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NEWS     SATURDAY, JULY 4, 2009   NEWS

Growing National Debt May Be Next Economic Crisis
The Founding Fathers left one legacy not celebrated on Independence Day but which affects us all. It's the national debt. The country first got into debt to help pay for the Revolutionary War. Growing ever since, the debt stands today at a staggering $11.5 trillion -- equivalent to over $37,000 for each and every American. And it's expanding by over $1 trillion a year. Fox News

BURN NOTICE ON HOT NEW IPHONE
Apple's iPhone is a hot seller -- in more ways than one. Users report that the 3GS model is too hot to hold to their ears on routine phone calls, that its video recorder makes it too hot to hold at all, that overheating warps the plastic case, and even that the white 32GB model turns pink because of the heat. Apple insists the summer heat is to blame. NY Post

Honduras Refuses To Restore President
Honduras' refusal to restore ousted President Manuel Zelaya despite an appeal by the top envoy for the Americas has put the impoverished nation on a collision course with the world community that could lead to its isolation. Honduras said it would no longer recognize the Organization of American States charter, claiming the diplomatic body attempted to impose "unilateral and indignant resolutions" on the new government, which took power a week ago in a military-backed coup and forced Zelaya into exile. Detroit News

Calif. Regulators Warn Of Pot's Cancer Capability
It might take Californians a puff or two to get their heads around an apparent contradiction recently enshrined in state law. The same marijuana smoke that doctors can recommend to ease cancer patients' suffering must soon come with a warning saying it causes the disease. State environmental regulators last month voted to place marijuana smoke on its list of hundreds of substances known to cause cancer. The decision could lead to warning signs in medical marijuana dispensaries and labels on packaged pot within a year. Philadelphia Inquirer

Many Cities Celebrating July Fourth Without A Bang
What's a July Fourth celebration without fireworks? Many cities across the United States will find out today. As municipalities grope for ways to shore up budgets, expensive pyrotechnics displays are becoming the latest victims of the economic downturn. CNN

Seven Banks Fail, Pushing 2009 Tally To 52
Seven banks were shut down by authorities Thursday, pushing the tally of failed banks for 2009 to 52, more than doubling the failures in 2008. Six regional banks in Illinois and one in Texas closed their doors, according to the Federal Deposit Insurance Corporation. The rash of Illinois failures are interlinked: All six banks were controlled by one family and followed a similar business model that "created concentrated exposure in each institution," according to the FDIC. CNN

Medici Lawyer Says Kohn Didn't Get Madoff Payments
Austrian fund manager Sonja Kohn did not receive any kickbacks from Bernard Madoff to steer Bank Medici customer funds to the swindler's investment business, a Medici lawyer said on Friday. "There were no Madoff payments to Kohn. There were no kickbacks," lawyer Andreas Theiss told Reuters. Theiss reiterated prior statements that Kohn, whose Bank Medici ran several funds that funneled at least $3.3 billion to Madoff, was one of Madoff's biggest victims. Reuters

North Korea Launches 7 Missiles Off Its East Coast
Defying the United States on Independence Day, North Korea fired seven missiles on Saturday into the sea off its east coast. The test-firings came two days after North Korea, which is being squeezed by the U.S. government and other countries for its recent nuclear test, fired four short-range missiles into the sea. North Korea had warned ships to avoid waters near its east coast through July 10 because of military exercises, and the test-firing were widely predicted. Washington Post

Mrs. Obama Bringing Glamor To Moscow This Weekend
Michelle Obama brings her superstar glamor to Moscow this weekend as she accompanies her husband on his summit with the Russian president. But the American first lady, who has wowed publics in the U.S. and Europe with her easy elegance and charm, will perhaps face a bigger challenge in winning over a Russian public that has scant respect for women who grab the limelight from their powerful husbands. Russia still has trouble with the concept of an empowered woman behind the throne. Atlanta Journal

Drug Raids Reveal ‘Sobering’ Mass Of Weapons
Federal agents busted a drug-trafficking ring that distributed methamphetamine and cocaine from Mexico in Washington state and carried unusually powerful weaponry, injecting a dangerous new factor into drug crime in the region. A .50-caliber Desert Eagle pistol, AK-47-type semiautomatic assault rifle and 14 other weapons shown to reporters Thursday were among 23 guns seized in Operation Arctic Chill when 35 search warrants were served in the past two weeks. Also seized were 19 pounds of methamphetamine, a quarter-pound of cocaine, 22 vehicles and $60,000 in cash, and 31 people were arrested. MSNBC

