Madness in the air in Washington

National Rifle Association Executive Vice President Wayne LaPierre calls on Congress to pass a law putting armed police officers in every school in America.

STORY HIGHLIGHTS

• David Gergen: After election, there were hopes partisan tension would fade


• He says this week we've seen a complete breakdown on the fiscal cliff


• The NRA doubled down on its anti-gun-control rhetoric despite Newtown, he says


• Gergen: We're seeing the character assassination of a hero, Chuck Hagel

Editor's note: David Gergen is a senior political analyst for CNN and has been an adviser to four presidents. A graduate of Harvard Law School, he is a professor of public service and director of the Center for Public Leadership at Harvard University's Kennedy School of Government. Follow him on Twitter.

(CNN) -- What in the world is gripping Washington? Everywhere one turns -- from finances to guns to nominations -- there is madness in the air.

With time rapidly running out, efforts have collapsed to reach a major agreement on federal spending and taxes before year's end, and both Congress and President are leaving town for the holidays. At best, they will return next week and construct a small bridge over the "fiscal cliff"; at worst, they won't. But who knows?

David Gergen

And that's a big part of the problem -- no one can be confident that our national leaders are still capable of governing responsibly. And in the process, they are putting both our economy and our international reputation at risk.

Fresh poison

President Barack Obama had rightly hoped that the elections would clear the air; they haven't. If anything, the recent squabbling over the federal budget has injected fresh poison into relationships and dimmed prospects for other bipartisan agreements in the next few years, starting with hopes for a "grand bargain"in 2013.

John Boehner and Eric Cantor, the House GOP leaders

The President insists he remains an optimist, but if he and Republicans can't agree on how to bring the nation's finances under control -- something fundamental to the welfare of the country -- why should we have faith they will succeed on other important issues like energy, education, immigration and gun safety?

As the blame game heats up, Republicans are sure to pay the biggest price with the public. It was bad enough that they lost the message fight, letting themselves be painted as protectors of the wealthy. But it was inexcusable when they revolted against House Speaker John Boehner in his search for a way forward: that only reinforced a narrative that the Grand Old Party has fallen hostage to its right wing -- a narrative that already exacted a huge price in the fall elections.

Most voters -- I am among them -- believe the country needs a center-right party but will not support an extremist party.

President Obama is certainly not blameless in these financial talks. Early on, he overplayed his hand, alienating rank-and-file Republicans. Like Boehner, he has been more accommodating recently, offering concessions on taxes and entitlement spending that narrowed the negotiating gap between the parties, even as his leftward allies fretted.

Still, Boehner has a point in arguing that what Obama now has on the table comes nowhere close to what the he was advocating in the election season: a ratio of 2.5 dollars in spending cuts to 1.0 dollars in tax increases.

The buck stops on the President's desk, so that ordinarily one would expect him to take the lead in these final days before January 1. For reasons that are still unclear, he instead chose in his press statement late Friday to toss responsibility for negotiations next week into the laps of Congressional leaders.

Perhaps he has reached a quiet understanding with Boehner and Senate Majority Leader Harry Reid that the two of them can work out a stripped-down agreement. Let's hope so. But as we enter the holidays, it appears to be a mess. And time is quickly running out.

The NRA in denial

As if Friday weren't gloomy enough, the National Rifle Association weighed in with its long-awaited response to the horrors of Newtown, Connecticut. There had been hints that the NRA would offer a more conciliatory stance. Just the opposite: they doubled down.

Incredibly, Wayne LaPierre, executive vice president of the NRA, called for putting armed police officers in every school. Isn't that what parents of every six-year old have been longing for: to have their child studying and playing under the watchful eye of an armed guard? Has LaPierre visited an elementary school classroom in recent years? If so, he would know his idea would be repulsive in most schools.

Just as strikingly, the NRA response refused to acknowledge and address the beliefs of a majority of Americans in recent polls that the U.S. needs tougher laws in favor of gun safety. Americans aren't saying no one should have guns or that the 2nd Amendment should be gutted but they are demanding a national conversation to see what can be sensibly done. It is hard to have a conversation when one side won't talk.

Character assassination

Meanwhile, in a less noticed but important saga in Washington, we are once again watching the character assassination of a public servant of honor and distinction.

Chuck Hagel served America with valor as a sergeant in the Vietnam war, earning two Purple Hearts. He was a popular Republican senator from Nebraska who paid close attention to international affairs and is now co-chair of the President's Foreign Intelligence Advisory Board, serving with another former Senator, David Boren.

Ever since Hagel's name arose as a top candidate to become the next Secretary of Defense, he has been pilloried for statements and stands he has taken in the past. Is it legitimate to question his positions on Israel, Iran, and on gays? Absolutely. But what is grossly unfair is to misstate them, saying that he is against sanctions on Iran when in fact he has argued in favor of international sanctions, not unilateral sanctions (which don't work). As someone who strongly favors Israel, I am also deeply troubled by the way he has been misrepresented as virtually anti-Semitic.

Nor is this a fair fight. Hagel is in no-man's land because his name is prominently mentioned but he hasn't been formally nominated, so the White House isn't rushing to the barricades to support him.

The signals from 1600 Pennsylvania Avenue were that the Secretary of Defense nominee would be announced in a package with the Secretary of State. The President has now gone ahead with John Kerry but the absence of a Defense nominee has now left Hagel dangling in the breeze, a piñata.

The White House should now move early next week -- by announcement or by leak -- to settle this by making a decision. Whether or not the President nominates Hagel, he should put a stop to the defamation by recognizing Hagel as a patriot with an independent mind and a long record of honor. If selected as Secretary, Hagel would be a very fine member of the national security team.

One had hoped that the shootings at Sandy Hook would draw us together. Sadly, they haven't. Now, perhaps the blessings of the holidays and a brief moment to take a breath will lift our sights. Surely, this madness should not continue into the New Year.

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The opinions expressed in this commentary are solely those of David Gergen.

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Gunmen kill 11 people on Pakistan-Iran border

QUETTA, Pakistan: Unknown gunmen killed 11 people as they prepared to illegally leave Pakistan in the southwestern province of Baluchistan, officials said on Saturday.

The gunmen, riding motorcycles, attacked a convoy on Friday night in Pakistan's Gwadar district near the border with Iran, some 1,600 kilometres (1,000 miles) southwest of Quetta.

Officials described the dead as "illegal immigrants" -- believed to be Pakistanis and Afghans who were attempting to leave the country.

"Six gunmen riding three motorcycles attacked the illegal immigrants' convoy in Suntsar Dasht area in Gwadar district. We have received 11 dead bodies of the immigrants," provincial home secretary Akbar Durrani told AFP.

"The immigrants were travelling in a convoy of three vehicles, however, their exact number is unknown," he said.

A local administration official said the victims could not be identified.

"We could not identify the victims. But their physical appearances suggest that seven of them were Pakistani while four others were Afghans," Sohail Rehman, the administration chief in Gawadar told AFP.

No group immediately claimed responsibility for the attack.

Pakistan's Gwadar district neighbours Iran's Saravan province. People smugglers use the route to traffick illegal immigrants to Europe, via Iran and Turkey.

- AFP/xq

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Failure of fiscal deal puts more pressure on Boehner

STORY HIGHLIGHTS

• Republicans rejected his Plan B to avert fiscal cliff, raising questions about his future


• Some conservatives have called for Boehner's resignation


• Most Republicans say it's premature to say his speakership is in jeopardy


• While the failure of the Plan B vote was bad, Boehner faces tougher days ahead

Washington (CNN) -- Roughly six weeks ago, Rep. John Boehner was reelected unanimously by his colleagues as speaker of the House of Representatives. They cheered and applauded him in an ornate hearing room on Capitol Hill.

But on Thursday, many of those same Republicans abandoned Boehner in droves, rejecting his Plan B to avert the fiscal cliff and raising questions about his future.

Thursday night's epic meltdown in the House GOP conference came at a defining moment for Boehner. As he has done several times in the past two years, the speaker attempted to persuade conservatives who campaigned against any compromise to support his strategy, putting pressure on Democrats to agree to what these members demanded: more spending cuts.

But Boehner's own members refused to go along, and some conservative and tea party groups began to call Friday for him to step down.

