Thursday, August 19, 2010

Fidelity: 401k hardship withdrawals, loans up AP

In the wake of news about a spike in new applications for unemployment benefits comes another potentially troubling sign: A record number of workers made hardship withdrawals from their retirement accounts in the second quarter.

Whats more, the number of workers borrowing from their accounts reached a 10-year high, according to a report issued Friday by Fidelity Investments.

The trends reflect the financial stress many workers find themselves in as the economy struggles to find sure footing, said Beth McHugh, Fidelitys vice president of marketing insight.

High unemployment and companies cutting back on overtime or overall hours have reduced the take-home pay of many workers.

People tend to be taking home less, she said. As a result the percentage of individuals initiating hardship distributions is one of the things were concerned about.

Fidelity administers 17,000 plans, which represents 11 million participants. In the second quarter, some 62,000 workers initiated a hardship withdrawal. Thats compared with 45,000 in the same period a year ago.

Whats also eye-opening is that 45 percent of participants who took a hardship withdrawal a year ago, took another one this year, McHugh said.

To be eligible for a 401k hardship withdrawal, individuals must demonstrate an immediate and heavy financial need, according to IRS regulations. Certain medical expenses; costs relating to the purchase of a primary home; tuition and education expenses; payments to prevent eviction or foreclosure on a primary home; burial or funeral expenses; and repair of damage to a primary home meet the IRS definition and are permitted by most 401k plans.

A key concern is that these withdrawals are just that, they are not loans. As a result there can be a significant impact on someones overall retirement savings. If the worker is younger than 59 1/2, theyll pay a 10 percent penalty for early withdrawal in addition to taxes.

The average age of the workers taking hardship withdrawals is between 35 and 55, their peak earning years. Its also often a time when competing financial challenges emerge, McHugh said.

The good news in the report was that the average 401k account balance as of the end of the second quarter was $61,800; up 15 percent from the same time last year, but down from the end of the first quarter of 2010.



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Investors urge Target to look at political giving AP

MINNEAPOLIS A few Target Corp. and Best Buy Co. institutional shareholders weighed in Thursday on the flap over the companies political donations in Minnesota, urging the boards of both retailers to increase their oversight of campaign contributions.

Walden Asset Management and Trillium Asset Management Corp., both of Boston, and Bethesda, Md.-based Calvert Asset Management Co. filed shareholder resolutions with both companies. Together, the three firms control less than 1 percent of each companys outstanding shares � 1.1 million Target shares worth $57.5 million and 344,000 Best Buy shares worth $11.3 million � but they are moving the debate over the political giving to a new arena.

Target gave $150,000 and Best Buy $100,000 to a business-focused political fund helping a conservative Republican gubernatorial candidate in Minnesota, triggering a national backlash from gay rights groups and liberals. The companies made the donations after a recent U.S. Supreme Court ruling freed them to spend corporate funds on elections. The candidate, state legislator Tom Emmer, opposes gay marriage and other rights for same-sex couples.

A good corporate political contribution policy should prevent the kind of debacle Target and Best Buy walked into, said Trillium vice president Shelley Alpern. We expect companies to evaluate candidates based upon the range of their positions � not simply one area � and assess whether they are in alignment with their core values. But these companies policies are clearly lacking that.

The shareholders said the donations dont mesh with corporate values that include workplace protections for gay employees and risk harming the companies brands. Walden senior vice president Tim Smith said such giving can have a major negative impact on company reputations and business.

The Target resolution urges the board to review the effect of future political contributions on the companys public image, sales and profitability and to consider the cost of backing a candidate whose politics conflict with the companys public stances.

Spokeswoman Amy Reilly said Minneapolis-based Target had nothing to add to previous statements on the matter, including an apology from Chief Executive Officer Gregg Steinhafel.

A spokeswoman for Richfield, Minn.-based Best Buy didnt immediately respond to a message.

The three investment companies together submitted the resolution to Target, while Calvert and Trillium filed the Best Buy shareholder proposal. One of Trilliums clients, the Portland, Ore.-based Equity Foundation, divested a small Target holding of 170 shares on Wednesday.



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Report: Iran needs year to develop nuclear weapon AP

WASHINGTON U.S. officials have convinced Israel that Iran needs at least a year to develop a nuclear weapon, dimming prospects of an Israeli strike on Irans nuclear facilities, The New York Times reports.

Israeli officials thought Iran could develop nuclear weapons within months. But Gary Samore, President Barack Obamas top adviser on nuclear issues, told the Times he thinks it would take Tehran roughly a year to turn low-enriched uranium into weapons-grade material.

A year is a very long period of time, Samore was quoted by the newspaper in an report posted on its website late Thursday.

The assessment is based on U.S. intelligence and international inspectors reports.

Israeli officials have indicated that if they thought Iran was developing a nuclear weapon, they would probably take military action. Iran says it is enriching uranium only for peaceful purposes.

American and Israeli officials believe that Iran has only enough nuclear materials for two weapons. And to build those two would require the country to kick out international inspectors, which would make it clear what its intentions were.

It would also take some time for Iran to convert its nuclear facilities to produce weapons-grade uranium.

Iran has added relatively few centrifuges � machines that enrich uranium � this year, and only about half of those are working, according to the International Atomic Energy Agency.

Either they dont have the machines, or they have real questions about their technical competence, Samore told the Times.

Israeli officials remain suspicious that Iran has a secret enrichment site.



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Kennedy favors civilian courts in terrorism cases AP

KAANAPALI, Hawaii Supreme Court Justice Anthony Kennedy said Thursday that most terrorism cases should be tried in civilian courts.

Kennedy addressed participants in the 9th Circuit Judicial Conference on Maui, where a panel discussion earlier this week reached a consensus in favor of using civilian courts instead of military commissions in most terrorism cases.

Article III courts are quite capable of trying these terrorist cases, Kennedy said, agreeing with the conclusion.

Kennedy also praised the hundreds of attorneys attending the four-day conference at the Hyatt Regency Maui Resort & Spa for taking up one of the most crucial, dangerous and disturbing issues of our time � terrorism.

It was clear, he said, that an attack on the rule of law has failed, referring to the use of military tribunals to try terrorist suspects, often before panels in Guantanamo Bay, Cuba.

The justice is often considered the swing vote on the ideologically divided high court. During a question-and-answer session, Kennedy was asked how new Justice Elena Kagan would bring change to the high court.

It will be a different court, Kennedy said, without elaborating.

The 9th Circuit includes federal trial, appeals and bankruptcy courts, as well as district courts in Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington state, Guam and the Commonwealth of the Northern Mariana Islands.

Nearly 400 judges preside in 9th Circuit courts.

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Information from: The Maui News, http://www.mauinews.com



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Thais to rule on US bid to extradite arms dealer AP

BANGKOK An appeals court in Thailand began delivering a final verdict Friday on a U.S. request to extradite suspected arms smuggler Viktor Bout, the elusive Russian businessman dubbed The Merchant of Death.

Bout, a 44-year-old former Soviet air force officer, is reputed to be one of the worlds most prolific arms dealers. He has allegedly supplied weapons that fueled civil wars in South America, the Middle East and Africa, with clients including Liberias Charles Taylor and Libyan leader Moammar Gadhafi and both sides of the civil war in Angola.

Bout says he is the victim of an American frame-up.

Ahead of the ruling, Bouts lawyer described him as very optimistic and eager to get out of prison. He reiterated Bouts repeated denial of the accusations against him. During testimony, Bout claimed he ran a legitimate air cargo business and was in Bangkok to discuss selling airplanes to Thai businessmen.

Viktor is an entrepreneur, a businessman. Hes good at what he does, said defense lawyer Lak Nittiwattanawichan. Whether or not hes an arms trafficker, you have to prove that in court. I am not personally aware of such activities.

Bout was arrested in March 2008 at a Bangkok luxury hotel as part of an elaborate sting in which U.S. agents posed as arms buyers for the Revolutionary Armed Forces of Colombia, or FARC, which Washington classifies as a terrorist organization.

After his arrest, Bout was indicted in the U.S. on charges of conspiring to sell millions of dollars worth of weapons to FARC, including more than 700 surface-to-air missiles, thousands of guns, high-tech helicopters and airplanes outfitted with grenade launchers and missiles.

The case became the center of a diplomatic tug-of-war between Moscow and Washington, both of which want Bout turned over and were closely following Fridays verdict.

We continue to believe that Viktor Bout should be extradited to the United States to stand trial, said Kristin Kneedler, a spokeswoman for the U.S. Embassy in Bangkok, which was waiting for the ruling to discuss the case in greater detail.

In August 2009, the lower court rejected the U.S. extradition request � prompting a senior American embassy official in Bangkok to say Washington was disappointed and mystified by the ruling.

The Bangkok Criminal Court said that Thailand considers the FARC a political movement and not a terrorist group, and that extradition under a Thai-U.S. treaty could not be granted for a political offense.

The ruling dashed Washingtons hopes for a quick handover of Bout who has never been prosecuted, despite being the subject of U.N. sanctions, a Belgian money-laundering indictment and a travel ban.