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Palin Quits As Alaska Governor
Alaska Gov. Sarah Palin shocked the political word Friday afternoon by announcing that she will step down at the end of the month and transfer power to Lt. Gov. Sean Parnell. Palin made the surprise announcement from her home in Wasilla, flanked by her husband, Todd, and family and state commissioners. "I never believed that I nor anyone else needs a title to do this, to make a difference," she said. "I'm determined to take the right path for Alaska, even though it is unconventional and it's not so comfortable." Fox News

Arctic Oil, Gas On Hold From Lawsuits
The global recession and lawsuits from environmental groups have slowed the scramble for previously unattainable oil and gas reserves and shipping routes in the Arctic caused by climate change, and have provided a window to resolve complicated ecological and security concerns, specialists say. Many major international oil and gas companies have put large-scale projects on hold, said Alexander Braun, a specialist on Arctic change and sea dynamics at the Arctic Institute of North America at Canada's University of Calgary in Alberta. Washington Times

Biden Warns Iraq Not To Resume Ethnic Violence
Vice President Joe Biden told Iraqi leaders Friday that he and President Obama were committed to helping them resolve their political differences, but he warned that the United States would be unlikely to remain engaged in Iraq if the country reverted to sectarian violence, U.S. officials said. Biden spent the day in closed-door meetings to assess Iraq's political and security situation as part of his new role as an unofficial envoy for the Obama administration. SF Gate

Number Of Black Male Teachers Belies Their Influence
Tynita Johnson had attended predominantly black schools in Prince George's County for 10 years when she walked into Will Thomas's AP government class last August and found something she had never seen. "I was kind of shocked," said Tynita, 15, of Upper Marlboro. "I have never had a black male teacher before, except for P.E." Tynita's experience is remarkably common. Only 2 percent of the nation's 4.8 million teachers are black men, according to the U.S. Bureau of Labor Statistics. In fact, Thomas, a social studies teacher at Dr. Henry A. Wise Jr. High School, never had a black teacher himself. Washington Post

Healthcare Overhaul Could Limit Tax Breaks On Benefits
For the secretaries and environmental engineers, game wardens and van drivers who work for the state of New Hampshire, surgery is free, even at Boston’s top teaching hospitals if it’s necessary. So are MRIs, CT scans, and X-rays. Pregnant women pay nothing for prenatal care; alcoholics aren’t billed for short stints in rehab. Seeing a therapist costs just $10, as many as 20 visits a year, and prescription drugs top out at $30 for a three-month mail-order supply. New Hampshire state employees get $450 annually toward gym memberships, if they go regularly, or $200 toward their own treadmill - and there’s a $150 annual reimbursement for yoga classes, diabetes clinics, and nutritional counseling. Boston Globe

Oil Brokerage Loses $10 Million On Rogue Trades
LONDON - PVM Oil Associates, the world's biggest over-the-counter oil brokerage, says it lost nearly $10 million this week because of unauthorized trades that caused a temporary spike in Brent crude markets. The firm said in a statement late Thursday that it was investigating the trades, which drove up the price of Brent futures by more than $2 in one hour early Tuesday London time. It did not identify the trader involved in the transactions. MSNBC

Tech May Have Exposed Thousands To Hep C
A former surgery technician may have exposed thousands of Colorado patients to hepatitis C when she swapped her own dirty syringes for ones filled with a powerful narcotic, federal authorities said Thursday. Kristen Diane Parker faces criminal charges for allegedly making the swaps while working at Audubon Ambulatory Surgery Center in Colorado Springs and Rose Medical Center in Denver. Authorities say Parker admitted to changing out syringes containing a saline solution with ones filled with the painkiller Fentanyl. CBS

Iran Supreme Leader Adviser Calls Mousavi A U.S. Agent
A top aide to Iran's supreme leader called the country's main opposition figure a U.S. agent and accused him in an editorial Saturday of committing crimes against the nation . While hard-line figures had previously demanded Mir Hossein Mousavi to be prosecuted for describing Iran's June 12 elections fraudulent and leading demonstrations afterward, the editorial was the first public declaration that the opposition leader was a foreign agent. USA Today

