Saturday, April 30, 2005
Bush Plan Met With Skepticism in Congress
Bush a Robin Hood?
They tried yesterday to portray him as just another cruel, rich Republican for suggesting any cuts in future benefits, but that's not what the prime-time audience saw on Thursday night. By proposing to shore up the system while protecting low-income workers, Mr. Bush raised a supremely awkward question for Democrats: which party really cares about the poor?
For decades Democrats have pointed to Social Security as a triumph of communal generosity, proof that Americans (or at least non-Republican Americans) will work together to make sure that no widow is reduced to eating cat food. The program has been wonderful for liberals' self-esteem. What it has actually done for the poor is another matter.
Bush Social Security Plan Helps Poor
As the full dimensions of President Bush's Social Security plan come into view, so too does a broader vision: improving benefits for the poorest Americans while reducing the reliance of everyone else on government programs that long have seen them through economic difficulties.
Although Bush devoted most of his prime-time news conference Thursday to describing how he would expand Social Security protections, virtually all of his improvements would be aimed at the bottom one-third of American wage earners. The remaining two-thirds would see their future Social Security benefits curtailed, a reduction that they'd be encouraged to make up by saving and investing of their own.
FBI Raids house of Republican Fundraier
The federal probe into whether local Republican fund-raiser Tom Noe was illegally funneling money to the Bush campaign had been ongoing for months. It reached a turning point Wednesday night.
FBI agents swept into Mr. Noe’s Maumee condo about 7:30 p.m., spending three hours scouring the home of one of the most prominent Republicans in northwest Ohio. They were looking for evidence of violations of federal campaign contribution laws.
The federal probe is studying Mr. Noe’s campaign contributions to the President, and specifically contributions made by others who may have received money from Mr. Noe, possibly allowing him to exceed the $2,000 spending cap.
Jon Richardson, Mr. Noe’s attorney, said the search was “very civilized” and that Mr. Noe’s wife, Bernadette, cooperated with agents who removed “some property” from the condo. Mr. Noe was not home at the time of the search.
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Cool Star Wars movie available for free
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Difficult First 100 Days for Bush
One hundred days into his second term, President Bush has lost much of the political muscle he boasted about after winning re-election. Gas prices are rising, his approval ratings are sagging and Americans are unhappy with his handling of the economy and Iraq.
Now he's trying to sell a Social Security plan that would cut future benefits for all but low-income retirees giving opponents fresh ammunition. Even before Bush unveiled his new proposal and despite a 60-day sales campaign a majority of Americans thought he had mishandled Social Security, too.
Along with his other troubles, Bush has had to prop up two endangered Republicans: House Majority Leader Tom DeLay, accused of ethical lapses, and John Bolton, the president's choice for U.N. ambassador, criticized for his judgment and treatment ofMore...
Friday, April 29, 2005
Bush Plan Cuts Social Security
President Bush called Thursday night for cutting Social Security benefits for future retirees to put the system on sound financial footing, and he proposed doing so in a way that would demand the most sacrifice from higher-income people while insulating low-income workers.
Saying the retirement program is headed for "bankruptcy," a term his opponents say is an exaggeration, Mr. Bush edged tentatively - but for the first time explicitly - into the most politically explosive aspect of the debate over how to assure Social Security's long-term health: the benefit cuts or tax increases needed to balance the system's books as the baby boom generation ages and life expectancy increases.
Thursday, April 28, 2005
Democrats and Republicans uncertain who might win Filibuster battle
The uncertainty has helped spur a recent compromise offer from Democrats and a go-slow approach by Republican leaders, even as an anticipated vacancy on the Supreme Court draws nearer. The push to persuade the small cluster of holdouts to support a ban on filibusters of judicial nominees is seen as a crucial test of Majority Leader Bill Frist's tenure as the chamber's top Republican, senators in both parties say.
"Big wet kiss to the far right."
With a showdown looming, Senate Majority Leader Bill Frist refused to budge Thursday on his demand that Democrats forego filibusters against all of President Bush's nominees to federal appellate court benches or the Supreme Court.
Frist offered to retain the right to filibuster district court nominees in exchange for 100 hours of debate and guaranteed confirmation votes on the nation's highest judgeships.
The Senate's top Republican also said that under his plan, senators would no longer be able to block nominees in the Judiciary Committee.
"Judicial nominees are being denied. Justice is being denied. The solution is simple, allow senators to do their jobs and vote," Frist said in a speech on the Senate floor.