Thai prosecutors appealed the ruling on Washingtons request. And in February, U.S. prosecutors filed new charges in hopes of convincing reluctant officials in Thailand to extradite Bout despite Russias objections.

U.S. State Department spokesman P.J. Crowley said Thursday that the Thai ambassador in Washington was summoned to the State Department this week so that U.S. officials could emphasize that this is of the highest priority to the United States.

The new charges say Bout and his former business associate, Richard Chichakli, used a series of front companies to purchase two planes from U.S. companies in 2007, in violation of U.S. and United Nations sanctions. At the time, U.S. officials intervened to block the sale.

Russia has made great efforts to get Bout out of Thailand. Experts say Bout has been useful for Russias intelligence apparatus, and Russia does not want him going on trial in the United States.

Bouts nickname arose from his 1990s-era notoriety for running a fleet of aging Soviet-era cargo planes to conflict-ridden hotspots in Africa. A high-ranking minister at Britains Foreign Office first used the nickname in 2000 to single out Bout for his arms role in Africa.

The 2005 Nicolas Cage film, The Lord of War, is widely believed to be modeled after Bouts life.

A bipartisan group of U.S. lawmakers wrote to the Thai government this week warning of a negative impact on U.S.-Thai relations if Bout is released. The letter, delivered Wednesday to the Thai Embassy, protested the lack of coordination and opaque nature in the court cases.

Mark my words, if Bout goes free, hell go back to arming the worlds worst, said Rep. Ed Royce R-CA, one the letters signers as ranking member of U.S. House of Representatives subcommittee on terrorism, nonproliferation and trade. Thats not in the interest of the United States, or Thailand.

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Associated Press Writer Jocelyn Gecker contributed reporting.



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Calderon: Mexico should consider anonymous judges AP

MEXICO CITY President Felipe Calderon said Mexico should consider appointing anonymous judges for drug trafficking trials, an unexpected proposal that he acknowledged contradicts the countrys efforts to build a more open judicial system.

Calderon, who raised the idea Thursday during meeting with senators on national security, said Mexico should at least consider the idea as drug cartels stage increasingly bold attacks on public official at all levels.

I recognize that this goes against ... our legal tradition, Calderon said. But in all honesty, gentlemen, I have found that citizens, police, judges, prosecutors are at risk, in the sense that they are completely exposed to criminal vengeance.

We should consider whether this is valid or not, whether anonymous judges would work or not, Calderon said.

It was a surprise comment from the Mexican leader, who has touted an ongoing reform of Mexicos secretive, inquisitorial judicial system. That overhaul, backed by millions of dollars in U.S. aid, will create an accusatory system that puts the burden of proof on prosecutors and establish oral trials to replace proceedings now carried out almost entirely in writing.

A law approved by all 32 Mexican states in 2008 calls for the changeover to be completed by 2016.

Calderon, who gave no plan for carrying out the debate on anonymous judges, is facing mounting complaints from political opponents � and even some allies � that his national security strategy is failing. He has convoked a series of national meetings to address those concerns.

Even if Mexico decides against anonymous judges, Calderon said the country needs to find a way to protect judges, prosecutors and witnesses. He said some federal police have been gunned down just after testifying at trials.

Peru and Colombia have at times used anonymous or faceless judges in their wars against guerrilla groups and drug traffickers as a means to protect judges from reprisals for their rulings. The use of such judges has been criticized by human rights groups.

As if to underscore the distance Mexicos justice system still has to go, a government human rights ombudsman on Thursday recommended the removal of the top police official in Tijuana after citizens came forward to say they had been tortured by the border citys crusading public safety chief, Julian Leyzaola.

Baja California state Human Rights Prosecutor Heriberto Garcia told a news conference that the investigators had found evidence to support complaints by five Tijuana residents that they had been picked up without cause following an August 2009 gun fight in Tijuana.

The complainants � whose identities were not released � said they taken to a police station and beaten, partially suffocated with plastic bags or given electric shocks by two policemen and Leyzaola.

We came to the conclusion that some of them suffered electric shocks that caused wounds on their bodies, others showed contusions, and one in particular had the marks of a blow to his side that is perfectly distinguishable as the mark of a boot, Garcia said. Leyzaola is known for his get-tough anti-crime policies and strong language; his office did not immediately respond to requests for comment.

During the meeting with senators, Calderon stepped up his criticism of the U.S. government for not doing enough about drug consumption and the smuggling of guns into Mexico. Mexican and U.S. law enforcement officials both say that many of the guns used by cartels are smuggled in from the U.S.

Calderon said Mexico should mount an international campaign to bring attention again and again to the irresponsibility of the Americans, even if they get upset and even if it disturbs their election campaigns.

Its unacceptable that the voracity of the weapons industry is fomenting the levels of violence we have here, Calderon said.

Mexicos drug gang violence has reached unprecedented levels since Calderon deployed thousands of troops and federal police to drug-trafficking hotspots in 2006.

More than 28,000 people have since died in Mexicos drug war, while gang attacks have become bolder and more gruesome.

On Wednesday, Mayor Edelmiro Cavazos of the northern Mexican town of Santiago was found dead three days after gunmen disguised as police kidnapped him from his home. Cavazos, who had been shot twice in the head, was found with his hands were bound and his head had been wrapped in tape, suggesting the work of Mexicos brutal cartels.

The region surrounding Santiago, a favorite getaway for residents of the industrial city of Monterrey, has become a battleground for turf between the Gulf cartel and its former allies, the Zetas gang of hit men.

Investigators have not determined a motive for Cavazos assassination. The mayor, who belonged to Calderons National Action Party, frequently spoke out against drug violence, but allies have said he had not taken any dramatic security measures that may have angered the cartels.

But Mauricio Fernandez, mayor of the San Pedro Garza Garcia, another town on the outskirts of Monterrey, said Cavazos had received death threats from gangs warning him to stay out of their way. Fernandez said Cavazos had come to him for advice on how to handle the threats.

He was a little afraid and he was reaching out to people with experience in this sort of thing, Fernandez, an outspoken mayor who has also received threats and last year sent his family to the U.S. for their own safety, said in an interview with Multimedios on Wednesday night.

Officials at the Nuevo Leon state attorney generals office said Cavazos had never informed authorities about any threats. Gen. Guillermo Moreno, who commands troops in Nuevo Leon and Tamaulipas states, told The Associated Press that the army also had never received complains from the mayor or requests for protection.



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Singer Wyclef Jean meets with Haitis president AP

PORT-AU-PRINCE, Haiti Haitian President Rene Preval met with presidential hopeful Wyclef Jean for more than two hours on Thursday, touching off a new round of speculation as to whether the singer will be allowed to run in Nov. 28 elections.

Jean told The Associated Press that he felt the exchange with Preval was positive.

I feel good, the hip hop artist and former Fugees frontman said. I feel that the president that I voted for five years ago is the same person that was sitting in front of me today.

Several hours after the meeting, Jean posted a photo on his Twitter account of him shaking hands with Preval, who is not allowed to run for re-election.

Earlier in the week, Jean said he had received death threats. Jean said Preval expressed concern and offered him security.

The singer and several dozen other presidential hopefuls are scheduled to find out Friday if the countrys electoral council allows them to run for office.

The council, which is known as the CEP, was supposed to release the presidential candidate list on Tuesday, but postponed the decision.

Haitians are watching the election closely; whoever is elected will preside over reconstruction of the earthquake battered, impoverished country.

For several days, Haitians, bloggers and international media have speculated whether Jean will be on the list. He was born in Haiti but moved to New York when he was nine. Under Haitian law, candidates for president must reside in the country for five years prior to taking office. Jean contends he meets the requirements, and has hired lawyers to defend his case.

After meeting with Preval, Jean was confident that he will be allowed to campaign.

It looks like its leaning that way, he said.

A spokesman for the CEP, Richardson Dumel, said Thursday evening that the list is not yet final and added that he cannot disclose who has made the cut.

Late Thursday night, about 500 Wyclef supporters gathered at the entrance to the CEP, which is housed in what was once a Golds Gym.

We are here to make sure that the CEP gives out a fair result and for Wyclef to participate in the election, said protester Jean Renel.

Jean added that Preval told him he wanted to meet with every possible presidential candidate, and called for a peaceful campaign ahead of the vote.

A call to Prevals press office was not returned.



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UN seen meeting aid goal for flood-hit Pakistan AP

UNITED NATIONS The United Nations appeared to have met its target of $460 million in immediate aid for flood-stricken Pakistan on Thursday after the U.S. and other nations significantly upped their pledges.

The rush of promised help came after U.N. Secretary-General Ban Ki-moon, addressing a hastily called meeting of the General Assembly, urged governments and people to be even more generous than they were in the 2004 Indian Ocean tsunami and this years Haiti earthquake, because the floods were a bigger global disaster with the Pakistan government now saying more than 20 million people need shelter, food and clean water.

This disaster is like few the world has ever seen, Ban told the meeting. It requires a response to match. Pakistan needs a flood of support.

