FOREIGN HOLDINGS: Net foreign purchases of long-term securities rose to $47.1 billion in February, up from a $15 billion gain in January.
CHINA DOWN: China trimmed its holdings by $11.5 billion to $877.5 billion. It was the fourth straight decline but still left China as the No. 1 foreign holder of Treasury debt.
CONCERNS: Economists say it will be important for foreign demand for U.S. debt to remain strong to keep interest rates from rising, a development which could threaten the recovery.
In recent days, right-wing media figures have stoked class warfare while discussing taxes, asserting that it's not "fair" for the government to "steal" money from those who "succeed" and give it to -- in the words of Wayne Allyn Root -- "those who couldn't care less, sit on the couch, and watch Oprah all day." These media figures have suggested that those without federal income tax liability or those who benefit from tax credits or government assistance are "freeloaders" who don't work hard or succeed.
Right-wing media mark Tax Day by attacking less fortunate as "freeloaders"
Stuart Varney: Is it "fair" for government to take "half" of money earned by those who "succeed" and give it to others because they make less money? On the April 15 edition of Fox News' Fox & Friends, Fox Business' Stuart Varney said: "Just think of the fairness issue. Is it fair that you go out, start a small business, you work hard, you save your money, you don't spend lavishly. You succeed, and then the government takes half your income -- and that's what's happening these days -- the government takes half your income and gives it to other people, solely on the grounds that they make less than you do. So it's only fair for you to share. I maintain that's not fair."
Wayne Allyn Root: "It's greedy to ask government and the IRS at gunpoint ... to steal [money] from others" and give it "to those who couldn't care less, sit on the couch, and watch Oprah all day." On the April 15 Fox & Friends, former Libertarian Party vice presidential nominee Wayne Allyn Root said: "It's not greedy to want to keep more of your own money. It's greedy to ask government and the IRS at gunpoint and the threat of prison to steal it from others who earn it and redistribute it to those who don't. That's the definition of greed." He later stated: "I am diametrically opposed to my old college classmate Barack Obama, who seems to think you take it from the people that work all day to earn it, and you redistribute it to those who couldn't care less, sit on the couch, and watch Oprah all day. That's not my crowd."
Wall Street Journal op-ed: "Why should I have to carry so many people on my back?" In an April 14 Wall Street Journalop-ed, Mike Donahue, "a financial adviser in La Jolla, California," wrote: "I have more than most only because I've worked harder than most and because I am a saver. It was not easy." He continued:
Why then does the government feel so entitled to take my money and give it to others? Why should I have to carry so many people on my back? Call me cruel. I don't care. I give to whom I choose -- but since so much is confiscated (and wasted in the process) I have little left I wish to give.
During the 1990 recession I could have qualified for state and federal assistance, but my wife and I managed to get by as she worked nights while we juggled our infant daughter between us. It was hard. However, it never occurred to us to take from others to subsidize our shortage. It's not our way.
Phyllis Schlafly: Tax Day "divides Americans into two almost equal classes: those who pay for the services provided by government and the freeloaders." In an April 13 column, Phyllis Schlafly wrote: "Income tax day, April 15, 2010, now divides Americans into two almost equal classes: those who pay for the services provided by government and the freeloaders." She later wrote: "The bottom 40 percent not only pay no income tax, but the government sends them cash or benefits financed by the taxes dutifully paid by those who do pay income tax."
Bernie Goldberg: "If we continue down a road where we're giving half the country free stuff, they will continue to take it, and they will drive us and this country into bankruptcy." On the April 12 edition of Fox News' The O'Reilly Factor, Fox News contributor Bernie Goldberg said: "You can't have a system where you give people -- half the country -- free stuff, because they're going to take it. And the other half of the people are pulling the wagon while the half that gets free stuff is sitting in the wagon. They're going to take the wagon right to the poorhouse." Goldberg later called for a flat tax and stated, "If we continue down a road where we're giving half the country free stuff, they will continue to take it, and they will drive us and this country into bankruptcy."
PORTLAND, Ore. -- Children's author K.P. Bath has pleaded guilty to possessing child pornography.
Bath made the plea Thursday before U.S. District Judge Ancer L. Haggerty. The Oregonian newspaper reports the 51-year-old author of ''The Secret of Castle Cant'' is expected to spend six or seven years in prison.
The Portland resident was arrested last April after federal agents discovered thousands of sexually graphic images and more than 125 videos on Bath's computer and thumb drives.
WASHINGTON -- The top Naval officer in Africa and Europe says authorities need to go after the money being earned by pirates to try to end what has become a scourge on the seas.
