Cantor CEO: 'Off the fiscal cliff we go'






Part of complete coverage on















By Ramy Inocencio, for CNN


January 25, 2013 -- Updated 0821 GMT (1621 HKT)









STORY HIGHLIGHTS


  • 'U.S. fiscal cliff still coming' in form of failure to raise debt ceiling, Cantor Fitzgerald CEO

  • More than 25% of CEOs feel world economy will get worse in 2013, says PwC survey

  • U.S. House of Representatives passed short-term debt ceiling increase Jan. 23

  • Lutnick: 'Dumb lending' caused 2008 credit crisis




Hong Kong (CNN) -- The world thought the U.S. fiscal cliff deadline was December 31, but "the fiscal cliff is (still) coming", says Richard Lutnick, CEO of global financial services firm Cantor Fitzgerald.


"You're going to watch the U.S. do crazy, crazy things this year," said Lutnick to CNN's Richard Quest at the World Economic Forum in Davos, Switzerland. "The Republican Party that was elected to control Congress... (is) going to cross their arms and they are not going to raise the debt ceiling ultimately unless they get severe spending cuts, and the Obama administration is not going to give it to them."


If Congress fails to act, the U.S. and the world economy will have a "dreadful" 2013, Lutnick said.


Following this week's PricewaterhouseCoopers survey of global CEO confidence, Lutnick appears to be one of the more than 25% who think the world economy is more likely to deteriorate in 2013.








Despite Lutnick's concerns, on January 23 the Republican-controlled House of Representatives did pass a bill that would allow the U.S. Treasury to borrow new money through mid-May. President Barack Obama has said he would not oppose the proposal if it reaches his desk, although he prefers a long-term debt ceiling increase.


Lutnick adds that to avoid a repeat of the 2008 financial crisis, regulators need to actually address issues that caused it.


"What caused the credit crisis was just dumb lending. When you lend money to people who can't pay you back, you go broke."


Looking ahead to 2013, Lutnick says the biggest risk to global growth is the U.S. hitting the debt ceiling -- whether in the short- or long-term.


"Off the fiscal cliff we go. We (the U.S.) are irrational and we are silly... we are dopey."












Part of complete coverage on


World Economic Forum 2013






January 23, 2013 -- Updated 1308 GMT (2108 HKT)



Global policymakers, leading thinkers and key entrepreneurs are gathering in Davos. CNN brings you the latest news, views and musings live.







January 23, 2013 -- Updated 1342 GMT (2142 HKT)



Economic empowerment offers a win-win scenario for Saudi Arabia and its women, Mounira Jamjoon writes.







January 23, 2013 -- Updated 1154 GMT (1954 HKT)



The recession in Europe is entering its fifth year and unemployment doesn't look like it will be returning to normal levels anytime soon.







January 22, 2013 -- Updated 1324 GMT (2124 HKT)



What has been made clear by current events and financial upheavals since 2008 is that the global economy has become truly that -- global.








The globe's greatest economic minds meet in Davos next week. With financial crises in the U.S. and Europe, CNN asks: What is your economic mood?








Many eurozone countries face dropping employment even as basic costs rise. But not everyone is suffering. Explore our interactive for more.







January 23, 2013 -- Updated 0551 GMT (1351 HKT)



In 2013, the greatest risk of conflict lies in the geopolitical struggle between Japan and China, according to Ian Bremmer of Eurasia Group.







January 21, 2013 -- Updated 1502 GMT (2302 HKT)



CNN's Richard Quest explores the topic that will be on every delegate's lips at the World Economic Forum in Davos this year.







January 21, 2013 -- Updated 1500 GMT (2300 HKT)



It was January 25, 2011, when the brisk winds of change from Tahrir Square swept through the Swiss Alpine village of Davos.







January 21, 2013 -- Updated 1357 GMT (2157 HKT)



The world's political and business elite will converge on Europe's highest-altitude town for the annual talk-shop that is the World Economic Forum.







January 21, 2013 -- Updated 1458 GMT (2258 HKT)



On July 1, 2013 the 27-nation European Union will become 28. But is the Adriatic country ready to join Europe's elite club?







January 22, 2013 -- Updated 1133 GMT (1933 HKT)



The great Davos talking shop is now up and running, with delegates of all levels of importance, shapes and nationalities putting the world to rights.