Before the meeting, he said, donors had given half the sum the U.N. appealed for to provide food, shelter and clean water to up to 8 million flood victims over the next three months. But Ban insisted all the money was needed now � and much more will be needed later.

After listening to speeches by high-level representatives of some 20 countries, Pakistani Foreign Minister Shah Mahmood Qureshi said he was assured that the $460 million goal is going to be easily met, including $100 million plus from Saudi Arabia.

Aid groups and U.N. officials had worried about a slow response to the flooding, theorizing that donors who have spent heavily on a string of huge disasters in recent years are reluctant to open their wallets yet again.

Richard Holbrooke, the U.S. special envoy to Pakistan and Afghanistan, told reporters before the meeting that he believed that where the tsunami and Haiti catastrophes happened suddenly, for about 10 days people didnt realize that this wasnt just another flood.

Earlier Thursday, after visiting flood areas with Pakistani President Asif Ali Zardari, U.S. Sen. John Kerry warned of extremists who might exploit the misery of others for political or ideological purpose, and so it is important for all of us to work overtime.

Zardari spoke of militants who might take orphaned children and train them as the terrorists of tomorrow.

Holbrooke said its impossible to assess whether al-Qaida or others are taking advantage of the floods because we cant even get in there.

U.S. Secretary of State Hillary Clinton announced that her government, already the biggest donor, would contribute an additional $60 million, bringing its total to more than $150 million, and that about $92 million would go into the U.N.s relief coffers.

The European Union raised its pledge to more than $180 million. In addition, Britain said it would double its contribution to nearly $100 million, on top of $25 million in public donations, and Germany raised its aid to $32 million.

Holbrooke warned that many billions will eventually be needed to rebuild Pakistan. He challenged other countries, especially China, Pakistans close ally, which was recently crowned as the worlds second largest economy, to step up to the plate.

Chinas intentions were expected to become clear when its representative addresses the second session of the meeting on Friday.

At a gathering before the U.N. meeting, Qureshi said the Chinese had increased their cash assistance, supplied relief goods and taken responsibility for providing food, water and shelter to some 27,000 people in an inaccessible area in the north, so if you put this all together, its substantial.

For the Obama administration, Pakistan is vital for stabilizing neighboring Afghanistan and enabling American troops to withdraw. Washington has already committed to spending $7.5 billion over the next five years in the country.

I want the people of Pakistan to know: The United States will be with you through this crisis, Clinton said. We will be with you as you replant your fields and repair your roads. And we will be with you as you meet the long-term challenge to build a stronger nation and a better future for your families.

The floods have affected about one-fifth of Pakistans territory � an area larger than Italy or Arizona � straining its civilian government as it also struggles against al-Qaida and Taliban violence.

Qureshi, the Pakistani foreign minister, said every 10th Pakistani has been rendered destitute, crops worth billions of dollars have been destroyed, and things are likely to worsen as monsoon rains continue.

He said Pakistans army has made substantial gains against the terrorists, But the peace and relative calm achieved ... are still fragile and need to be consolidated.

Famed Pakistani musician Salman Ahmad, who joined Holbrooke and others at the gathering before the U.N. meeting, stressed that 100 million of Pakistans 175 million people are under 25 and feel abandoned by the world.

They have two possible futures � one of following their dreams, the other of being sucked into extremism, he said.

Right now, the terrorists are counting on the fact that there will be a sluggish response from the international community, because if there is a sluggish response, the terrorists win, the extremists win, Ahmad warned.

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Associated Press Writer Anita Snow contributed to this report from the United Nations.



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Spike in layoffs feeds fear of faltering recovery AP

WASHINGTON Layoffs are back, and thats bad news for the fragile economic recovery.

New applications for unemployment benefits hit a nine-month high last week � a spike that suggests private employers may shed jobs this month for the first time this year.

Workers are losing construction jobs in Georgia and manufacturing jobs in Indiana. Some of the layoffs are coming as stimulus money dries up and public works projects come to a halt. Government employees are being let go, too, as states and cities grapple with budget crises.

Without more jobs, consumers will not feel secure enough to spend much money, further slowing the economy. The grim outlook has economists lowering their estimates for growth in the second half of the year. And on Thursday it led to a sell-off on Wall Street led by investors worried that the United States could tumble back into recession.

Todays news on the economy has been nothing but awful, Paul Ashworth, an economist at Capital Economics, wrote in a note to clients. The recovery is clearly slowing.

The Labor Department announced Thursday that initial claims for jobless benefits rose by 12,000 last week to 500,000 � the highest level since November and the third straight increase.

As the economy recovered from the worst downturn since the 1930s, jobless claims declined steadily from a peak of 651,000 in March 2009 to a low of 427,000 in July before rising steadily over the past six weeks. In a healthy economy, jobless claims usually drop below 400,000.

This is obviously a disappointing number that shows ongoing weakness in the job market, said Robert Dye, senior economist at the PNC Financial Services Group.

Dye said claims showed a similar pattern in the last two recoveries, but eventually began to fall again. The current elevated level of claims is a sign that employers are reluctant to hire until the rebound is well under way. Thats what happened after the 1991 and 2001 recessions, which were dubbed jobless recoveries.

Economists caution that more than 350,000 temporary census jobs ended in recent months, and those workers could be applying for benefits. Congress also recently restored an extended unemployment benefits program, which can sometimes spike claims.

The jobless report and a separate report showing that manufacturing activity in the mid-Atlantic declined in August sent stock markets tumbling. The Dow Jones industrial average closed down 144 points for the day. Interest rates dropped sharply as investors flocked to the safety of Treasury bonds.

A rush to move money into Treasurys in recent months has sent mortgage rates to the lowest level in decades. They dipped for the eighth time in nine weeks.

Also Thursday, the Congressional Budget Office said the deficit is on pace to exceed $1.3 trillion for the budget year that ends in September. That would be the second-largest ever, just below the record of more than $1.4 trillion in the last fiscal year.

Partially fueling the deficit was hundreds of billions of dollars in stimulus spending intended to help lift the country out of recession. But many of the programs are now ending, taking jobs with them.

Ken Simonson, chief economist at the Associated General Contractors of America, said highway contractors began working on stimulus projects as much as a year ago, and now that pipeline is empty.

Work on commercial projects such as office buildings, malls and hotels is dead, dead, dead, he added.

Construction firms are letting go of more workers as the housing sector slumps and federal stimulus spending on public works projects winds down. Construction-related layoffs have been particularly heavy in recent weeks in Georgia, Pennsylvania and North Carolina.

In Washington, Republicans have made Democrats handling of the economy the No. 1 campaign issue heading into the midterm congressional elections. President Barack Obama cited the jump in jobless claims to call attention to Republicans who are opposing his proposal to help small businesses.

That bill would provide up to $30 billion in additional lending to small businesses and about $12 billion in tax breaks to encourage hiring. But Republicans and some Democrats are balking at more government spending because of the effect on the deficit.

The nationwide increase in unemployment claims suggests the economy is creating even fewer jobs than in the first half of this year, when private employers added an average of about 100,000 per month. Thats barely enough to keep the unemployment rate from rising. The jobless rate has been stuck at 9.5 percent for two months.

Private employers added only 71,000 jobs in July. But that increase was offset by the loss of 202,000 government jobs, including 143,000 temporary census positions.

July marked the third straight month that the private sector hired cautiously, and economists are concerned that the unemployment rate will start rising again because overall economic growth has weakened significantly since the start of the year.

After expanding at a 3.7 percent annual rate in the first quarter, the economys growth slowed to 2.4 percent in the April-to-June period. Some economists forecast it will drop as low as 1.5 percent in the third quarter.



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Beijing: Chinas top nuclear envoy visited NKorea AP

SEOUL, South Korea Chinas top nuclear envoy traveled to North Korea this week to discuss the resumption of six party talks on the Norths nuclear weapons program, Beijing said.

North Korea walked away from six-nation nuclear talks last year in protest at an international condemnation of a long-range rocket launch. Prospects for restarting the talks were put into doubt after an international investigation in May blamed North Korea for torpedoing the South Korean warship Cheonan and killing 46 sailors. North Korea denies attacking the ship.

On Thursday, Chinas Foreign Ministry said that its chief nuclear envoy, Wu Dawei, visited North Korea from Monday to Wednesday to discuss resuming the nuclear talks.

Wu met senior North Korean officials including Foreign Minister Pak Ui Chun and top nuclear envoy Kim Kye Gwan. They discussed maintaining peace and stability on the peninsula and resuming the six-party talks, the ministry said in a statement.

They reached a full consensus of views on all the matters discussed, the Norths official Korean Central News Agency reported late Thursday. Neither Chinas Foreign Ministry nor KCNA gave any further details.

But South Koreas Yonhap news agency reported Thursday that Wus trip indicated Beijing wants to resolve tension over the warship sinking by restarting the six-party talks involving the two Koreas, China, the U.S., Japan and Russia.

Citing unidentified diplomatic sources in Beijing, Yonhap noted Wus trip came ahead of a new round of joint military drills that South Korea and the U.S. plan to stage in the Yellow Sea early next month.