Ned Ryun, founder of one conservative group called American Majority Action, posted an article on RedState.com harshly critical of Boehner: "He should save the Republican Party the embarrassment of a public leadership battle and resign."

Behind the scenes: A breakdown of Boehner's miscalculation on Plan B

But most Republicans say it's premature to say that this episode means Boehner's speakership is in jeopardy.

Texas Rep. John Carter said he believes that the House GOP will stick with Boehner.

"If he resigned or something, that would have been different, but I don't think there's any threat, and I don't think there's any serious opposition out there," said Carter, a former member of Boehner's leadership team.

Carter conceded that outside pressure on Boehner to step aside could affect "a few people" but not enough to threaten his position.

Boehner argued that passing his Plan B bill, allowing tax breaks to be extended for all those making less than $1 million, demonstrated that the GOP was trying to preserve as many tax cuts as possible. But his failure to get enough Republicans to back the plan only raised questions about his failing to get many in his conference to back the plan.

Boehner said he's not worried about losing his job and repeated an answer he's used before when asked about being in a tough spot politically.

"If you do the right things every day for the right reasons, the right things will happen," the speaker said. He explained that some House Republicans were worried about public perception of supporting tax increases, adding, "I don't think, they weren't taking that out on me."

GOP disarray jeopardizes fiscal cliff deal

One senior House GOP aide quipped that many rank and file members who criticized Boehner's negotiation strategy didn't understand that his effort would have given them some political cover at a time when Congress' ratings are at rock bottom. "These guys are pizza store owners, not Republican strategists."

During recent skirmishes, some looked to the No. 2 House Republican, Eric Cantor, to step in, but Cantor was part of the leadership effort pushing Plan B this week and publicly predicted that it had the votes hours before they pulled the bill. And Cantor's presence beside Boehner on Friday morning signaled that he's staying with the speaker.

Multiple Republican members and aides say there is no current member who has enough support to mount a real challenge.

Some point to former GOP vice presidential nominee Paul Ryan, but he has shown no interest in the job, and he publicly backed Boehner's Plan B strategy, even in the face of opposition from many of the same groups who hold him up as key leader. Georgia Rep. Tom Price, who ran unsuccessfully for the fourth slot as House GOP conference chairman, has been floated as a possible successor, but few believe he is serious about taking it on, because he couldn't muster substantial votes.

Carter argued that a move to unseat Boehner could be worse for the party. "He's done yeoman's work in a tough job. I don't see us replacing the speaker. Actually, we would create more crisis that we would create solutions if we did that."

Even some of the Republicans who opposed the speaker's plan refrained from blaming Boehner and instead shifted their anger at President Obama, who they say isn't leading.

No mistletoe: Obama laments no cliff deal, punts until end of year

"He is my speaker, and I support him strongly; he's in a very difficult position," said Rep. John Fleming, R-Louisiana, adding that he simply disagreed on giving any ground on taxes.

"Raising taxes on any American, to me, is not the right message," he said.

Another Republican leadership aide said that as vulnerable as Boehner seems to many on the outside, "this probably strengthens Boehner's hand internally. He avoided forcing members from taking a vote many of them didn't want to have to take."

As GOP leaders worked to get the votes for Plan B on Thursday, they felt that they had the majority of GOP members on board but knew that without Democrats' support, they needed to get almost all their members to support the bill. Many of the undecided told leaders that if it was the final deal, they would vote yes, but since they knew it would change, they didn't want to go on record giving in at all on taxes.

Thursday night was for bad for Boehner, but he faces trickier terrain in the days ahead. Few expect further negotiations between the speaker and the White House to yield any deal.

Boehner said Friday that if the Senate came up with a compromise, he would take a look at it. But after his own strategy fell apart, he'll be faced with presenting his members with something they like even less. Boehner will then have to evaluate the personal and political cost of pushing a plan in the face of further defections.

Boehner said on Capitol Hill that he still wants a significant agreement that includes both taxes and spending but admitted, "how we get there, God only knows."

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NRA: Guns in schools would protect students

Updated: 6:44 p.m. ET

In a press conference reflecting on last week's massacre in Newtown, Conn., the National Rifle Association's Wayne LaPierre today called on Congress to put armed law enforcement agents in every American school, insisting that guns in schools -- not tougher gun laws -- would most effectively protect children from school shootings.

Play Video

A "good guy with a gun" in every school?

LaPierre, who did not take any questions and whose remarks were interrupted twice by pro-gun control protesters, disdained the notion that stricter gun laws could have prevented "monsters" like Adam Lanza from committing mass shootings, and wondered why students, unlike banks, don't have the protection of armed officials. He also called for a "national database of the mentally ill."

"The only thing that stops a bad guy with a gun is a good guy with a gun," he said.

Twenty first-grade students were gunned down at their Connecticut elementary school last Friday, when 20-year-old Lanza reportedly opened fire in the school. Six adult faculty members were killed in his rampage, and Lanza also took his own life. Shortly before entering Sandy Hook Elementary School, Lanza is believed to have killed his mother, Nancy Lanza, in her bed. In the aftermath of the shootings, there has been much speculation as to the state of Adam Lanza's mental health, but no concrete evidence has been established that he was mentally ill.

Play Video

60 Minutes archives: Understanding the NRA

In the aftermath of the shooting, the NRA stayed largely silent, making only a brief comment earlier this week when announcing today's press conference. In his remarks today, however, LaPierre vehemently defended the pro-gun agency against critics and offered up a solution of his own.

"We must speak for the safety of our nation's children," said LaPierre. "We care about our money, so we protect our banks with armed guards. American airports, office buildings, power plants, courthouses, even sports stadiums, are all protected by armed security. We care about our president, so we protect him with armed Secret Service agents. Members of Congress works in offices surrounded by Capitol police officers, yet when it comes to our most beloved innocent and vulnerable members of the American family -- our children -- we as a society leave them every day utterly defenseless. And the monsters and the predators of the world know it and exploit it."

"That must change now," argued LaPierre, moments before being interrupted by a protester carrying a large pink sign proclaiming that the "NRA is killing our kids." "The truth is that our society is populated by an unknown number of genuine monsters -- people so deranged, so evil, so possessed by voices and driven by demons that no sane person can possibly ever comprehend them. They walk among us every day. And does anybody really believe that the next Adam Lanza isn't planning his attack on a school he's already identified at this very moment?"

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60 Minutes archives: The anti-gun lobby

Alternately criticizing politicians, the media, and the entertainment industry, LaPierre argued that "the press and political class here in Washington [are] so consumed by fear and hatred of the NRA and America's gun owners" that they overlook what he claims is the real solution to the nation's recent surge in mass shootings -- and what, he said, could have saved lives last week.

"What if, when Adam Lanza started shooting his way into Sandy Hook Elementary School last Friday, he had been confronted by qualified, armed security?" he asked. "Will you at least admit it's possible that 26 innocent lives might have been spared? Is that so abhorrent to you that you would rather continue to risk the alternative?"

LaPierre called on Congress to put a police officer in every school in America, which according to a Slate analysis would cost the nation at least $5.4 billion. LaPierre recognized that local budgets are "strained," but urged lawmakers "to act immediately, to appropriate whatever is necessary to put armed police officers in every school." He offered up the NRA's unique "knowledge, dedication, and resources" to assist in efforts to train those forces, but made no mention of a fiscal contribution. 

Columbine High School employed an armed guard, Neil Gardner, at the time of the 1999 school shootings. According to CNN, Gardner was eating lunch in his car when violence broke out in the school, and 13 people were killed.

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Protesters disrupt NRA press conference

Gun control advocates immediately decried LaPierre's comments, and New York City Mayor Michael Bloomberg called the press conference a "shameful evasion of the crisis facing our country."

"Instead of offering solutions to a problem they have helped create, they offered a paranoid, dystopian vision of a more dangerous and violent America where everyone is armed and no place is safe," he said. "Leadership is about taking responsibility, especially in times of crisis. Today the NRA's lobbyists blamed everyone but themselves for the crisis of gun violence."

On Twitter, Senator-elect Chris Murphy, D-Ct., called LaPierre's comments "the most revolting, tone-deaf statement I've ever seen."