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Signs the Economy is Weakenning
The American economy slowed during the first quarter to its weakest pace in two years, the government reported today, as business spending faltered and the trade deficit widened.
The nation's gross domestic product, the broadest measure of goods and services produced in the United States, grew at an annual clip of 3.1 percent, to $187.9 billion, compared with forecasts of 3.5 percent growth. That was its weakest performance since the first quarter of 2003, when it rose only 1.9 percent.
Today's report, issued by the Commerce Department, is the latest in a series of economic reports that have pointed to slower growth in the second quarter.
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Bush in Major Q&A with Reporters Today
President Bush on Thursday night will address motorists’ concerns about high gas prices and push for Social Security reform during the sixth news conference since his November re-election.
The news conference is scheduled for 8:30 p.m. EDT Thursday in the East Room. The White House has asked television networks to broadcast the prime-time session.White House press secretary Scott McClellan said the president’s news conference was timed to coincide with the end of administration officials’ nationwide tour to convince Americans that the nation’s retirement system needs to be revamped. In a 10-to 12-minute opening statement, McClellan said Bush would “talk in more specific ways” about his ideas for achieving a bipartisan solution to Social Security’s future solvency problems
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Ethics rules restored in House by 406 to 20
The Republicans, accused of writing the rules to protect Majority Leader Tom DeLay from investigations, heeded Speaker Dennis Hastert’s call for a retreat in order to end the deadlock on the evenly divided panel. The vote was 406-20.
In debate, Democrats continued to attack DeLay’s conduct. Republicans countered that they didn’t make a mistake but accepted political reality: In a committee with five members of each party, Democrats would not supply any votes to let the committee operate without a reversal of the rules.
“We were absolutely right,” said Rep. David Dreier, R-Calif.
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Wednesday, April 27, 2005
Congress to mint new Dollar
Like lemmings rushing into the fjords, Congress cannot seem to resist a leap into the dollar-coin money pit.
Despite two wildly unsuccessful attempts to introduce a dollar coin, legislators are trying again.
On Wednesday, the House of Representatives passed a bill to create a new $1 coin, which would accompany the current Sacagawea piece. The measure enjoyed enormous bipartisan support, passing by a vote of 422 to 6. Assuming a companion bill makes it through the Senate, the nation would be on its way to taking another stab at a dollar coin.
This time, however, lemmings might fly.
The Presidential $1 Coin Act was led in the House by Michael Castle (R-Del.) and Carolyn Maloney (D-N.Y.). In the Senate, shepherds are John Sununu (R-N.H.) and Minority Leader Harry Reid (D-Nev.).
Supporters realize that the dollar coin is the Rodney Dangerfield of American money. So they make clear that any new coin would augment -- not replace -- paper currency.
Time has silly piece on DeLay's cigar smoking
Sometimes a cigar is just a cigar. And sometimes, according to House Majority Leader Tom DeLay, a cigar is an economic prop to a brutal totalitarian regime. Arguing against loosening sanctions against Cuba last year, DeLay warned that Fidel Castro "will take the money. Every dime that finds its way into Cuba first finds its way into Fidel Castro's blood-thirsty hands.... American consumers will get their fine cigars and their cheap sugar, but at the cost of our national honor."
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President Bush evacuated to bunker, Vice President Cheney was moved to unidentified Secured Location
President Bush was rushed from the Oval Office to an underground shelter and Vice President Dick Cheney was taken to a secure location Wednesday on fears that an unidentified aircraft had entered restricted space near the White House. Officials said it was a false alarm.
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Gore blasts GOP on Judges during rally in Washington
Former Vice President Al Gore on Wednesday blamed Republican "lust for one-party domination" for the GOP campaign to change Senate rules on filibustering judicial nominees, and he assailed religious zealots for driving the effort.
Wading into the political fight that has roiled the Senate, the 2000 Democratic presidential candidate and former Tennessee senator warned that altering rules that have served the nation for 230 years would result in a breakdown in the separation of powers.
"What makes it so dangerous for our country is their willingness to do serious damage to our American democracy in order to satisfy their lust for one-party domination of all three branches of government," Gore said of the GOP in a speech. "They seek nothing less than absolute power."
The Senate is bracing for a showdown over Republicans' threat to use their majority to change the parliamentary rules to ban judicial filibusters a tactic in which opponents can prevent a vote on a nomination with just 41 votes in the 100-member body.
Minority Democrats have used the filibuster to block confirmation votes on 10 of President Bush's appeals court choices, arguing that the nominees are too conservative for lifetime appointments.