China has repeatedly criticized the drills, saying they risked heightening tensions on the peninsula and ignored its objections to any foreign military exercises off its coast.

This week, South Korea and the U.S. began annual joint military drills that North Korea has called a rehearsal for invasion. That followed massive joint naval drills the allies conducted last month.

The Korean peninsula technically remains in a state of war because the 1950-53 Korean War ended with an armistice, not a peace treaty. The U.S. stations 28,500 troops in South Korea to protect its key ally.

It wasnt clear whether Wus trip would help lead to the restart of the nuclear talks, as U.S., South Korean and Japanese officials have said Pyongyang must come clean on the warship sinking and express a sincere willingness to disarm before the talks can resume.

In Washington on Thursday, State Department spokesman P.J. Crowley told reporters that there are specific things that North Korea can do to demonstrate a seriousness of purpose and to create an environment where future nuclear disarmament talks could be productive.

He wouldnt specify what those steps are, saying only that there are specific obligations that North Korea has undertaken. Obviously, we remain concerned about provocations that North Korea has made, both recently and over many months. We want to see a change in North Koreas behavior, and, should we see that change, then that would give us indications that North Koreas serious about moving ahead.

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Associated Press writers Sangwon Yoon in Seoul and Chi-Chi Zhang in Beijing and Foster Klug in Washington, D.C., contributed to this report.



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Major study charts long-lasting oil plume in Gulf AP

WASHINGTON A 22-mile-long invisible mist of oil is meandering far below the surface of the Gulf of Mexico, where it will probably loiter for months or more, scientists reported Thursday in the first conclusive evidence of an underwater plume from the BP spill.

The most worrisome part is the slow pace at which the oil is breaking down in the cold, 40-degree water, making it a long-lasting but unseen threat to vulnerable marine life, experts said.

Earlier this month, top federal officials declared the oil in the spill was mostly gone, and it is gone in the sense you cant see it. But the chemical ingredients of the oil persist more than a half-mile beneath the surface, researchers found.

And the oil is degrading at one-tenth the pace at which it breaks down at the surface. That means the plumes could stick around for quite a while, said study co-author Ben Van Mooy of the Woods Hole Oceanographic Institution in Massachusetts, which led the research published online in the journal Science.

Monty Graham, a scientist at the Dauphin Island Sea Lab in Alabama who was not involved in the study, said: We absolutely should be concerned that this material is drifting around for who knows how long. They say months in the research paper, but more likely well be able to track this stuff for years.

Late Thursday, federal officials acknowledged the deepwater oil was not degrading as fast as they initially thought, but still was breaking down relatively rapidly. Jane Lubchenco, chief of the National Oceanic and Atmospheric Administration, said agency scientists and others were working furiously to come up with actual rates of biodegradation.

She noted a bright spot from the slow breakdown of the oil: Faster would mean a big influx of oil-eating microbes. Though they are useful, they also use up oxygen, creating dead zones that already plague the Gulf in the summer. Dead zones are not forming because of the oil plume, Lubchenco said.

The underwater oil was measured close to BPs blown-out well, which is about 40 miles off the Louisiana coast. The plume started three miles from the well and extended more than 20 miles to the southwest. The oil droplets are odorless and too small to be seen by the human eye. If you swam through the plume, you wouldnt notice it.

The water samples when we were right in the plume look like spring water, study chief author Richard Camilli said. You certainly didnt see any oil droplets and you certainly didnt smell it.

The scientists used complex instruments � including a special underwater mass spectrometer � to detect the chemical signature of the oil that spewed from the BP well after it ruptured April 20. The equipment was carried into the deep by submersible devices.

With more than 57,000 of these measurements, the scientists mapped a huge plume in late June when the well was still leaking. The components of oil were detected in a flow that measured more than a mile wide and more than 650 feet from top to bottom.

Federal officials said there are signs that the plume has started to break into smaller ones since the Woods Hole research cruise ended. But scientists said that wouldnt lessen the overall harm from the oil.

The oil is at depths of 3,000 to 4,000 feet, far below the environment of the most popular Gulf fish like red snapper, tuna and mackerel. But it is not harmless. These depths are where small fish and crustaceans live. And one of the biggest migrations on Earth involves small fish that go from deep water to more shallow areas, taking nutrients from the ocean depths up to the large fish and mammals.

Those smaller creatures could be harmed by going through the oil, said Larry McKinney, director of Texas A&M Universitys Gulf of Mexico research center in Corpus Christi.

Some aspects of that region are so little known that we might lose species that we dont know now exist, said Graham of the Dauphin Island lab.

This is a highly sensitive ecosystem, agreed Steve Murawski, chief fisheries scientist for the federal agency NOAA. The animals down at 3,300 to 3,400 feet grow slowly. The oil not only has toxic components but could cause genetic problems even at low concentrations, he said.

Lubchenco said NOAA is very concerned about the impact of the oil below the surface and federal officials last week started more aggressive monitoring of it.

For much of the summer, the mere existence of underwater plumes of oil was the subject of a debate that at times pitted outside scientists against federal officials who downplayed the idea of plumes of trapped oil. Now federal officials say as much as 42 million gallons of oil may be lurking below the surface in amounts that are much smaller than the width of a human hair.

While federal officials prefer to describe the lurking oil as an ephemeral cloud, the Woods Hole scientists use the word plume repeatedly.

The study conclusively shows that a plume exists, that it came from the BP well and that it probably never got close to the surface of the Gulf of Mexico, Camilli said. It is probably even larger than 22 miles long, but scientists had to stop measuring because of Hurricane Alex.

Earlier this week a University of South Florida team reported oil in amounts that were toxic to critical plant plankton deep underwater, but the crude was not necessarily in plumes. Those findings have not been reviewed by other scientists or published.

The plume is probably still around, but moving west-southwest of the BP well site at about 4 miles a day, Camilli said.

While praising the study that ended on June 28, Murawski said more recent observations show that the cloud of oil has broken apart into a bunch of very small features, some them much farther away. Texas A&Ms McKinney said marine life can suffer harm whether it is several smaller plumes or one giant one.

NOAA redirected much of its sampling for underwater oil after consulting with Woods Hole researchers. The federal agency is now using the techniques that the team pioneered with a robotic sub and an underwater mass spectrometer, Murawski said.

Previous attempts to define the plume were like watching the Super Bowl on a 12-inch black-and-white TV and we try to bring to the table a 36-inch HD TV, said Woods Hole scientist Chris Reddy. The paper, fast-tracked for the world of peer-reviewed science, was written on a boat while still in the Gulf, he said.

Reddy said he could not yet explain why the underwater plume formed at that depth. But other experts point to three factors: cold water, the way the oil spewed from the broken well, and the use of massive amounts of dispersants to break up the oil before it gets to the surface.

The decision to use 1.8 million gallons of dispersants amounted to an environmental trade-off � it meant less oil tainting the surface, where there is noticeable and productive life, but the risk of longer-term problems down below.

Retired Coast Guard Adm. Thad Allen, the governments point man on the Gulf oil spill, said it was a choice between two difficult options � with the discussions going on in front of the president. In the end, officials decided to accept the implication of the hydrocarbons in the water column rather than Barataria Bay or the Chandeleur Islands in Louisiana.

Given the slow rate at which the oil is degrading in the cold water, Samantha Joye of the University of Georgia, and others say it is too early to even think about closing the books on the spill: The full environmental impacts of the spill will thus not be felt for some time.

___

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Roger Clemens indicted in steroid case AP

WASHINGTON Roger Clemens was vehement: Let me be clear. I have never taken steroids or HGH, he told a House committee in 2008. Now, instead of the Hall of Fame, baseballs seven-time Cy Young winner could go to prison after being indicted by a federal grand jury Thursday for allegedly lying to Congress.

The case writes a new chapter in one of baseballs worst scandals, the rampant use of performance-enhancing drugs in the 1990s and early 2000s, and leaves Clemens legacy in jeopardy.

The six-count indictment alleges that Clemens obstructed a congressional inquiry with 15 different statements made under oath, including denials that he had ever used steroids or human growth hormone.

Former Rep. Tom Davis of Virginia, the top Republican on the House panel at the time of Clemens testimony, called it a self-inflicted wound.

Clemens had been prominently mentioned in the Mitchell Report, Major League Baseballs own accounting of its steroid problem, and he went to Capitol Hill on his own to clear his name.

Clemens was not under subpoena. He came voluntarily, Davis said. And I sat there in the office with committee chairman Henry Waxman and said, Whatever you do, dont lie.

Clemens was sticking to his story Thursday. He insisted he was telling the truth, again denying any wrongdoing on or off the field.

Roger is looking forward to his day in court, Clemens lawyer Rusty Hardin told a news conference. He is happy this has finally happened. We have known for some time this was going to happen. Well let everything get taken care of in court.

I never took HGH or Steroids. And I did not lie to Congress, Clemens said on Twitter. I look forward to challenging the Governments accusations, and hope people will keep an open mind until trial. I appreciate all the support I have been getting. I am happy to finally have my day in court.