Adm. Mark Fitzgerald says it's no surprise where the money goes. Some is used to resupply pirates with boats and weapons. But leaders in Kenya tell him rich Somalis also are buying up the real estate around the capital of Nairobi and the African nation's port of Mombasa. Ethiopians report that the same thing is happening in their capital of Addis Ababa.
International warships have been capturing pirates for prosection. But Fitzgerald told a Pentagon press conference Thursday that authorities also should go after pirates' financiers.
VATICAN CITY – Pope Benedict XVI broke his recent silence on the clerical abuse scandal Thursday, complaining that the church was under attack but saying that "we Christians" must repent for sins and recognize mistakes.
The main U.S. victims group immediately dismissed his comments, saying they are meaningless unless Benedict takes concrete steps to safeguard children from pedophile priests.
Benedict made the remarks during an off-the-cuff homily at a Mass inside the Vatican for members of the Pontifical Biblical Commission.
"I must say, we Christians, even in recent times, have often avoided the word 'repent', which seemed too tough. But now under attack from the world, which has been telling us about our sins ... we realize that it's necessary to repent, in other words, recognize what is wrong in our lives," Benedict said.
"Open ourselves to forgiveness ... and let ourselves be transformed. The pain of repentance, which is a purification and transformation, is a grace because it is renewal and the work of divine mercy," he said.
Victims of clerical abuse have long demanded that Benedict take more personal responsibility for clerical abuse, charging that the Vatican orchestrated a culture of cover-up and secrecy that allowed priests to rape and molest children unchecked for decades.
Those demands have intensified in recent weeks as the Vatican and Benedict himself have been accused of negligence in handling some cases in Europe and the United States.
"Factual disclosures are not 'attacks' and 'penance' protects no one," said Mark Serrano, a spokesman for the Survivors Network of those Abused by Priests, the U.S. group.
"When the Pope can't bring himself to utter the words 'pedophile priest' or 'child sex crimes' or 'cover-ups' or 'complicit bishops,' it's hard to have faith that he is able to honestly and effectively deal with this growing crisis," Serrano said in a statement.
Benedict's comments were his fullest allusion yet to the scandal since he sent a letter to the Irish faithful March 20 concerning what Irish-government inquiries have concluded was decades of abuse and church-mandated cover-up in the country.
In his letter, Benedict chastised Irish bishops for failures in leadership and judgment. But he took no responsibility himself or for the Vatican, which many victims have blamed for being more concerned about protecting the church than children.
Vatican spokesman the Rev. Federico Lombardi confirmed that Benedict was referring to the scandal with his comments Thursday. Summaries of the pontiff's remarks were reported on the front page of the Vatican newspaper L'Osservatore Romano and on Vatican Radio.
On Monday, the Vatican posted on its Web site what it claimed had been a long-standing church policy telling bishops that they should report abuse crimes to police, where civil laws require it.
But critics have said the guidelines were merely a deceptive attempt by Rome to rewrite history, designed to shield the Vatican from blame by shifting responsibility of dealing with abusive priests onto bishops.
The Rev. Thomas P. Doyle, a canon lawyer who has been the main expert witness for victims in hundreds of lawsuits, called the guidelines a "failed attempt at damage control through revision of history."
He noted that senior Vatican officials, including the current Vatican No. 2, Cardinal Tarcisio Bertone, were quoted in 2002 as saying the church shouldn't require bishops to report abusive priests to police because it would violate the trust the two shared.
"In practice, the policy has been to avoid contact with civil authorities and to cover up the crimes and the criminals," Doyle wrote in an article this week. "The newly created canonical tradition of referral to civil authorities is the result of one thing: public outrage, the exposure from the media and the pressure for accountability in civil courts."
ATLANTA – Americans suffered a bit less food poisoning last year.
There were significant drops in illnesses from shigella and the most dangerous form of E. coli, according to a government report released Thursday. But overall, food poisoning rates have been flat for more than five years.
The report is based on cases in 10 states that participate in a federally funded monitoring system of lab-confirmed infections that can be spread through food. They reported about 17,500 cases of the nine leading illnesses last year, down from about 18,500 in 2009.
More important to scientists are the rates of illness. The report from the Centers for Disease Control and Prevention noted a 12 percent decrease in the incidence rate for E. coli O157:H7 from 2008. The rate dropped to its lowest level since 2004.
That E. coli strain is a dangerous form of an ordinarily harmless family of bacteria that can cause abdominal cramps, fever, bloody diarrhea, kidney failure, blindness, paralysis, even death. Cases occur in about 1 in every 100,000 people.
The decrease was probably due to better safety measures in the meat and produce industries, health officials said.
Shigella (shih-GEHL'-uh) is a bacterial infection that is about four times more common. It also declined significantly, about 40 percent. However, only about 20 percent of shigella cases are thought to be caused by food. It's usually spread by person-to-person contact, with day care centers a traditional hot spot for infections.