More...President to press the need for more oil refineries.
In his second major speech on energy policy, the resient will announce plans to use closed army bases to create more refineries. Recent polls have shown that more than fifty percent of Americans do not aprove of the way Mr. Bush is handling the energy crisis. Saudi Arabias Crown Prince visited Mr. Bush at his Crawford Branch, yet the visit generated more headlines of teh two leaders holding hands than any tangible result.
Under pressure over high energy prices, President Bush on Wednesday will propose tackling the root causes of the problem by encouraging new oil refineries be built at closed military bases and jumpstarting construction of new nuclear power plants.
In a speech, Bush will also propose giving federal regulators the lead authority to decide where to locate terminals for processing imported natural gas. States have increasingly been taking the lead on this issue.
And the president will propose adding vehicles that use clean-burning diesel fuel to the list of automobiles eligible for $2.5 billion in tax credits over 10 years to encourage further use of this technology. Other eligible vehicles are hybrids powered by gasoline and electricity and fuel-cell vehicles.
Senior Bush administration officials unveiled details of the president's proposals on Tuesday night. It will be his second energy speech in a week.
GOP split on Social Security
House Ethics Rules, changed on behalf of Tom DeLay, to be Reveresed.
Despite President Bush's support of Tom DeLay yesterday, House Republicans have signaled that they will roll back the ethic rule change created to protect Mr. DeLay.
Bob Dole throws support behind Frist
Former Sen. Dole calls for an up and down vote on judicial nominations.
IN the coming weeks, we may witness a vote in the United States Senate that will define the 109th Congress for the ages. This vote will not be about war and peace, the economy or the threat from terrorism. It will focus instead on procedure: whether the Senate should amend its own rules to ensure that nominees to the federal bench can be confirmed by a simple majority vote.
I have publicly urged caution in this matter. Amending the Senate rules over the objection of a substantial minority should be the option of last resort. I still hold out hope that the two Senate leaders will find a way to ensure that senators have the opportunity to fulfill their constitutional duty to offer "advice and consent" on the president's judicial nominees while protecting minority rights. Time has not yet run out.
Bolton Investigation Widening.
WASHINGTON, April 26 - In a widening of the inquiry into John R. Bolton's nomination to be ambassador to the United Nations, the Senate Foreign Relations Committee intends to conduct formal interviews in the next 10 days with as many as two dozen people, Congressional officials said Tuesday.
Those to be interviewed include a former deputy director of central intelligence and a former assistant secretary of state. The two officials, John E. McLaughlin and John S. Wolf respectively, have not spoken publicly about Mr. Bolton's nomination, but both have been described by others as having clashed with him on personnel matters related to intelligence.
Tuesday, April 26, 2005
President stands firmly behind Tom DeLay
President Bush offered a gesture of support today for Tom DeLay, the embattled House majority leader, by giving him a ride back to Washington from their home state of Texas aboard Air Force One.
Mr. Bush is near the end of a 60-day series of personal forays around the country to build support for his efforts to overhaul the Social Security system and offer workers the chance to divert some of their payroll taxes into personal investment accounts that they would manage for themselves. With opinion polls showing only tepid public support for the plan, Congress began hearings today on ways to overhaul Social Security, and Democratic leaders held rallies in New York and Washington to express opposition to the president's proposals.
More...Bill Frist downplays deal with the Democrats on the filibuster
Reacting to a Democratic offer in the fight over filibusters, Republican leader Bill Frist said Tuesday he isn't interested in any deal that fails to ensure Senate confirmation for all of President Bush's judicial nominees.
Senate Democratic leader Harry Reid had been quietly talking with Frist about confirming at least two of Mr. Bush's blocked nominees from Michigan in exchange for withdrawing a third nominee. This would have been part of a compromise that would have the GOP back away from a showdown over changing Senate rules to prevent Democrats from using the filibuster to block Mr. Bush's nominees.
But Frist, in a rare news conference conducted on the Senate floor, said he would not accept any deal that keeps his Republican majority from confirming judicial nominees that have been approved by the Senate Judiciary Committee.
"Are we going to step back from that principle? The answer to that is no," Frist said.
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Remembering how much the GOP loved the filibuster
Maybe the Republicans actually believe that the Democrats are a dad party that will never again challenge for majority rule. Why else would they forget how much they loved the filibuster?
The days were as dark for Republicans then as they are for Democrats today.