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Obama Still an 'Optimist' on Cliff Deal

Mandel Ngan/AFP/Getty Images

WASHINGTON D.C. – Ten days remain before the mandatory spending cuts and tax increases known as the “fiscal cliff” take effect, but President Obama said he is still a “hopeless optimist” that a federal budget deal can be reached before the year-end deadline that economists agree might plunge the country back into recession.

“Even though Democrats and Republicans are arguing about whether those rates should go up for the wealthiest individuals, all of us – every single one of us -agrees that tax rates shouldn’t go up for the other 98 percent of Americans, which includes 97 percent of small businesses,” he said.

He added that there was “no reason” not to move forward on that aspect, and that it was “within our capacity” to resolve.

The question of whether to raise taxes on incomes over $250,000 remains at an impasse, but is only one element of nuanced legislative wrangling that has left the parties at odds.

For ABC News’ breakdown of the rhetoric versus the reality, click here.

At the White House news conference this evening, the president confirmed he had spoken today to Senate Majority Leader Harry Reid, D-Nev., and House Speaker John Boehner, R-Ohio, although no details of the conversations were disclosed.

The talks came the same day Speaker Boehner admitted “God only knows” the solution to the gridlock, and a day after mounting pressure from within his own Republican Party forced him to pull his alternative proposal from a prospective House vote. That proposal, ”Plan B,” called for extending current tax rates for Americans making up to $1 million a year, a far wealthier threshold than Democrats have advocated.

Boehner acknowledged that even the conservative-leaning “Plan B” did not have the support necessary to pass in the Republican-dominated House, leaving a resolution to the fiscal cliff in doubt.

“In the next few days, I’ve asked leaders of Congress to work towards a package that prevents a tax hike on middle-class Americans, protects unemployment insurance for 2 million Americans, and lays the groundwork for further work on both growth and deficit reduction,” Obama said. ”That’s an achievable goal.  That can get done in 10 days.”

Complicating matters: The halls of Congress are silent tonight. The House of Representatives began its holiday recess Thursday and Senate followed this evening.

Meanwhile, the president has his own vacation to contend with. Tonight, he was embarking for Hawaii and what is typically several weeks of Christmas vacation.

However, during the press conference the president said he would see his congressional colleagues “next week” to continue negotiations, leaving uncertain how long Obama plans to remain in the Aloha State.

The president said he hoped the time off would give leaders “some perspective.”

“Everybody can cool off; everybody can drink some eggnog, have some Christmas cookies, sing some Christmas carols, enjoy the company of loved ones,” he said. “And then I’d ask every member of Congress, while they’re back home, to think about that.  Think about the obligations we have to the people who sent us here.

“This is not simply a contest between parties in terms of who looks good and who doesn’t,” he added later. “There are real-world consequences to what we do here.”

Obama concluded by reiterating that neither side could walk away with “100 percent” of its demands, and that it negotiations couldn’t remain “a contest between parties in terms of who looks good and who doesn’t.”

Boehner’s office reacted quickly to the remarks, continuing recent Republican statements that presidential leadership was at fault for the ongoing gridlock.

“Though the president has failed to offer any solution that passes the test of balance, we remain hopeful he is finally ready to get serious about averting the fiscal cliff,” Boehner said. “The House has already acted to stop all of the looming tax hikes and replace the automatic defense cuts. It is time for the Democratic-run Senate to act, and that is what the speaker told the president tonight.”

The speaker’s office said Boehner “will return to Washington following the holiday, ready to find a solution that can pass both houses of Congress.”

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Goodbye, U.S. Postal Service?

This Christmas could be the Post Office's last, says John Avlon.

STORY HIGHLIGHTS

• The U.S. Postal Service is bleeding money and heading toward insolvency


• John Avlon: Congress can save the postal service in deal on the fiscal cliff


• He says the urgency is clear, let's hope for a Christmas miracle


• Avlon: But be prepared that Washington dysfunction can doom the postal service

Editor's note: John Avlon is a CNN contributor and senior political columnist for Newsweek and The Daily Beast. He is co-editor of the book "Deadline Artists: America's Greatest Newspaper Columns." He is a regular contributor to "Erin Burnett OutFront" and is a member of the OutFront Political Strike Team. For more political analysis, tune in to "Erin Burnett OutFront" at 7 ET weeknights.

(CNN) -- It's the time of year for dashing through the snow to the crowded post office, with arms full of holiday gifts for family and friends.

Not to break the atmosphere of holiday cheer, but this Christmas could be the last for the U.S. Postal Service. It is losing $25 million dollars a day and staring down insolvency -- unless Congress steps in to pass a reform package that reduces its costs.

With just a few days left in the congressional calendar, there is still some small hope for a Christmas miracle -- maybe the Postal Service can be saved as part of a deal on the fiscal cliff. But with even Hurricane Sandy relief stalled, skepticism is growing.

John Avlon

The real question is, what's taken them so long? After all, back in April the Senate passed an imperfect but bipartisan bill by 62-37. It would have saved some $20 billion, cut some 100 distribution centers, and reduced head count by an additional 100,000 through incentives for early retirement, while reducing red tape to encourage entrepreneurialism and keeping Saturday delivery in place for at least another two years. At the time, Sen. Tom Carper of Delaware said, "The situation is not hopeless; the situation is dire. My hope is that our friends over in the U.S. House, given the bipartisan steps we took this week, will feel a sense of urgency."

To which the House might as well have replied, "Not so much."

In August, the Postal Service defaulted for the first time, unable to make a $5.5 billion payment to fund future retirees' health benefits. The headline in Government Executive magazine said it all: "Postal Service defaults, Congress does nothing."

The usual suspects were at fault -- hyperpartisan politics and the ideological arrogance that always makes the perfect the enemy of the good.

House Oversight Committee Chairman Darrell Issa greeted the news of the Senate bill by calling it a "taxpayer-funded bailout." His primary complaint was that the Senate bill did not go far enough. He was not alone -- Postmaster General Patrick Donahoe also expressed disappointment at the scope of the Senate bill, saying that it fell "far short of the Postal Service's plan."

But Issa's alternative couldn't even get to a vote in the Republican-controlled House. And so nothing happened. Even after the USPS defaulted on a second $5.5 billion payment, the response was crickets.

Washington insiders said that action would be taken after the election, when lawmakers would be free to make potentially unpopular decisions. But despite a series of closed-door meetings, nothing has been done.

It's possible that the nearly $20 billion in savings could be part of a fiscal cliff deal. Sen. Joseph Lieberman has suggested that ending Saturday delivery, except for packages, could be part of a compromise that could save big bucks down the road. Another aspect of a savings plan could be suspending the USPS' onerous obligation to fully fund its pension costs upfront, a requirement that would push many businesses into bankruptcy. And last fiscal year, the post office posted a record $15.9 billion loss.

"As the nation creeps toward the 'fiscal cliff,' the U.S. Postal Service is clearly marching toward a financial collapse of its own," says Carper. "The Postal Service's financial crisis is growing worse, not better. It is imperative that Congress get to work on this issue and find a solution immediately. ... Recently key House and Senate leaders on postal reform have had productive discussions on a path forward, and while there may be some differences of opinion in some of the policy approaches needed to save the Postal Service, there is broad agreement that reform needs to happen -- the sooner the better."

The urgency couldn't be clearer -- but even at this yuletide 11th hour, signs of progress are slim to none. If Congress fails to pass a bill, we'll be back to square one in the new year, with the Senate needing to pass a new bill which will then have to be ratified by the House. There is just no rational reason to think that lift will be any easier in the next Congress than in the current lame duck Congress, where our elected officials are supposedly more free to do the right thing, freed from electoral consequences.

So as you crowd your local post office this holiday season, look around and realize that the clock is ticking. The Postal Service is fighting for its life. And Congress seems determined to ignore its cries for help.

"Neither rain nor snow nor sleet nor gloom of night" can stop the U.S. Postal Service from making its appointed rounds -- but congressional division and dysfunction apparently can.

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The opinions expressed in this commentary are solely those of John Avlon.

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Asian markets retreat as US fiscal cliff fears grow

HONG KONG: Asian markets mostly fell on Friday after Republicans scrapped a vote on putting in place a back-up plan if talks on averting the US fiscal cliff end in failure.

The news out of Washington late Thursday cancelled out a rally on Wall Street and upbeat data on the US economy, while it also hit currency traders, who have sent the safe-haven yen higher despite more Bank of Japan monetary easing.

