tonoyan wanted more information but was told: “It is not your business. I am not asking you your name, please don’t ask mine. If you want to do business, let’s do business.” Tonoyan ﬁrst demanded
more than $8 million for 120 grams of uranium — a fraction of the amount needed for a bomb. He did not specify the enrichment level. Uranium has to be highly enriched to be used in a nuclear weapon. In a second meeting, he came down to about $1.5 million in U.S. bills. Pavlenishvili says smugglers usually settle below $10,000 a gram for bomb grade material. The mere existence of a typical black-market price is a worrisome sign of the supply and demand in the illicit trading of nuclear materials. Tonoyan suggested he had even more uranium to sell. The buyer was told to expect him in Tbilisi in early March. Georgian police were skeptical. They have conducted dozens of operations involving smugglers promising nuclear-grade uranium or plutonium. In almost all cases, the criminals turned up with fake material. Still, they responded after being alerted early on
March 11 that Tonoyan and a companion had crossed the border in a taxi. The companion was later identiﬁed as Hrant Ohanian, a retired nuclear physicist from a science institute in Armenia. Georgian police tailed the taxi. The men got out near a hotel and began casing the deserted street. The men then met the train from Yerevan, the Armenian capital, and picked up the cigarette pack containing the uranium. During interrogations, the men would explain they had boarded the train in Yerevan, stashed the uranium and got off before the border crossing. So the uranium moved unaccompanied and unsecured for hours until the men picked it up at the station. Tonoyan switched the meeting place to the hotel he had cased. He met the undercover buyer in a room. When the men pulled out the sample, a radiation detection device hidden on the under-
cover agent went off. He said a code word. Agents listening in burst in with a commando team. The uranium was only 18 grams, less than an ounce. But it had been highly enriched, to almost 90 percent, high enough for use in a nuclear weapon. It did not pose a radiological risk to anyone who came upon it in transit. Georgian ofﬁcials say Ohanian and Tonoyan have pleaded guilty and agreed to cooperate with police. They face at least 10 years in prison. Radiation detectors on the Georgia-Armenia border under a U.S. program apparently failed to pick up the uranium hidden in the cigarette pack. Pavlenishvili said Ohanian correctly predicted the lead casing would conceal the uranium from the detectors. A larger quantity might have been detected. Georgian and international investigators are trying to determine the origins of the uranium.
Corrie’s family battles for justice BY ETHAN BRONNER
New York Times Service
SEEKING REFUGE: Myanmar citizens, who fled the fighting between Myanmar soldiers and Karen fighters, are guarded by a Thai border police officer as they gather in a field in Mae Sot town, Thailand.
Post-election violence rocks Myanmar YANGON, Myanmar — (AP) — Mothers carrying babies and grown men hoisting elders on their backs ﬂed Myanmar with 15,000 countrymen Monday as ethnic rebels clashed with government troops a day after an election widely considered a sham to cement military power. Fighting raged at key points on the Thai border, wounding at least 10 people on both sides of the frontier as stray shots fell into Thai territory. The clashes underlined Myanmar’s vulnerability to unrest even as it passes through a key stage of the ruling junta’s self-proclaimed “road map to democracy.” The country has been ruled by the military near-continuously since 1962, and rebel-
lions by its ethnic minorities predate its independence from Britain in 1948. In the heaviest clashes, Karen rebels reportedly seized a police station and post ofﬁce Sunday in the Myanmar border town of Myawaddy. Sporadic gun and mortar ﬁre continued into Monday afternoon. More ﬁghting broke out further south for one hour Monday at the Three Pagodas Pass, said local Thai ofﬁcial Chamras Jungnoi, but there was no word on any casualties. Thai ofﬁcials said late Monday that ﬁghting had quieted and government troops had regained control of Myawaddy. Groups representing ethnic minorities who make up some 40 percent of Myan-
mar’s population had warned in recent days that civil war could erupt if the military tried to impose its highly centralized constitution and deprive them of rights. Refugee camps in Thailand already house tens of thousands of ethnic Karen who have ﬂed decades of ﬁghting in the border regions, but Monday marked the biggest one-day tide of refugees to ﬂee into Thailand in recent years. Refugees marched, shepherded by Thai security personnel, through the streets of the Thai town of Mae Sot, which is just across a river from Myawaddy. “At least 15,000 refugees have crossed from eastern Myanmar into northern Thailand since this morning,” said Andrej Mahecic, spokes-
man for the U.N.’s refugee agency, which was providing tents and other materials to shelter the refugees. Non-governmental groups also were offering aid, he said from the agency’s headquarters in Geneva. Refugees continued to arrive into the evening, and some independent estimates put their number closer to 20,000. They were being sheltered near the Mae Sot airport at a location that was becoming overcrowded, Mahecic said. The ﬁghting threatened to overshadow electoral developments, which include mounting chagrin on the part of anti-government parties over what they charge was blatant cheating on behalf of the military’s chosen candidates.
HAIFA, Israel — Seven years after a U.S. student, Rachel Corrie, was killed in Gaza by an Israeli military bulldozer she tried to block, becoming a global symbol of the Palestinian struggle, her parents and her older sister sit in an Israeli court in this northern city with two hopes: to confront the men who ran over her and to prove that the army investigation into her death was ﬂawed. On both counts, it has been a frustrating effort. To guard their identities, the bulldozer operators are called only by their initials and testify behind a screen, disembodied voices claiming vague memories. The Corrie lawyer presses them with props: “Mr. A,” he said to a commander this past Thursday, arranging a plastic toy bulldozer, an orange lump of putty and a Raggedy Ann doll, “Where was she when you saw her?” Mr. A’s answer differed markedly from that of Mr. Y, the driver of the bulldozer who testiﬁed two weeks earlier, although both denied seeing her before she was crushed under their vehicle. The army said Corrie’s death was an accident. The Corries believe the drivers either saw Rachel or were so careless toward the protesters as to be criminally negligent. On the wooden benches of the Haifa District Court, the Corries take notes, volunteer translators whispering in their ears. They have mostly been here, since their civil case claiming the intentional and unlawful killing of their daughter began in March and there is no end in sight, with sessions already planned for January. They are exhausted but unbent.
“If I killed someone, I would remember that day for the rest of my life,” Cindy Corrie, Corrie’s mother, said during a break, eyes tearing, voice shaking. “This is not just about Rachel, but something bigger. What happens to the humanity of soldiers?” Books, plays, videos and even an aid ship to Gaza have been dedicated to Corrie’s memory and spirit, her focus on human rights and the plight of the Palestinians. A student at Evergreen State College in Olympia, Corrie, then 23, joined the International Solidarity Movement, a pro-Palestinian activist group, in January 2003 and moved to Gaza to help prevent house demolitions in the southern border town of Rafah. It was the height of the second Palestinian intifada, or uprising, against Israel, which at the time occupied Gaza. The Israelis say the houses in question were the source of sniper ﬁre and arms-smuggling tunnels. Corrie, by contrast, wrote e-mails home saying that the families she met were gentle people whose houses had been shot at and whose children were harassed for no reason. The Israeli Army investigation found that the drivers of the bulldozer that killed her did not see Corrie because she was standing near a high mound of dirt as it approached. But the Corries believe that the army carried out a lackluster investigation ﬁlled with internal contradictions and with insufﬁcient care to what orders soldiers received when faced with civilians in their paths. That view, it turns out, was not only that of a grieving family. It won support from the United States government.
Former ally urges Berlusconi to resign Japanese authorities launch investigation into boat video leak
ESTRANGED: Italy’s Premier Silvio Berlusconi, right, and former ally Gianfranco Fini, left, had a fallout in 2009, resulting in Fini’s expulsion from the party.
BY ALESSANDRA RIZZO Associated Press
BY JAY ALABASTER Associated Press
TOKYO — Authorities launched a criminal investigation Monday into the leak of a video of a collision between Japanese coast guard vessels and a Chinese ﬁshing boat that appeared on the Internet and raised concerns of renewed JapanChina tensions. The video, which appeared on YouTube on Friday, shows footage taken Sept. 7 of the collision near a group of disputed islands claimed by both Japan and China in the East China Sea. The run-in sparked a highlevel political rift between the two countries. The coast guard requested that Tokyo prosecutors and police investigate to determine if the video was leaked by a government employee in violation of crimi-
nal codes. The video is also evidence in a continuing case against the captain of the Chinese ﬁshing vessel, and such evidence is not released to the public. “In order to quickly resolve the facts behind this incident, we ﬁled a criminal complaint, because there are limits as to what we can achieve with an internal investigation,” said coast guard chief Hisayasu Suzuki. He said authorities don’t yet know how the leak occurred or who is responsible. The release of the video has raised concerns of rekindled tensions during this week’s Asia-Paciﬁc Economic Cooperation meetings, which culminate in a leaders summit Saturday and Sunday in Yokohama, just south of Tokyo. This past Saturday in Tokyo, more than 3,000 Japa-
nese protesters staged an anti-China demonstration, demanding the country give up its claim to the disputed islands. Thousands of Chinese students in a number of cities across the country have held similar demonstrations against Japan. In Tokyo, there is debate whether the leak occurred for political reasons. It has also raised concerns as to how the government manages sensitive material. Japan’s Chief Cabinet Secretary Yoshito Sengoku said that there should be renewed discussion on laws for handling government secrets, adding that “currently the penalties are not necessarily a strong enough deterrent” to prevent leaks. Called Diaoyu in China and Senkaku in Japan, the islands are controlled by Japan but also claimed by China.
ROME — The estranged former ally of Italy’s Premier Silvio Berlusconi has urged him to resign for the good of the country and begin discussing a new government with a revised legislative agenda. In a highly anticipated speech on Sunday, Gianfranco Fini raised the stakes in his feud with Berlusconi, seeking to put the pressure of determining the future of the current government back on the Italian leader. Fini repeatedly attacked Berlusconi, who has been engulfed in a scandal over his ties to an underage Moroccan girl and alleged encounters with a prostitute. Fini said he is still willing to be in an alliance with Berlusconi to spare Italy early elections and bring parliament to the natural end of its term in 2013. But that would only happen, he said, if the premier agreed to certain conditions, like relaunching
the economy and changing Italy’s electoral law. “We can’t go on this way,” Fini told supporters at a rally of his new party, Freedom and Future. “This chapter is over — or it’s about to be.” Fini urged Berlusconi to “make the decision to offer his resignation.” Otherwise, Fini said, he would withdraw his minister and other Cabinet ofﬁcials
from the government, forcing Berlusconi to a Cabinet reshufﬂe and further weakening his government. Fini and Berlusconi won the 2008 election together with a party they co-founded, the People of Freedom party. But after months of bickering, they had a spectacular falling out in 2009 and Berlusconi effectively expelled Fini from the party.
THE MIAMI HERALD
TUESDAY, NOVEMBER 9, 2010
OPINION CHARLES D. SHERMAN, EDITOR-IN-CHIEF
Long live Lady Luck BY THOMAS L. FRIEDMAN
New York Times Service
ne of the most striking things about our recent midterm elections is that foreign policy played absolutely no part in the voting — and for that we have Lady Luck, and some good intelligence work, to thank. In fact, in the past year we’ve won the lottery ﬁve times in row. How often does that happen? Let’s review: We got incredibly lucky that the al Qaeda-inspired Nigerian, Umar Farouk Abdulmutallab, was unable to detonate the explosives sewn into his underpants, as his Delta airliner, with 278 passengers, FRIEDMAN was approaching the Detroit airport on Christmas Day. Ditto for Faisal Shahzad, whose homemade bomb packed into a 1993 Nissan Pathﬁnder failed to go off after he detonated it in a crowded Times Square on May 1. In February, thanks to good intelligence work, Najibullah Zazi, an Afghan immigrant, pleaded guilty in a New York courtroom to plotting with al Qaeda to kill himself — and as many other people as possible — by setting off a bomb in a New York City subway near the anniversary of 9/11. Then, last week, security teams removed packages from cargo planes in Britain and the United Arab Emirates bound for Chicago. Inside, they found bombs wired to cellphones and hidden in the toner cartridges of computer printers. The bombs, timed to go off when the planes were over the United States, were believed to have been built by the same Saudi jihadist, Ibrahim Hassan al-Asiri, who designed the Christmas Day underwear bomb. An intelligence tip from the Saudis upset that plan. Imagine if all ﬁve had gone off? We would be checking the underwear of every airline passenger, you would have to pass through metal detectors to walk into Times Square or take the subway, and the global air cargo industry would be in turmoil, as every package would have to be sniffed by a bomb-detecting dog. So, yes, we won the lottery ﬁve times in a row — and that’s just the attempts we know about. But one of these days, our luck is going to run out because the savage madness emanating from al Qaeda, from single individuals it inspires over the Web and from its different franchisees — like the branches in Yemen and Iraq — is only increasing. A week ago, a Baghdad church was attacked. Here is how The Associated Press described it: Seven or eight al Qaeda-linked Muslim militants “charged through the front doors of the church, interrupting the evening Mass ser-
vice. They rushed down the aisle, brandishing their machine guns and spraying the room with bullets. They ordered the priest to call the Vatican to demand the release of Muslim women who they claimed were being held captive by the Coptic Church in Egypt. When the priest said he could not do that, the gunmen shot him and turned their guns on the congregation, killing most of those in the front pew.” When the Iraqi police moved in to rescue the worshippers, scores more were killed in the shootout. On Friday, pro-Taliban bombers blew up two moderate mosques during Friday prayer in northwestern Pakistan, killing more than 60 worshippers. When Muslim jihadists are ready to just gun down or blow up unarmed men, women and children in the midst of prayer — Muslim or Christian — it means there are no moral, cultural or religious restraints left on the Islamic fringe. It’s anything goes. And it’s becoming routine. What to do? So many, but not all, of the suicide bombers come from failing, humiliated societies that generate huge numbers of “sitting-around people,” who are easy prey for recruiters offering martyrdom and signiﬁcance in the next life. We need to do what we can to eliminate their sources of energy. That means ﬁnishing our business in Afghanistan and Iraq, and settling the Israeli-Palestinian conﬂict, and getting our military out of that region. But these will never be sufﬁcient. There is a civil war in Islam today between the forces of decency and modernism and the suicidal jihadists. This stuff only stops when the Muslim forces of decency triumph — and delegitimize and crush the barbarism of al Qaeda. It takes a village, and it’s going to take a while. Meanwhile, we need to focus on the things we can control. For starters, we’re going to have to learn to live with more insecurity. Terrorism is awful, but it is not yet an existential threat. And we can’t let our response to it be to shut down our open society or tear ourselves apart with recriminations. Like the Israelis and Brits, we need to keep up our guard, learn from our mistakes, but also learn to bury our dead and move on. Finally, we need to dry up the funding for terrorist groups, and the mosques, schools and charities that support them. And that means working to end our addiction to oil. It is disgusting to listen to Republican politicians lecturing U.S. President Barack Obama about how he has to stay the course in Afghanistan while they don’t have an ounce of courage to vote to increase the gasoline tax or renewable energy standards that would reduce the money we’re sending to the people our soldiers are ﬁghting. I know. None of this seems very relevant right now. But it will — the day our luck runs out.