January 21, 2013 -- Updated 1404 GMT (2204 HKT)



After five years in crisis the eurozone's new leader has emerged. With influence reaching from the Arctic Circle to the Mediterranean Sea.
















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Two Cambodians die from bird flu: WHO






PHNOM PENH: Two Cambodians have died from bird flu contracted while preparing infected chicken, the World Health Organization said Friday.

Tests on the victims, a 15-year-old girl and a 35-year-old man who died earlier this week, confirmed they had contracted the H5N1 strain of avian influenza, the WHO said in a joint statement with the Cambodian health ministry.

An eight-month-old boy admitted to hospital in Phnom Penh on January 9 was also infected with H5N1 but later recovered, the statement said.

There was evidence of infections among poultry in the villages of the two who died and the pair "prepared sick chicken for food prior to becoming sick", the statement said.

Cambodia has recorded 24 cases of H5N1 since 2003 with all but three of the victims dying.

The virus has killed 362 people worldwide since a major outbreak in 2003, according to WHO statistics.

It typically spreads from birds to humans through direct contact, but experts fear it could mutate into a form easily transmissible between humans, with the potential to trigger a pandemic.

-AFP/ac



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Te'o reveals biggest regret






STORY HIGHLIGHTS


  • NEW: Te'o says he was embarrassed to discuss girlfriend upon learning she was fake

  • NEW: But while admitting some were misled, he says he "didn't lie" publicly

  • Te'o has his first on-camera interview since news broke of the girlfriend hoax

  • "I wasn't as forthcoming about (the story), but I didn't lie," he tells Katie Couric




(CNN) -- He had wanted to help someone in need, this beautiful girl who had been through so much. And he ended up falling for her. They had much in common -- a strong faith, their Samoan heritage, common values -- and clicked, even though they'd never met face-to-face.


Their relationship ended, the first time, in September when Manti Te'o got a call from her hysterical brother telling him the woman he knew as Lennay Kekua had died, one day after leaving the hospital where she was being treated for leukemia.


Two months later, the relationship unraveled again, this time when he got another call from someone who claimed she was Lennay, very much alive.


In the weeks to follow -- until and after Deadspin broke the story January 16 that Lennay Kekua didn't exist, despite Te'o's repeated references to her and her death in interviews -- the Notre Dame star player admitted feeling embarrassed, scared and overwhelmed.









Notre Dame star Manti Te'o















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In his first on-camera interview since then, Te'o said that, publicly, he'd always been truthful.


"For people feeling that they were misled, that I'm sorry for," he told Katie Couric, on an episode of her talk show that aired Thursday. "I wasn't as forthcoming about it (as I could have been).


"But I didn't lie."


Then why, Couric asked, had he said the two met through his cousin and at a game his sophomore year, when he now says she had reached out to him on Facebook? Why had he told his father that he and Kekua had gotten together once in Hawaii?


And why hadn't he had stronger doubts before this winter? Like how, in their FaceTime chats, her screen always appeared black? Or how every in-person meeting they set up fell through, like when she was hospitalized or the time her brother had borrowed her car?


Or how odd was it that, in the months he'd gotten to know her well, a 22-year-old woman had a near-death accident then came down with cancer? And through all her struggles, why didn't he visit her once in the hospital -- even when he was in Southern California, like her, and she was in a coma?


Te'o said he understands why people might doubt their relationship, and him. But he told Couric that his feelings in the relationship -- and after the supposed death -- were authentic.


"What I went through was real. The feelings, the pain, the sorrow ... that was all real," said the standout linebacker and Heisman runner-up. "That's something I can't fake."


Te'o admits lying to father, not to others


The two, Te'o at Notre Dame and Kekua at Stanford University, first got acquainted his freshman year, after she reached out to him on Facebook, he said. Those first few years, they would converse but "it was a friend relationship," Te'o told Couric.










Their relationship began to go to another level, he explained, during his junior year. As it did, Te'o admitted to having his doubts, even reaching out to some others to confirm Kekua was real.


"That was my way of saying, 'Oh she's real, they met her, they've seen her,'" Te'o said of his conversations with friends. "This girl who was in the pictures, and this girl I was talking to must be the same."


But while they talked for hours, they never met face-to-face. Once, Kekua told Te'o she was in his home state of Hawaii, and the two planned to meet. He told Couric she had told him her brother had her car and she couldn't drive to him, but invited him to her hotel.