Hardin said federal prosecutors made Clemens a plea offer but he rejected it. Hardin declined to comment on details of the proposed plea deal � which ordinarily involves admitting to a crime while avoiding the scenario of a multiple-count indictment as happened in the Clemens case.

Clemens faces a combined maximum sentence of 30 years in prison and a $1.5 million fine if convicted on all charges. However, under U.S. sentencing guidelines, he would probably face no more than 15 to 21 months in prison.

Clemens is just the latest superstar to be ensnared in baseballs steroid scandal. All-time home run king Barry Bonds is scheduled to go on trial in March on charges of lying to a federal grand jury when he said he never knowingly used performance-enhancing drugs. Slugger Mark McGwire admitted earlier this year to using steroids.

What once seemed to be a he-said vs. he-said dispute between Clemens and his former trainer, Brian McNamee, once the New York Yankees strength and conditioning coach, escalated into a federal case. The grand jury heard testimony from McNamee, who gave federal authorities syringes he said were used to inject Clemens with drugs.

Hardin said that although many have argued that Clemens should simply admit he took steroids, the problem is nobody ever talks about what he should have done if he didnt do it.

And he didnt do it and hes adamant about that and always has been. Today is just another continuing part of that saga, Hardin said.

Clemens, who turned 48 this month, ranks ninth on the career list with 354 victories. He once was considered a certain first-ballot Hall of Famer, but getting in at all is now in question.

In my opinion, hes a Hall of Famer. Period, said New York Yankees slugger Lance Berkman, who played with Clemens in Houston. Whatever you want to say about the guy, he belongs in the Hall of Fame. In my opinion, legacy-wise, I guess thats up to � I mean, 200 years from now, who cares?

But in the short term, I guess, he may have some things to address, Berkman said. Hes a big boy. Hell face up to whatever it is. But it doesnt change my opinion of him at all.

Yankees catcher Jorge Posada, who played with Clemens on two World Series championship teams, said he would back his former teammate.

Im going to support him and Im going to be behind him and thats all I can say, Posada said.

MLB did not comment on the indictment. But many in the game saw it as further validation of the Mitchell Report, released in December 2007.

Clemens was singled out by name 82 times in the 409-page report, compiled by former Senate Majority Leader George Mitchell. Much of the information on Clemens came from his former trainer, Brian McNamee, once the Yankees strength and conditioning coach.

Four days after the report was released, Clemens issued a categorical denial in a statement through his agent.

I am disappointed that my 25 years in public life have apparently not earned me the benefit of the doubt, but I understand that Senator Mitchells report has raised many serious questions. I plan to publicly answer all of those questions at the appropriate time in the appropriate way. I only ask that in the meantime people not rush to judgment, Clemens said.

Clemens and McNamee testified under oath at the 2008 hearing before a House committee and contradicted each other about whether the pitcher had used PEDs.

McNamee has said he injected Clemens more than a dozen times with steroids and HGH from 1998 to 2001. Clemens says McNamee was lying.

As far as were concerned, its vindication, Earl Ward, one of McNamees attorneys, said of the indictment.

Clemens case was assigned to U.S. District Judge Reggie Walton, who presided over the perjury and obstruction trial of Vice President Dick Cheneys former chief of staff, I. Lewis Scooter Libby. No date was set for Clemens initial court appearance.

In his defiant testimony to the House Oversight and Government Reform Committee, Clemens said, Ive been accused of something Im not guilty of.

Longtime Clemens friend and teammate Andy Pettitte told congressional investigators that Clemens confided to him that he had used HGH.

I believe Andy has misheard the conversation, Clemens responded. He said he had simply mentioned to Pettitte a TV show about three older men who used HGH to get back their quality of life.

Pettitte was taking part in a charity event after New Yorks 11-5 win over Detroit at Yankee Stadium on Thursday and wasnt immediately commenting, the team said.

Clemens was an 11-time All-Star. During a 23-year career that ended in 2007, he played for the Boston Red Sox, the Toronto Blue Jays, the Yankees and the Houston Astros and struck out 4,672 with a lifetime 3.12 ERA.

The Clemens matter was the second referral the congressional committee made to the Justice Department. The other involved Miguel Tejada, who pleaded guilty to making misleading statements to committee investigators in 2005 regarding his knowledge of performance-enhancing drugs.

The indictment of Roger Clemens comes as no surprise to me, said Victor Conte, founder of the Bay Area Laboratory Co-Operative, the center of a drug scandal that enveloped Bonds and other star athletes.

In my opinion, the case against Clemens is far stronger than the case against Barry Bonds. Brian McNamee is an eyewitness who will testify against Clemens and there appears to be strong physical evidence against him as well, he said. I believe Roger Clemens is in a lot of trouble.

Conte pleaded guilty to steroid distribution in July 2005 and served four months in jail.

___

AP Baseball Writer Ben Walker and AP Sports Writers Mike Fitzpatrick, Ronald Blum and Beth Harris contributed to this report.



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Jetliner grounded in San Francisco after threat AP

SAN FRANCISCO A hijack threat halted an American Airlines flight just before takeoff Thursday, leaving the New York-bound jet sitting on the tarmac for several hours while it was searched and passengers were removed for extra scrutiny.

The FBI later determined that the telephoned threat wasnt credible, but in the wake of the 9/11 attacks and a series of airline scares in the past year, the incident still rattled nerves as it played out live on national TV.

Police were investigating who called in the hijacking threat and what their motivation might have been.

Although passengers described the scene aboard the Boeing 767 as calm, a witness said two people sitting in the back row attracted suspicion and were taken off in handcuffs. But they were quickly released and allowed to rebook their flights.

The couple confirmed to an Associated Press reporter that they were the ones who had been removed from the plane but declined to identify themselves. They said authorities explained they were picked at random for questioning.

But a fellow passenger suggested the couple may have been targeted because of their appearance. Michael Anderson, 20, said he remembered seeing the couple as he was checking in for the flight to New Yorks John F. Kennedy International Airport and saw them carrying passports from Pakistan.

It definitely seems like it was racial profiling, based on what they look like physically and the fact they are Pakistani. It seems like this was a false accusation, said Anderson, a Yale University sophomore who was heading back to school.

American Airlines Flight 24, with 163 passengers and a crew of 11, was already running 2 1/2 hours late when it pulled away from the gate at 10 a.m. Minutes later, it was being dispatched to a remote stretch of tarmac at San Francisco International airport where it sat for two hours. Passengers were taken by buses to a terminal for further security checks.

There was no fear in the cabin at all, passenger Michael Kidd told the AP. It was pretty calm. Even with the frustration of having to sit there, there were no raised voices.

Passengers with Internet access searched the Web for details about the incident. Passengers were allowed to go to the bathroom one at a time, Kidd said, with flight attendants admonished anyone who tried to get to their overhead luggage.

Police eventually entered through the back door and arrested the two passengers. Others on board were taken off the plane six at a time and put on a buses. San Francisco Police Department officers used security wands to screened them and their carry-on luggage.

The two passengers were taken off the plane separately, but we cannot discuss the specifics why, said FBI spokesman Joseph Schadler.

The couple declined to discuss the possibility that they may have been targeted because of their appearance. Of course were upset, but I guess we cant blame them, the woman told the AP. Theyre just doing their job.

Kidd said he and his wife did not believe the couple had been racially profiled based on appearances alone. The man wore a Los Angeles Lakers jersey and the woman was wearing a beret, and they looked like typical Californians, he said.

The threat report originated from clerk at a business in Alameda, a city across San Francisco Bay from the airport, said Lt. Bill Scott. The clerk called police shortly after 9 a.m. Thursday and said the business had received an anonymous phone call making a threat specifically about Flight 24, Scott said.

It was the latest in a line of airplane scares in the past year, including the attempted Christmas bombing of a Detroit-bound jetliner by a Nigerian. In April, a Qatari diplomat who was on his way to an official visit with an imprisoned al-Qaida sleeper touched off a bomb scare in Colorado by slipping into an airline bathroom for a smoke.

One of the four hijacked flights on Sept. 11, 2001, was bound for San Francisco.

Passenger Randy Cohen, 50, of New York said he lived across street from the World Trade Center on Sept. 11.

Cohen said the atmosphere on the plane was generally calm even though passengers got little explanation about why the plane had been diverted. But he said rumors about a hijacking or bomb threat began floating around among passengers connected to the Internet. It was like, man, this cant happen again, Cohen said.

At the same time, via its Twitter feed, American Airlines reassured a passenger sending out tweets from aboard the aircraft.

Hang in there, the airline said, the authorities are taking care of things.

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Associated Press Writers Eileen Sullivan, Matt Apuzzo and Joan Lowy in Washington and Marcus Wohlsen in San Francisco contributed to this report.



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Obama a Muslim? Rumors gain steam, defying facts AP

NEW YORK President Obama is a Muslim. Hes not an American citizen. He wasnt even born here.

None of this is true. But to surprising levels, it is believed.

Blame it on the media, or on human nature. All presidents deal with image problems � that theyre too weak or too belligerent, too far left or far right. But Obama also faces questions over documented facts, in part because some people identify more with the rumormongers than the debunkers.