Our banana republic BY NICHOLAS D. KRISTOF
New York Times Service
n my reporting, I regularly travel to banana republics notorious for their inequality. In some of these plutocracies, the richest 1 percent of the population gobbles up 20 percent of the national pie. But guess what? You no longer need to travel to distant and dangerous countries to observe such rapacious inequality. We now have it right here at home — and in the aftermath of Tuesday’s election, it may get worse. The richest 1 percent of U.S. citizens now take home almost 24 percent of income, up from almost 9 percent in 1976. As Timothy Noah of Slate noted in an excellent series on inequality, the United States now arguably has a more unequal distribution of wealth than traditional banana republics like Nicaragua, Venezuela and Guyana. Chief executives of the largest U.S. companies earned an average of 42 times as much as the average worker in 1980, but 531 times as much in 2001. Perhaps the most astounding statistic is this: From 1980 to 2005, more than four-ﬁfths of the total increase in U.S. incomes went to the richest 1 percent. That’s the backdrop for one of the ﬁrst big postelection ﬁghts in Washington — how far to extend the Bush tax cuts to the most afﬂuent 2 percent of U.S. citizens. Both parties agree on extending tax cuts on the ﬁrst $250,000 of incomes, even for billionaires. Republicans would also cut taxes above that. The richest 0.1 percent of taxpayers would get a tax cut of $61,000 from U.S. President Barack Obama. They would get $370,000 from Republicans, according to the nonpartisan Tax Policy Center. And that provides only a modest economic stimulus,
because the rich are less likely to spend their tax savings. At a time of 9.6 percent unemployment, wouldn’t it make more sense to ﬁnance a jobs program? For example, the money could be used to avoid laying off teachers and undermining U.S. schools. Likewise, an obvious priority in the worst economic downturn in 70 years should be to extend unemployment insurance beneﬁts, some of which will be curtailed soon unless Congress renews them. Or there’s the Trade Adjustment Assistance program, which helps train and support workKRISTOF ers who have lost their jobs because of foreign trade. It will no longer apply to service workers after Jan. 1, unless Congress intervenes. So we face a choice. Is our economic priority the jobless, or is it zillionaires? And if Republicans are worried about long-term budget deﬁcits, a reasonable concern, why are they insistent on two steps that nonpartisan economists say would worsen the deﬁcits by more than $800 billion over a decade — cutting taxes for the most opulent, and repealing health care reform? What other programs would they cut to make up the lost $800 billion in revenue? In weighing these issues, let’s remember that backdrop of America’s rising inequality. In the past, many of us acquiesced in discomﬁting levels of inequality because we perceived a tradeoff between equity and economic growth. But there’s evidence that the levels of inequality we’ve now reached may actually suppress growth. A drop of inequality lubricates economic growth, but too much may gum it up. Robert H. Frank of Cornell
University, Adam Seth Levine of Vanderbilt University, and Oege Dijk of the European University Institute recently wrote a fascinating paper suggesting that inequality leads to more ﬁnancial distress. They looked at census data for the 50 states and the 100 most populous counties in America, and found that places where inequality increased the most also endured the greatest surges in bankruptcies. Here’s their explanation: When inequality rises, the richest rake in their winnings and buy even bigger mansions and fancier cars. Those a notch below then try to catch up, and end up depleting their savings or taking on more debt, making a ﬁnancial crisis more likely. Another consequence the scholars found: Rising inequality also led to more divorces, presumably a byproduct of the strains of ﬁnancial distress. Maybe I’m overly sentimental or romantic, but that pierces me. It’s a reminder that inequality isn’t just an economic issue but also a question of human dignity and happiness. Mounting evidence suggests that losing a job or a home can rock our identity and savage our self-esteem. Forced moves wrench families from their schools and support networks. In short, inequality leaves people on the lower rungs feeling like hamsters on a wheel spinning ever faster, without hope or escape. Economic polarization also shatters our sense of national union and common purpose, fostering political polarization as well. So in this postelection landscape, let’s not aggravate income gaps that already would make a Latin American caudillo proud. To me, we’ve reached a banana republic point where our inequality has become both economically unhealthy and morally repugnant.
Let’s begin to think big about tax code BY EZRA KLEIN
Washington Post Service
he conventional wisdom is that Tuesday’s Republican rout will mean U.S. President Barack Obama has to stop thinking big and begin compromising where he can. That’s only half right. To get anything done over the next two years, Obama will have to compromise with the GOP. But that doesn’t mean the time for thinking big is over. It means it’s ﬁnally beginning. For the past two years, Democrats had congressional majorities unequaled since the 1970s. That gave them something rare: Enough votes to get things done. But that also meant prioritizing accomplishments over vision. Obama couldn’t spend his time giving soaring speeches about the perfect and then put his shoulder behind the good — or, as is more often the case in the U.S. Senate, the betterthan-nothing. He had to somehow get that better-than-nothing over the ﬁnish line, and that meant pub-
licly advocating bills that were full of deals and ﬂaws and shortcomings. Change, it turned out, meant an ugly slog. But that’s over now, and it frees Obama to return to what former U.S. President George H.W. Bush so memorably called “the vision thing.” And he’s helped by the presence of a speciﬁc thing in need of some vision: the economy. For the past two years, we’ve been responding to the aftereffects of the economic crisis. We should still be responding to it. But the short-term problem of 10 percent unemployment is matched by a long-term problem of slow growth. For all the trouble unleashed when the bubble popped, its rise wasn’t so great, either: Middle-class incomes fell in the decade before the crash, and inequality skyrocketed. Growth was OK, but it wasn’t great. And the drivers of the economy — namely, credit-fueled consumption and esoteric ﬁnancial dealings — were unsustainable. The question of what comes
next has been overwhelmed by the need to ease the pain now. But since Republicans in Congress have been very clear about their belief that there’s little more for the government to do about easing the pain now, there is time and space for politicians to think hard about what comes next. And the place to start is with the tax code. Now, if Obama — or, for that matter, the Republicans — were only two or three votes from a major overhaul of the tax code, they’d have to start making deals and trimming ambitions and talking out of the sides of their mouths. But they’re not. So maybe, just for a little while, we could have a conversation about what it should actually look like, rather than what could actually pass. For one thing, a 21st-century economy should be able to get rid of the worst mistakes it made in the 20th century. The deduction for employer-based healthcare is one of those mistakes. It was a carryover from World War II’s wage-
and-price controls, and it’s given us a system that costs too much but in which most of us are so far from those costs that we’re not willing to make the sacriﬁces reform requires. On top of that, it’s awfully regressive: In effect, it means that people without healthcare insurance, or with insurance that doesn’t come from an employer, are subsidizing the people whose employers do give them insurance — and those folks are, on average, the richer group. Similarly, the mortgage-interest deduction encouraged an overinvestment in housing, and did so at the expense of renters. Like the exclusion for employer-based healthcare, it’s regressive, and it makes housing seem cheaper than it is. It’s time to get rid of both, perhaps by converting them to refundable credits of some kind. Speaking of consumption, it’s time to start taxing it. Tax experts almost universally agree that taxing consumption is better than taxing savings and investments, but we
tax savings and investments and let consumption off scot-free. Shifting some of our income tax burden to a value-added tax — a tax that would fall on what we spend but spare what we save and invest — would balance the scales a bit. Which brings us to income taxes. Shifting part of the income or payroll tax burden to a carbon tax would have two advantages: First, it would tax something we want less of rather than something we want more of. And second, it would be a great boon to our green-energy industry — and that’s an industry that’s going to be terriﬁcally important to our economic fortunes in the coming decades. It’s also time to get serious about the corporate tax. We have one of the highest corporate tax rates in the world, but we raise much less money from it proportionally than other countries do. Why? Because the tax is full of loopholes and easy exits. We should clean the code out, bring the rates down and apply it more fairly.
TUESDAY, NOVEMBER 9, 2010
THE MIAMI HERALD
LIVING BY JEREMY W. PETERS
New York Times Service
Among the accolades awarded to Caribbean islands (most beautiful beach, easiest on the budget, most relaxing), the award for most densely developed probably goes to St. Martin/St. Maarten — the half-Dutch, half-French island in the West Indies. That is not to say the island’s natural beauty is ruined. It remains a stunningly picturesque place with some of the Caribbean’s most arresting scenery (here it could win a prize, too). But all that development — boutique hotels, casinos, marinas, high-rise resorts — means visitors are never short on options. And thanks to a seemingly endless construction boom, those options keep multiplying. Friday, 5 p.m. For wine lovers Conventional wisdom holds that the Dutch side of the island (St. Maarten) operates at a faster pace than the French side (St. Martin). In truth, both are bustling — the main difference being that the Dutch side has more branded full-service resorts, while the French side has more mom-and-pops. For a warm introduction to the island, head to the French town of Grand Case and the bar at the Love Hotel, which sits on stilts over the sand, offering an idyllic perch to watch the sun dip into the sea. Opened in 2009, the hotel has a stellar wine list, and predinner appetizers like a beef carpaccio. 8 p.m. Andes on the Carribean You’ll have plenty of time to sample the butteryrich French cuisine. Opt for something a little less conventional at Patagonia (Plaza Puerta del Sol, Simpson Bay Yacht Club; 599-544-3394; patagonia-restaurant.com), an Argentine steakhouse that opened this summer on the Dutch side. The atmosphere is modern and sleek, with dark gray slate and stone walls.
half-Dutch, half-French island
HOT SPOT: St. Martin/St. Maarten island remains one of the most favorite tourist destinations of the Caribbean region.
IF YOU GO • A rental car is suggested for getting around the island. • The Hotel L’Esplanade (Grand Case; 590-590-8706-55; lesplanade.com) is a charming boutique hotel on the French side, overlooking downtown Grand Case and the beach. All rooms have private terraces and kitchens, with rates starting at $245 through Dec. 19. • The Love Hotel (140 Boulevard de Grand Case; 590-590-29-87-14; love-sxm.com) is right on the beach in downtown Grand Case. Its seven rooms were recently renovated with dark-wood furniture and bright white walls; from 105 euros ($142). • La Samanna Resort & Spa (Baie Longue; 800-9576128; lasamanna.com) is the place to be on St. Martin if you want friends to gasp with jealousy. The entry price is high: rooms start at about $495 this month. But this is as full-service as resorts come, and on one of the island’s prettiest stretches of beach.
10 p.m. Roll the dice Gambling is one of St. Maarten’s biggest draws. And aside from the blare of a yacht horn or the squeak of a tree frog, the synthesized ping of the slot machine might be the island’s most recognizable sound. Near the French border, the Princess Casino at Port de Plaisance feels removed from the ceaseless drumbeat. Besides the usual blackjack, poker and roulette tables, the casino is known for its colorful ﬂoor shows with dancers in feather headdresses and billowing gowns gliding across the stage. Saturday, 10 a.m. PRIME BEACH Few experiences are as uniquely St. Martin as a stroll down the beach at Orient Bay,
known for its pulsing beach bars at one end and a naturist resort at the other. Kakao Beach has one of the biggest spreads on the water and some of the nicest scenery, offering not only chairs in the sand but also thatch-canopied tables spread out in a small grove of palm trees. Noon Seafood riviera The small town of Grand Case, on the French side, is the island’s culinary center. Elegant French bistros line both sides of the main street, which hugs the beach. Talk of the Town Too (Boulevard de Grand Case) won’t win awards for reﬁnement. Its open-air dining area consists of little more than picnic tables, a grill and a chalkboard menu. But there is a satisfying
sea breeze, and you can haggle for your meal. For about $20, expect a decent-size lobster tail with a couple of homemade sides like rice and beans and corn on the cob. 2 p.m. Little farther Some of the island’s natural beauty is hidden behind artiﬁcial eyesores. Case in point: the hike through the nature preserve known as the Wilderness on the island’s northernmost tip. To get there, you have to ﬁrst walk past a landﬁll. But once you clear the trash-strewn ﬁrst leg of the trail, you will be rewarded with some of the island’s most sweeping vistas. Keep going, and you will shortly reach your reward — the pristine, secluded Petites Cayes beach.