That meeting never panned out. Still, the next morning, Te'o admitted telling his father the two had, in fact, seen each other. Brian Te'o later mentioned in interviews how his son had met up with Kekua in Hawaii.


That conversation with his father, Te'o told Couric, was "the biggest lie."


"That's the thing I regret most," he said. "That's my way of trying to get my dad's approval of this young lady. Because I knew if he knew I didn't meet her, he would immediately just say no, (it is a) red flag that I obviously should have seen."


The relationship continued. On the talk show "Katie," tapes were played of voice mails left by the woman Te'o said he thought was Kekua. In one, she talked about starting her first session of chemotherapy. In another, she suspiciously called him out after she said another woman answered his phone. In another, she wished him good night: "I'll talk to you tomorrow. I love you so much hon. Sweet dreams."


In an off-camera interview January 18 with ESPN, Te'o said a man named Ronaiah Tuiasosopo was behind the hoax, saying Tuiasosopo had called him earlier this month to apologize. While Tuiasosopo or his father haven't talked publicly, his uncle recently defended him, saying, "It definitely takes two to tango."


Responding to reports Kekua may have been voiced by Tuiasosopo, Te'o said, "It sounded like a woman, but if (a man) somehow made that voice,... that's incredible talent to do that, especially every single day."


A near-death accident then a bout with leukemia


They planned to meet while he was in San Diego, but then she was severely injured in April after being struck by a drunk driver, Te'o said. He could have missed his flight to either Los Angeles or, eventually, Hawaii to be with her, but he didn't.


Manti Te'o denies he was part of girlfriend hoax


"It was a conversation that I didn't want to have with my parents," Te'o told Couric. "To say, 'Uh Mom, Dad, I missed my flight ... because I'm going to see Lennay in the hospital.' "


While she was in a coma at the hospital, Te'o said her relatives held a phone up to her ear and he talked. Nurses said the sound of his voice would cause her breath to quicken, and he'd hear the respirator and "the machines. It was very real."


She awoke from the coma, he said, as he was talking -- whispering his name and causing him to jump for joy, feeling he'd helped her.


"It goes back to what my parents taught me, to always be there for somebody when they need help," Te'o said.


There were more talks in the subsequent months, not just between the two but also involving Te'o's family. He said he was most hurt, most ashamed because the apparent hoax hurt not just him, but his father and mother.


"The belief in this person, the deception, wasn't only with Manti, it was our entire family," his mother, Ottilia Te'o, told Couric. "We had conversations with this person. So in our mind, we had followed the same pattern as Manti."


Te'o: 'I was just scared and I didn't know what to do'


Te'o said he was told that, on September 12, Kekua suddenly started to breathe hard, to sweat and, at 10:47 p.m., she died.


That was the same day his grandmother died. Three days later, he led the Fighting Irish to a 20-3 rout of Michigan State, saying he had been inspired to honor the two women with his play.


"I miss 'em, but I know that I'll see them again one day," he told ESPN at the time.


Even in death, Kekua continued to come up in interviews and elsewhere. She was part of Te'o's story.


Then came the December 6 phone call, from a woman he first thought was Kekua's sister. But then, he recalled, "She said, 'No Manti, it's Lennay.' "


"There was a long silent pause," Te'o said. "And I was angered to say the least."


Despite his renewed doubts, he kept talking -- including at the Heisman presentation on December 8, when he referred to his girlfriend losing her battle with cancer. A Twitter picture sent later that month showing the girl he thought was Kekua, holding a sign with that day's date, convinced him it was all a lie.


But he still didn't know what to do, or what to say.


"Part of me was saying if you say that she's alive, what would everybody think? What are you going to tell everybody who followed you, who you've inspired? What are you going to say?


He added: "I was scared. That's the truth. I was just scared, and I didn't know what to do."


On Christmas Day, he sat down with his parents in Hawaii.


Parents defend Te'o: 'He's not a liar, he's a kid'


This conversation led to one with Notre Dame coaches and administrators. But the school was mum until the Deadspin story came out.


That was followed by many stories as well as speculation about what happened and why. Did Te'o help concoct the hoax to promote his Heisman hopes? He said no. Did he help invent this relationship because he's gay? That, too, isn't true, he said.


It's uncertain how this scandal will affect his standing in the upcoming NFL Draft, set for April. Te'o said he's hoping for the best, though most disappointed in how he's hurt his family.