Trust and distrust � that explains almost all of it, says Nicholas DiFonzo, professor of psychology at the Rochester Institute of Technology and an expert on rumor and gossip research. We are in such a highly polarized political environment. Our country is sorting itself into more closely knit, opposing factions each year � factions, DiFonzo suggests, that in turn become echo chambers for factoids that arent fact at all.

Nearly one in five people, or 18 percent, said they think Obama is Muslim, up from the 11 percent who said so in March 2009, according to a poll released Thursday. The proportion who correctly say he is a Christian is just 34 percent, down from 48 percent in March of last year.

The White House even felt compelled to respond with a terse knockdown from spokesman Bill Burton: The president is obviously a Christian. He prays every day.

Obama is the Christian son of a Kenyan Muslim father and a Kansas mother. Born in Hawaii, he lived from ages 6 to 10 in predominantly Muslim Indonesia with his mother and Indonesian stepfather. His full name, Barack Hussein Obama, sounds Muslim to many.

Confusion about Obamas religion was common, and sometimes encouraged, during the 2008 campaign. An Associated Press photograph that circulated on the Internet, and was posted on The Drudge Report, showed Obama dressed in traditional local garments � a white turban and a wraparound white robe � during a visit to Kenya in 2006. Democratic rival Hillary Rodham Clinton may have contributed through her response to a question, during a 60 Minutes interview, about whether he was a Muslim. Theres nothing to base that on, she said. As far as I know.

Others have helped keep rumors about Obamas religion and birth alive. Conservative commentators including radio talk show host Michael Savage have repeated debunked claims that Obama attended a radical Muslim madrassa in Indonesia. Rush Limbaugh has facetiously referred to Imam Obama in recent days, and last year praised a woman who at a Delaware town hall meeting questioned Obamas citizenship. Lou Dobbs gave significant air time to such birther claims on CNN � despite his own insistence that he believed Obama was born in the U.S.

The new survey, conducted by the nonpartisan Pew Research Center and its affiliated Pew Forum on Religion & Public Life, is based on interviews conducted before the controversy over whether Muslims should be permitted to construct a mosque near the World Trade Center site. Obama has said he believes Muslims have the right to build an Islamic center there, though hes also said he wont take a position on whether they should actually build it.

We have never been without misperceptions, but they are speeded and multiplied in the Internet age. Last month, right-wing bloggers � citing unnamed sources within the Laredo Police Department in Texas � reported that the Mexican drug cartel Zetas had captured two Laredo ranches. The story was picked up by author-pundit Michelle Malkin and other conservatives.

Inquiries from local media and the liberal Web site Talking Points Memo turned up different news: The raids never happened.

The Internet has made it worse, says Lori Robertson, managing editor of the website FactCheck.org, a nonpartisan project run under the Annenberg Public Policy Center of the University of Pennsylvania. Any of these rumors are more rampant, and theres more stuff about them � blogs writing about conspiracy theories. People are exposed to it more.

Robertson says her organization has been asked hundreds of times about Obamas religion, even after FactCheck published an explanatory article in early 2008 called Sliming Obama. It focused on the chain e-mail that many believe helped spread the lie.

Despite what the e-mail claimed, FactCheck.org has noted that Obama was sworn into office as a U.S. senator using the Bible instead of the Quran; a photograph was posted to prove it. FactCheck also posted videos of Obama reciting the Pledge of Allegiance in the Senate, in an attempt to counter claims that he refused.

Still, the questions about Obamas faith didnt stop.

Did Obama order creation of a postage stamp to honor a Muslim holiday? FactCheck.orgs answer: The first class stamp honoring Eid al-Fitr and Eid al-Adha was first issued eight years ago. Obama has followed Bushs practice of reaching out to Muslims on Ramadan.

Superstitions and myths are timeless and universal, and so are the people who exploit them, whether Holocaust deniers, race supremacists or conspiracy theorists.

Misinformation in the mass media age was captured by the author-columnist Walter Lippman in his classic Public Opinion, published in 1922. Finding that world events were driven by a tiny minority manipulating the rest, Lippman noted the comparatively meager time available in each day for paying attention to public affairs, the distortion arising because events have to be compressed into very short messages, the difficulty of making a small vocabulary express a complicated world.

The problem wasnt only with the media, but with the public.

People, he wrote, live in the same world, but think and feel in different ones. Lippman believed many suffer from anemia, from lack of appetite and curiosity for the human scene.

And so millions have thought that the country was overrun with communists, that John F. Kennedy was taking orders from the pope, that AIDS spreads through casual contact, that Saddam Hussein or even the George W. Bush administration helped plan the Sept. 11 attacks. In the 1990s, when the government was running a surplus under the Clinton administration, a poll showed substantial numbers of people thought it was running a deficit.

DiFonzo was stunned when he heard one of those rumors stated as fact in his upper-level social psychology class last year. A student raised her hand and insisted, But George Bush was behind the bombings of Sept. 11.

She was serious, DiFonzo said, adding that he believes she accepted the rumor because other people in her life gave her the impression that it was plausible.

This isnt a partisan thing, he said. Its not a characteristic of Democrats or of Republicans. Its a human characteristic. Its a place that we happen to be at in our culture today. What seems outlandish is often based on what we think may be plausible.

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Contributing to this story were National Writer Pauline Arrillaga and Television Writer David Bauder.

This version corrects Robertsons last name on second reference.



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US officials: Mideast talks may start soon AP

WASHINGTON The Obama administration said Thursday it is near to securing an agreement between Israel and the Palestinians to resume direct peace talks. Some U.S. officials said an announcement could be imminent.

The State Department said an agreement was very, very close but that details were still being worked out. An announcement could come as early as Friday or Saturday, said administration officials familiar with the matter. They spoke on condition of anonymity due to the delicacy of the ongoing diplomacy.

We think we are very, very close to a decision by the parties to enter into direct negotiations, State Department spokesman P.J. Crowley told reporters. We think were well positioned to get there.

To that end, he said, Secretary of State Hillary Rodham Clinton had called Palestinian Prime Minister Salam Fayyad late Wednesday and spoken Thursday with Jordanian Foreign Minister Nasser Judeh and former British Prime Minister Tony Blair, the special representative of the Quartet of Mideast peacemakers � the U.S., the U.N., the European Union and Russia.

Officials said tentative plans call for Israel, the Palestinians, the Quartet and the U.S. to release separate but near simultaneous statements saying the stalled talks will resume early next month in either the U.S. or Egypt. The U.S. statement is expected to be issued in Clintons name.

Crowley declined to comment on the arrangements but said that if we reach the point we hope to arrive at ... we will demonstrate our support for the process and we will outline specifics of where we go from here.

Israeli and Palestinian officials refused to comment. They said they would react after an official announcement is made about the talks, and added that they did not have advance information about the content.



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Plane grounded at SFO after alleged phone threat AP

SAN FRANCISCO A jetliner was being held on the tarmac at San Franciscos airport because of an alleged phone threat, federal officials said.

Officials stopped American Airlines Flight 24, bound for New Yorks John F. Kennedy International Airport, before its scheduled takeoff at 7:30 a.m., the Transportation Security Administration said.

All passengers are safe and out of an abundance of caution, TSA requested the plane be moved to a remote location, TSA spokeswoman Suzanne Trevino said in a statement.

Passengers were being taken off the plane on at least five buses to be interviewed and re-screened.

American Airlines spokesman Tim Smith said the threat was phoned into local police. He said there were no hostages.

There were 163 passengers and 11 crew members aboard the Boeing 767, Smith said.

Michael Kidd, a passenger on the plane, told KTVU in a phone interview that passengers appeared calm. They were on the runway getting ready to take off when the crew said they would be returning to the gate but didnt say why, Kidd said.



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Threatening call stops Calif. flight from takeoff AP

WASHINGTON A Transportation Security spokesman says officials are investigating a report of a threat made over the phone to a flight from San Francisco to New York before the jet took off.

Transportation Security Administration spokesman Greg Soule says the agency asked that the American Airlines plane be moved to a remote location as passengers are deplaned, interviewed and rescreened.

Law enforcement officials are also sweeping the airplane for anything suspicious.



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Roger Clemens charged with perjury in steroid case AP

WASHINGTON A federal grand jury on Thursday indicted seven-time Cy Young Award winner Roger Clemens for allegedly lying to Congress about using steroids and growth hormone.

Clemens faces charges of obstruction of Congress, making false statements and perjury.

The six-count grand jury indictment said that Clemens obstructed a congressional inquiry with 15 statements that he made under oath, including denials that he had ever used steroids or human growth hormone. The indictment alleged that he lied and committed perjury regarding the same matters.

The former Major League baseball pitcher and his former trainer, Brian McNamee, testified under oath at a 2008 hearing before a House committee and contradicted each other about whether Clemens had used the banned substances.

McNamee has told federal agents, baseball investigator George Mitchell and the committee that he injected Clemens more than a dozen times with steroids and human growth hormone from 1998 to 2001.

Clemens has maintained that McNamee was lying.