Tokyo fell 0.99 per cent, or 99.27 points to 9,940.06, Seoul shed 0.95 per cent, or 19.08 points, to 1,980.42 and Sydney was 0.23 per cent lower, losing 10.5 points to end at 4,623.6.

Hong Kong slid 0.68 per cent, fell 153.49 points to close at 22,506.29, while Shanghai lost 0.69 per cent, or 15.04 points, to end at 2,153.31.

With just under two weeks to go before huge tax hikes and spending cuts are due to kick in -- and likely tip the economy into recession -- US lawmakers are still unable to reach a compromise that will avert the fiscal cliff.

Late Thursday in Washington Republican House Speaker John Boehner scrapped a vote on a bill that would have extended tax cuts for all Americans earning less than $1 million even if a wider deal could not be struck.

The move, which he described as his "Plan B", was dropped because he did not have enough support. Boehner said his party would recess until after Christmas.

The measure had been blasted by President Barack Obama's Democrats as a diversionary tactic that would never have passed in the Senate, where they hold a majority.

Now both parties must come up with a budget that will cut the country's deficit with less painful measures before the start of January, when they take effect.

Wall Street ended in positive territory on Thursday, however, lifted by fresh data further indicating the US economy is getting back on its feet.

The Commerce Department said the economy grew 3.1 per cent in the third quarter, up from the estimates of 2.7 per cent and 2.0 per cent previously stated.

The figure reflects upward revisions to consumer spending, exports and government outlays, and a downward revision to imports.

Also Thursday the National Association of Realtors said existing home sales rose 5.9 per cent month-on-month in November to their highest level in three years.

The Dow rose 0.45 per cent, the S&P 500 gained 0.55 per cent and the Nasdaq climbed 0.20 per cent.

Thursday's delay in Washington sent the yen higher in Asian trade. The dollar bought 84.05 yen against 84.38 yen in New York late Thursday. The euro was at $1.3204 and 111.00 yen compared with $1.3241 and 111.72 yen.

However, the Japanese unit is still being pressured after the country's central bank announced fresh monetary easing Thursday, while dealers expect further measures in the new year when the new government is in control.

Oil prices fell, with New York's main contract, light sweet crude for delivery in February down $1.00 to $89.13 a barrel and Brent North Sea crude for February falling 53 cents to $109.67.

Gold was at $1,648.01 at 1045 GMT compared with $1,668.30 late Thursday.

In other markets:

-- Taipei fell 0.99 per cent, or 75.53 points, to 7,519.93.

Taiwan Semiconductor Manufacturing Co. was 1.25 per cent lower at NT$94.8 while leading smartphone maker HTC rose 1.63 per cent to NT$280.0.

-- Manila closed 0.45 per cent higher, adding 26.20 points to 5,823.94.

Metropolitan Bank and Trust rose 2.06 per cent to 101.70 pesos and Philippine Long Distance Telephone gained 1.18 per cent to 2,570 pesos.

-- Wellington fell 0.51 per cent, or 20.71 points, to 4,054.74.

Air New Zealand was down 0.78 per cent at NZ$1.28, Fletcher Building shed 2.37 per cent to NZ$8.25 and Telecom eased 2.59 per cent to NZ$2.26.

-- Singapore closed up 0.54 per cent, or 16.95 points, at 3,175.52.

Singapore Telecom rose 0.60 per cent to S$3.37 and DBS Group gained 0.54 per cent to S$14.99.

-- Bangkok shed 0.07 per cent or 1.00 points to close at 1,377.40.

Coal producer Banpu fell 1.42 per cent or 6.00 baht to 418.00 baht while PTT Plc was unchanged at 333.00 baht.

-- Jakarta ended down 21.04 points, or 0.49 per cent, at 4,254.82.

Carmaker Astra International fell 2.60 per cent to 7,500 rupiah, cigarette maker Gudang Garam lost 2.73 per cent to 57,000 rupiah, while palm oil producer Astra Agro Lestari decreased 1.62 per cent to 18,250 rupiah.

-- Kuala Lumpur shares gained 4.96 points, or 0.30 per cent, to close at 1,670.60.

British American Tobacco added 1.7 per cent to 60.50 ringgit, DiGi.com rose 1.5 per cent to 5.36 and Axiata climbed 1.2 per cent to 6.68.

-- Mumbai fell 1.09 per cent or 211.92 points at 19,242.0 points.

Jet Airways slid 7.03 per cent to 566.5 rupees while Jindal Steel fell 3.52 per cent to 454.25 rupees.

- AFP/ck

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NRA director expected to speak on school massacre

STORY HIGHLIGHTS

• The nation observes silence, and the NRA speaks


• Bells will ring 26 times in many states to honor Sandy Hook's victims


• Adam Lanza's burial has been put off; his mother was interred Thursday


• Three 6-year-old victims were buried Thursday

(CNN) -- Much of the nation will observe a moment of silence Friday morning to honor the victims gunned down a week ago at Sandy Hook Elementary School. And after keeping relatively quiet for a week, the National Rifle Association will comment on the shooting at a news conference an hour and fifteen minutes later.

Connecticut Gov. Dan Malloy has asked Americans to join in a silent remembrance, which will begin at 9:30 a.m. ET, marking the time of day the gunman forced his way into the school, before shooting dead 20 students, 6 adults then himself on December 14 in Newtown.

President Barack Obama will take part in the moment of silence, a White House spokesman said.

Governors in at least 28 states have issued calls to participate. In many of them, church bells will toll for the 26 shooting victims.

Newtown funerals: A community says goodbye

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The NRA press conference with executive director Wayne LaPierre will begin at 10:45 a.m.

The gun rights organization had initially deactivated its Facebook page, stopped tweeting on its Twitter account and had been issuing a "no comment" to any media outlet, including CNN, seeking a response.

But late Tuesday, the group broke that silence with a statement:

"The National Rifle Association of America is made up of four million moms and dads, sons and daughters -- and we were shocked, saddened and heartbroken by the news of the horrific and senseless murders in Newtown," the group said. Both their Facebook and Twitter presences became active again.

Despite the relative silence early on from the powerful lobbying group's offices in Fairfax, Virginia, the organization is regrouping in anticipation of a massive legislative push for gun control legislation, said a gun policy expert.

Kristin Goss, an associate professor of public policy and political science at Duke University and author of "Disarmed: The Missing Movement for Gun Control in America," said that strategy is part of the organization's playbook after an incident such as this one.

After such a terrifying event, when there is a national outcry, the NRA typically lays low, Goss said.

"They're used to seeing this cycle express condolences and hope the attention will shift to a new issue."

Governors show support

But for now, the nation's attention still seems focused on Sandy Hook, where investigations into the crime are expected to continue for weeks to come.

And the national outpouring of sympathy over the deaths continues.

In a letter sent to other governors around the country, Malloy noted how the shooting in his state has resonated nationwide.

"Mourning this tragedy has extended beyond Newtown, beyond the borders of Connecticut, and has spread across the nation and the world," he said. "On behalf of the State of Connecticut, we appreciate the letters and calls of support that have been delivered to our state and to the family members during their hour of need."

Gov. Mary Fallin of Oklahoma suggested residents wear green, Sandy Hook's school color, and in Alaska, the state capitol's bell will ring at 9:30 a.m. local time. The bell is a full-scale replica of the liberty bell.

Kansas Gov. Sam Brownback and Texas Gov. Rick Perry have called for residents of their states to pause to reflect one week after the shooting rampage. Perry also asked that churches ring their bells 26 times in honor of the victims at the school.

The states honoring a moment of silence include Alaska, California, Colorado, Delaware, Florida, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Massachusetts, Michigan, Missouri, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Virginia, West Virginia, Wisconsin and Wyoming.

Obama ordered flags to half-staff last Friday in the wake of the shooting. Flags will also fly at half staff on this Friday.

Some websites will go dark at the urging of Silicon Valley venture capitalist Ron Conway, who came up with the idea at a Christmas party attended by Gabby Giffords, the former Arizona congresswoman who was wounded in a 2011 shooting that killed six.

Obama starts gun control debate

On Thursday the Obama administration put into motion an effort to change U.S. gun laws, less than a week after the Newtown, Connecticut, school shootings.