Bill Clinton had defied the odds and his scandalous reputation to unseat an incumbent Republican president. Worse still, the Democrats had gained control of both houses of Congress.
I remember seeing Sen. Bob Dole of Kansas, the GOP minority leader, interviewed soon after the 1992 election. He was dour and trying to salvage some kind of hope for his party out of the stunning results. All he could cling to, really, was that it took 60 votes to get just about anything done in the Senate, and his party would have the power to stop most legislation.
Asked about using the filibuster, Dole mentioned specifically the Workplace Fairness Act.
This bill was everything Democrats dreamed of, and all that Republicans loathed. It was a sop to organized labor, giving workers the right to strike without fear of being permanently replaced. It held out the possibility of greatly strengthening labor's hand and perhaps reversing its decline within private-sector workplaces.
In the labor vs. capital equation, the GOP believed at its core that the way to strengthen the economy was to tip the balance in favor of Capital, aka, employers. Moreover, the Workplace Fairness Act would add considerable muscle to the Democratic base.
On June 15, 1993, it passed the U.S. House 239-190. In the Senate, 53 of the 100 senators favored it. But it didn't become law because Senate rules said it took 60 votes to end debate and force a final vote on the bill. The Workplace Fairness Act died, and Labor's long, slow decline has continued, much to the delight of the GOP.
Christian Right should support the filibuster
Leave it to Slate writer (in this case Timothy Noah) to figure things out from a different perspective. Noah writes:
Why the Christian right would be nuts to eliminate the filibuster.
I stand with Senate Majority Leader Bill Frist in favoring elimination of the filibuster. As I explained in an earlier column (and elaborated in a radio debate with Slate editor Jacob Weisberg), the filibuster is anti-democratic because it thwarts the will of the Senate majority by routinely requiring a 60-vote supermajority to bring legislation and nominations to the Senate floor. This is more or less what Frist said in yesterday's "Justice Sunday" speech, which Christian conservatives broadcast yesterday to hundreds of like-minded churches. (To watch the video, click here.) "I don't think it's radical to ask senators to vote," Frist said. Frist isn't willing to extend the "simple majority rules" principle beyond judicial nominations, but it's entirely logical to do so, and if Frist succeeds it will only be a matter of time before the filibuster is eliminated for legislation, too. I'm all for it.
What I can't figure out is why the Christian right is for it, too. "This simulcast would not be necessary if the Senate's most liberal members would distance themselves from the interest groups that hold them in thrall," says an April 23 statement by Tony Perkins, president of FRC Action, the Family Research Council's lobbying arm. But if any special-interest group is playing a role in the battle over Bush's judicial nominations, it's the Christian right itself. The Christers' failure to recognize that their policies appeal only to a minority of the electorate has led them to favor a Senate rule change that would damage their interests severely over the long term.
Support for the filibuster, remember, is premised on the idea that the government shouldn't be susceptible to the tyranny of the majority. But I find very little evidence to support the idea that majority opinion in the United States is particularly tyrannical. The real problem in American politics, if you ask me, is the tyranny of the minority—or rather, of a variety of different minorities, known collectively as interest groups, which use a variety of means (including the filibuster) to exert power beyond their number. That's true going back to the origins of the republic, when a minority of slaveholders in the South managed to exert their will over the rest of the country. Today, the most powerful interest group, or at least the most obnoxious, is the Christian right.
Rove sure that Bolton will be confirmed..
Rove: Bolton will be confirmed; judges deserve vote
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The shredders are humming in the Capitol...
A new study shows that members of Congress have taken more than $16 million in privately financed trips over the past five years, with many of the trips sponsored by non-profit groups that are not obligated to disclose who paid the bills.
The results of the study by PoliticalMoneyLine, an Internet site that compiles campaign finance information, were first reported by USA Today.
The problems of House Majority Leader Tom DeLay, R-Texas, have placed a spotlight on congressional travel. DeLay has been accused of a spate of alleged ethical lapses, including travel that may have been paid for by a lobbyist.
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Why Dems need to pray for Tom DeLay, too...
A couple of years ago, Tom DeLay was chomping on a cigar at a Washington restaurant with some lobbyists. The manager went over to tell him he couldn't smoke because the restaurant was located on property leased from the federal government, which bars smoking. "I am the federal government," DeLay replied, in words that will follow the onetime exterminator from Sugar Land, Texas, like ants at a picnic.