As far as were concerned, its vindication, Earl Ward, one of McNamees attorneys, said of the indictment.

Clemens attorney, Rusty Hardin, said by telephone from Houston that he had just learned of the indictment and would wait to decide whether to comment.

The case was assigned to U.S. District Judge Reggie Walton, the judge who presided over the perjury and obstruction trial of Vice President Dick Cheneys former chief of staff, I. Lewis Scooter Libby. No date has been set for Clemens initial court appearance.

In a defiant appearance before the House Oversight and Government Reform Committee in 2008, Clemens said, Ive been accused of something Im not guilty of ... I have never taken steroids or HGH.

Longtime Clemens friend and New York Yankees pitching star Andy Pettite told congressional investigators that Clemens confided to him that he had used human growth hormone. Clemens said Pettites assertion wasnt correct.

I believe Andy has misheard the conversation, Clemens responded. He said he had simply mentioned to Pettite a TV show about three older men who used HGH to get back their quality of life.

On Thursday, former Rep. Tom Davis of Virginia, who was the top Republican on the House panel at the time of the baseball stars testimony, called the indictment a self-inflicted wound by Clemens.

Clemens was not under subpoena. He came voluntarily. He wanted to come to the committee and clear his name. And I sat there in the office with committee chairman Henry Waxman and said, Whatever you do, dont lie.

During a 23-year career as a starting pitcher, Clemens played for the Boston Red Sox, the Toronto Blue Jays, the New York Yankees and the Houston Astros, chalking up 354 wins, 4,672 strikeouts and a lifetime earned run average of 3.12.

Other baseball greats, Mark McGwire and Barry Bonds among them, have become enmeshed in the steroid scandal of the 1990s.

McGwire said in January that it was a wrong thing what I did. I totally regret it.

The Clemens matter was the second referral the congressional committee made to the Justice Department. The other was that of Miguel Tejada, who pleaded guilty to making misleading statements to committee investigators in 2005 regarding his knowledge of performance enhancing drugs.



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Major study proves oil plume thats not going away AP

WASHINGTON A 22-mile-long invisible mist of oil is meandering far below the surface of the Gulf of Mexico, where it will probably loiter for months or more, scientists reported Thursday in the first conclusive evidence of an underwater plume from the BP spill.

The most worrisome part is the slow pace at which the oil is breaking down in the cold, 40-degree water, making it a long-lasting but unseen threat to vulnerable marine life, experts said.

Earlier this month, top federal officials declared the oil in the spill was mostly gone, and it is gone in the sense you cant see it. But the chemical ingredients of the oil persist more than a half-mile beneath the surface, researchers found.

And the oil is degrading at one-tenth the pace at which it breaks down at the surface. That means the plumes could stick around for quite a while, said study co-author Ben Van Mooy of the Woods Hole Oceanographic Institution in Massachusetts, which led the research published online in the journal Science.

Monty Graham, a scientist at the Dauphin Island Sea Lab in Alabama who was not involved in the study, said: We absolutely should be concerned that this material is drifting around for who knows how long. They say months in the research paper, but more likely well be able to track this stuff for years.

Florida State University scientist Ian MacDonald, in testimony before Congress on Thursday, said the gas and oil imprint of the BP discharge will be detectable in the marine environment for the rest of my life.

The underwater oil was measured close to BPs blown-out well, which is about 40 miles off the Louisiana coast. The plume started three miles from the well and extended more than 20 miles to the southwest. The oil droplets are odorless and too small to be seen by the human eye. If you swam through the plume, you wouldnt notice it.

Theres no visible evidence of oil in the samples; they look like clear water, study chief author Richard Camilli said.

The scientists used complex instruments � including a special underwater mass spectrometer � to detect the chemical signature of the oil that spewed from the BP well after it ruptured April 20. The equipment was carried into the deep by submersible devices.

With more than 57,000 of these measurements, the scientists mapped a huge plume in late June. The components of oil were detected in a flow that measured more than a mile wide and more than 650 feet from top to bottom.

Federal officials said there are signs that the plume has started to break into smaller ones since the Woods Hole research cruise ended. But scientists said that wouldnt lessen the overall harm from the oil.

The oil is at depths of 3,000 to 4,000 feet, far below the environment of the most popular Gulf fish like red snapper, tuna and mackerel. But it is not harmless. These depths are where small fish and crustaceans live. And one of the biggest migrations on Earth involves small fish that go from deep water to more shallow areas, taking nutrients from the ocean depths up to the large fish and mammals.

Those smaller creatures could be harmed by going through the oil, said Larry McKinney, director of Texas A&M Universitys Gulf of Mexico research center in Corpus Christi.

Some aspects of that region are so little known that we might lose species that we dont know now exist, said Graham of the Dauphin Island lab.

This is a highly sensitive ecosystem, agreed Steve Murawski, chief fisheries scientist for the National Oceanic and Atmospheric Administration. The animals down at 3,300 to 3,400 feet grow slowly. The oil not only has toxic components but could cause genetic problems even at low concentrations, he said.

For much of the summer, the mere existence of underwater plumes of oil was the subject of a debate that at times pitted outside scientists against federal officials who downplayed the idea of plumes of trapped oil. Now federal officials say as much as 42 million gallons of oil may be lurking below the surface in amounts that are much smaller than the width of a human hair.

While federal officials prefer to describe the lurking oil as an ephemeral cloud, the Woods Hole scientists use the word plume repeatedly.

The study conclusively shows that a plume exists, that it came from the BP well and that it probably never got close to the surface of the Gulf of Mexico, Camilli said. It is probably even larger than 22 miles long, but scientists had to stop measuring because of Hurricane Alex.

Earlier this week a University of South Florida team reported oil in amounts that were toxic to critical plant plankton deep underwater, but the crude was not necessarily in plumes. Those findings have not been reviewed by other scientists or published.

The plume is probably still around, but moving west-southwest of the BP well site at about 4 miles a day, Camilli said.

While praising the study that ended on June 28, Murawski said more recent observations show that the cloud of oil has broken apart into a bunch of very small features, some them much farther away. Texas A&Ms McKinney said marine life can suffer harm whether it is several smaller plumes or one giant one.

NOAA redirected much of its sampling for underwater oil after consulting with Woods Hole researchers. The federal agency is now using the techniques that the team pioneered with a robotic sub and an underwater mass spectrometer, Murawski said.

Previous attempts to define the plume were like watching the Super Bowl on a 12-inch black-and-white TV and we try to bring to the table a 36-inch HD TV, said Woods Hole scientist Chris Reddy. The paper, fast-tracked for the world of peer-reviewed science, was written on a boat while still in the Gulf, he said.

Reddy said he could not yet explain why the underwater plume formed at that depth. But other experts point to three factors: cold water, the way the oil spewed from the broken well, and the use of massive amounts of dispersants to break up the oil before it gets to the surface.

The decision to use 1.8 million gallons of dispersants amounted to an environmental trade-off � it meant less oil tainting the surface, where there is noticeable and productive life, but the risk of longer-term problems down below.

At a federal science conference, officials looked at the relative risks and decided it was worth the effort to use dispersants, Murawski said.

About 7 percent of the oil from the leaked well went into this particular plume, said Samantha Joye of the University of Georgia. Given the slow rate at which the oil is degrading in the cold water, she and others said it is too early to even think about closing the books on the spill: The full environmental impacts of the spill will thus not be felt for some time.

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Afghan War doesnt break for Islams holiest month AP

FORWARD OPERATING BASE WILSON, Afghanistan May you have a blessed Ramadan, reads a poster greeting U.S. troops outside a base mess tent. It refers to Islams holiest month, a time of good deeds, prayer and purification of the spirit through sunrise-to-sunset fasting.

But on the western approaches to the strategic city of Kandahar, neither side is taking a spiritual time-out from the war.

Soldiers from the 101st Airborne Division are attempting to root out Taliban fighters still entrenched in about a fifth of the Arghandab Valley.

The divisions 502nd Infantry Regiment, preparing for a major assault in Taliban-controlled Zhari district, stages probes into villages and grape fields sown with booby traps and hidden bombs, which the military calls improvised explosive devices or IEDs. Along Highway 1, a lifeline connecting Kandahar to the capital, Kabul, the insurgents are launching daily attacks against supply convoys.

Ramadan? Every time you step outside the wire, the war is real. Were surrounded, says Lt. Douglas Meyer, commanding a platoon at Ghundy Gar, a desolate, sun-seared hilltop outpost ringed by Zharis deceptively bucolic landscape.

According to Islamic tradition, the gates of hell are closed and those who die stand a greater chance of entering heaven during Ramadan, the ninth month of the lunar year when Muslims believe the holy book Quran was revealed to the Prophet Muhammad.

Radical Islamists believe that martyrdom during this time is a guaranteed ticket to paradise. They regard violence as a way of ridding the world of impurities, which include American troops in Afghanistan and other infidels.

Beginning with Muhammads conquest of Mecca in 624, Ramadan has often witnessed bloodshed. Egypt and Syria began their 1973 war with Israel during the holy month, and violence in Iraq spiked almost every year since the 2003 U.S.-led invasion. Washingtons decision not to interrupt its 2001 bombing in Afghanistan sparked harsh criticism among the worlds 1 billion Muslims.