That decrease may have been driven by unusually high amounts of hand-washing and disinfection because of the swine flu pandemic that broke out last year, said Elliot Ryser, a professor of food science at Michigan State University, who was not involved in the study.
"You might kill two birds with one stone" by hand-washing, Ryser said, referring to swine flu and shigella.
For other illnesses, the CDC reported:
• Salmonella — the most common of the illnesses — was down slightly, despite a national outbreak of peanut-related salmonella at the beginning of 2009.
• Vibrio, a rare illness associated with shellfish, continued to rise.
• Listeria also rose, despite efforts by the packaged meats industry to prevent the illness.
Deaths from these bugs are unusual. In the 10 states last year, salmonella was the deadliest with 24 deaths attributed to it. Listeria was second with 20 deaths. Vibrio was blamed in seven deaths, the dangerous E. coli strain in two and one from shigella, according to CDC data.
The study is being published in a CDC publication, Morbidity and Mortality Weekly Report.
Countries in the euro zone cobbled together a €30 billion ($41 billion) loan package for Greece, should it need it. The IMF is expected to add €15 billion. This came in response to market jitters about the lack of detail in previous commitments and a jump in spreads on Greek government debt. Those spreads fell, initially at least, after the deal was made public, but Greece’s premium over benchmark German bonds soon started to rise again. See article
Twitter unveiled an advertising scheme for its business. It is the biggest change since its creation three years ago for the micro-blogging site, which will place ads at the top of search results for some topics, such as films or sport. Twitter’s growth has hitherto been enabled by huge dollops of venture capital and it only recently began to reap revenue from its service by striking deals with web-search firms. Some users felt decidedly non-chirpy about the prospect of ads. See article
Apple pushed back the date for the launch of the iPad outside America by one month, to the end of May, because demand for the tablet computer was stronger than expected in the United States. Apple shifted 500,000 iPads in the first week of sales there.
The quarterly earnings season for big banks got under way. JPMorgan Chase reported that its net profit had risen by more than half compared with the first quarter last year, to $3.3 billion. Its investment-banking business did particularly well, helping offset losses in its consumer-credit portfolio.
Kerry Killinger, the former boss of Washington Mutual, a bank that failed spectacularly during the financial maelstrom of September 2008, testified at a Senate hearing on the crisis. Mr Killinger blamed regulators for not coming to WaMu’s aid before its collapse and sale to JPMorgan Chase because, he asserted, his bank was not one of the financial institutions in an inner circle that were “too clubby to fail”.
Nearly 40% of shareholders at UBS opposed a plan on executive pay in a consultative vote. The Swiss bank earlier forecast a pre-tax profit for the first quarter, but investors are furious at the huge losses it has previously incurred. Kaspar Villiger, the chairman, said he understood the anger, but that UBS had “cut back too much last year, causing us to lose entire teams, their clients and the corresponding revenue”.
China’s GDP surged by 11.9% in the first quarter compared with a year earlier. Officials remain concerned by the risks presented by an overheating economy. For example, property prices have risen sharply this year and the government has pledged to “resolutely curb” their growth.
The head of Industrial and Commercial Bank of China warned that last year’s splurge of lending to Chinese consumers has meant that China’s four biggest banks face a capital shortfall of 480 billion yuan ($70 billion) in the next few years, which he said would be hard to fill solely by raising money in the markets.
China reported a monthly trade deficit for the first time in six years, caused in part by the higher price of commodities. China still had trade surpluses with America and Europe, but its minister for commerce insisted that the deficit for March proved there was no need for China to revalue the yuan, as “the deciding factor for the balance of trade is not the exchange rate, but market supply and demand, and other factors.”
The committee that determines business cycles at America’s National Bureau of Economic Research surprised many when it declined to give a date marking the end of the recession, which began in December 2007. It noted that most economic indicators had improved, but that it would be “premature” to say when the downturn ended (American GDP rose in the second half of 2009). The committee is known for being cautious in its assessments. See article
The NBER’s pronouncement did not dampen the ebullient mood of investors. The Dow Jones Industrial Average closed above the 11,000 mark on April 12th for the first time since just after the collapse of Lehman Brothers in September 2008.
The International Energy Agency warned that the steady climb in oil prices could hamper economic recovery. The price of oil recently touched an 18-month high of $87 a barrel.
Singapore’s central bank moved forcefully to tighten monetary policy by revaluing the Singapore dollar and allowing a “modest and gradual appreciation” of the currency. This came after Singapore’s trade-dependent economy grew by 32.1% in the first quarter on an annualised basis compared with the previous three months.