5 p.m. Jet blast The signs — they say “Danger” in bright red letters and depict a man getting blown off his feet by a landing jet — could not be clearer. Yet that doesn’t seem to deter people from lining up on the beach at the foot of the runway at Princess Juliana International Airport to jump up as if they could touch the approaching aircraft with their ﬁngertips. This spectacle poses several confounding questions: Don’t they realize they can’t jump high enough to reach the planes? And don’t they realize what would happen to them if they did? Watch it from a safe distance at nearby Sunset Beach Bar and Grill (Caravanserai Resort, sunsetsxm. com). The rumble from the
approaching aircraft will still rattle your table as you savor a bottle of beer and snack on their pizzas. 8 p.m. Quay-side dining One of the most ambitious new developments to land on St. Maarten is the Porto Cupecoy, a marina, condo, retail and restaurant complex. Everything is immaculate, like the neatly arranged beach tables with umbrellas, and the carefully manicured landscaping. The same goes for its restaurants. Maximo Cafe, a seafood-heavy French restaurant, is gaining a reputation as one of the island’s top spots. 11 p.m. Red rum Bars with traditional Caribbean ﬂair — life preservers on the wall, an umbrella in your drink — are easy enough to ﬁnd on the island. For something decidedly lacking in tropical ﬂair, head to the Red Piano on the Dutch side. The piano, along with the walls and tabletops, is, indeed, red. Try the guavaberry rum, a local specialty, made from, you guessed it, guavaberry. Sunday, 9 a.m. Pain et Chocalate A decent, and decently priced, breakfast can be hard to come by. But along the waterfront boulevard in Marigot, the capital of the French side, are dueling bakeries that serve up fresh croissants, tarts and ‘clairs: La Sucrißre (590-590-51-13-30) and Saraﬁna’s (590-590-29-73-69) at Boulevard de France. Noon French dip Some beaches are overdeveloped. Some are untouched. For something in the middle, head to Baie Rouge on the island’s French side. The beach is a wide, gradually sloping crescent of pillowy, strawcolored sand. A natural jetty juts out at one end, offering views of the soaring cliffs that bookend the beach. The beach lies right off a main road and there is a parking lot a few steps from the sand.
Miami / Coral Gables
Bahamas / Freeport
Deering Bay Club Estate Home: Extravagant architect/owner designed home on beautiful tranquil lagoon in exclusive Yacht and Golf Country Club. Arnold Palmer signature golf course and direct access to Biscayne Bay from 3 Marinas. Impressive 7 BR, 7 BA + 2 HB, European kitchen, elevator, 3 car garage + golf cart garage, guest and staff quarters. This 5,600 sqft light ﬂooded residence with stunning backyard and patio on picturesque lagoon is offered at $2,695,000
Magniﬁcent Bahamas estate: Magniﬁcent Bahamas estate, safe, secure, private, huge resort size pool with dramatic waterfall, spectacular professional kitchen, entire second ﬂoor devotes to master Bedroom. Incredible ﬁttings and furnishing, throughout. This estate sets the standard of quality of the Island. Built 2010, Living area 10,000 sq. ft., Lot Size 40,688 sq. ft., 3 Bedrooms, 5 Bathrooms, 1 Half Bath. Offered at $3,000,000
Florida Keys Property with Yacht Dock: 2 story Port Largo excellence, ocean access deep canal for yacht-owner’s delight, 75x11 ft concrete dock, 2 hoist davits, ﬁsh clean station and storage room for yachting gear dockside. 30x15 ft precious pool surrounded by raw stone ﬂooring, incl. nature shaded picnic/patio area. Room for more than 14 guests in priv. areas. Accordion shutters and panels, state of the art tech in appliances/alarm. Living area 3,766 sqft, Lot Size 9,375 sqft. Offered at $1,389,000
Bettina Veitch: +1-305-607-2343 Bettina.Veitch@engelvoelkers.com
Phillip Yaffa: +1-786-473-3661 Phillip.Yaffa@engelvoelkers.com
Irma Hernandez-Klemm: +1-305-790-8192 Irma.Hernandez-Klemm@engelvoelkers.com
BUSINESS&SPORTS B TUESDAY, NOVEMBER 9, 2010
THE MARKETS DOW 30
10-YR NOTE CRUDE OIL
Stocks fall after rally fizzles
U.S. faces ‘new normal’ of low job growth BY LORI MONTGOMERY
Washington Post Service
Without additional government action to spur hiring, U.S. President Barack Obama fears, the U.S. economy could enter a “new normal” in which corporate proﬁts are high but the number of new jobs is too low to reduce the United States’ 9.6 percent unemployment rate to pre-recession levels. “What is a danger is that we stay stuck in a new normal where unemployment rates stay high,” he said in an interview aired Sunday
night on CBS’ 60 Minutes. “People who have jobs see their incomes go up. Businesses make big profits. But they’ve learned to do more with less. And so they don’t hire. And as a consequence, we keep on seeing growth that is just too slow to bring back the 8 million jobs that were lost.” The sit-down interview, Obama’s ﬁrst since Republicans gave him what he called a “shellacking” in last week’s congressional midterm elections, focused heavily on the fragile economy and its starring
role in the reversal of Democrats’ political fortunes. He lamented his inability to make more headway in creating jobs, conceding that “I do get discouraged.” “I thought the economy would have gotten better by now,” he said. “One of the things I think you understand as president is you’re held responsible for everything. But you don’t always have control of everything.” Since he took ofﬁce at the height of the worst economic downturn since the Great Depression, Obama
• TURN TO ECONOMY, 2B
Forecaster sees an end to gloom
BY DAVID K. RANDALL Associated Press
NEW YORK — Stocks pulled back Monday as traders retreated from a rally that brought indexes to their highest levels since the peak of the ﬁnancial crisis in September 2008. Gold crossed $1,400 an ounce to another record on Monday as traders looked for safe places to park money. The Dow Jones industrial average fell 37.24, or 0.3 percent, to close at 11,406.84. It surged 2.9 percent last week after the Federal Reserved announced a $600 billion stimulus package for the U.S. economy. The Standard and Poor’s 500 index fell 2.60, or 0.2 percent, to 1,223.25. The Nasdaq composite index continued to outperform other market measures, as it has done all year, edging up 1.07, or 0.04 percent, to 2,580.05. The technology-focused index is up 13.7 percent for the year, compared to a 9.4 percent gain for the Dow and a 9.7 gain for the S&P 500. Financial companies were down the most among the 10 industry groups that make up the S&P 500 index. Technology, energy and materials companies were the only groups in the index to show meager gains. Stocks have risen in recent weeks on better-than-expected corporate earnings reports and the introduction of a bondbuying program by the Federal Reserve that is intended to stimulate the economy by driving interest rates lower and encouraging spending. The dollar rose 0.5 percent against a broad basket of currencies. That’s a negative for big U.S. companies like Caterpillar that do a lot of business overseas, since a stronger dollar makes their products more expensive in other countries. Caterpillar was off 0.5 percent, and Boeing, another big exporter, was off 1.5 percent, putting it in a tie with Travelers Companies for biggest laggard among the 30 companies that make up the Dow. Despite weakness in other ﬁnancial stocks, shares of Bank of America rose 1.9 to make it the best performing company among the Dow 30, followed by Hewlett Packard and Cisco Systems. The euro fell 0.8 percent from recent highs, in part on renewed concerns about the debt burdens of the weaker economies among countries that use the Euro. Ireland announced Thursday that it would raise taxes and seek additional cuts in government services to rein in its deﬁcit. Yields on 10year Irish bonds rose sharply in response. U.S. markets had swooned this spring over concerns that a ﬁscal crisis in Greece would spread to Portugal, Spain and other weak economies in the eurozone. Prices for Treasury bonds fell. The yield on the 10-year Treasury bond rose slightly to 2.55 percent, from 2.53 percent late Friday. Precious metals rose as investors hedged their bets against inﬂation and sought out stable stores of value. Gold gained 0.4 percent to settle at $1,403.20 an ounce, its latest record, and silver jumped 2.6 percent to $27.432 an ounce.
has signed an economic stimulus package of historic proportions, overseen the bailout of the U.S. ﬁnancial industry and watched the Federal Reserve cut interest rates to zero and purchase hundreds of billions of dollars in Treasury bonds to help stimulate activity. After all that, he said Sunday, there may be limits to what more government can do. “Some of this is going to be just a matter of the economy healing,” he
BY GRETCHEN MORGENSON New York Times Service
re we ﬁnally coming out of the woods, economically speaking? Two data points from last week seemed to indicate an upswing ahead. October’s employment ﬁgures rose more than economists had expected, and the stock market clawed its way back to levels last reached just before the calamitous events of fall 2008. But positive indicators can and do disappoint, so I decided to consult an expert on these matters: Ian Shepherdson, chief U.S. economist at High Frequency Economics. As a reader of economic tea leaves over the last ﬁve turbulent years, Shepherdson has a darn good record. For instance, unlike the throng of economists who failed to see the housing crisis coming, Shepherdson warned his clients in fall 2005 that real estate would crash and a recession would ensue. He was early, of course, and now acknowledges that he was not nearly emphatic enough in his warnings. But he was fundamentally right back then and has been consistently on target since. So, I am happy to report that he sees the beginnings of a turn in the economy that could translate to a rise in gross domestic product growth and an improving employment picture in the second half of 2011. The basis for his view is a shift, albeit nascent, in commercial and industrial bank lending. The trend is real, he said, and as it gains steam, small businesses should receive more credit, for which they have been starved. And because these companies employ half of the U.S. workforce, this credit expansion will translate into real employment gains. “The depression in small businesses explains pretty much everything in the weakness of this cycle,” Shepherdson said. “I reckon in the last cycle they accounted for two-thirds of all new job creation. Not only are they big, they are better job-creation engines than big companies, which are more inclined to do their new hiring offshore.” Here are the data that have caught his eye. At this time in 2009, the total stock of commercial and industrial bank credit was $1.32 trillion; it was contracting at
LOOKING BEYOND: Xing Xing Digital, a Chinese animation & special effects company, co-produces episodes of Secret Millionaires Club, a series for children on basic finances by maverick investor Warren Buffett. Xing Xing wishes to develop original content to tap the international market.
TOON ADVENTURE A CHINESE ANIMATION COMPANY SEEKS TO EXPAND MARKET
BY JIMMY WANG
New York Times Service
BEIJING — Ostensibly, there is no connection between the 2008 vampire movie Twilight and a Warren Buffett cartoon series meant to teach ﬁnancial basics to children. But a Chinese animation and special effects company, Xing Xing Digital, has had a hand in both. If you have seen the eerily colored sky in ﬁght scenes of Twilight, then you have already glimpsed Xing Xing’s postproduction work. Xing Xing, one among dozens of Chinese animation and computer special effects companies that serve as low-cost contractors to Western ﬁlmmakers, has also added effects to movies including Changeling and Tropic Thunder. Now, though, Xing Xing wants to be more than an outsource supplier to the ﬁlm industry, by developing original content for the international market. One of those efforts involves Buffett, who provides the voice
for his cartoon counterpart in the English-language series Secret Millionaires Club, which runs on the AOL Kids website. The episodes are each a few minutes in length — enough time, say, for Buffett and his animated acolytes to impart the importance of location when setting up a lemonade stand. While Xing Xing co-produces each episode, A Squared Entertainment, a U.S. company owned by a longtime animation executive, Andy Heyward, and his wife Amy Moynihan Heyward, handles the scripts and voice recordings in Los Angeles. A Squared also owns rights to the series outside China. “The Millionaires Club is part of our strategy of investing in IP targeting children,” said Lifeng Wang, the 37-yearold president of Xing Xing,
referring to intellectual property. “The danger of outsourcing effects is we get caught in a price war with other Chinese animation studios,” Wang said. A Squared and Xing Xing have struck similar deals for two other animated AOL Kids Web series. Gigi and the Green Team features • TURN TO ANIMATION, 2B
• TURN TO FORECAST, 2B
Friedman casts a long shadow BY SEWELL CHAN
New York Times Service
JEKYLL ISLAND, Ga. — The U.S. Federal Reserve is portraying its $600 billion plan to prop up the economic recovery as a difﬁcult but needed step to promote growth by lifting stock prices and making long-term borrowing even cheaper. But there is another way to look at it. The central bank will essentially be ﬁnancing the government’s deﬁcits on a scale not seen since World War II. It will buy AP FILE, 1976 most of the new Treasury debt isLIVING ON: The late Milton sued through next June. The portFriedman rejected the doctrine folio of federal bonds it amassed as of using government spending a result of the 2008 crisis will swell further, just about doubling. to stimulate demand.