"The greatest joy in any child's life is to make your parents proud," he said. "The greatest pain is to know that they are experiencing pain because of you."


On the "Katie" show, his mother said she's proud of how her son has handled this entire situation -- saying that, in befriending who he thought was Kekua, he showed he "always puts others before himself."


His father said it's easy to spot the red flags in retrospect. But he said this ordeal hasn't rattled his faith in his son.


"He's not a liar. He's a kid," Brian Te'o said. "He's a 21-year-old kid trying to be a man."


CNN's Eliott C. McLaughlin contributed to this report.






Read More..

Battery expert: "I would not fly in a Dreamliner"

(CBS News) WASHINGTON - Investigators say they still don't know what caused batteries to burn in two Boeing 787 Dreamliners, and until they figure that out and how to fix the problem, none of the planes will be allowed to fly.

More than any other plane, the Dreamliner relies on lithium ion batteries to help power its advanced electrical system. They're lighter and more powerful than older battery types, but they contain a highly flammable liquid electrolyte.

U.S. officials defend handling of 787 mishaps

Boeing 787 probe turns to battery companies

Boeing plans to carry on with Dreamliner production

Federal investigators are examining the disassembled battery from the 787 that caught fire in Boston January 7, spewing molten electrolyte.

George Blomgren worked for Eveready, a batteries and flashlights company, for 40 years. He says lithium ion batteries are bundled together for the 787, and that increases the risk.

"These fires burn at very high temperatures, so they are just very dangerous fires," he said.


George Blomgren, a battery expert for Eveready

George Blomgren, a battery expert for Eveready


/

CBS News

The Boston fire, and the burned-out battery on a Dreamliner in Japan, is not the first time lithium ion batteries have caused problems.

In 2011, a Chevy Volt lithium ion battery was damaged in a crash test. Three weeks later, it burst into flames. Chevrolet installed a number of fixes to prevent fires.

Safety features also were added to lithium ion batteries in some cell phones and laptops after 56 million were recalled for risk of overheating and exploding.

Boeing says lithium ion batteries "best met the performance and design objectives of the 787" and "Based on everything we know at this point, we have not changed our evaluation."

Blomgren considers the safety of lithium ion batteries on planes questionable.

"From what I know about incidents, I would not fly in a Dreamliner tomorrow. I just wouldn't feel that it was appropriate or safe," Blomgren said.

Many experts believe in the promise of lithium ion batteries, including for airlines, but they just aren't sure its safety has been perfected.

Read More..

It's Official: Women Will Serve in Combat













Women will soon be able to serve in combat, as things officially changed with the stroke of a pen today at the Pentagon.


At a joint news conference, Secretary of Defense Leon Panetta and Joint Chiefs of Staff Charman Gen. Martin Dempsey signed a memorandum rolling back a 1994 directive prohibiting women from doing so.


"They serve, they're wounded, and they die right next to each other," Panetta said of women and men in the military. "The time has come to recognize that reality.


"If they're willing to put their lives on the line, then we need to recognize that they deserve a chance," Panetta said, noting that he wants his own granddaughters and grandsons to have the same opportunities in their lives and careers.


The change won't be immediate, however. While Panetta announced that thousands of new positions will now be open to women, he has asked the military branches to submit plans by May on how to integrate women into combat operations. He set a January 2016 deadline for branches to implement the changes, giving military services time to seek waivers for certain jobs.


Both Panetta and Dempsey said they believe the move will strengthen the U.S. military force.








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"Ultimately, we are acting to strengthen the armed forces," Dempsey said. "We will extend opportunities to women in a way that maintains readiness, morale and unit cohesion."


Women have already served in combat in Iraq and Afghanistan, as ABC News' Martha Raddatz and Elizabeth Gorman reported in 2009: Prohibited from serving in roles "whose primary mission is to engage in direct combat on the ground," women in support roles, nonetheless, served in support roles on the frontlines, where they have fought, been wounded and died.


Women have also flown combat missions since 1993 and have served on submarines since 2010.


Panetta noted that 152 women have died serving in the U.S. military in Iraq and Afghanistan. Dempsey said he realized a change was inevitable when he noticed two female turret gunners protecting a senior military officer.


"It's clear to all of us that women are contributing in unprecedented ways to the military's mission of defending the nation," Panetta said. "Women represent 15 percent of the force of over 200,000 [and] are serving in a growing number of critical roles on and off the battlefield.