Vice President Joe Biden met with Cabinet members and law enforcement leaders at the White House to start formulating what Obama called "real reforms right now."

More than 195,000 people have signed an online White House petition supporting new gun-control legislation.

A slight majority of Americans favor major restrictions on guns: 52%, up 5 points from a survey taken in August after the July shooting inside a movie theater in Aurora, Colorado, where 12 people died, according to a CNN/ORC International poll released Wednesday.

Carloads of teenagers from a Minnesota school that suffered a mass shooting in 2005 headed toward Newtown Thursday to offer their support.

Also Thursday, burials were held for three children and two teachers.

More than 2,200 miles west of Newtown, Ogden, Utah, the hometown of shooting victim Emilie Parker was festooned with pink ribbons as her parents brought her body back for burial.

"This sucks -- there's no reason for us to be here tonight," her father, Robbie Parker, told friends and well-wishers at a memorial service Thursday night. "And I'm so thankful for everybody that's here."

His voice trailed off as he struggled for composure. Seeing the pink -- his slain daughter's favorite color -- made him and his wife, Alissa, "feel like we were getting a big hug from everybody."

Also buried Thursday, at an undisclosed location, was Nancy Lanza, the shooter's mother, said Donald Briggs, a friend of the family who grew up with her in Kingston, New Hampshire.

Plans had not been finalized for the burial of the gunman, her son, Adam.

Three 6-year-olds were among those buried Thursday: Allison Wyatt, who loved to draw and wanted to be an artist; Benjamin Wheeler, who loved the Beatles; and red-haired Catherine Hubbard, who loved animals.

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N. Korea: We've detained a U.S citizen

Updated 5:10 a.m. EST

PYONGYANG, North Korea North Korea said Friday it has detained an American citizen who has confessed to unspecified crimes.

State media said in a short dispatch that someone named Pae Jun Ho entered North Korea on Nov. 3 as a tourist but was detained because of crimes.

The North said the crimes were "proven through evidence," but didn't elaborate.

Pyongyang has detained and eventually released several Americans in recent years. Some have been journalists and others Christians accused of religious proselytizing.

In 2009, two journalists were detained after crossing into the North from China while on a reporting trip. They were later released .

South Korean activists have told local media in Seoul that the detained man is a Korean-American and was taken into custody after entering North Korea to guide tourists. He operates a tourism company that specializes in North Korea, the reports said.

The North Korean dispatch said officials from the Swedish Embassy met with the American on Friday, but there were no other details about the meeting.

Karl-Olof Andersson, Sweden's ambassador to North Korea, told The Associated Press he could not comment on the case and referred the matter to the U.S. State Department. Sweden represents the U.S. in diplomatic affairs in North Korea since Washington and Pyongyang do not have diplomatic relations.

The detained American is undergoing "legal treatment," according to North Korea's criminal law, the North's official Korean Central News Agency said.

Read More..

Fiscal Cliff 'Plan B' Is Dead: Now What?

Dec 20, 2012 11:00pm

The defeat of his Plan B — Republicans pulled it when it became clear it would be voted down — is a big defeat for Speaker of the House John Boehner.  It demonstrates definitively that there is no fiscal cliff deal that can pass the House on Republican votes alone.

Boehner could not even muster the votes to pass something that would only allow tax rates on those making more than $1 million to go up.

Boehner’s Plan B ran into opposition from conservative and tea party groups -including Heritage Action, Freedom Works and the Club for Growth – but it became impossible to pass it after Senate Democrats vowed not to take up the bill and the president threatened to veto it.  Conservative Republicans saw no reason to vote for a bill conservative activists opposed – especially if it had no hopes of going anywhere anyway.

Plan B is dead.

Now what?

House Republicans say it is now up to the Senate to act.  Senate Democrats say it is now up to Boehner to reach an agreement with President Obama.

Each side is saying the other must move.

The bottom line:  The only plausible solution is for President Obama and Speaker Boehner to do what they have failed repeatedly to do:  come up with a truly bi-partisan deal.

The prospects look grimmer than ever. It will be interesting to see if the markets react.

SHOWS: This Week

Read More..

On gun control, look to Biden

Rebecca Puckwalter-Poza says Vice President Joe Biden was a leader on gun control in the Senate.

STORY HIGHLIGHTS

• Rebecca Buckwalter-Poza: Obama has apparently tapped Biden as gun control point man


• She says he was leader in Senate on issue, shepherding 1994 gun control legislation


• It banned manufacture of many semi-automatic guns,criminalized high-capacity magazines


• Writer: Biden worked across aisle; he's adroit, determined statesman, right man for job

Editor's note: Rebecca Buckwalter-Poza served as deputy national press secretary of the Democratic National Committee during the 2008 election.

(CNN) -- President Obama's poignant speech at Sunday's interfaith vigil in Newtown, Connecticut, set the tone for our mourning. Now, America's path forward will be decided out of the spotlight. The question of whether the tragedy at Sandy Hook Elementary School will linger only in memory or be memorialized by an enduring shift in gun policy can only be answered by the legislature.

Incoming Judiciary Committee chair Sen. Diane Feinstein has announced she will introduce an enhanced assault weapons ban on the first day of the new Congress, but the fate of that legislation is in the hands of Vice President Joe Biden.

Biden will reportedly lead the administration's political response.

Rebecca Buckwalter-Poza

No politician could be better suited to the challenge of passing federal gun control legislation than Biden. Over the past four decades, Biden has been one of the most consistent and effective advocates of gun control and violence prevention legislation. In 1994, Biden shepherded the Violent Crime Control and Law Enforcement Act through the Senate, a near miracle six years in the making.

After Biden wrote the Violent Crime Control and Law Enforcement Act in 1988, Republicans quickly filibustered, blocking the bill for four years. He steered "the Biden crime bill" through the lengthy filibuster by negotiating with Republicans and making revisions. "Every single line in that bill was written with every single major Republican a part of it," Biden said in a September 12, 1994, interview on the Charlie Rose show.

The Clinton administration and then-Sen. Biden repeatedly refused to make concessions that would have jeopardized the substance of the act, even after debate over the amendment we know as the federal assault weapons ban imperiled the entire bill. Instead of backing down, Biden took on Republican Sens. Phil Gramm and Orrin Hatch and faced opponents attacking the bill as taxpayer-funded "dance lessons and midnight basketball for robbers and rapists."

France: Where fear and taboo control guns more than laws

Biden did not budge: "Make no mistake, this is about guns, guns, guns." The crime bill passed the Senate in November 1993.

When the bill foundered in the House, Biden persevered. It reached President Clinton's desk thanks to an unexpected, eleventh-hour push from a "Lost Battalion of Republicans" led by Rep. Mike Castle of Delaware. He'd been swayed during a series of meetings with the House Speaker and other House Republicans, at which Biden was the only Senator in attendance.

The resulting legislation banned the manufacture of 19 types of semi-automatic firearms and criminalized the possession of high-capacity magazines. The process taught a critical lesson: When otherwise "pro-gun'" lawmakers have to choose between a crime bill including a gun ban and inaction, it is more than possible for them to vote to protect Americans. Unfortunately, the assault weapons ban expired in 2004. Since then, numerous lawmakers, including Joe Biden, have tried and failed to get the ban renewed.

Congress now has a rare opportunity to take new action on gun control. After Newtown, proponents of stricter gun legislation are backed by public opinion and bolstered by a surge of political support. The "pro-gun" wing of the GOP and the National Rifle Association remain silent even as their supporters are defecting publicly.

Democratic Sens. Harry Reid and Joe Manchin, whose voting record earned them the NRA's "top rating," have backed off their "pro-gun" positions and declared that "everything must be on the table" for legislative debate. The 31 pro-gun senators have not spoken since Friday's tragedy, signaling the possibility that some of them might be changing their minds on guns, too.

Lawmakers are essentially being asked to consider an updated version of the 1994 assault weapons ban. On Sunday, Feinstein promised the legislation "will ban the sale, the transfer, the importation and the possession" of assault weapons and ban high-capacity magazines as well as "clips of more than ten bullets."

Biden will likely support a new ban on assault weapons and push for improvements. His 2007 Crime Control and Prevention Act would not only have renewed the ban but required background checks for all gun purchases, closing the "gun show loophole.'" Biden has also called on Congress to address the relationship of mental illness to violence in the wake of the Virginia Tech shootings.