So far, and unlike some Ramadans past, the general level of violence has not escalated significantly since the month began Aug. 11, although military operations havent slowed down either.

U.S. and other international deaths appear to have dropped this month from record levels in June � when 60 Americans died � and July, when 66 were killed. More than halfway through August, the U.S.-led command has reported 17 American deaths and 28 for the entire international force. At least seven Americans have been killed since Ramadan began.

Clearly, however, the month of fasting has an effect on the way Afghans fight � be they Taliban or Afghan security forces.

The jihadists tend to get more excited during Ramadan, but theyre fasting so the sugar levels start to decline by noon. Most of the fighting is done in the morning, says Maj. Gen. Nick Carter, the British commander of NATO forces in southern Afghanistan.

Patterns of fighting seem to change too.

Its inconsistent. Weve seen a surge one day and then they take one or two days off. Some of the Taliban leaders may have gone to Pakistan for Ramadan, says Lt. Col. Peter N. Benchoff, who commands the 2nd Battalion of the 502nd in Zhari. But we have to watch `The Night of Power, when they believe they have the best chance of getting straight to heaven.

That night, which falls during the last 10 days of Ramadan, commemorates the moments in a mountain cave when Allahs words first came down to Muhammad.

Benchoff says Ramadan does create problems as U.S. forces pursue one of their most urgent priorities � training the Afghan National Army to a level where it could cope with the insurgency when the Americans begin withdrawing next summer. The Afghan soldiers cant eat or drink during daylight hours, when U.S. soldiers must down bottle after bottle of water to counter the withering heat. As a result, the Americans must scale down the previously intense pace of training and reduce joint patrols.

The Ramadan schedule is kicking us in the butt, but its also significant for the motivation and morale of the Afghan soldiers, says Benchoff, who nightly joins his Afghan counterpart as he breaks fast with a meal of goat and rice. U.S. troops are told to minimize eating and drinking in front of the Afghans, who in turn have offered them instructions on Ramadans meaning and practices.

Around the bases and remote combat outposts of Zhari, the Taliban appear to be following the same daily pattern as Afghan government troops � dawn prayers, perhaps a morning attack and then rest during what are normally the most violent hours, between 1 p.m. and 5 p.m.

Its like squirrels gathering up nuts for the winter, says Meyer, of Baltimore, Maryland, looking out across a neat patchwork of green fields and grazing sheep from his hilltop post. Theyve put the IEDs explosives out there, and just sit back and wait.



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Ditch the queen: UK publics wild ideas for budget cuts AP

LONDON Sell off the Queens swans. Make lawmakers work for free. Force prison inmates to generate cheap power on the treadmill.

As Britains government decides how to make the toughest spending cuts in decades, it has asked the public for help. The result? A list of wild ideas on how to save money � proposals that Treasury chief George Osborne insists will be seriously considered as he draws up a five-year austerity plan.

Osborne wants to save 30 billion pounds per year $44 billion to quickly reduce Britains huge national debts, racked up as the previous government bailed out banks and launched stimulus programs during the global financial crisis.

He has ordered government departments to prepare for budget cuts of 25 percent to raise 30 billion pounds per year $44 billion in savings and will announce details of his plans in a major speech in October.

Ministers have already announced a slate of cuts � axing 700 new schools, halting payments to pregnant women to fund healthier diets and scrapping 10 billion pounds US$15 billion worth of projects agreed under ex-Prime Minister Gordon Brown.

But the countrys Conservative-led coalition government says it needs help to meet its ambitious target, not least because Osborne intends to balance Britains books almost exclusively by cutting costs, not raising taxes.

More than 45,000 ideas for savings have been posted on the Treasurys website by members of the public and government workers. They range from the deliberately extreme � scrapping Britains monarchy, to the seemingly sensible � have staff book hotels online, not through expensive travel brokers.

We asked everyone across the country � the people who use our schools, hospitals, transport systems and other public services � to send in their ideas for how to save public money and get more out of our services, said a Treasury spokeswoman, on condition of anonymity in line with policy.

Among edgier ideas are plans to put Britains population of almost 100,000 prisoners to work.

One suggestions calls for convicts to cook meals for public hospitals or government-run care homes for the elderly. A wackier plan demands treadmills and rowing machines in prison gyms to be adapted to produce power for the national electricity grid.

Other offerings propose lining the roofs of government buildings � including Parliament � with vegetable gardens and selling the produce at a profit. Another idea suggests seeking corporate sponsors for Britains spectacular, but expensive, military parades.

One submission suggested asking the Queen to sell off her swans for meat. Under ancient laws, the Queen owns most swans in Britain and the bird was once a favored dish among the countrys aristocracy.

In June, Osborne said the 7.9 million pounds $12 million in annual government funding to Queen Elizabeth IIs royal household, used to pay salaries and the costs of official functions, would be frozen for a year.

Contributors to the website say that doesnt go far enough � calling for Queen Elizabeth II either to step down, or drastically reduce the number of her family members who receive public money. The French have not had a monarchy for more than 200 years and tourists still flock to Versailles, one of the ideas posted on the Treasury site reads.

Other submissions call for the U.K. to share its plush � and costly � overseas embassies with its allies, sharply cutting the costs of the diplomatic service.

Dozens of entries demand cuts to development aid paid to poorer countries. While ministers say fast-growing economies like China and India wont in the future receive money from Britain, Prime Minister David Cameron has already pledged not to cut the U.K.s overall aid budget.

Submissions provided by government workers offer a long list of grass roots efficiencies � suggesting cheaper ways of paying for cell phone contracts, stationary and printing.

Speaking in Brighton, southern England, earlier this month, Cameron said seeking out the publics ideas would help build support for the likely painful cuts to be announced in October. I want to make sure we take as many people in our country with us as we do that, he said.

Taxpayer groups praised the governments approach, but said Osbornes Treasury must now prove it is listening to the publics ideas � however wild.

Public consultation is a great tool in the right hands. It can smash down the barriers between the electorate and their representatives, and absorb people into the democratic process where theyre able to have a real say in how the country is run, said Matthew Elliott, chief executive of the Taxpayers Alliance.

But, like all consultation, the project will be undermined if public concerns are ignored and its ultimately exposed as a gimmick. If this happens then the public may well lose faith, he said.

Britain has a deficit of about 10.4 percent of GDP, while debt stands at 903 billion pounds US$1.4 trillion. Government lawmakers say the scale of the countrys financial woes mean the public largely accept spending cuts are necessary.

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US envoy says billions needed for Pakistan AP

UNITED NATIONS A top U.S. envoy says many billions of dollars will be needed to rebuild Pakistan after massive flooding.

Richard Holbrooke, the U.S. special representative for Pakistan and Afghanistan, told the Asia Society that the United States was the first and largest contributor, and he challenged other countries, especially Pakistans close ally China, to step up to the plate.

He spoke ahead of a high-level meeting of the U.N. General Assembly later Thursday to spotlight the South Asian countrys immediate need for $460 million for food, shelter and clean water.

The floods have submerged tens of thousands of villages, killed around 1,500 people and affected more than 20 million others, authorities in Pakistan say.



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NY mosque imam in Mideast for outreach tour AP

MANAMA, Bahrain The imam leading plans for an Islamic center near the Manhattan site of the Sept. 11 attacks arrived in the Middle East on a U.S.-funded outreach trip on Thursday.

The U.S. State Department said Imam Feisal Abdul Rauf arrived in Bahrain for the start of a 15-day tour in which he is expected to discuss Muslim life in America and promote religious tolerance.

The trip � estimated to cost about $16,000 � is funded by the State Departments Bureau of International Information Programs and will include visits to Qatar and the United Arab Emirates.

The department said Rauf will get a daily $200 honorarium for the tour. Airfare is included, as well as the standard federal government per diem for expenses and lodging in each of the cities he will visit, spokesman P.J. Crowley said.

The published maximum per diem rate for U.S. government employees in Manama is $396, in Doha it is $341, and in Abu Dhabi it is $496.

Details of the imams specific plans in each country have been closely guarded � possibly in reaction to the rancor in the United States over plans proposed by the imams organization, The Cordoba Initiative, for an Islamic cultural center near the site of the World Trade Center towers.

Rauf will not be allowed to raise funds for the mosque on the trip, Crowley told reporters Wednesday.

We have had conversations with the imam to make sure he understands that during these kinds of trips, hes not to engage in any personal business, Crowley said.

We value his participation as a religious figure here in the United States who can help people overseas understand the role that religion plays in our society, he said.

Raufs tour has drawn attention because of his plans to build an Islamic center in lower Manhattan near ground zero. Foes of the project say it is insensitive and disrespectful to the victims of 9/11 and their families. The debate has become politicized ahead of Novembers midterm congressional elections.

According to the State Department, it will be Raufs fourth U.S.-government sponsored trip. He traveled twice to the Middle East in 2007 during the Bush administration and once earlier this year.



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