Budget Situations Dire In Several States
Several states are facing the prospect of government shutdowns and program cuts as they enter the first weekend of the fiscal year and the Fourth of July holiday without budgets in place. "This downturn, even more so than previous downturns, really is affecting every state right now," said Brian Sigritz, a staff associate with the National Association of State Budget Officers. Washington Times

GOP, White House At Odds On Sotomayor Documents
The top Republican on the Senate committee that will consider Sonia Sotomayor's Supreme Court nomination says a Puerto Rican civil rights group's papers could shed light on her judicial approach, particularly her view of racial preferences in hiring. White House Counsel Greg Craig, however, told Sen. Jeff Sessions, R-Ala., in a letter that board meeting minutes and other papers detailing the Puerto Rican Legal Defense and Education Fund's activities while Sotomayor was an outside adviser shouldn't impact her nomination because she had no role in writing or approving them. Newsday

SC Residents Mixed Over Fate Of Cheating Gov
After a week that offered the world a glimpse into the conflicted mind of philandering South Carolina Gov. Mark Sanford, his constituents differed Friday on whether he should leave office. Some said the decision should be up to his wife, Jenny. And it's a safe bet that his political future is a topic of conversation as the Sanford family spends the holiday weekend in Florida, where her parents live. But others, including influential lawmakers, said Sanford must resign after misleading the public about his loyalty to family and trips to see his mistress. Las Vegas Sun

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Alleged Nazi Guard Demjanjuk To Stand Trial
Alleged Nazi death camp guard John Demjanjuk has been declared fit to stand trial on charges that he was an accessory to the murder of 29,000 Jews during World War II, German prosecutors announced today. The 89-year-old Demjanjuk, from Cleveland, was deported to Germany almost two months ago by U.S. immigration authorities. "The medical tests have been concluded, and we have been given the green light to put John Demjanjuk on trial, Munich state prosecutor Anton Winkler told ABC News. ABC

Syrian Leader Invites Obama To Visit
Syria’s president sent a Fourth of July message full of praise to President Obama on Friday and invited him to visit Syria. These were the latest signs that Syria is hedging its bets in the politics of the Middle East, warming up to the United States at a time when Syria’s longtime ally Iran is in turmoil. The United States and its Arab allies have been hoping to pull Syria away from its alliances with Iran and Islamic militant groups in the region. NY Times

Group Sotomayor Advised Fought Job Tests
A civil rights group on whose board Supreme Court nominee Sonia Sotomayor served filed racial bias lawsuits over employment examinations that resemble a Connecticut case in which she ruled against white firefighters, documents released by the Senate show. The Puerto Rican Legal Defense and Education Fund represented Hispanic sanitation workers in New York City who wanted to stop white employees from getting promotions because, they argued, the qualifying exam unfairly disadvantaged minorities. San Diego Union

Sunday Liquor Sales Advocates Regrouping For 2010
Lawmakers focused on passing a state budget pushed off efforts to change Indiana's alcohol-sales laws this year, but they will explore the issue this summer and might take it up in the next legislative session. Proponents of allowing Sunday liquor sales hope consumers who share their feeling on the question will join a petition drive to urge legislators to change the state's laws. Hoosiers for Beverage Choices launched its mostly online petition drive last fall in hopes of spurring legislation in the spring, but legislative leaders decided alcohol issues wouldn't be taken up this year. Indy Star

Obama Tells Putin Cold War Is Over
President Barack Obama said former Russian President Vladimir Putin and his hand-picked successor should expect an in-person reminder the Cold War is over when the U.S. leader makes his first trip to a Moscow summit. Days before he departs for Russia, Obama said Thursday that Putin "still has a lot of sway" in his nation as its nominal prime minister. Newsday

Communities Bug Out Over Cuts To Mosquito Control
Millions of mosquito eggs laid across southern Texas after Hurricane Ike hit the coast last summer are waiting for the little bit of rain and hot summer days they need to hatch. That's got the man whose job it is to fight the bugs worried _ he's already running out of money. Lee Chastant and fellow bug battlers across the Gulf of Mexico in Florida, up the East Coast in Connecticut and on the Great Plains of South Dakota are predicting a bumper crop of the always annoying and sometimes deadly pests. Las Vegas Sun