"I've gone to Bethesda to visit wounded warriors, and I've gone to Arlington to bury our dead. There's no distincton."


Panetta and Dempsey said President Obama supported the move, while warning them to maintain military readiness as they considered the change.


Obama hailed the move in a written statement


"Today, by moving to open more military positions -- including ground combat units -- to women, our armed forces have taken another historic step toward harnessing the talents and skills of all our citizens," he said.


"This milestone reflects the courageous and patriotic service of women through more than two centuries of American history and the indispensable role of women in today's military," Obama said.






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Benghazi blame-game is useless



























































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STORY HIGHLIGHTS


  • Anthony Cordesman: Questions for Hillary Clinton on Benghazi attack inevitable, important

  • But political blame game useless, a discouraging message to diplomats, military advisers, he says

  • He says in hindsight, warnings, pleas for support mistakenly make crisis seem obvious

  • Writer: U.S. must focus forward: encourage, support risk-takers doing crucial work in field




Editor's note: Anthony H. Cordesman holds the Arleigh A. Burke Chair in Strategy at the Center for Strategic and International Studies. Follow CSIS on Twitter.


(CNN) -- Politics are politics, and partisan congressional challenges over the death of Ambassador Chris Stevens and other Americans in Benghazi, Libya, last September were inevitable.


But while some of the questions Secretary of State Hillary Clinton was asked in her appearance before the Senate Foreign Relations Committee bordered on politics at their worst, some represented democracy at its best: A legitimate challenge of how the government works. The fact is, we do need to ask serious questions about the way our diplomats function, how they are deployed and protected.


In her responses, Clinton took responsibility, as the top official in every department always must. The question now, however, is what, if anything, will we really learn from the events that led to the deaths of Stevens and his colleagues?



Anthony H. Cordesman

Anthony H. Cordesman



Do we actually learn something from their courage and sacrifice, and the similar experience of other American diplomats and officers that have faced similar attacks in the past? Or do we go on playing a pointless blame game, creating a climate that discourages our diplomats, U.S. military advisory teams and intelligence officers from taking necessary risks -- and relies even more on fortifying our embassies.


Three lessons here. The first: Virtually every post mortem that relies on the blame game has the same result. There is always someone who asked for more resources and warned of the risk before the event. There are always enough intelligence indicators so that once you go back -- knowing the pattern of actual events -- it becomes possible to predict the past with 20-20 hindsight.


The problem is that the post mortems and hearings tend to be useless. Every prudent security officer has always asked for more; the indicators that could provide warning with 20-20 hindsight will still be buried in a flood of other reporting that warns of crises that don't take place; U.S. officials will still have to deal with what intelligence experts call "noise" -- the vast amount of reporting and other data that make it impossible to sort out the right information until the event actually occurs and the patterns are known. All of this makes it hard to know what request or warning ever matters.


Opinion: Algeria hostage crisis shows jihadists on rise


Yes, intelligence and warning can always be improved if the post mortem is realistic and objective. But the resulting improvements will never be enough. No one will ever assess all the risks correctly, U.S. diplomats and other Americans will be vulnerable when they operate in a hostile environment, and risk-taking will remain inevitable.



The second lesson is that we cannot deal with crises like the political upheavals in the Arab world, or the more direct threats that countries like Iran and North Korea can pose, unless our diplomats and military advisers take risks -- and more casualties -- in the process.


Stevens and those around him did what had to be done. These are the teams that can help lead unstable countries towards democracy and stability. They are the crucial to our counterterrorism efforts in the field and to building up the military security capabilities of developing states. They are key to uniting given factions, creating effective governance, and persuading states to move toward development and greater concern for human rights.


They can only be effective if they are on the scene, work with the leaders and factions involved, and often go into harms way where there are terrorist and military threats. Like Stevens, they cannot wait for perfect security, stay in a safe area, or minimize risks and deal with the realities of Libya, filled with local power struggles, extremist elements and potential threats.


We need risk-takers. We need them in any country that is going through the kind of upheavals taking place in Libya, as well as in countries where our enemies operate, and semi-war zones like Afghanistan, Iraq, Somalia, Syria, and Yemen. We need diplomats, U.S. military advisory teams, and intelligence officers that reach far beyond our embassies and go into high risk zones. We need to reward and honor those risk-takers, not those who shelter in safety and avoid the risks they should take or fear their career will be damaged if anyone is killed or hurt.