As the magnitude of the Fed’s plan, announced Wednesday, sank in, a weekend gathering here of top Fed ofﬁcials and economists took on the air of an awkward family reunion, with rivalries for the affections of an ancestor. That ancestor would be Milton Friedman, the economist and Nobel laureate who died in 2006. Friedman argued that the Fed could have prevented the Depression, and he rejected the Keynesian doctrine of using government spending to stimulate demand. But he was also wary of the Fed and called for limiting the growth of the supply of money to avoid high inﬂation — an idea known as monetarism. In a recent essay in The Wall
Street Journal, Allan H. Meltzer, an economist at Carnegie Mellon University and the preeminent historian of the Fed, said the Fed was stoking inﬂation to stimulate the economy, and that Friedman would never have supported such an effort. That drew an emotional retort from Ben S. Bernanke, the Fed chairman and a scholar of the Depression. “I grasp the mantle of Milton Friedman,” Bernanke told his colleagues on Saturday. “I think we are doing everything Milton Friedman would have us do.” Bernanke said Friedman would • TURN TO FRIEDMAN, 2B
TUESDAY, NOVEMBER 9, 2010
Oil leaks found in 3 A380 engines BY KRISTEN GELINEAU Associated Press
SYDNEY, Australia — Tests have uncovered oil leaks in three Rolls-Royce engines on Qantas’ grounded Airbus A380s, the airline’s chief executive said Monday, as engineers tried to zero in on the cause of an engine failure on board one of the carrier’s superjumbo jets last week. Australia’s national carrier grounded its six doubledecker A380s, the world’s newest and largest airliner, after an engine burst minutes into a ﬂight from Singapore to Sydney last week, scattering debris over Indonesia’s Batam island. The plane made a safe emergency landing in Singapore. Engineers conducted eight hours of extensive checks on each engine over the weekend. On Monday, chief executive Alan Joyce said engineers have discovered oil leaks in the turbine area of three engines on three different A380s. “The oil leaks were beyond normal tolerances,” Joyce told reporters. “So Rolls-Royce and our engineers have looked at what we have gathered as an accepted level and they have passed that threshold.” “All of these engines are new engines on a new aircraft type,” he added. “The engines are not performing to the parameters that you would expect with this.” Because of that, he said, all of the airline’s A380s will
be grounded for at least an additional 72 hours. “We are not going to take any risks whatsoever,” Joyce said. “We want to make sure we have a 100 percent safe operation.” All three affected engines have been removed from the planes for further testing, and will be replaced with spare engines the airline has on hand, Joyce said. “As a consequence, it’s now narrowing our focus on that issue,” he said. Lufthansa and Singapore Airlines, the other airlines that ﬂy A380s ﬁtted with Rolls-Royce’s Trent 900 engines, also brieﬂy grounded their planes last week but resumed services after completing checks. The Qantas engineers are working with Rolls-Royce, who manufactured and maintains the engines, as well as Airbus. The Australian Transport Safety Bureau, which is leading an international investigation into the blowout on the A380, appealed for help from residents of Indonesia’s Batam island to ﬁnd a missing piece of a turbine disc. The island was scattered with debris last Thursday when one of the A380’s four engines failed minutes into a ﬂight to Sydney, with 466 people aboard. The engine was quickly shut down and the plane returned to Singapore and safely made an emergency landing. “The recovery of that disk could be crucial to a full un-
derstanding of the nature of the engine failure, and may have implications for the prevention of future similar occurrences,” the bureau said in a statement. It released a photograph of a jagged and bent piece of turbine disc from the Trent 900 engine and asked that anyone who might have found a similar piece should hand it to police. It said one piece of the shattered engine that had been found on Batam was being sent to Britain for examination by Rolls-Royce engineers, under the supervision of bureau investigators. Extra experts were being sent from Australia to Singapore to examine other debris. Rolls-Royce Group, a London-based aerospace, power systems and defense com-
pany separate from the car manufacturer, has said the investigation is in its early stages and that it is too early to draw any conclusions. John Goglia, a former National Transportation Safety Board member and an expert on aircraft maintenance, said the photo showing the broken turbine disc indicates it was the disc that may have failed. The photo didn’t show any signs of discoloration on the disc that would indicate overheating. There are several reasons why a disc might fail, but they usually involve the metal used to make the disc or the manufacturing method, Goglia said. He cautioned that he was looking at one photo, which was not enough information to make a deﬁnitive judgment.
Friedman casts shadow on meeting • FRIEDMAN, FROM 1B
have agreed that the Fed had a mandate to promote price stability and that “you don’t want inﬂation to be too high, but you also don’t want inﬂation to be too low.” Because inﬂation, at just more than 1 percent, is too low, and because the economy and the money supply are growing very slowly, “even from a strict monetarist perspective, we need to do more,” Bernanke said. Meltzer was unconvinced. In an interview here, he said the Fed was pumping money into an economy already awash in cash, noting that commercial banks have been stockpiling money — through their deposits at the Fed, known as reserves — instead of lending it. NO LIQUIDITY PROBLEM “There isn’t a liquidity problem,” Meltzer said. “We have over a trillion dollars in excess reserves. Idle money is sitting on corporate balance sheets.” He said the Fed risked squandering the inﬂationﬁghting credibility it had earned under Bernanke’s predecessors, Paul A. Volcker and Alan Greenspan, and said the economy’s biggest problem was the uncertainty confronting business owners. “I want a moratorium on new regulations and on tax rates,” said Meltzer,
who has advised House Republican leaders. “That will get things moving.” On this island south of Savannah, Ga., it seemed ﬁtting that a Fed policy was the subject of controversy. It was here, amid oak trees covered in Spanish moss, that Wall Street bankers and Washington ofﬁcials, thinly disguised as a duck hunting party, gathered a century ago this month for a clandestine meeting that helped lay the groundwork for the creation of the Fed three years later. The 1910 gathering has long been grist for conspiracy theorists. Those attending included Sen. Nelson W. Aldrich, R-R.I.; the bankers Paul M. Warburg, Henry P. Davison and Frank A. Vanderlip; and Abram Piatt Andrew Jr., an economist and an ofﬁcial in the U.S. Treasury Department. They hoped that a new monetary authority could lessen the frequency and severity of the ﬁnancial panics that had regularly buffeted the economy since the Civil War. “The conspiracy theorists are right: There really was a conspiracy,” said Michael D. Bordo, a professor of economics at Rutgers University who helped organize this year’s conference, sponsored by Rutgers and the Atlanta Fed. The men, after all, were not here to hunt ducks. But if there
Animation firm from China seeks expansion • ANIMATION, FROM 1B
CRITICAL: A portion of a broken turbine disk from the Qantas Airbus A380 is seen above. Australia has asked that anyone who might have found a similar piece should hand it over to police for investigation.
was a conspiracy, it seems not to have been sufﬁciently thought out, as judged by the research presented here, which focused on mistakes and lapses throughout the Fed’s history. For example, Bordo argued in a paper that the Fed failed to prevent the bank panics of 1930-33 in part because it was not well designed to be a “lender of last resort,” the traditional role of a central bank. Distressed banks could borrow directly from the Fed through what is known as the discount window, but the high hurdles to such lending, and the stigma associated with it, reduced its effectiveness, he found. FAULTY MOVE Similarly, Bordo said the Fed’s much-criticized measures to help sell Bear Stearns and bail out the American International Group in 2008 might have been avoided if New Deal-era reforms had prepared the Fed to handle crises outside traditional banking. The Fed did not regulate Bear, an investment bank, or AIG, an insurance company; the Wall Street overhaul signed by U.S. President Barack Obama in July extends the Fed’s reach to cover all systemically important ﬁnancial institutions, not just big banks. Another paper, by
Charles W. Calomiris, an economist and a professor at the Columbia Business School, argued that the Fed was slow to learn from its mistakes, especially in its ﬁrst few decades. “We have a puzzle here of long-term, persistent bad ideas and slowness of learning that we should all be thinking about, if we’re modest, for our current policies,” he said. Robert G. King, an economist and a professor at Boston University, described the Fed’s failure in 1969 to rein in the inﬂation that began to rise in the Vietnam War era. It would be another decade before the Fed would start to succeed in taming inﬂation, and only at the cost of two painful recessions. If there was a consistent theme here, it was that the Fed’s independence was hard-won and fragile. After all, it was only in 1951 that the Fed gained full control over interest rates, having been pressed by the Treasury to keep them low to ﬁnance the government’s wartime borrowing. Marvin Goodfriend, who was an economist at the Richmond Fed in the 1990s, said the Fed’s actions “only have lasting effectiveness if the policies are credible to the public” and are seen as “free of political interference or manipulation.”
THE MIAMI HERALD
the supermodel Gisele Bundchen as a superhero ﬁghting for the environment, and Martha and Friends has a 10-year old Martha Stewart running an event-planning company from a tree house. Gigi, to which Bundchen has licensed rights but does not actively participate, started showing in Brazil last month, whereas Martha, to which Stewart has also licensed only rights to her character, is planned for a December premiere on AOL Kids. Xing Xing is also collaborating with the National Wildlife Federation on Wild Animal Baby Explorers, an animated series introducing preschoolers to nature that has run on some public television stations in the United States. Like many of its compatriots here, Xing Xing is getting help for its global ambitions with the same sort of government support that has propelled other Chinese industries like automobiles and clean energy. The State Administration of Radio, Film and Television in 2009 announced a policy to set up ﬁnancing for and give tax breaks to movie, television and animation projects. The government of Jiangsu province, in southern China, is one of the largest stakeholders in a $45 million grant that has helped Xing Xing convert a gutted steel
mill in the city of Wuxi into a futuristic studio. It is the company’s third site in China, which Wang says will eventually house 200 employees. Xing Xing already employs more than 300 computer graphics programmers, artists and producers in its Beijing headquarters, and an additional 30 employees in its branch in Anhui province. Despite its production deals and state backing, Xing Xing knows that global success is hardly assured. The industry’s cautionary example is the animated ﬁlm Thru the Moebius Strip, about a young boy who travels to a distant galaxy to rescue his father. China’s ﬁrst featurelength animation in 3-D, the effort cost the Institute of Digital Media Technology, a Shenzhen-based animation company, $20 million to produce. But when it was shown at the 2005 Cannes Film Festival, international distributors showed no interest. Moebius ﬂopped within China, too, taking in only $3 million domestically. China simply has too little experience catering to international audiences. While billions of dollars in government support for the industry has helped animation studios proliferate in China — to more than 10,000 in 2009, compared with only 120 in 2002 — most still churn out low-quality cartoons for domestic distribution.
Obama raises fears on U.S. economy • ECONOMY, FROM 1B
said. “Especially an economy this big, there are limited tools to encourage the kind of job growth that we need.” Still, Obama renewed his call for fresh investments in the United States’ crumbling infrastructure to help put the hard-hit construction sector back to work. Although Republicans have ruled out direct government spending on the economy — and have even rejected targeted tax cuts to encourage businesses to hire — Obama noted that, “historically, rebuilding our infrastructure is something that has garnered Democratic and Republican support.” Obama said the midterm elections were a referendum on the economy, not on him personally. But — continuing his self-reﬂection following the election — he said he was probably to blame for some of the partisan rhetoric of the campaign season. “During election season, I think, the rhetoric ﬂies. And by the way, I’ve been guilty of that. It’s not just them,” he said, referring to House Minority Leader John Boehner, R-Ohio, and Senate Minor-
ity Leader Mitch McConnell, R-Ky. “Part of my promise to the American people when I was elected was to maintain the kind of tone that says we can disagree without being disagreeable. And I think over the course of two years there have been times where I’ve slipped on that commitment.” Obama described his relationship with both men as “cordial,” saying they are “very smart” and “capable.” Asked about his deteriorating relationship with the business community, he acknowledged it had become a problem. The word he used was “strained.” “I think that we’ve got some repair work to do there,” Obama said. “These were exceptional circumstances over the last two years. I think we have to make sure that business understands that my overarching philosophy is not one in which we have constantly increasing government intervention. Although some of the provisions we put in place to protect consumers, to create a regulatory framework where we don’t have a repeat of the kind of crisis we had in the banking sector, those have to be preserved.”