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Stanford Antigua Liquidators Win Fight Over Assets
R. Allen Stanford’s liquidators from Antigua were awarded control of 120 million pounds ($196 million) in U.K. assets seized in a fraud probe in a London court battle with U.S. receivers. Liquidators appointed in the U.S. and Antigua failed to agree on who should control the funds held by Antigua-based Stanford International Bank Ltd. in the U.K. Stanford was indicted last month on U.S. charges he swindled investors out of more than $7 billion. Bloomberg

Powell Warns Obama Of Ambitious Agenda
Colin Powell, who broke ranks with the Republican Party to support Barack Obama, tells CNN the U.S. president's agenda may be too ambitious and too expensive. "I think one of the cautions that has to be given to the president -- and I've talked to some of his people about this -- is that you can't have so many things on the table that you can't absorb it all," he said. "And we can't pay for it all." UPI

Memos Show Chaos Of Gitmo's Early Months
Newly-released Defense Department documents and memos about the first years of operation of the jail at the U.S. base at Guantanamo Bay, Cuba, portray a chaotic and sometimes violent operation that its own commanders described as dysfunctional. President Barack Obama has ordered the detention facility closed next year. It holds more than 200 terror suspects whose cases are undergoing review for their potential release, prosecution or continued confinement. CBS

US Marines Push Deeper Into Southern Afghan Towns
U.S. Marines pushed deeper into Taliban areas of southern Afghanistan on Friday, seeking to cut insurgent supply lines and win over local elders on the second day of the biggest U.S. military operation here since the American-led invasion of 2001. On the other side of the border, U.S. missiles struck a Pakistani Taliban militant training center and communications center, killing 17 people and wounding nearly 30, Pakistani intelligence officials said. ABC

EU Nations Summon Iranian Envoys
The European Union decided Friday to summon Iranian ambassadors across the 27-nation bloc in a joint protest against the detentions of staff at the British Embassy in Teheran. The EU called Iran's decision to put detained British Embassy staff on trial "not acceptable." Britain had proposed recalling all EU ambassadors from Teheran as a powerful signal of unity, but the 27-nation bloc settled for a gradual escalation of pressure, Swedish Foreign Minister Carl Bildt said. Jerusalem Post

'PM Must Endorse Road Map Plan'
Prime Minister Binyamin Netanyahu is making a mistake in not explicitly endorsing the road map, with its monitored sequence of phases toward Palestinian statehood, and risks placing Israel in a situation where the Obama administration instead seeks to impose a permanent accord that would be immensely problematic for Israel, Dov Weissglas, former prime minister Ariel Sharon's bureau chief, has warned The Jerusalem Post. Jerusalem Post

Russia 'Agrees US Troop Transit'
The deal, which opens up an important new corridor for the US military, is to be officially announced when President Barack Obama visits Moscow next week. Speaking separately, a Kremlin official confirmed a deal was on the table but suggested it referred to weapons only. The reported agreement marks a major development in US-Russian relations. Until now Russia has restricted use of its territory for the Afghan conflict, only allowing the US to transport non-lethal supplies to Afghanistan by train, the BBC's Jon Donnison reports from Washington. BBC

Top Envoy In Honduras For Talks
A top Latin American diplomat has arrived in Honduras to demand the restoration of the ousted president. Miguel Insulza, secretary general of the Organization of American States, says he will do all he can to end the impasse in the Central American state. But he earlier acknowledged that it would be difficult to persuade the interim government to take back ousted President Manuel Zelaya. Mr Zelaya was removed from office on Sunday over constitutional reform.  BBC

British Embassy Staff To Stand Trial Over Protests
A leading Iranian cleric sharply and unexpectedly raised the temperature in the crisis over the detention of British embassy staff yesterday by announcing that the two employees still being held would be forced to stand trial for inciting post-election violence against the Islamic regime. The threat prompted a coordinated European Union protest to Iran and a warning that all EU member states may recall their ambassadors in retaliation. Independent

Prison Guards Intercept Carrier Pigeon With A Cellphone
Prison guards foiled a new attempt to smuggle a cellphone into a Brazilian prison by carrier pigeon — this one wearing a tiny backpack — and said Friday that the practice is becoming familiar. An exhausted pigeon wearing a small makeshift backpack was intercepted just outside walls at the Danilo Pinheiro prison near Sorocaba, said a spokesman for the São Paulo State Prison Affairs Department. The representative spoke on condition of anonymity. Inside the backpack was a cellphone and a piece of paper with the name of the inmate who was waiting for the phone, the spokesman said. Seattle Times