Opinion: Algeria crisis is a wakeup call for America








The third lesson is that we do need to steadily strengthen our ability to provide secure mobility, better intelligence, better communications, and better protection for those diplomats, U.S. military advisory teams and intelligence officers. We need to be able to better provide emergency help to those American NGO personnel and businessmen who take similar risks.


We need both an administration and a Congress that look beyond the blame game and understand that some things are worth spending money on. We need them to understand that what we once called the Arab Spring is clearly going to be the Arab Decade, and we face different but equally real risks in the field in Asia, Africa, and Latin America.


It is far better -- and cheaper even, in the medium term -- to fund strong U.S. country teams, military advisers, counterterrorism teams and development efforts than to let nations collapse, to let extremists take over, to lose allies, and see American NGOs and businesses unable to operate.


We need to see what new methods and investments can protect our people in the field and reduce the risks they should be taking. The answer may be special communications, intelligence system, helicopters and armored vehicles, emergency response teams and new career security personnel to replace contractors and foreign nationals.


What the answer is not is partisan blame, risk avoidance, punishing those who do take risks for the result, and failing to make the improvements in security for risk takers -- while building larger fortress embassies. If you want to honor the Americans lost in the line of duty, focus on the future and not the past.


The opinions expressed in this commentary are solely those of Anthony Cordesman






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Eurozone PMIs for private business hit 10-month high






BRUSSELS: Private business activity across the eurozone hit a 10-month high level in January, according to a leading growth indicator released on Thursday.

The Purchasing Managers' Index published by London-based Markit researchers, a survey of thousands of eurozone companies, logged 48.2 points in compared to 47.2 points the previous month.

January marked a third rise running for the index, even though it remains below the boom-and-bust 50-point line indicating economic growth or contraction -- the 16th shrinkage in 17 months.

Manufacturing production fell for the 11th month in a row, with both the manufacturing and services sectors each registering their smallest retreat in 10 months.

The key eurozone economy of Germany powered back to growth, but No. 2 economy France is still in contraction.

"While the surveys add to the mounting evidence that eurozone economic activity turned the corner in late-2012, they indicate that it is not out of the woods yet," said London-based IHS Global Insight analyst Howard Archer, who highlighted worries about France.

- AFP/xq



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Gergen: Speech deepens divisions






STORY HIGHLIGHTS


  • David Gergen says historians will look on Obama's speech as an important source

  • Obama seemed liberated to express his philosophy of government, he says

  • Gergen says the president stressed equality in the tradition of Lincoln, King

  • He says GOP is bristling at the speech, and it will likely deepen divisions in Washington




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) -- Years from now, historians are likely to look back upon Barack Obama's second inaugural address as a rich treasure trove for understanding his presidency and possibly the course of American politics.


It wasn't as important for his rise to power as his 2004 address to the Democratic National Convention. That one propelled him onto the national stage. It wasn't as elegant as his Philadelphia speech on race relations in the 2008 campaign. That one was his rhetorical masterpiece. But the second inaugural was far more important than either in defining his political philosophy as president.


Politics: After inauguration, political reality returns to Washington


Here's a first rough draft of what historians may find significant:



David Gergen

David Gergen



Obama revealed: The Obama who took the oath of office this week seemed not only more confident but also liberated. A central point of his address was that he inherited an economic crisis and two wars but now the nation is emerging into a clearing. This, he believes, is a golden opportunity for fresh action -- a moment to be seized.


Left unspoken were two other reasons why he feels liberated: He clearly thinks he has shown the country that Republicans aren't willing to compromise, so that he has no choice but to try to muscle them.


The GOP has now blinked twice on the fiscal cliff and the new debt ceiling; he plans to make them keep blinking. Then, too, Obama is also freed up because he is no longer working under the shadow of the 2010 midterm elections when he was snookered. After his convincing win in 2012, he is back on top politically.


Opinion: Obama's ringing defense of liberalism


All of this has inspired the president to reveal to the world his true political philosophy: In one speech, he gave the strongest embrace of 20th-century liberalism since Lyndon Johnson and the Great Society. Yes, he gave a couple of bows to the importance of individual initiative and private enterprise, but the heart and soul of the address was a call to collective action on a wide array of fronts.


Gone were the third way of Bill Clinton and the centrism of Jimmy Carter. He emerged as an unapologetic, unabashed liberal -- just what the left has long wanted him to be and exactly what the right has feared.