A forecaster sees an end to United States’ economic gloom • FORECAST, FROM 1B
a blistering pace — about $7 billion a week. Indeed, between the peak of such lending in October 2008 and the trough in June of this year, total commercial and industrial bank credit fell by one-quarter. SLOW CLIMB Now, this contraction has stopped. The data have recently turned positive and should continue climbing, albeit slowly. “Getting to zero is not bullish at the moment,” Shepherdson said. “I would want to see commercial and industrial credit growing reasonably strongly to an outright positive four, ﬁve or six billion dollars a week. The story is really that the credit contraction seems to be coming to an end.” One problem for economists and investors, he said,
is that our current economic cycle does not have the typical recession-recovery characteristics or timeline. Those who thought it would be similar to recent recessions were trying to ﬁt a square peg into a round hole; there was nothing normal or routine about the events we have just lived through. But Shepherdson says he does ﬁnd parallels in our experience and that of Sweden in the early 1990s. The expansion of bank credit before the peak was similar in both countries. Furthermore, Sweden’s boom, like ours, resulted in rocketing real estate prices and overleveraged consumers. When the bubble burst, both countries experienced similarly awful contractions. Gross domestic product declined 5.1 percent in Sweden at the trough, com-
pared with 4.1 percent in the United States. Shepherdson hopes that the Swedish experience on the upside also repeats itself in the United States. After Sweden’s output bottomed out in early 1993, the country began an upswing that soon became supercharged. The initial growth was at an annualized rate of 2.5 percent, but by the second year of the rebound, GDP growth was 5.3 percent, annualized. We may not end up with a recovery that hot, Shepherdson said. But if the credit expansion he is expecting does transpire, he said, we could achieve annualized growth of between 3 percent and 4 percent in the second half of 2011. And the year after that looks even more promising, he said, because “credit conditions will be back to something like normal.” He expects that in the
meantime, we will bump along at around 2 percent in economic growth, with no double-dip recession. TIME FOR SMALL As commercial and industrial credit eases up a bit, Shepherdson said, it will unleash a pent-up demand among smaller companies for capital equipment, software, vehicles and other goods. “We have seen strong capital spending in the gross domestic product accounts, but that’s all been big companies,” he said. “The next step is for small companies to pick up their buying and start hiring people.” This lag in small-company spending is all about the tight credit conditions in that sector. The divergence between the amount of credit extended to big and small companies, he said,
shows up in the distressingly wide gap between two closely watched sentiment surveys: the reports from the Institute for Supply Management, which reﬂects manufacturing activity of larger enterprises, and from the National Federation of Independent Business, representing smaller companies. While the ISM ﬁgure is in recovery mode, the NFIB statistic remains squarely in recession territory. Obviously, a growth in lending to small businesses is not yet being felt across the board, Shepherdson said. But as the credit expansion trickles down to these companies, the gap will start to close and employment will begin to ramp upward. “My overwhelming condition for things to get better in the small-business sector is credit, so the positive data are a hugely excit-
ing development,” he said. “I don’t think we will see all these gaps close by December, but over the next 12 months I think we will see a transition out of a sluggish 2 percent economy to a real, properly growing recovery. And the second half of 2011 may be the true turning point for unemployment.” There’s no denying that our long economic despond has hurt vast numbers of people nationwide. And Shepherdson cautions that good times aren’t likely to roll immediately. “I wish it would be one of those situations that ﬁxes itself in three months, which would be a normal cyclical rebound,” he said. “But by August of next year there is a very good chance that we will be on a recovery path.” Let’s hope he is right again. And let the countdown begin.
THE MIAMI HERALD
BUSINESS BRIEFS • MEDIA
New York Times Service
MARK J. TERRILL/AP FILE, 2007
MSNBC to reinstate suspended Olbermann From Miami Herald Wire Service
MSNBC will reinstate Keith Olbermann later Tuesday, ending the Countdown host’s unpaid suspension for making political donations after two nights off the air. “Suspending Keith through and including Monday night’s program is an appropriate punishment for his violation of our policy,” MSNBC president Phil Grifﬁn said in a statement yesterday. “We look forward to having him back on the air Tuesday night.” Olbermann was suspended indeﬁnitely on Nov. 5 for giving $7,200 to three Democrats. The incident highlights a blurring of lines between journalism and advocacy as news networks such as MSNBC and Fox News try to attract viewers with partisan hosts. Olbermann, who promotes his political viewpoint on Countdown, also hosted MSNBC’s election-night coverage. FROM DALI TO MONROE, PLAYBOY AUCTIONS ART Playboy magazine is stripping away its artistic assets in an auction of more than 100 commissioned art works in New York City. Up for sale is an original Salvador Dali watercolor, and iconic photographs of Brigitte Bardot, Pamela Anderson and the original Playboy centerfold, Marilyn Monroe in 1953. The auction is set for Dec. 8 at Christie’s. It’s titled The Year of the Rabbit. The top lot is an oil by Pop artist Tom Wesselmann called Mouth No. 8. It’s expected to fetch $2 million to $3 million. The offerings are the tip of the iceberg of a huge collection. The magazine owns 5,000 contemporary artworks and 20 million original photographs. • ACQUISITION AMAZON.COM TO BUY DIAPERS.COM OWNER Amazon.com agreed to buy Quidsi, the owner of Diapers.com and Soap.com, for $500 million in cash, expanding in baby-care products and gaining merchandisemanagement expertise. Amazon will also assume about $45 million of closely held Quidsi’s debt and similar obligations, according to a statement from the companies today. They expect to close the deal in December. Quidsi, which expects to ship 500 million diapers this year, will help Amazon cater to new parents and gain expertise in warehouse management and low-cost shipping. • EARNINGS COMMERZBANK REPORTS $159M 3Q PROFIT Germany’s second largest lender Commerzbank on Monday posted a ¤113 million ($159 million) proﬁt for the third quarter, helped by lower loan losses but still below analysts’ expectations. The third quarter gain followed a loss of ¤1.06 billion for the year-ago period and was helped by a 33 percent drop in the amount of cash set aside to cover bad loans, to ¤621 million. However, the proﬁt was smaller than expected by analysts, sending Commerzbank shares down 3.7 percent to 6.38 percent in morning Frankfurt trading. • AIRLINE EMIRATES RESTARTS NYC DOUBLE-DECKER FLIGHTS Emirates airline is once again ﬂying the doubledecker Airbus A380 to New York after more than a yearlong hiatus. The Dubai-based carrier relaunched service Monday with an 8:30 a.m. ﬂight from the Persian Gulf city-state. Emirates was the ﬁrst airline to regularly ﬂy the superjumbo to the United States in 2008. It halted service less than a year later in June 2009 because of weak demand caused by the economic downturn. Air France also ﬂies the A380 to New York. • TECHNOLOGY SPOON LAUNCHES CLOUD SERVICE FOR DESKTOP Spoon, a leader in cloud computing technology, today announced the immediate availability of the world’s ﬁrst free cloud hosting service for desktop applications. Spoon allows software developers to make their existing desktop applications available in the cloud, with no installs. Spoon applications can be accessed from the Spoon.net library or embedded into any website, blog, or social media service as a “Spoon Feed” with a single line of HTML. E-BOOK READER TO GET COLOR DISPLAY E-book readers are lightweight and use little power, but most have a distinct disadvantage to colorful tablet computers: their black-and-white displays. But on Tuesday at the FPD International 2010 trade show in Tokyo, a Chinese company will announce that it will be the ﬁrst to sell a color display using technology from E Ink, whose black-and-white displays are used in 90 percent of the world’s e-readers, including the Amazon Kindle, Sony Readers and the Nook from Barnes & Noble. The Hanvon e-reader is not intended to be a multifunction competitor to the iPad, but rather a dedicated reading device, like the Kindle.
Helicopter purchase faces objections BY CHRISTOPHER DREW
POLITICAL DONATIONS: MSNBC had suspended Keith Olbermann indefinitely on Nov. 5 for giving $7,200 to three Democrats.
TUESDAY, NOVEMBER 9, 2010
silos and can ferry federal ofﬁcials to safety in a crisis. Most of the Hueys were built during the Vietnam War, and avoiding a bid process could save a year or more in getting the replacements into the ﬁeld. But, as top Pentagon ofﬁcials emphasize the need for more competition to reduce weapon costs, several analysts estimate that the Air Force could save 20 percent to 40 percent by inviting other manufacturers to bid. “There are certainly options out there, and the Air Force rationale just seems kind of shaky,” said Nick Schwellenbach, the direc-
tor of investigations at the Project on Government Oversight, a nonproﬁt group in Washington. “The idea should be to save money by having the companies slug it out.” Air Force ofﬁcials declined to be interviewed and released a statement saying, “All options are under review, and no decisions have been made.” Richard L. Aboulaﬁa, an analyst at the Teal Group, an aerospace and military consultancy in Fairfax, Va., said Air Force ofﬁcials had “the living tar beaten out of them” in bid competitions in recent years, with government auditors overturning
multibillion-dollar awards for aerial refueling tankers and for other helicopters. Given those delays in replacing other equipment, “you can see the appeal of some kind of fast-track, quick remedy,” he said. Air Force ofﬁcials might think, “Just give us the Black Hawks.” After all, Aboulaﬁa said, “everyone else has them.” But while the Black Hawks are among the most popular military helicopters ever made, they are much larger and more expensive than other helicopters that would also be faster and more efﬁcient than the old Hueys, Aboulaﬁa said.
The U.S. Air Force has taken a beating over its contract process in recent years. But if ofﬁcials thought a new approach would avoid controversy, they have been disappointed. As the U.S. Air Force tries to speed its purchases, it is considering using an obscure 1932 law to buy at least $1 billion worth of helicopters without competitive bids, government ofﬁcials say. Watchdog groups and some industry ofﬁcials are bristling at the idea, saying it would hand the business to Sikorsky, a unit of United Technologies of Hartford, Conn., without giving other companies a chance to offer what could be substantially lower prices. The law, the Economy Act of 1932, was part of Herbert Hoover’s efforts to cut purchasing costs in the Depression by letting federal agencies buy equipment from one another without seeking bids from industry. Military analysts say it now eases transfers of fuel and computers, but it has hardly ever been used to buy weapons or aircraft. Under the proposal, which is being debated in the Pentagon, the U.S. Air Force would add its order for as many as 93 Black Hawk helicopters to an Army contract with Sikorsky. The Army would order the extra craft, then sell them to the Air Force. AFP FILE Air Force ofﬁcials have DEBATE: Under a proposal, being debated in the Pentagon, the U.S. Air Force would said that the new helicopters would replace old Hueys that add its order for as many as 93 Black Hawk helicopters to an Army contract with help secure Western missile Sikorsky. The Army would order the extra craft, then sell them to the Air Force.
APEC debates change to realize FTA BY MARI YAMAGUCHI Associated Press
YOKOHAMA, Japan — Paciﬁc Rim economies are debating whether to change the informal Asia-Paciﬁc Economic Cooperation forum so that it can negotiate a sprawling free trade zone, Japanese ofﬁcials said Monday. The potentially major change for the 21-member APEC, formed in 1989 as non-binding forum to promote regional trade and investment, would open the possibility of a Paciﬁc-wide trade pact encompassing 44 percent of global trade and more than half of the world’s gross domestic product. The idea faces resistance from some member economies that want to strike free trade deals independently, although overall delegates are demonstrating an openness to it, said the Japanese ofﬁcials, who requested anonymity because of government rules. Indonesia and the Philippines have said they are cool toward the concept — known as the Free Trade Area of the Asia-Paciﬁc — preferring to think of it as a much longer-term goal. Experts have also said it is an unrealistic objective giv-
en the huge variation among the 21 member economies, which range from tiny Papua New Guinea to China and the United States, the world’s two biggest. Given APEC’s non-binding nature, some have said any trade treaty would have to be forged in a parallel structure. Still, the idea of an APEC free trade zone, ﬁrst ﬂoated by the United States at the 2006 summit in Hanoi, Vietnam, has gained momentum as a way to harmonize the proliferation of bilateral and regional free trade pacts within the region and amid frustration with stalled World Trade Organization talks. The week of meetings in Yokohama, just south of Tokyo, will culminate in a weekend summit attended by U.S. President Barack Obama, China’s President Hu Jintao, Japan’s Prime Minister Naoto Kan and 18 other leaders. Foreign and trade ministers are due to meet Wednesday and Thursday, although U.S. Secretary of State Hillary Clinton will not be attending. The annual APEC summit is being held against a backdrop of tension over currencies and territorial disputes
that could overshadow its ofﬁcial agenda. Host Japan is embroiled in spats with big neighbors China and Russia over disputed islands. Those topics will likely be discussed in bilateral meetings between ministers and leaders later this week, but APEC’s ofﬁcial agenda is strictly economic. One goal is to draw up an overarching economic growth strategy for APEC members that emphasizes innovation and is compatible with efforts to protect the environment. During the week, developed nations within the group also will be evaluated on their progress toward reaching APEC’s goal set in 1994 in Bogor, Indonesia, to achieve free trade and investment by 2010. Developing nations were given until 2020. But the new free trade proposal is likely to get the most attention. According to a draft of APEC’s ﬁnal communique obtained by The Associated Press, the leaders will agree to take “concrete steps toward realization of Free Trade Area of the AsiaPaciﬁc.” It doesn’t give a timeframe. Ofﬁcials said it was far
from clear whether the leaders would reach any sort of agreement on converting APEC into a body capable of negotiating a binding trade treaty. As steps toward creating a Paciﬁc-wide free trade zone, the leaders are expected to endorse possible smaller regional free trade pacts, including the Trans-Pacific Partnership, which the United States and ﬁve other countries — Australia, Malaysia, Vietnam and Peru — are negotiating to join. It currently consists of four small economies: Brunei, Chile, New Zealand and Singapore. Decisions about whether to join the Trans-Paciﬁc Partnership are up to each country, but any trade deal involving the mammoth U.S. economy would be a turning point for APEC, Japanese ofﬁcials said. Host Japan is pushing the Paciﬁc-wide free trade zone proposal, even while it debates whether to join the Trans-Paciﬁc Partnership. Business leaders are urging the government to join or face losing competitive advantage to rivals such as South Korea — although farmers are strongly opposed to slashing protective tariffs.
Irish debt woes revive concern about Europe BY LANDON THOMAS JR.
New York Times Service
LONDON — When interest rates soared last week on Irish government bonds, it served as a grim warning to other indebted nations of how difﬁcult and even politically ruinous it could be to roll back decades of public sector largess. An Irish bond market, already in free fall, plunged further after Ireland announced last week that it planned to nearly double its package of spending cuts and tax increases to try rein in its huge deﬁcit. Investors took it not as a sign of resolve but rather of Ireland’s desperation and uncertainty about the true extent of its problems. The yield on Ireland’s 10year bond climbed to 7.6 percent on Friday, expanding the gap with the 2.5-percent interest rate on comparable bonds issued by Germany, which is emerging most strongly from the European debt crisis.