'100,000 Fresh Swine Flu Cases A Day By August'
Swine flu is spreading so rapidly that the Government cannot contain it any more. The number of new cases could reach 100,000 a day by the end of August, the Health Secretary Andy Burnham warned yesterday. Firms are being warned to prepare to have up to one-fifth of their staff calling in sick over the autumn. It is also inevitable that the number of deaths from the virus will rise. So far, there have been 7,447 confirmed cases of swine flu in the UK, but only three patients have died and all of those had underlying health problems. Independent

Obama To Seek Climate Deal In Moscow
Barack Obama will move to seal a deal with Russia for joint action on climate change during his summit in Moscow next week, the Guardian has learned. Obama arrives in Moscow on Monday at the start of a trip to Russia, Italy and Ghana that will focus heavily on energy and climate change. From Moscow, Obama travels on to Italy for a meeting of the G8 and a gathering of the major polluting countries. Guardian

Burma Leader Rejects UN Chief's Plea To Visit Aung San Suu Kyi
The UN secretary general, Ban Ki-moon, said today the leader of the Burmese junta had rejected his initial request to meet jailed opposition leader Aung San Suu Kyi. Ban says he told Senior General Than Shwe during two hours of talks todaythat he wants to meet directly with Suu Kyi. Ban told reporters after the talks that Than's initial response was that Suu Kyi is currently on trial. Ban said he told Than the issue is important and he is "waiting for their reply". Guardian

China Punishes Officials After Babies Whose Parents Were Still Alive Were Sent To Orphanages
Chinese authorities have punished six government officials after three baby girls whose parents were still alive were sent to an orphanage in southern China that subsequently put them up for adoption overseas, state media and an official said. Family planning officials in impoverished Guizhou province's Zhenyuan County sent the babies to a state-run orphanage during 2003 and 2004 without properly investigating their backgrounds, the county government said on its Web site. All the parents were still alive but had given up their children to avoid harsh fines under the country's controversial one-child policy. Sun Sentinel

Pope Urges G8 Leaders To Act On Crisis
Pope Benedict XVI has urged G-8 leaders meeting next week in central Italy to rewrite global financial rules and defend the world's poor from the effects of the economic downturn. In a letter to Italian Premier Silvio Berlusconi, who will chair the summit, Benedict appealed to leaders to "listen to the voice of Africa" and other developing areas. He also called on them to "reform the international financial architecture" to ensure credit is made available for economic development and job creation. Kansas City Star

Pakistani Airstrikes Kill At Least 12 Militants
Pakistani fighter jets pounded Taliban positions in the country's volatile northwest on Saturday, killing at least 12 suspected insurgents, security officials said, as the government kept up pressure on Islamist militants along the Afghan border. Elsewhere in the northwest, clashes between tribesmen and Taliban fighters left 16 people dead in the latest violence between pro-government tribal militias and insurgents. Houston Chronicle

BT Offers Thousands Of Workers 'Holiday Of Lifetime' On Quarter Pay
The former state telecoms company - one of Britain's biggest private employers with 106,000 staff - is trying to save money as it struggles to cope with the impact of the recession. BT has proposed that employees take up to a year off, in return for taking a 75 per cent pay cut. To encourage as many workers to take up of the offer, the company will pay their reduced salary as an upfront cash payment. Telegraph

UNESCO Chief Backs G8 Call On Iran To Respect Human Rights
The head of the United Nations agency tasked with upholding freedom of expression and press freedom today voiced his strong support for the recent call issued by the foreign ministers of the Group of Eight (G8) nations on Iran to respect fundamental human rights. Protesters have taken to the streets following the 12 June presidential poll, which opposition candidate Mir Hossein Mousavi has said was fixed in favour of President Mahmoud Ahmadinejad. UN News

Financing Tops Discussion Among Administrative Heads Of UN-Backed Tribunals
The Registrars, or top administrative officials, of the International Criminal Court (ICC), United Nations tribunals and courts backed by the world body wrapped up a meeting today focusing on funding and resources. Silvana Arbia of the ICC, John Hocking of the International Criminal Tribunal for the former Yugoslavia (ICTY), Adama Deng of the International Criminal Tribunal for Rwanda (ICTR), Binta Mansara of the Special Court for Sierra Leone (SCSL), and Herman von Hebel of the Special Tribunal for Lebanon attended the two-day gathering in Venice, Italy. UN News

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