Heir to Lincoln and King: A little more than three decades ago, Ronald Reagan moved the inaugural ceremony from the east side of the Capitol to the west. For Reagan, the symbolism was that of a Californian who wanted to give his inaugural address gazing out across the National Mall, the monuments and Arlington Cemetery toward the Pacific. But for Obama, the symbolism was very different: He was the president who looked west toward the monuments of Abraham Lincoln and the Rev. Martin Luther King Jr. and his address artfully tied him to their legacy.


The historian Garry Wills won a Pulitzer Prize some years ago with his book on Lincoln's Gettysburg Address in 1863. Wills argued that for most of America's early history, people thought that the republic was born with the Constitution of 1787 and the Declaration of Independence was a secondary document.


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Along came Lincoln at Gettysburg saying that the country was born "four score and seven years ago" -- in 1776 with the declaration. In Wills' view, now widely accepted, Lincoln at Gettysburg turned the declaration's second paragraph into the founding creed of the country. What we must aspire to, Lincoln was saying, was to ensure that all are created equal.


King came to the Lincoln Memorial 100 years later -- in 1963 -- to go back to Lincoln at Gettysburg and through him to the declaration. The nation, King said, must live up to the promise of equal opportunity -- and indeed, that was the dream he so eloquently expressed in the finest American speech since Gettysburg.


Enter Obama at his second inaugural, not only on King's official holiday but 50 years after "I Have a Dream" and 150 years after Gettysburg. The president's address begins with a recitation of the declaration, calls it our "founding creed" and makes the aspiration of equal opportunity the central goal of his presidency.


In the past, presidents at inaugurations have found the nation's heroes among those who have died in battle. Obama chose a different path: He found the nation's heroes at Seneca Falls, Selma and Stonewall. His philosophy, as we learned, is not just about government programs but about embracing inclusion and diversity. It was, I believe, his firmest attempt to build upon Lincoln and King -- and in effect, his address made him their modern heir.


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Setting a new course: A president's inaugural address often sets the tone and direction of his next four years in office and nowhere may that be more true than with Obama's second. His assertive address has heartened his supporters so that they seem ready to march into battle with him. They not only want him to succeed, but they now have an ambitious agenda to embrace as well.


Smartly, the president's team began putting together a new citizens group, Organizing for Action, just before the inauguration, and his speech was in effect a call to arms. Whether "OFA", as Democrats in Washington already call it, will work well with the Democratic Party is open to question, but it is clear that Obama & Co. intend to use it as an important way to rally public pressure on Congress for his agenda.



Gone were the third way of Bill Clinton and the centrism of Jimmy Carter. He emerged as an unapologetic, unabashed liberal. ...
David Gergen



On the other side of the aisle, many Republicans such as Eric Cantor were respectful of the president after his address but underneath most of them were bristling. They had expected the president to issue a ritualistic plea for bipartisanship and then to begin negotiating with them over federal deficits.


Instead, he made it clear that he will work with them as long as they agree with him and try to run over them if they resist. From the GOP perspective, Obama was virtually dismissive of the nation's fiscal threats and wasn't interested in true negotiations. In a tweet after the speech, scholar Ian Bremmer captured their view of Obama's message to the GOP: "Together, we shall pursue my objectives."


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In short, the divisions in Washington may grow even deeper in the near term, if that is possible, and no one knows what will actually be accomplished. Among partisans on both sides, there is still a sense that a piece of gun control can be passed (starting with background checks) and perhaps a larger piece of immigration (starting with H-1B visas and legal status for the undocumented). But serious action on climate change seems distant.


More centrally, the parties seem even further apart on a budget agreement. The GOP is in no mood to revisit higher taxes and the president's address gave a ringing endorsement to the basic structure of Medicare, Medicaid and Social Security. In short, the road ahead looks even rockier than it seemed after the elections.


On the day before the inaugural, a New York Times article by Jodi Kantor reported that after the first term, Obama has warned possible candidates for his job that it is very difficult to get things done in Washington and that the president has a "contracted sense of possibility." He and his team are also aware that power seeps away quickly in a second term.


How, one wondered, is it possible to reconcile those views with Obama's decision to go big at the inaugural, pushing an extraordinarily ambitious agenda.