Was your gun banned?

The president cautioned Americans Sunday, saying "no single law, no set of laws can eliminate evil from the world, or prevent every senseless act of violence in our society. But that can't be an excuse for inaction. Surely, we can do better than this."

In his first term, however, Obama practiced a policy of appeasement, failing to block the expansion of gun rights or promote gun control. To ensure Congress passes tough, comprehensive gun control laws rather than settling for a watered-down version, as with health care, Obama must let Biden lead.

Why? Biden has distinguished himself as an adroit and effective statesman in both the legislative and the executive branches. The former six-term senator has a deft touch with moderate and conservative counterparts: in 2008, he eulogized Strom Thurmond. As vice president, he has spearheaded the implementation of the American Recovery and Reinvestment Act. Moreover, Biden has a particular passion for protecting students and educators. His wife, Jill Biden, has been teaching for more than 30 years.

The deaths of 20 first-graders and six adults compel all Americans as sons and daughters, fathers and mothers, uncles and aunts, to consult their moral compasses. Legislators face a greater responsibility: a moral imperative to pass any legislation that could possibly prevent a future Newtown, Aurora, Oak Creek or Blacksburg.

Opinion: Gun violence is a national security issue

As Obama ministers to the American people and offers words of comfort, Biden must move lawmakers to action. In 1994, Biden warned his colleagues, "we simply can't let the gun lobby deny to the American people the vital benefits in this bill." Biden must once more appeal to Congress to enact gun control. If anyone can succeed in those chambers, it's Joe Biden.

Follow us on Twitter @CNNOpinion.

Join us on Facebook/CNNOpinion.

The opinions expressed in this commentary are solely those of Rebecca Buckwalter-Poza

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Stocks likely to continue being investors' favourite

SINGAPORE: Stocks may continue to be a favourite asset for investors next year.

Improving corporate earnings and attractive valuations are expected to drive stock prices higher.

Experts said investor sentiment may also get a lift on hopes of a recovery in the Chinese and US economies.

Equities are among the star performers in financial markets this year.

In the US, key stock indices like the S&P 500 and Dow Jones Industrial Average has gained 15% and 9.3% respectively since the start of the year.

Meanwhile, the technology-laden Nasdaq rose 17.3% in the same period. In Asia, Japan's Nikkei rose 20.2%, Hong Kong's Hang Seng Index advanced 22.7% and Singapore's STI index gained 19.4% year to date.

Experts said this asset class may repeat its stellar performance again in 2013.

They added that a favourable macroeconomic outlook may also prompt some investors to switch out of bonds and back to investing in stocks.

"Valuations are not excessive at this juncture, liquidity is supportive of the equity markets," said Vasu Menon, vice president of wealth management in Singapore at OCBC Bank.

"Going forward, we could see some rotational money moving out of bond markets which have been favoured over the last two, three years into equity markets especially given the fact that economic growth is starting to pick up and we will see a modest recovery in the global economy in 2013."

Analysts are more upbeat of stock prospects in the North Asia region - particularly China.

They said companies there have stronger fundamentals, steady balance sheets and the stock markets have ample liquidity.

Experts added that they are positive on Chinese equities within this region, which have underperformed over the last three years - in view of a turnaround of the Chinese economy in the first half of 2013.

The Shanghai stock exchange composite index fell 1.7% year to date and the Shenzhen composite index decline 5.1% in the same period.

"The Chinese positioning is becoming more normalised from where we were before to something that is more sustainable going forward. On top of that, we've already seen the policies start to come through from the new regime, which is supportive to opening up China's market to foreign investors," said Jason Hughes, head of premium client management at IG Markets.

"We now have the stock market opened up to the institutional investors more so than before."

Among the sectors that may take the limelight next year are commodities and real estate investment trusts.

A pick up in global growth and the weaker US dollar will give commodities demand a boost , hence pushing gold prices higher.

Others expect property and financial names to lead the way like they did in 2012 - thanks to China's accommodating policies towards infrastructure and development of their own local economy.

Steve Brice, chief investment strategist at Standard Chartered Bank said: "One can make the case that REITs are overvalued and possibly, they are in a normalised environment. But we're not in a normalised environment, we have very low interest rates and that search for yield is still a very dominant theme and that should keep REITs very well supported going through at least the first half of 2013, and possibly into the second half."

Still, experts warn of looming risks such as the US fiscal cliff and the upcoming European elections that may dampen investor sentiment next year.

"Probably something more for the second half of 2013, is the risk of the fed withdrawing some of the monetary stimulus from markets," said Menon.

"If the economy of the US is growing at a faster than expected pace, and if unemployment starts falling below the 7% level then the markets will price in the possibility of the fed withdrawing the stimulus. The expectation of that alone may actually cause markets to pull back."

- CNA/xq

Read More..

Large portion of Midwest under blizzard warning

STORY HIGHLIGHTS

• NEW: 156-mile stretch of freeway closed in Colorado


• 23-car pileup in Texas dust storm kills one, injures 17


• Heavy snow, high winds stretch from Colorado to Wisconsin in season's first blizzard


• Storm to crawl from Midwest to New England by Friday

(CNN) -- People traveling early for Christmas in the center of the country will be dashing through the snow and the rain and the wind.

The first major storm of the season has prompted the National Weather Service to issue a blizzard warning for a huge swath of the Midwest stretching from eastern Colorado to Wisconsin's Lake Michigan shoreline, including virtually all of Iowa. The declaration warns of snow accumulations of up to 12 inches, complemented by 25- to 35-mph winds that will occasionally gust to 45 to 50 mph.

A 156-mile stretch of Interstate Highway 70 between Denver and the Kansas state line was closed in both directions for a time Wednesday. The westbound side reopened about 7 p.m. MT, but the eastbound lanes remained closed.

Cheyenne Wells, in east-central Colorado, reported a 67-mph wind gust with zero visibility just after 2 p.m. MT, CNN meteorologist Sean Morris said. U.S. Highway 385 was closed for 65 miles in the Cheyenne Wells region, Colorado's Department of Transportation reported.

"Most of the storm is on its way out across the state, except for the Eastern Plains, where there are still high winds, blizzard conditions, and highway closures," the department's Facebook page said.

"Whiteout conditions are likely and travel could become impossible" Wednesday night and into Thursday, the service's Omaha, Nebraska, office warned.

Is the storm hitting you? Send images to iReport

"Far southeast Nebraska and extreme southwest Iowa could see rain or a wintry mix for several hours yet this evening, so blizzard conditions may not develop over that area until mid-evening or later," the service said.

Airlines were reporting relatively few cancellations or delays in areas affected by the storm Wednesday night, but that could change overnight.

The storm will race into western Illinois, the weather service said. Rain will quickly change over to snow as the storm advances northeast, with the heaviest snow occurring overnight.

"Snow drifts several feet deep will be possible given the strong winds," the blizzard warning states.

At least 17 people were sent to hospitals near Lubbock, Texas, after a 23-vehicle chain-reaction crash on Interstate Highway 27 north of New Deal, Texas, state safety officials told CNN. There was at least one fatality, said Clinton Thetford, emergency management coordinator of Lubbock County. A stretch of the freeway in Lubbock County remains closed indefinitely.

Wrapping around the blizzard warning on the north, south and east is a winter storm warning, which will be no picnic either. The winds won't be quite as strong, but residents should expect a strong dose of rain, sleet and snow, with a few hail-packing thunderstorms thrown in for good measure.

A winter weather advisory is in effect for the Indiana-Ohio-Michigan tri-state area, as well as central Missouri and Kansas.

The "intense cyclone" will crawl across the Great Lakes region Thursday and slog into northern New England by Friday evening, the National Weather Service predicted.

Dodging the heavy precipitation but not the high winds is an area from western Texas and eastern New Mexico through the Oklahoma Panhandle and into southwest Kansas.

Much of the Southwest and Mississippi Valley is extremely dry, and the high winds have kicked up blinding dust near Lubbock, Texas.

CNN's Carma Hassan and Joe Sutton contributed to this report.

Read More..