WARSAW – Investigators blamed pilot error Thursday for a crash that killed Poland's president, as harrowing details emerged of how the crew knew they were doomed after hitting trees while trying to land in Russia.
As Poland's national unity fractured over plans to bury president Lech Kaczynski in a castle alongside kings and heroes, officials released the first results from analysis of the plane's black box flight recorders.
"The crew was aware of the inevitability of the coming catastrophe, if only due to the plane shaking after the wings hit the trees -- which we are certain happened," Poland's chief prosecutor Andrzej Seremet told commercial radio.
Colonel Zbigniew Rzepa, a Polish military prosecutor, said the pilots of the Russian-made jet were aware of the imminent crash as the last seconds of the voice recordings "were dramatic", but did not elaborate.
But Russian investigators found no evidence that "any of the high-ranking passengers forced the pilots to land in Smolensk", Russia's Interfax news agency quoted a source close to the investigation as saying.
The Polish presidential Tupolev Tu-154 crashed in thick fog Saturday near the western Russian city while taking a delegation to a memorial service for a World War II massacre.
All 96 people on board, many of them senior Polish military and political figures, were killed.
Officials said Thursday that a "special security procedure" was being implemented for the arrival of US President Barack Obama and other foreign leaders for the funeral in Krakow, with around 80 planes set to land there Sunday morning.
But protests have erupted over the choice of Krakow's historic Wawel castle, the resting place of Poland's past kings, a saint and national heroes, for the burial of the president and his wife Maria.
Hundreds of people rallied in Warsaw, Krakow, the Baltic port of Gdansk and Poznan in the west on Wednesday, while more than 42,000 people have joined a Facebook campaign against the decision.
Questions have also mounted over the cause of the crash.
Russian investigators said Thursday that initial findings from the jet's data and flight voice recorders said the crew may not have been aware of the particularities of the plane when they repeatedly tried to land.
"An analysis of the evidence, including the first results from the decoding of the black boxes, shows that an error in piloting led to the disaster," the Interfax news agency quoted a source close to the investigation as saying.
The official said it appeared that the plane tried to land by levelling out its oblique descent approach to a horizontal angle in a bid to compensate for the bad weather.
But the source said a "particularity of the plane is that if its speed of descent is more that six metres per second, when the plane equalized and goes into a horizontal flight it loses altitude," the source said.
Speculation that the pilots were under pressure has centred on a spat in 2008, when Kaczynski tried and failed to order a pilot to land in Tbilisi while on a show of support for Georgia during its brief war with Russia.
A Russian aviation official, Tatyana Anodina, meanwhile denied previous reports the plane had made three or four landing attempts, saying it only tried once.
On Saturday, Kaczynski's delegation was headed to a ceremony marking the 70th anniversary of the Katyn massacre, when thousands of Polish officers were slaughtered by the Soviet secret police in 1940.
Thousands of people queued for a third day Thursday to pay their respects to the conservative, nationalist Kaczynski and his wife, whose bodies are lying in state at the presidential palace in Warsaw.
An early presidential election is expected on June 20.
The crash also robbed Poland of leading figures, including Ryszard Kaczorowski, 90, a leader in exile who kept the dream of freedom alive during communism. His body returned home Thursday.
NEWSNIGHT - Thursday 15 April 2010 at 10.30pm on BBC Two Topic: bbc 2, biodun iginla
============================================================ by Biodun Iginla, BBC News, London, UK ============================================================
------------------------------------------------------------ Presented by Kirsty Wark ------------------------------------------------------------
From Kirsty Wark:
Hi Biodun--you're leaving us tomorrow; we'll miss you..see you in June-July!!!!
Tonight's live televised prime ministerial debates will make political history, and no sooner than they leave their lecterns, Newsnight will be on air with a specially extended programme.
We will have the best moments, all the drama (we hope) and the finest analysis.
The leaders have all been preparing hard for it, with some of Obama's team pitching in on both Labour and Tory preparations, but there's been squabbling about the rules already - will it go according to the detailed plans or will it go off piste?
We have a whole range of guests giving us their reaction.
Emily will be there in Manchester with some of the senior politicians who have swamped the venue, and who will have come from what's called "spin alley" where they'll be trying to influence journalists' perception of the debate.
The SNP leadership will be chipping in with their response, and here in the studio we'll have reaction from the critic AA Gill and the body language (or should I say anthropological) expert, Judi James.
Although the rolling news channels can't make comment in the midst of the debate - the social networks will be going full steam, and we'll reflect some of that response.
We'll be hearing from Newsnight's political panel, who'll be watching intensely for every tic and trip, and also from two of tomorrow's papers leader writers.
Don't miss what will be an historic night for British politics.