The line reeks of the arrogance and self-importance that may bring DeLay low, but it also has the advantage of being true: all three branches of the federal government belong to Republicans, and the autocratic House majority leader is the purest representation of the breed. On every issue—ethics, the environment, guns, tax cuts, judges—he is a clarifying figure for anyone who might be confused about the true nature of today's GOP.
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Both political parties grabbing onto the third rail.
(CBS/AP) Congress took up President Bush's request to draft Social Security legislation on Tuesday, as the Senate Finance Committee assessed ways to create private investment accounts as a precursor to the panel drafting a bill.
Sen. Charles Grassley of Iowa, the committee's Republican chairman, brought down the gavel with a declaration that members not only solve the program's most immediate financial problems, but set it on a path to "sustainable solvency" so future members of Congress will be spared the task.
"If this Congress is going to muster the courage, and if we're going to accept the responsibility we should to address Social Security reform this year, we should do more than just kick the can down the road a while," Grassley told a packed hearing room.
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Filibuster Rule Change Opposed
Frist, Reid work on deal over judge approvals
Frist, Reid work on deal over judge approvals. Acceptance by Democrats may hinge on concession by GOP on filibuster ban, nickname dteh "nuclear option."
WASHINGTON - In private talks with Majority Leader Bill Frist, the Senate’s top Democrat has indicated a willingness to allow confirmation of two of President Bush’s seven controversial appeals court nominees, but only as part of a broader compromise requiring Republicans to abandon threats to ban judicial filibusters, officials said Monday.
Trouble brewing for GOP unity
WASHINGTON — Conflicts are multiplying between congressional Republican moderates and the White House as President Bush pursues his aggressively conservative second-term agenda.
The unexpected resistance to Bush's nomination of John R. Bolton as U.N. ambassador from several Senate Republicans marks the latest, and potentially most intense, clash. But battles over Social Security, Bush's budget proposal and ending the filibuster for judicial nominations also are raising tensions inside the party.
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The President and the Prince, hand in hand...look like Girly Men.
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President Bush, looking very un-Texan, woos Saudi prince, both risk looking like Girly Men. | |||
Bush national security adviser Stephen Hadley called Bush's meeting with Crown Prince Abdullah "good news for the markets" - but there was no evidence the Saudis had offered anything new but a long-term plan to boost production by 2009. As Bush appealed for help from his frail, longtime oil pal, the President faced a job disapproval rating that climbed to 49% in a new Gallup Poll. "The crown prince understands that it is very important ... to make sure that prices are reasonable," Bush said before Welcoming Abdullah again at his Texas ranch. |
The United States is undergoing 'Faith War, " says blocked Judicial Nominee
WASHINGTON — Just days after a bitterly divided Senate committee voted along party lines to approve her nomination as a federal appellate court judge, California Supreme Court Justice Janice Rogers Brown told an audience on Sunday that people of faith were embroiled in a "war" against secular humanists who threaten to divorce America from its religious roots, according to a newspaper account of the speech.
Brown's remarks come as a partisan battle over judges has evolved into a national debate over the proper mix of God and government and as Senate Majority Leader Bill Frist (R-Tenn.) ponders changing the chamber's rules to prevent Democrats from using procedural moves to block confirmation of conservative jurists such as Brown.
Read More...
Monday, April 25, 2005
Would Newt Gingrich Run as a Democrat?
The charges against Tom DeLay embody everything voters hate about Washington. Can the Dems turn it to their advantage?
It’s 1994 all over again—except the party in power has an R by its name. Whoever grabs hold of the reformist message could make history repeat itself. The Democrats are beginning to understand there is a greater opportunity here than dislodging DeLay. Next week Democrats Rahm Emanuel of Illinois and Marty Meehan of Massachusetts are introducing lobbying reform legislation that would. among other things, require every organization that pays for congressional travel to list publicly all their sources for money. “It’s been 10 years since we dealt with anything having to do with lobbying, and it’s clear we need lots more transparency,” Emanuel told NEWSWEEK.
But Democrats can’t pass anything in the House, and they have trouble getting media attention. What they need is a compelling personality to carry the message. The ultimate irony is that it could be Gingrich. Who better to run for president against the discredited Republican establishment?
Tyranny by the Minority? Only in the U.S.
Senate Majority Leader Bill Frist (R-Tenn.)is readying a nuclear bomb in the United States Senate to end of the filibuster.
Republicans say that Democrats have abused the filibuster by blocking 10 of the president's 229 judicial nominees in his first term (about 5% of the nominees). Frist calls this small percentage a "formula for tyranny by the minority." Further describing the filibusters as intolerable, Frist has hinted he may resort to a maneuver, dubbed the "nuclear option," to end filibusters for judicial nominations.