Borrowing costs in Spain, Portugal and Greece also spiked upward again as investor concern reemerged that those countries would be hard-pressed to bring their deﬁcits under control and avoid defaulting on their bonds. Even as global stock markets rallied last week, those bond market jitters were a forceful reminder of how wary investors remained after Europe’s debt crisis last spring, despite the commitment of a combined ¤750 billion ($1.05 trillion) in bailout funds by the European Union and the International Monetary Fund. “The scale of the deﬁcits are just so big,” said Philip R. Lane, a professor of international economics at Trinity College in Dublin. “The issues are political as much as they are economic.” Ireland Prime Minister Brian Cowen’s increasingly shaky political standing in
Ireland may be threatened by the new deﬁcit reduction measures, which will cut to the heart of the Irish welfare system, including healthcare. In Greece, regional elections on Sunday were viewed as a test for the Socialist Party led by Prime Minister George Papandreou, whose government’s austerity measures have been wildly unpopular. In a televised address, Papandreou claimed victory in the elections and viewed the results as support of his economic policies. International concerns about the high budget deﬁcit in the United States, and Washington’s seeming willingness to print money rather than tackle tough debtcutting measures, help partly explain the recent anti-U.S. criticism from countries as diverse as Brazil, China and Germany. Countering those critics may be one of the biggest tasks for U.S. Presi-
dent Barack Obama in Seoul, South Korea, this week at the Group of 20 meeting of the leaders of the world’s biggest economies. Within Europe, though, the more immediate concerns involve Ireland. Its debt woes have stoked fear that it might even need to follow Greece and request a bailout from the European Union and the International Monetary Fund. Such a move could do lasting damage to Ireland’s credit standing. For the moment, at least, that outcome seems improbable. Unlike Greece earlier this year, Ireland has enough cash on hand to allow it to ﬁnance government operations through June 2011. And it has, at least temporarily, withdrawn from the bond market instead of paying the new, higher interest rates, which Irish ofﬁcials say do not adequately reﬂect the country’s true economic condition.
TUESDAY, NOVEMBER 9, 2010
THE MIAMI HERALD
Don't fall behind Stay in touch with the world World news, business and sports Subscriptions: Isabel Entenza — 305-812-7740 — firstname.lastname@example.org Advertising: Robert Oliva — 305-785-2040 546-1515 — email@example.com
THE MIAMI HERALD
TUESDAY, NOVEMBER 9, 2010
HISTORY BY JACQUELINE TRESCOTT
Washington Post Service
In 1860, Mathew Brady was one of the world’s bestknown photographers. His book, The Gallery of Illustrious Americans, published 10 years earlier, had made him famous. Those who had sat in his studio and faced the large box on the wooden tripod included Daniel Webster, Edgar Allan Poe and Henry Clay. So when Republican operatives wanted the perfect picture of U.S. presidential candidate Abraham Lincoln, they took him to Brady’s studio on Broadway in New York City. Brady looked at the tall, gangly man with the rugged, clean-shaven face. He pulled up his shirt collar so his neck wouldn’t look so long. He brushed down his hair and placed his hand on a book. Later, as Brady developed the photo, he retouched it so Lincoln’s facial lines wouldn’t be so harsh. Brady produced a remarkable image. At that time most U.S. citizens hadn’t seen Lincoln, and his opponents had caricatured him as a wild frontiersman. Yet here he was — extremely tall, standing erect, an imposing gentleman in a long frock coat. The Brady photo was used for engravings and reprinted in the major weeklies of the day, Harper’s Weekly and Frank Leslie’s Illustrated Newspaper. It also appeared on a campaign button. The same day he sat for Brady — Feb. 27, 1860 — Lincoln gave one of his most important speeches, the Cooper Union address. He spoke 7,000 words to an audience of inﬂuential businessmen, ministers, scholars and journalists. The speech was front-page news the next day. In an interview years later, very aware of his role in history, the photographer repeated what Lincoln reportedly said about the conﬂuence: “Brady and the Cooper Institute made me president.” Brady was born in Warren County, N.Y., in 1823. As a young man in New York City, he studied photography with Samuel Morse (in addition to inventing the electric telegraph and Morse code, Morse is credited with bringing the daguerreotype process from France to the United States). When Brady was introduced to daguerreotypes in the 1840s, photography was still a new art form and — at a time when most newspapers still relied on sketches — an extremely uncertain business venture. Nonetheless, Brady opened his ﬁrst photography studio in 1844; by the following year he had won a national competition for the best colored and best plain daguerreotypes. He operated his studio like a painter’s workshop, assigning colleagues and apprentices to various tasks. Studio personnel operated the cameras after Brady set up the shot, a practice he may have adopted because of the poor eyesight that had plagued him since childhood. The photographer and his assistants posed their subjects. They became skilled at injecting personality into the images, much like formal portrait painters. Brady’s artistry was leavened with promotional acumen. As was the custom of the times, the studio’s photographs were reprinted on tiny cards called “cartes de visite,” making his work greatly accessible. “Brady developed a reputation because of his quality and his marketing skills,” said Ann M. Shumard, curator of photographs at the National Portrait Gallery. “He was a good promoter and supplied images that could be reproduced. He adapted to the times.” Edward McCarter, supervisory archivist for still pictures at the National Archives, concurred. “Brady was the best-known entrepreneur of the day,” McCarter said. “You might get an argument on whether he was the best photographer.”
The photographer who went to war
VISIONARY: Mathew Brady, one of the world’s best-known photographers, realized early that his wartime pictures were not mere memorabilia but were footnotes to history. In 1858, Brady set up a second studio on Pennsylvania Avenue in Washington, across the street from the present location of the National Archives. He did his printing on the roof. He came to the city seeking greater proximity to the power brokers of the day, and his subjects included John Quincy Adams, Dolley Madison, Washington Irving, James Fenimore Cooper, Jenny Lind, Sojourner Truth, Thomas J. “Stonewall” Jackson, William Cullen Bryant, Jefferson Davis, Ulysses S. Grant and Robert E. Lee. He even photographed the actor Edwin Booth and his brother John Wilkes Booth. His interest in documenting the era’s notables foreshadowed the art of celebrity portraiture. “From the ﬁrst I regarded myself as under obligation to my country to preserve the faces of the historic men and mothers,” Brady said in a 1891 article in the New York World. (Historians think the interview, one of the few given by Brady, is greatly embellished. It also includes a rare physical description of the aging photographer: “Mr. Brady is a person of trim, wiry, square-shouldered ﬁgure, with the light of an Irish shower-sun in his smile.”) When the U.S. Civil War began in 1861, Brady decided to step outside the formal setting of his studio. Because he was the ﬁrst photographer to actually go to a battleﬁeld and document what he found there, he is widely considered the father of modern photojournalism. He later attributed his decision to destiny. After he returned from the ﬁrst Battle of Bull Run, Brady recalled, “My wife and my most conservative friends had looked unfavorably upon this departure from commercial business to pictorial war correspondence, and I can only describe the destiny that overruled me by saying
that, like Euphorion, I felt that I had to go.” Brady seemed intent on establishing his legacy from the outset, in some cases even inserting himself into the studio’s wartime photographs. “He’s in one taken at Gettysburg,” said Carol Johnson, a photography curator for the Library of Congress’s Civil War collections. Johnson said her staff still occasionally ﬁnds the photographer in the images, particularly as they are digitized. Brady realized early on that the pictures were not mere memorabilia but were footnotes to history. In 1862, he displayed gruesome battleﬁeld scenes taken by his studio colleagues Alexander Gardner and James Gibson in his New York gallery. The images of decaying corpses after the Battle of Antietam appalled viewers and galvanized the anti-war movement. After the war, the demand for Brady’s work waned. Photography was changing rapidly, incorporating new equipment and techniques, and the public no longer wanted the Civil War images for which Brady was best known. A skilled promoter but an inept businessman,
Brady had invested much of his capital in the studio’s war coverage. Ultimately, it proved his ﬁnancial ruin. In late 1864, Brady began selling off his assets, including a half share in his Washington gallery. He sued his business partner when it fell into bankruptcy in 1868, then bought it back at public auction. But his affairs continued to spiral downward. The courts declared him bankrupt in 1873, and by 1875 his New York studios were closed. Brady petitioned Congress to buy his collection, which it did, for $25,000, in 1875. Despite his political associations, he failed to get a hall of prominent U.S citizens — with his work as a critical source — started. His last known Washington address was 484 Maryland Ave. SW. Brady died as an indigent in New York on Jan. 15, 1896. His funeral was paid for by friends and a veterans association. He is buried in Congressional Cemetery in Washington. Today, Washington is the epicenter of Brady scholarship. The National Archives and Records Administration, the Library of Congress and the National Portrait Gallery — where two walls of his work are on permanent
Professional Writing Skills in English The Herald International Media Group offers services to individuals and companies requiring expertise and deftness in the use of the English language. Our staff is available for drafting and perfecting correspondence, corporate reports, catalog preparation and a wide variety of other business communication.
display — house thousands of photographs and glass plates that have survived for more than 150 years. Taken together, they provide a haunting glimpse of the city and its nearby battleﬁelds during the Civil War and an illuminating history of early photography. That fateful sitting with Lincoln remains a pivotal departure point for the study of Brady and the Civil War. Even then, copies of the photo were
scarce and quickly became collector’s items. In a letter written on April 7, 1860, to a person requesting the Brady photo, Lincoln wrote: “I have not a single one now at my control; but I think you can easily get one at New York. While I was there I was taken to one of the places where they get up such things, and I suppose they got my shadow . . . Yours truly, A. Lincoln.”
PAPERMAN Works and installations by Korean sensation Lee Joo-youn DiasporaVibe Gallery, Miami — Galerie Lee, Paris — Kimi Art, Seoul — and Germany’s premiere print exhibition, ‘Lino Cut Today’ in Beitigheim-Bissingen.
For further details, please contact Isabel Entenza: firstname.lastname@example.org
Contacts: www.diasporavibe.net; www.galerielee.fr, www.kimiart.net, www.bietigheim-bissingen.de/linocut_today
TUESDAY, NOVEMBER 9, 2010
THE MIAMI HERALD
BY JIM DAVIS
BY SCOTT ADAMS
Opening lead — ♥ nine
covered by East. South ruffed and played the diamond ace and a second diamond. East In today’s deal from the overtook his partner’s jack Dyspeptics Club, South to shift to a club, and down picked up his rock-crusher South went. with the air of a man who For once, North was temknew he deserved nothing WEST EAST porarily silent, giving South less and drove to game as ♠9 ♠64 the opportunity to complain soon as he found the spade ♥987 ♥ K 6 5 2 fit. The lead of the heart nine about his bad luck. That ◆KJ32 ◆ Q 10 8 encouraged him to believe triggered an outburst from ♣AQ863 ♣ J 10 9 5 that the deal would be a North, in which “pinhead” pianola. (For those of you too was the most flattering epiSOUTH young to remember, a piano- thet. Can you see what North ♠ K Q J 10 8 7 was upset about? la “plays itself.”) Four spades is cold after ♥A3 He covered the heart nine the heart lead, as long as with the 10, which held the ◆A74 declarer wins the first trick trick. Then he drew trumps ♣K7 in two rounds and paused for with the heart ace. He then reflection, realizing that there draws trump — in three Vulnerable: Both rounds if necessary — prewas a shortage of entries to Dealer: South serving dummy’s entry. Next dummy to set up the hearts. he knocks out the heart Finally, shrugging his shoulThe bidding: ders, he cashed the heart ace, king and can claim at least 10 tricks: three hearts, six hoping for a minor miracle, South West North East then crossed to the spade ace spades and the diamond ace. 1♠ Pass 2♠ Pass and advanced the heart jack, 11-9 4♠ All pass NORTH ♠A532 ♥ Q J 10 4 ◆965 ♣42
For more comics & puzzles, go to www.MiamiHerald.com/comics.
ACES ON BRIDGE
CHESS QUIZ ZITS
BY JIM BORGMAN AND JERRY SCOTT
BY CHARLES SCHULZ
WHITE TO PLAY Hint: The theme is stalemate.
Solution: 1. Ra2! Rxa2 with a draw by stalemate [Jansa-Rublevsky ’92].