Senate GOP proposes much smaller Sandy aid package

WASHINGTONSenate Republicans on Wednesday proposed a $24 billion emergency aid package for Superstorm Sandy victims, less than half of what Democrats hope to pass by Christmas.

The GOP alternative bill would provide more than enough money to pay for immediate recovery efforts through the spring.

Republicans complain that the $60.4 billion Democratic bill being debated in the Senate is larded with money for projects unrelated to damage from the late October storm, which battered the Atlantic coastline from North Carolina to Maine.

The Republican version does not include $13 billion Democrats want for projects to protect against future storms, including fortification of mass transit systems in the Northeast and protecting vulnerable seaside areas by building jetties against storm surges.

49 Photos

Sandy's devastation on Staten Island

Republicans said however worthy such projects may be, they are not urgently needed and should be considered by Congress in the usual appropriations process next year, not through emergency spending.

"We want to take care of urgent needs now," said Indiana Sen. Dan Coats, ranking Republican on the Senate Appropriations homeland security subcommittee, who put forward the bill. "We can look at other needs down the road when we have more time to look at them."

The GOP bill also scraps spending from the Democratic bill that is not directly related to Sandy damages, such as the $150 million for the National Oceanic and Atmospheric Administration for declared fisheries disasters in 2012 that could go to New England states, Alaska, New York and Mississippi.

The aid will help states rebuild public infrastructure like roads and tunnels and help thousands of people displaced from their homes. Sandy was the most costly natural disaster since Hurricane Katrina in 2005 and one of the worst storms ever in the Northeast.

More than $2 billion in federal funds has been spent on relief efforts so far for 11 states and the District of Columbia. The Federal Emergency Management Agency's disaster relief fund still has about $4.8 billion, and officials have said that is enough to pay for recovery efforts into early spring.

Earlier this month, Govs. Chris Christie, R-N.J., Andrew Cuomo, D-N.Y., and Dannel Malloy, D-Conn., argued in an op-ed that "in times of crisis no region, state or single American should have to stand alone or be left to fend for themselves," pointing to the "hundreds of thousands of homes and businesses damaged or destroyed, thousands still left homeless or displaced, tens of billions of dollars in economic loss" as evidence that "It's time for Congress to stand with us."

The governors, while recognizing that "our nation faces significant fiscal challenges," strive to separate the disaster-relief needs of their region from the ongoing "fiscal cliff" negotiations consuming Capitol Hill, arguing that Congress must "not allow this much-needed aid to fall in to the ideological divide."

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Obama Invokes Newtown on 'Cliff' Deal

Invoking the somber aftermath of the school massacre in Newtown, Conn., President Obama today appealed to congressional Republicans to embrace a standing "fair deal" on taxes and spending that would avert the fiscal cliff in 13 days.

"If there's one thing we should have after this week, it should be a sense of perspective about what's important," Obama said at a midday news conference.

"I would like to think that members of that [Republican] caucus would say to themselves, 'You know what? We disagree with the president on a whole bunch of things,'" he said. "'But right now what the country needs is for us to compromise.'"

House Speaker John Boehner's response: "Get serious."

Boehner announced at a 52-second news conference that the House will vote Thursday to approve a "plan B" to a broad White House deal -- and authorize simply extending current tax rates for people earning less than $1 million a year and little more.

"Then, the president will have a decision to make," the Ohio Republican said. "He can call on Senate Democrats to pass that bill or he could be responsible for the largest tax increase in American history."

Fiscal Cliff Negotiations: Trying to Make a Deal Watch Video

House Speaker John Boehner Proposes 'Plan B' on Taxes Watch Video

'Fiscal Cliff' Negotiations: Deal Might Be Within Reach Watch Video

Unless Congress acts by Dec. 31, every American will face higher income tax rates and government programs will get hit with deep automatic cuts starting in 2013.

Obama and Boehner have been inching closer to a deal on tax hikes and spending cuts to help reduce the deficit. But they have not yet had a breakthrough on a deal.

Obama's latest plan would raise $1.2 trillion in new tax revenue over 10 years, largely through higher tax rates on incomes above $400,000. He also proposes roughly $930 billion in spending cuts, including new limits on entitlement spending, such as slower annual cost-of-living increases for Social Security beneficiaries.

Boehner has agreed to $1 trillion in new tax revenue, with a tax rate hike for households earning over $1 million. He is seeking more than $1 trillion in spending cuts, with significant changes to Medicare and Social Security.

The president said today that he remains "optimistic" about reaching a broad compromise by Christmas because both sides are "pretty close," a sentiment that has been publicly shared by Boehner.

But the speaker's backup plan has, at least temporarily, stymied talks, with no reported contact between the sides since Monday.

"The speaker should return to the negotiating table with the president because if he does I firmly believe we can have an agreement before Christmas," said Sen. Chuck Schumer, D-N.Y., a White House ally.

Schumer said Obama and Boehner are "not that far apart" in the negotiations.

"If they were to come to an agreement by Friday, they could write this stuff over the Christmas break and then we'd have to come back before the New Year and pass it," Schumer said.

Obama said he is "open to conversations" and planned to reach out to congressional leaders over the next few days to try to nudge Republicans to accept a "fair deal."

"At some point, there's got to be, I think, a recognition on the part of my Republican friends that -- you know, take the deal," he told reporters.

"They keep on finding ways to say no, as opposed to finding ways to say yes," Obama added. "At some point, you know, they've got take me out of it and think about their voters and think about what's best for the country."

Read More..

Virginia Tech mom: Ignore gun lobby

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

Newtown funerals: A community says goodbye

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STORY HIGHLIGHTS

• Lori Haas: The magnitude of the Newtown shooting shocked me


• Haas: It reminds me of when my daughter was injured in the Virginia Tech shooting


• She says our elected leaders have abandoned all sense of right and wrong


• Haas: How many victims would be alive today if leaders took their responsibilities to heart?

Editor's note: Lori Haas lives in Richmond, Virginia. After her daughter Emily was shot and injured at the Virginia Tech massacre, she became involved in gun violence prevention efforts, working for the Coalition to Stop Gun Violence and Mayors Against Illegal Guns.

(CNN) -- Sitting in front of the TV on Friday, I watched in horror as the death toll climbed with each news report coming in on the mass shooting in an elementary school in Newtown, Connecticut. The magnitude of the shooting shocked me.

It also took me back to five years ago, when I received a phone call on a blustery April morning that changed my life forever. I was out shopping, and my cell phone had rung several times, but I had chosen to ignore the calls. Luckily, I answered the third call, which came in at 10:38 a.m. My daughter Emily, then a sophomore at Virginia Tech, was on the phone. She said, "Mommy, I've been shot."

Clutching the phone, my knees buckling, I tried to make sense of what I was hearing. Emily quickly handed the phone to the EMT who had triaged her and was waiting with her for an ambulance. The EMT assured me that Emily was going to be fine, that there were very seriously wounded students that needed to be transported immediately and she was waiting with Emily for the next ambulance. She also shared that the situation on campus was "very bad."

Lori Haas

The world soon knew how bad it was. The incident at Virginia Tech on April 16, 2007, remains the worst mass shooting in U.S. history in terms of casualties. Thirty-two students and school staff were killed that morning by a dangerously mentally ill student with guns, including high-capacity magazines. The killer should have been prevented from purchasing firearms, but when he purchased his weapons, his mental health records were not in the FBI database against which background checks are run. He used 30-round magazines, which had been outlawed up until 2004, when Congress let the Assault Weapons Ban expire.

We were one of the lucky families -- our daughter survived, when so many others did not. Eleven of the 17 students in her classroom were killed, along with her professor. A classmate dialed 911 when they first heard the shooter, but dropped his cell phone when almost immediately, the killer burst into the classroom and began spraying bullets at everyone. Emily reached over and picked up the phone and kept the dispatcher on the phone during the entire ordeal by hiding the phone. Law enforcement repeatedly told me how brave Emily was to keep them on the line.

Law enforcement has also told me that the single most effective thing we can do to prevent gun violence would be to require all purchasers for all gun sales to undergo a background check. Then-Gov. Tim Kaine appointed a panel of experts to investigate all aspects of the massacre and report back their recommendations. Recommendation VI-2 stated, "Virginia should require background checks for all firearms sales." Sadly, that hasn't happened, and gun deaths now outpace motor vehicle deaths in my state.