That question still lingers after the inauguration. It is just possible that what he was ultimately doing in his address was to present the country with a liberal vision of the future and a legislative agenda to go with it -- something akin to what Franklin Roosevelt did in 1944. FDR left behind a Democratic Party with a majority coalition and an agenda that drove American politics for more than 20 years.


Is that the legacy that Obama really wants to leave? Lincoln, King, FDR -- all rolled into one? Only historians will know the answer for sure.


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






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Romney to be honored Friday at D.C. luncheon

Mitt Romney will make it to Washington, D.C. for inauguration week after all.

The 2012 GOP presidential nominee and his wife Ann are scheduled to attend a luncheon in their honor Friday at Washington's J.W. Marriott hotel, National Journal reported this afternoon. The reception will be hosted by two of Romney's biggest campaign fundraisers: Virginia philanthropist Catherine Reynolds and hotel tycoon Bill Marriott, Jr.

Romney, a longtime friend to the Marriott family, serves on Marriott International's board of directors. While on the trail, he and his traveling staff stayed almost exclusively at Marriott hotels.

Having opted to spend Inauguration Day at his home in La Jolla, Calif., on Monday, Romney became the first presidential nominee since Michael Dukakis in 1989 to not attend the ceremonial event. But he's made at least one appearance in the nation's capital since the election: Several weeks following his loss, he enjoyed a lunch of white turkey chili with President Obama at the White House.

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Pentagon to Allow Women in Combat













Defense Secretary Leon Panetta will lift a longstanding ban on women serving in combat, according to senior defense officials.


The services have until this May to come up with a plan to implement the change, according to a Defense Department official.


That means the changes could come into effect as early as May, though the services will have until January 2016 to complete the implementation of the changes.


"We certainly want to see this executed responsibly but in a reasonable time frame, so I would hope that this doesn't get dragged out," said former Marine Capt. Zoe Bedell, who joined a recent lawsuit aimed at getting women on the battlefield.


The military services also will have until January 2016 to seek waivers for certain jobs -- but those waivers will require a personal approval from the secretary of defense and will have to be based on rationales other than the direct combat exclusion rule.


The move to allow women in combat, first reported by the Associated Press, was not expected this week, although there has been a concerted effort by the Obama administration to further open up the armed forces to women.


The Joint Chiefs of Staff unanimously recommended in January to Secretary Panetta that the direct combat exclusion rule should be lifted.


"I can confirm media reports that the secretary and the chairman are expected to announce the lifting of the direct combat exclusion rule for women in the military," said a senior Defense Department official. "This policy change will initiate a process whereby the services will develop plans to implement this decision, which was made by the secretary of defense upon the recommendation of the Joint Chiefs of Staff."


Chairman of the Joint Chiefs Gen. Martin Dempsey sent Panetta a memo earlier this month entitled, "Women in Service Implementation Plan."






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"The time has come to rescind the direct combat exclusion rule for women and to eliminate all unnecessary gender-based barriers to service," the memo read.


"To implement these initiatives successfully and without sacrificing our warfighting capability or the trust of the American people, we will need time to get it right," he said in the memo, referring to the 2016 horizon.


Women have been officially prohibited from serving in combat since a 1994 rule that barred them from serving in ground combat units. That does not mean they have been immune from danger or from combat.


As Martha Raddatz reported in 2009, women have served in support positions on and off the frontlines in Iraq and Afghanistan, where war is waged on street corners and in markets, putting them at equal risk. Hundreds of thousands of women deployed with the military to those two war zones over the past decade. Hundreds have died.


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"The reality of the battlefield has changed really since the Vietnam era to where it is today," said Rep. Tammy Duckworth, D-Ill., a former military helicopter pilot who lost both her legs in combat. "Those distinctions on what is combat and what is not really are falling aside. So I think that after having seen women, men, folks who -- cooks, clerks, truck drivers -- serve in combat conditions, the reality is women are already in combat."


Woman have been able to fly combat sorties since 1993. In 2010, the Navy allowed them on submarines. But lifting restrictions on service in frontline ground combat units will break a key barrier in the military.


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Panetta's decision will set a January 2016 deadline for the military service branches to argue that there are military roles that should remain closed to women.


In February 2012 the Defense Department opened up 14,500 positions to women that had previously been limited to men and lifted a rule that prohibited women from living with combat units.


Panetta also directed the services to examine ways to open more combat roles to women.


However, the ban on direct combat positions has remained in place.






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