BY HECTOR CANTU AND CARLOS CASTELLANOS
BY GARRY TRUDEAU
Dear Abby: I read your advice to “Getting Grief in Grants Pass, Ore.,” (Sept. 11), whose father was reading her cell phone messages. You called his supervision “heavy-handed” and suggested she discuss it with him. While I applaud your suggestion to have a talk with her father, please reconsider the characterization that he was heavy-handed. As a parent and high school assistant principal, I have seen too often the dangers of “sexting” and other illicit communications. Today’s smart phone tells us all sorts of things that we as parents need to know. It also has connections to social networking and applications that allow teenagers to blindly send their phone numbers to anonymous users and have conversations. The world has changed with this technology, and the attention we pay as parents must change with it. I strongly urge the parents at my school to check their children’s phones and computers regularly. I suggest to parents to start doing it when their children are young and explain that it is part of their job as a parent. Dave Miller, New York Thank you for writing and reminding me that kids today face many challenges that had never been an issue for them in past generations. Read on:
BY RICK KIRKMAN AND JERRY SCOTT
Dear Abby: The number of teens and children who engage in inappropriate sexting and texting is shocking. These behaviors can be evidence of sexual exploitation, harassment, bullying and teen dating violence. The results of this teenage behavior can be devastating and have lifetime consequences. Kids sometimes are afraid to go to parents or other responsible adults to seek help when they need it; often kids may not even know they are in trouble or exposing themselves to danger by their behavior. How long do you think it takes a “sext” between a girl and her boyfriend to make it to a child porn website? A cell phone is a computer, and parents are responsible for ensuring the safety of their children and protecting them from predators and others who might harm them. If “Grief” is not engaging in inappropriate behavior, she shouldn’t be embarrassed if her parents read the text messages. Abby, please use your column to help educate children, teens and their parents that a text/sext lasts a lifetime. Patricia Dailey Lewis, Deputy Attorney General, Delaware Department of Justice
Dear Abby: As a crime prevention officer, I regularly encourage parents to check a child’s cell phone for bullying and sexting, most of which a child won’t share with a parent. Most children are unaware that state laws have not changed, and children who send pornographic pictures of themselves to others can be charged with distributing child pornography and may have to register as a sexual predator for the rest of their lives. Kudos to “Grief’s” father for protecting his child not only from herself, but ensuring she is not hurting others! Child Advocate in North Carolina Dear Abby: Once young people enter the work force, their e-mail, use of company phones and profiles on social sites will be monitored by their employers. There are consequences for living in a digital world, and our young people need to understand that. I do not agree with her father telling her if she doesn’t want him to see something, she should delete it. Please don’t encourage children to lie. It won’t lead to anything good down the road. Whether it’s online, on a computer or a cell phone, act with decorum, use common sense, and you’ll never need to worry about getting in trouble for your behavior. Mother of Teens in Sharon, Pa.
ANSWER TO MONDAY’S PUZZLE:
HOROSCOPE IF TODAY IS YOUR BIRTHDAY: It isn’t always what you know, but whom you know. Until the first of the year, you may benefit from joining groups, clubs or organizations. Your ability to network can result in a happier future. • SCORPIO (Oct. 23-Nov. 21): Someone might be just telling you what you want to hear instead of being sincerely helpful. • SAGITTARIUS (Nov. 22-Dec. 21): The greater the expectations, the more likely you’ll be disappointed. Be realistic.
• CAPRICORN (Dec. 22-Jan. 19): Pinch those pennies. Defer spending until the financial outlook is brighter. Don’t be pressured into making important decisions. • AQUARIUS (Jan. 20-Feb. 18): Sometimes you just can’t win over certain people. You may be at your social best, but it still might not be good enough to break the ice. • PISCES (Feb. 19-March 20): When it rains, it pours. Find shelter from the storm and try not to get wet. It is a poor time to initiate new projects or investments.
JUMBLE • ARIES (March 21-April 19): An overly possessive person in a relationship can create the feeling of confinement. • TAURUS (April 20-May 20): You could waste time desiring what others have simply because you don’t have it. • GEMINI (May 21-June 20): Sometimes the anticipation of an event is greater than the event itself. • CANCER (June 21-July 22): Situations may beckon, but you’ll have a far more satisfying evening simply veging out in front of the TV. • LEO (July 23-Aug. 22): There’s a Mr. or Ms. Right for everyone, but the search for yours should wait for another time. • VIRGO (Aug. 23-Sept. 22): Don’t shut someone out completely over a dispute, as truly resentful feelings are likely to develop. • LIBRA (Sept. 23-Oct. 22): Swallow your pride and reconcile. A minor argument could spell the beginning of the end.
CROSSWORD ACROSS 1 Butcher’s side 5 “Too many cooks spoil the broth,” e.g. 10 Cash-free transaction 14 Continental dollar 15 Plant with two seed leaves 16 Give up, as territory 17 In the neighborhood 20 Memorable, as a day 21 Singer ___ King Cole 22 ___ out a living 23 Word with “little” or “late” 24 Descendant of Noah’s eldest son 27 Poison ivy contact result 29 Greensboro protest of 1960 32 Piece-loving lobby? 33 Perform one’s scenes 36 Evade 38 Relatively close 41 Sleepy Hollow’s was headless 42 Busy ___ bee 43 William Tell’s canton 44 Lets off steam 46 About 15 grains 50 Start to be active 52 Sporty truck, briefly 55 In-flight announcement 56 Weeding tool 57 Endured
60 Nearby 63 Sailing the waves 64 Curriculum ___ (brief resume) 65 “Will there be anything ___?” 66 Not counterfeit 67 Perform penance 68 South Yemeni port DOWN 1 Word with “Water” or “standard” 2 California motto (“I have found it!”) 3 Deteriorates 4 Basketball game stopper 5 Build on 6 Marks for lazy listers 7 Need an aspirin 8 Suffix with “theater” 9 Time-saving abbr. 10 “Now git!” 11 Pursued, as a career 12 “Lemon” or “lime” ending 13 According to 18 Ping-pong partition 19 Harmony 24 Gulf off Libya 25 Allowance after tare 26 “The Gold-Bug” author’s monogram 28 They may be tossed in the ring
30 “Did you get the flowers ___?” 31 Padre’s sister 34 Annoyed continually (Var.) 35 Stopwatch or hourglass 37 Hairdo or rug type 38 Was decked out in 39 Isle of Man location
40 Palindromic Bobbsey twin name 41 Flight-connection site 45 Brunei monarch 47 Said again 48 “Ten-hut!” reversal 49 Football video game name 51 Bottom line
53 Laugh that’s less than a guffaw 54 Before, to Hamlet 57 Airhead 58 Able to see right through 59 Geometry calculation 60 Place for cookies 61 Walk all over 62 Mature female germ cells
THE MIAMI HERALD
Manning helps Giants crush Seahawks they weren’t able to challenge the call. l Raiders 23, Chiefs 20 OT: Jason Campbell threw a 47-yard pass to rookie Jacoby Ford in overtime to set up a 33-yard ﬁeld goal by Sebastian Janikowski that gave the Raiders their biggest win in eight years. Campbell and Ford hooked up on a 29-yard pass in the closing seconds of regulation to set up Janikowski’s tying 41-yard ﬁeld goal. The Raiders (5-4) then won it in overtime for their most signiﬁcant victory since winning the 2002 AFC championship. By winning their third straight game for the ﬁrst
time since that season, Oakland heads into its bye week just a half-game behind Kansas City (5-3) in the division. l Giants 41, Seahawks 7: Eli Manning threw for three ﬁrst-half touchdowns, Ahmad Bradshaw added a pair of rushing touchdowns for the Giants. Manning and the Giants (6-2) jumped to a 35-0 halftime lead, overwhelming the banged up Seahawks and staking claim as maybe the best team in the NFC halfway through the season. Manning threw touchdowns of 46 yards to Hakeem Nicks, 6 yards to Steve Smith and 5 yards to Kevin Boss. Bradshaw scored on runs of 2 and 4 yards.
NFL SCHEDULE Sunday’s Games Chicago 22, Buffalo 19 N.Y. Jets 23, Detroit 20, OT Baltimore 26, Miami 10 San Diego 29, Houston 23 Atlanta 27, Tampa Bay 21 New Orleans 34, Carolina 3 Cleveland 34, New England 14 Minnesota 27, Arizona 24, OT N.Y. Giants 41, Seattle 7 Oakland 23, Kansas City 20, OT Philadelphia 26, Indianapolis 24 Green Bay 45, Dallas 7 Open: Denver, Washington, St. Louis, Jacksonville, San Francisco, Tennessee Monday’s Game Pittsburgh at Cincinnati, 8:30 p.m. Thursday’s Games Baltimore at Atlanta, 8:20 p.m.
Sunday, Nov. 14 Minnesota at Chicago, 1 p.m. Tennessee at Miami, 1 p.m. Detroit at Buffalo, 1 p.m. Houston at Jacksonville, 1 p.m. N.Y. Jets at Cleveland, 1 p.m. Cincinnati at Indianapolis, 1 p.m. Carolina at Tampa Bay, 1 p.m. Kansas City at Denver, 4:05 p.m. Dallas at N.Y. Giants, 4:15 p.m. St. Louis at San Francisco, 4:15 p.m. Seattle at Arizona, 4:15 p.m. New England at Pittsburgh, 8:20 p.m. Open: Oakland, San Diego, Green Bay, New Orleans Monday, Nov. 15 Philadelphia at Washington, 8:30 p.m.
Miller back in fold, and back on slopes • SKIING, FROM 8B
ready to write after he came out of retirement in 2009 to reshape his legacy with his brilliant skiing at the Olympics. The same goes for prognosticating when he will schuss off into the sunset as the United States’ most successful men’s skier. “I’m not sure how long I’ll race, or if I’ll race to the world championships or what,” Miller said over the weekend while training here with the U.S. Alpine team. “As of right now, I’m starting.” Starting what, only Miller knows.
For better or worse, Miller, an enigmatic talent from the woods of New Hampshire has made a career out of not doing what people expect him to do. That is the easiest explanation for why he was back in the starting gate last month in Soelden, Austria, for the opening race of the 2011 World Cup season. (The men’s giant slalom was eventually called off because of fog, with Miller in 23rd after the ﬁrst run.) “I’ve never been very bent on what I accomplish or not,” Miller said. “I just like racing, I like training, so that’s why I’m doing it. It’s always been the same.
There’s really nothing different or new there.” What is different is Miller’s relationship with the U.S. team since he came back to the fold last winter. After his infamous 0-for-5 performance at the 2006 Winter Olympics in Turin, Italy, the die was cast for an acrimonious split in 2007, with Miller leaving to travel the World Cup circuit as an independent. He paid for his own coaching and training staffs and a chef, and lived and trained out of his two custom recreation vehicles as a team of one — a ﬁtting contradiction for a skier famous for
Formula for baseball free agents • BASEBALL, FROM 8B
anyone in the game. But because he is three years from free agency, the system dictates he will make $2 million next year. Certainly a good payday, but in a system in which all were free agents, he would probably be worth $20 million (eight wins at $2.7 million per win) or more per season. Younger players like Longoria, Robinson Cano, Clay Buchholz and Ike Davis provide a great deal of value to their teams, and because they are early in their careers, they cost little. In a sense, they produce a surplus of cash. Young tal-
ent that adds wins but is inexpensive has great value and is why teams are hesitant to trade prospects for veterans. The available money is not just pocketed by the owners but is often used to attract free agents. While the average win across the league costs $2.7 million, 2009 free agents received nearly $4.5 million per win added. Analysts like those at Fangraphs and Tom Tango at Inside the Book, have found this amount consistent across talent levels. Last off-season, Matt Holliday, a four-win player, signed for $17 million a year; Jon Garland, a one-and-
a-half-win pitcher, signed for $7 million. A rate of $4.5 million a win added is not a hard-and-fast rule, but it is generally in the ballpark. Teams will do far more due diligence than I have done before making an offer, and factors like age, positional need, the economic climate, nonplaying considerations and injury history will weigh heavily on teams’ decision-making. Certainly some of these players will be busts and others will look like steals in hindsight, but this is the initial framework the teams begin with when deciding whom to pursue and for how much.
Italy defeats U.S. to lift Fed Cup • FED CUP, FROM 8B
gave the Italians a 3-1 decision in the best-of-ﬁve ﬁnale. Pennetta won after Melanie Oudin stunned French Open champion Francesca Schiavone 6-3, 6-1 to keep the United States alive. Venus and Serena Williams sat out in the 2009's Fed Cup ﬁnal, and both missed this one due to injuries. “Of course, if Serena and Venus want to play, the chance to win, it’s less,” said Pennetta, who’s ranked second in the world in doubles
and 23rd in singles. “They are really good players. They are really strong. But we ﬁght a lot to be here, to have this trophy. Before we play the U.S., we play another two important teams. All the best players in the other teams were there. It’s not making any difference if they play or not play. “Still we won this unbelievable Fed Cup, and nobody can say nothing about that.” Pennetta won two matches during the weekend to carry the Italians. Vandeweghe, making her Fed Cup debut, lost twice. With the match
Woods gets VIP treatment, no joy in Thailand
BREAKING PLAY: Seattle Seahawks' Aaron Curry, left, and David Hawthorne, right, team up to bring down New York Giants' Ahmad Bradshaw during their NFL game on Sunday.
• NFL, FROM 8B
TUESDAY, NOVEMBER 9, 2010
decided, doubles weren’t played. Italy beat the United States 4-0 in 2009. The Italians have won three titles in ﬁve years. With Billie Jean King watching from the front row, Pennetta won six straight games in the ﬁrst set after Vandeweghe, ranked 114th, broke serve in the ﬁrst game. In the epic second game, Vandeweghe took a 40-0 lead, helped by an ace on a second serve. But consecutive double faults let Pennetta back in. Seven deuces later, she broke Vandeweghe.
them. That ﬁerce streak of independence resulted in a second World Cup overall title in 2008, and a burnout in 2009, when nagging injuries and the large sums of his own money that Miller was spending to keep racing, led him to walk away in the midst of his worst professional season. Since rejoining the U.S. Ski Team last winter, Miller has mostly been content with his situation, he said. He likes the current coaching staff, and is happy to provide guidance to his younger teammates while maintaining a healthy level of autonomy.