"One way or another, the filibuster of judicial nominees must end," he said in a speech to the Federalist Society last month, labeling the use of filibusters against judicial nominees a "formula for tyranny by the minority." Frist wants to limit the minority's party's power altogether, creating a true tyranny of the majority. (I just love the Republicans tend to describe things from the bottom up.
Well, he better hope the Republicans don'to lose the Senate in next year's elections, because every rule change he makes to ensnare the minority will be work against him with a vengence if he loses control.
Hope for the Dems...
Unexpectedly, Capitol Hill Democrats Stand Firm
By Charles Babington
Washington Post Staff Writer
Monday, April 25, 2005; Page A01
Democrats were supposed to enter the 109th Congress meek and cowed, demoralized by November's election losses and ready to cut deals with Republicans who threatened further campaigns against "obstructionists." But House and Senate Democrats have turned that conventional wisdom on its head.
They have stymied President Bush's Social Security plan and held fast against judicial nominees they consider unqualified. To protest a GOP rule change, they have kept the House ethics committee from meeting. And they have slowed -- and possibly derailed -- Bush's nomination of John R. Bolton to become ambassador to the United Nations.
Read More at...
Popemobile or "Jeeplike"?
There's some confusion as to what to call the new Popemobile...
Not your father's popemobile ...
After his inaugural speech, the new pope took a victory lap around St. Peter's Square. But there's some confusion about how to refer to his ride. The LAT calls it an "an open-backed Fiat sport-utility vehicle." The WP and USAT both call it "Jeep-like." The WSJ twice refers to it as a "white open-topped vehicle." The NYT calls it simply a "popemobile." But unlike JP2's popemobile, this vehicle has no bulletproof glass. "It was not the same 'popemobile' that John Paul used," writes the LAT, "but it made a similar point."
Jay Dixit is a writer in New York. He has written for the New York Times and Rolling Stone.Sunday, April 24, 2005
Absolute power corrupts absolutely..
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Final Blow for Tom DeLay?
DeLay Airfare Was Charged To Lobbyist's Credit Card
Washington Staff
Sunday, April 24, 2005
Friday, April 22, 2005
The Hubble Telescope turns 15 years old!
Happy 15th, Hubble! Two Stunning New Pictures By SPACE.com Staff posted: 22 April 2005 03:05 pm ET |
The Hubble Space Telescope has taken about 750,00 images in its 15 years in space. Celebrating the launch on April 24, 1990, Hubble officials released two more pretty pictures.
The images were to be released Monday, but they were provided in advance to the media and were posted to a British web site Friday afternoon. SPACE.com contacted the Space Telescope Science Institute, which operates Hubble, to verify that an embargo had been broken.
While Hubble's future is uncertain, its capabilities are unquestioned as the sharp-eyed observatory continues to produce stunning photographs of faraway places.
The new images are fresh views of two of the most famous objects previously photographed by Hubble.
Open source means you can fix it yourself, if you like |
The Firefox open source browser is full of bugs, some of which are rather serious. In March Danish security firm Secunia reported that it had found eight. Some could be used to trick users into giving away confidential information. Others could let hackers get access to people's computers.
Every few days there are new ones.
The company reiterated that its full-year profit would rise. Net income rose to 70 million euros ($92 million) from 26 million euros, Volkswagen said in a statement to the Frankfurt stock exchange. Profit beat the median estimate of 57 million euros of eight analysts surveyed by Bloomberg News.
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Sales fell 2.4 percent, to 21.1 billion euros.
"As expected, the most important automotive markets experienced a relatively difficult start to 2005," the company said in the statement. "We believe that price pressure will continue unabated."
Patrick Juchemich, an analyst at Sal. Oppenheim in Frankfurt, commented, "This will bring a bit of relief to shareholders who have feared that the situation would get worse." Mr. Juchemich, who has a neutral rating on the stock, added, "The outlook is at least realistic that pricing pressure isn't going away."
Bernd Pischetsrieder, Volkswagen's chief executive, plans to cut 3.1 billion euros in costs this year and has frozen wages in Germany to stem the earnings slide. The Western European market, where the company gets more than half its sales, shrank 2.5 percent in the first quarter, while rebates in the United States and competition in China are putting pressure on profit.
In case you want to see some pretty Russian swindlers....
Here's a sample:
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