America has witnessed mass shooting tragedies grow in frequency in the last five years to the point that, according to one report, there have been 16 mass shootings between February 22, 2012, and December 14, 2012, leaving over 80 dead and many injured. I can't help but ache with sorrow, anguish and concern for all those families suffering the sheer agony that I saw the families of the 32 killed at Virginia Tech suffer.

And I can't help but be angered at the cowardly behavior from our elected leaders. They have abandoned all sense of right and wrong, despite epidemic deaths from guns, and ignored their duty not only to keep our communities safe from gun violence, but to keep our children safe as well.

When I think of those killed -- over 60,000 Americans have been murdered with guns since the shooting at Virginia Tech -- I have to wonder how many might be alive today if our elected leaders had taken to heart their responsibilities.

Why is it that our elected leaders have not only ignored the pleas of survivors and family members of victims of gun violence, but those of our public safety officials -- police and law enforcement officers who put their lives on the line day in and day out -- only to listen to the gun lobby when determining public safety policy? What sense can that make when the gun lobby's sole purpose is to sell as many firearms as possible to make as much money as possible?

We have come to a time when many say the unimaginable has happened again -- the mass shooting in the Newtown school where 26 people were killed, including 20 children. It is sheer senselessness. My heart goes out with the utmost compassion to the families suffering so terribly from Friday's massacre.

For those whose loved ones have been killed, there is no real closure; there are permanent holes in their hearts. Time may lend a helping hand to healing, but their lives have been changed irrevocably. As my friend Lynnette, whose son was murdered in the Virginia Tech shooting, laments, "There is no ending to the heartache." I am brought to tears thinking of all we have seen, all we have not done and all we have let die.

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The opinions expressed in this commentary are solely those of Lori Haas.

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Nature no excuse for cheating, says Chris Wang

SINGAPORE: Is it in men's nature to cheat?

Taiwan actor Chris Wang thinks so.

"The Fierce Wife" star said he came to this conclusion after reading up on the topic and observing similar cheating behaviour among males of other animal species, during his travels as the host of an adventure programme.

However, he stressed that this doesn't make it okay for men to betray their partners.

"I think this isn't a valid excuse. You have to respect her views, know her pain and the source of her tears.

"You can't be selfish," Wang told reporters, during a recent visit to Singapore with his "Love Me Or Leave Me" co-star Tiffany Hsu, to promote the drama.

Hsu, who plays a woman that hires another to test her lover's (played by Wang) fidelity in the drama, had rather different views on the topic.

"I don't think cheating is in men's nature," said the actress, pointing out that both men and women stray because "everyone wants new experiences".

"It's just that women can stay in a stale relationship for a longer time, but men really love to have lots of interactions with different people."

Hsu believed that both parties in a relationship need to work together to create new experiences for one another, in order to make it less likely that their partner will cheat.

-CNA/ha

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Report details final minutes for ambassador, 3 others

STORY HIGHLIGHTS

• U.S. Ambassador Chris Stevens was killed in September of this year


• He was the first U.S. ambassador murdered since 1988


• Along with Stevens, three other Americans were killed

(CNN) -- They were in hiding in a place security officers called a "safe area." It was anything but.

Outside an angry crowd grew, gunfire rang out and a fire blazed.

Thick smoke blinded the three trapped men. The intruders banged on the fortified safety gate of the bunker-like villa.

A security officer handed his cell phone to Ambassador Chris Stevens. Prepare for the mob to blast open the locks of the safety gate, the officer said.

Attack on the U.S. Consulate in Libya

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It was a little before 10 at night on September 11, 2012. And time was running out for Stevens.

Vivid new details of the attack on the U.S. Consulate in Benghazi, Libya, were released Tuesday night by a federal committee trying to come to grips with the violence that led to the first murder of a U.S. ambassador since 1988 and the deaths of three other Americans.

The report spoke of grossly inadequate security, an issue that Stevens had complained about well before September 11.

Inquiry cites 'failures' at State Department

The brief phone call

Instead of blasting their way into the villa, the crowd retreated for some reason. But the fire still blazed.

Stevens used the cell phone to try to alert others about the attack.

Struggling to see, choked by smoke, he dialed.

He may have wanted to tell embassy officials in Tripoli that he and the small security detail at that 13-acre compound were in big trouble.

They were outmanned, outgunned. The militants had doused a large area with diesel fuel and started a hideous fire.

He may have wanted to say that he was trapped in a building they called Villa C with a security officer, and Foreign Service Information Management Officer Sean Smith.

They had to flee to the villa after intruders stormed the walled-in consulate compound armed with machine guns and rocket-propelled grenades.

But in that 9:50 p.m. phone call, Stevens could only tell the U.S. deputy chief of the mission in Tripoli that they were under attack.

The call promptly dropped.

Warning signs

Though fierce and sudden, the attack may not have been surprising for some.

U.S. diplomats who worked in Libya, a country struggling to form a government after overthrowing longtime dictator Moammar Ghadafi, had repeatedly asked for more security.

American officials, for the most part, were well-received in Libya, where many locals were grateful for the help the United States provided in overthrowing Ghadafi.

But danger remained.

There were still many Ghadafi loyalists, there was easy access to guns and the new fledgling government was having a difficult time maintaining security.

On June 1, a car bomb exploded outside a hotel in Tripoli where Stevens was staying.

The same month, Stevens had to move with his security team from the hotel because of a "credible' threat.

On June 6, a roadside bomb exploded near the U.S. compound in Benghazi, hurting no one but blasting a large hole in a wall of the compound.

The threats continued for U.S. officials and diplomats from other countries -- but security staffing remained unchanged.

The ambassador is missing

But now, there was no time to fret about woeful security.

Black smoke was filling up the safe area.

Stevens, Smith and the security officer crawled to a bathroom, hoping to open a window.

The security officer placed towels under the bathroom door and flung open the panes.

It made things worse.

The open window pulled more smoke into the bathroom, making breathing impossible.

Despite the explosions outside, they would have to flee the safe area, the officer thought. The smoke had choked out the lights. They were in total darkness.

The officer left the bathroom, crawled through a hallway, banging on the floor and yelling that the ambassador and Smith follow him.

He slipped though another window and collapsed in an enclosed patio area.

And then he noticed it.

Stevens and Smith were not there.

The officer slipped back through the window several times, even though the intruders were still shooting at him.

The smoke and heat was unbearable. He could not find either man.

He used a ladder to climb to the roof of the villa and radioed for help.

He had been in the smoky room for so long he could hardly speak. It took some time for the officers on the other end of the line to understand what he was saying.

He did not have Smith, he said. And the ambassador is missing.

The battle at the Annex

Three other security officers had barricaded themselves in another building when the siege began.

Once the first wave of attackers seemed to retreat, the officers got out of their "defensive" positions and drove an armored car to the villa. They found their colleague on the roof, vomiting, about to pass out.

The three officers crawled through the smoke inside.

They found Smith. They dragged his body out. But they were too late.

A team, from a nearby U.S. facility called the Annex, arrived and helped search for Stevens. They could not find him.

Concerned that the large crowd of militants was about to overtake the entire compound, they decided to flee back to the Annex without Stevens.

Men in the crowd began shooting, the bullets almost piercing the armored vehicle and blowing out two of its tires.

They drove on. At least two vehicles followed them.

They made it to the Annex, preparing for another fight. It was about 11:30 at night.

Just before midnight, bullets began hitting the Annex. This started a gun battle that lasted for an hour.

Hours later, another wave of attacks hit the facility with mortars, killing security officers Tyrone Woods and Glen Doherty.

Finding Stevens

Hours passed and no one knew where Stevens was.

About 2 a.m., the U.S. Embassy in Tripoli received a phone call.

It was from the cell phone of the security officer who had given his phone to Stevens.

The man on the line spoke Arabic, telling embassy officials that Stevens had been taken to a hospital in Benghazi.

Officials could not determine what hospital Stevens was taken to.

Some wondered if the phone call was a trick from militants who wanted to lure U.S. officers to their death.

A Libyan official was sent to Benghazi Medical Center. He said Stevens was there.

Hospital staff said six civilians brought Stevens to the emergency room about 1:15 a.m.

Even though the ambassador showed no signs of life, doctors worked to revive him for 45 minutes.

It was too late.

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