NATIONAL FOOTBALL LEAGUE AMERICAN CONFERENCE East N.Y. Jets New England Miami Buffalo South Tennessee Indianapolis Jacksonville Houston North Baltimore Pittsburgh Cleveland Cincinnati West Kansas City Oakland San Diego Denver
W 6 6 4 0
L 2 2 4 8
T 0 0 0 0
Pct .750 .750 .500 .000
5 5 4 4
3 3 4 4
0 0 0 0
.625 .625 .500 .500
6 5 3 2
2 2 5 5
0 0 0 0
.750 .714 .375 .286
5 5 4 2
3 4 5 6
0 0 0 0
.625 .556 .444 .250
NATIONAL CONFERENCE East N.Y. Giants Philadelphia Washington Dallas South Atlanta New Orleans Tampa Bay Carolina North Green Bay Chicago Minnesota Detroit West St. Louis Seattle Arizona San Francisco
W 6 5 4 1
L 2 3 4 7
T 0 0 0 0
Pct .750 .625 .500 .125
6 6 5 1
2 3 3 7
0 0 0 0
.750 .667 .625 .125
6 5 3 2
3 3 5 6
0 0 0 0
.667 .625 .375 .250
4 4 3 2
4 4 5 6
0 0 0 0
.500 .500 .375 .250
Marathon recruit Solinsky rides in style Solinsky did not recognize her, either, but he was and knew their strategy was getting the feel of to stay in the ﬁrst wave, not hearing his name in New become giddy and break York City. away, not fall behind. Solinsky said he liked The crowds in Brooklyn the stride of Gebremariam, were amazing. Wittenberg the bigger runner, but did later noted that Fourth not discount Mutai, whom Avenue in Bay Ridge was he had seen run once, getcatching up with First ting sick to his stomach late Avenue in Manhattan for in a race. “But maybe that’s crowd support, high praise the way he runs,” Solinsky indeed. added. One fan in the crowd In the park, Mutai shouted, “Solinsky!” I seemed to diminish, ﬂy asked, “Do you know him?” away like the booster and he modestly said no. stage of a rocket, as Setting a U.S. record has Gebremariam tossed away made Solinsky recognizhis gray ski cap and opened able, even huddled in the up, his stride even more back of a support truck. ﬂuid than it was an hour We climbed the earlier. A motorcycle cop Queensboro Bridge and passed us, saying, “Race turned into the screaming over.” wall of humanity on First And sure enough it was, Avenue. Somebody held as Gebremariam won his the best placard of the day, ﬁrst marathon, in 2 hours, “When I Grow Up I Want 8 minutes, 14 seconds, a full to Be You,” about nobody 64 seconds ahead of Mutai. in particular, as far as I Later, we found out that could tell, but about 45,000 Gebrselassie had dropped runners. out with a knee injury and The crowds seemed announced his retirement better uptown and in the and that Keﬂezighi had Bronx than in past years. ﬁnished sixth. (Nelson ﬁnAs we turned back into ished 13th; Bairu dropped Manhattan and down onto out.) Fifth Avenue, Solinsky “If it was easy, it would watched Gebre Gebreget done a lot easier or a mariam of Ethiopia and lot sooner, but that’s the Emmanuel Mutai of Kenya marathon,” said Keﬂezighi, take a big lead, side by side. directing praise at all runIn Central Park, a woman in ners, and calling Gebrsethe crowd shouted, “Chris!” lassie a role model. • MARATHON, FROM 8B
BANGKOK — (AP) — Tiger Woods returned to his mother’s home country for a four-man skins tournament on Monday and left soon after winning only one hole in another disappointing performance. Colombian golfer Camillo Villegas won the most money at the World Golf Salutes King Bhumibol Skins Tournament at the Amata Springs Club in Chonburi province, taking ﬁve skins for $109,800. Paul Casey won nine skins for $92,400, and local golfer Thongchai Jaidee claimed three skins for $90,000. Woods earned only $6,600 for his skin and left the country right after the event on his private jet to Melbourne, where he will defend his Australian Masters title starting Thursday. It was Woods’ ﬁrst trip to the homeland of his mother, Kultida, in 10 years. She did not accompany him due to health problems. In a skins tournament, players compete for a reward for each hole, with prize money added to the next hole in case of a tie. The prize money of $900,000 will be donated to a charity foundation associated with Thai King Bhumibol Adulyadej. The event is part of celebrations marking King Bhumibol’s 60th year on the Thai throne. Woods made a visit early Monday morning to the ailing 82-year-old King Bhumibol, who has been at a Bangkok hospital for more than a year. The golfer did not meet the king but signed a get-well book at the hospital. Woods has not won a tournament this year after stepping away from the game for nearly four months in the wake of an inﬁdelity scandal that hurt his image and led to the breakup of his marriage. Thais adore Woods because of his family connection to the country. But the golfer displayed his U.S. side by shaking hands with Prime Minister Abhisit Vejjajiva and ignoring the leader’s “wai,” the traditional Thai greeting of palms pressed together with a head bow that is a sign of humility and respect.
NBA EASTERN CONFERENCE Atlantic Boston New York New Jersey Philadelphia Toronto
W 5 3 2 2 1
L 1 3 4 5 5
Pct GB .833 — .500 2 .333 3 .286 3½ .167 4
Southeast Atlanta Orlando Miami Washington Charlotte
W 6 4 5 1 1
L Pct 1 .857 1 .800 2 .714 4 .200 5 .167
GB — 1 1 4 41/2
Central Cleveland Chicago Indiana Detroit Milwaukee
W 3 2 2 2 2
L 3 3 3 5 5
GB — 1/ 2 1/ 2 11/2 11/2
Pct .500 .400 .400 .286 .286
WESTERN CONFERENCE Southwest New Orleans San Antonio Dallas Memphis Houston
W 6 4 3 3 1
L 0 1 2 4 5
Pct GB 1.000 — .800 11/2 .600 21/2 .429 31/2 .167 5
Northwest Denver Portland Oklahoma City Utah Minnesota
W 4 5 3 3 1
L 2 3 3 3 6
Pct .667 .625 .500 .500 .143
Pacific L.A. Lakers Golden State Phoenix Sacramento L.A. Clippers
W 7 4 3 3 1
L 0 2 3 3 6
Pct GB 1.000 — .667 21/2 .500 31/2 .500 31/2 .143 6
SUNDAY’S GAMES Philadelphia 106, New York 96 Phoenix 118, Atlanta 114 Detroit 102, Golden State 97 Houston 120, Minnesota 94 Boston 92, Oklahoma City 83 L.A. Lakers 121, Portland 96
GB — — 1 1 31/2
TUESDAY, NOVEMBER 9, 2010
THE MIAMI HERALD
SPORTS FOR LATE GAME SCORES, GO TO MIAMIHERALD.COM/SPORTS
Marathon recruit Solinsky rides in style
Packers rout Cowboys
BY GEORGE VECSEY
New York Times Service
dress and certainly I’m the one to address it.” Green Bay’s Clay Matthews added a ﬁnal dose of embarrassment in the fourth quarter, picking off a pass from Jon Kitna and running it back 62 yards for a touchdown. Dallas fell behind 28-0 late in the second quarter, giving up three long touchdown drives before fumbling away a kickoff that was returned for a TD by Nick Collins. Return man Bryan McCann appeared to be down before he gave the ball away — but the Cowboys didn’t have any timeouts left, so
he torch is passed, one way or the other. On the day that one champion retired and another champion could not quite repeat, a new champion won the ﬁrst marathon he ever ran. At the same time, a future marathon contender was courted with a front-row seat for his ﬁrst New York City Marathon. It is a wonderful seat, the back of a support truck, watching the elite women and men leave Staten Island, then chugging through the other boroughs, slightly ahead of the great male runners, hearing the cheers. This kind of experience would give ideas to a premium athlete like Chris Solinsky, 25, who set a U.S. record for 10,000 meters last spring. Solinsky has never run a marathon, but he surely will after participating vicariously in Sunday’s race. I happened to be seated next to him in the support truck and saw the marathon through his eyes as they took in the event, and the city. This special Sunday, in midfall, is simply the best sporting day of the year in New York, when elite runners and admirable plodders and even a Chilean miner comes to ﬁnish 26 miles 385 yards. Solinsky was being set up. “Are you kidding? He’s our future,” said Mary Wittenberg, the race director, who made sure that Solinsky, a large and powerful runner from the University of Wisconsin, had a good view. Wittenberg has invited several potential stars in recent years, including Dathan Ritzenhein, who ﬁnished eighth Sunday. In the breezy chill, Solinsky squeezed his 6-foot-1, 165-pound frame — he’s a former soccer player, large for a distance runner — into the middle of the back seat of the open truck parked on the Verrazano-Narrows Bridge. We watched the elite women, in their cutoff outﬁts, shiver in place for 10 or more minutes before they were liberated to run. He marveled at the waves of runners who surged in orderly fashion toward the start. As we came off the bridge into Brooklyn, hearing the bands and the spectators, Solinsky posted updates on Twitter while gazing at the lead pack of 20 runners, moving in unison like 20 very ﬁt molecules. “They are feeling each other out,” he said knowingly. In that pack were Meb Keﬂezighi, the American who won last year, and Haile Gebrselassie, a world-record holder, and so many other runners, many from Africa. Solinsky had trained with two others — Tim Nelson, a U.S. athlete, and Simon Bairu, a Canadian —
• TURN TO NFL, 7B
• TURN TO MARATHON, 7B
ACROBATIC EFFORT: Dallas Cowboys Roy Williams, right, reaches for a pass as Green Bay Packers cornerback Tramon Williams defends during the third quarter at Lambeau Field in Green Bay, Wis., on Sunday. The Packers won 45-7. PRECISION: Green GREEN BAY, Wis. — (AP) — Aaron Rodgers threw for 289 yards Bay Packers and three touchdowns, Brandon quarterback Jackson scored twice and the Aaron Rodgers Green Bay Packers routed the freecompletes a falling Dallas Cowboys 45-7 on short shuttle Sunday night. pass to running It was a new nadir in a lost seaback Brandon son for the Cowboys (1-7), who Jackson came into 2010 with Super Bowl during the aspirations. And it’s sure to kick second quarter off a new round of speculation about the future of coach Wade against the Phillips, despite recent statements Dallas from team owner Jerry Jones that a MCT Cowboys. midseason ﬁring was unlikely. James Jones caught eight passes “I’ve got a lot of work to do. I’ve “There’s several decisions. I for 123 yards and a touchdown for got a lot of decisions to make and think everybody in this country the Packers (6-3), who have won it’s not just one, two, three or four,” would agree, there’s a lot wrong three straight. Jones said. with this team that I’ve got to ad-
Formula predicts value Pennetta helps Italy win Fed Cup of baseball free agents BY BERNIE WILSON Associated Press
New York Times Service
erage 81 wins, so there are 29 wins per team (870 total) to be had by signing better than replacementlevel players. In 2010, teams spent about $2.4 billion above the league minimum on player salaries, or about $2.7 million per additional win. That gives us the cost of a win added, but how many wins can a player add? A number of statistics attempt to convert a player’s contribution into wins added. I’m going to use Wins Above Replacement (WAR). It takes a player’s batting, pitching, ﬁelding and base running; estimates the number of runs added or subtracted from the team total; then converts those runs into a wins added total (typically a 10-run difference equals one win). The Most Valuable Player award winners are usually eight-win players, and most starters are two- to three-win players. In a truly open market, Evan Longoria, who added eight wins as the Rays’ third baseman last year, would probably make as much as
Even before Buster Posey and Brian Wilson embraced on the mound at the end of the World Series last week, the free-agent season was upon us. More than 200 players are now free agents, free to negotiate and sign with teams of their choosing, most often the highest bidder. It may look chaotic from the outside, with one player signing for $8 million over two years and another for $80 million over ﬁve years, but spending has followed a fairly consistent pattern. There has never been a team composed only of minimum-salary (or replacement-level) players, but based on what we have seen from the Pittsburgh Pirates, the Detroit Tigers and the Florida Marlins over the years, it is believed you could win 50 to 55 games with such a roster (for the sake of argument, let’s assume it would go 52-110). From that assumption, we can estimate the number of wins up for grabs each year. The 30 teams av- • TURN TO BASEBALL, 7B
SAN DIEGO — After beating the United States at home and on the road in consecutive Fed Cup ﬁnals, the Italians really don’t care if the Williams sisters were absent both times. Flavia Pennetta routed 18-year-old CoCo Vandeweghe 6-1, 6-2 on Sunday to give Italy its second straight Fed Cup ﬁnal victory over the United States. Pennetta’s victory in the fourth singles match
MARK RALSTON/AFP-GETTY IMAGES
BY SEAN FORMAN
• TURN TO FED CUP, 7B
JUBILANT: Flavia Pennetta, center, of Italy celebrates with members of the Italian Fed Cup team after she beat Coco Vandeweghe of the United States to take the Fed Cup title.
Miller is back in fold, and back on slopes BY NATE PETERSON
New York Times Service
VAIL, Colo. — After he won the second of his three medals at the Vancouver Olympics in February, Bode Miller tried to explain, yet again, why he has never been ﬁxated on the ﬁnal result in a sport that is all about getting across the line fastest. “My favorite moment isn’t the press conference, it’s not the awards
ceremony,” he said. “It’s just before I cross the ﬁnish line and I’m forced to make an assessment of who I am and what I am and how I’ve done. When I can look at that, and as I’m crossing the ﬁnish line and I’m really excited about it and proud of it, that’s the end of the celebration for me.” Simply put, Miller’s assessment of his skiing has never been tied to the ofﬁcial race clock, podium ﬁn-
ishes or medals. He has always been more interested in the process, the challenge of trying to ﬁnd the quickest line between two gates. It comes as no surprise then, as he enters his 14th World Cup season at 33, that Miller is not thinking about the end. He was not interested in the storybook tale that so many were • TURN TO SKIING, 7B