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Twitter slaps limits on sales of its pricey stock

While Facebook prepares to go public, Silicon Valley's other buzzy social startup, Twitter, is doing everything in its power to stay private. In pursing that goal, it has slapped its shareholders with an unusual restriction: No one who holds stock can sell more than 20% of their shares. The rule -- which has been in place for more than a year, according to e-mails obtained by CNNMoney, but is being reported here for the first time -- has caused dissent in Twitter's ranks. It directly led to the departure of Twitter's senior technical engineer, Evan Weaver, who resigned in August. In an e-mail that went to all Twitter employees, Weaver said he quit over "policy disagreements" with the company. The policy at issue was Twitter's 20% stock sale restriction, according to several people with knowledge of the discussions. Weaver, who is currently working on his own startup, declined to comment on the matter. Weaver's missive prompted a quick response from CEO Dick Costolo, who sent out his own all-staff e-mail later that day laying out Twitter's reasons for imposing the limit. The main one: Keeping under the "500 shareholder rule" to avoid going public. When companies have more than 500 shareholders owning one class of equity shares, the SEC requires the business to begin disclosing its financial results. Companies aren't required to go public at that point, but most choose to. The rule was a catalyst in Facebook's recent IPO filing: Facebook moved past the 500 shareholder mark last year. Twitter is going to great lengths to stay under the threshold. "We don't want to be public until we have very predictable quarterly earnings growth," Costolo wrote in his August e-mail. "We're not ready to be a public company for a couple years." That means that Twitter has to "artificially limit the supply of stock being sold," Costolo wrote. "There is one reasonable way to do this: Let everybody with vested common stock sell only some fraction of their shares." A Twitter spokesman declined to comment on the issue. Many private companies set limits on stock sales by current employees, and some impose annual caps on how much stock any shareholder can sell off, according to sources familiar with private trading patterns. But a blanket restriction like Twitter's, preventing shareholders from selling off more than 20% of their shares for the foreseeable future, is unusual. Why do Twitter shareholders want to sell? The company's soaring valuation is a big motivator. Twitter's last major fundraising round put its value at around $8 billion -- a huge number for a company that is still firming up its business model. Industry research firm eMarketer recently estimated Twitter's 2011 advertising revenue at just shy of $140 million. While Twitter's shares aren't publicly traded, they have generated heavy interest from private buyers eager to bet on the company's rapid user growth and cultural cache. But at Twitter's current valuation, it's a very expensive investment. As Costolo put it in his e-mail: "It takes a lot of investors now to buy a lot of stock at these prices." To avoid having too many shareholders, Twitter has had to play matchmaker and seek out a handful of buyers who can afford to spend several hundred million dollars each buying up large batches of Twitter stock. The company has an extra condition. It only wants buyers who "don't want a significant say in how the company is run (board seats, special rights, etc)," Costolo wrote in his e-mail. Twitter found one such buyer recently: Saudi Prince Alwaleed bin Talal, who announced in December that he had acquired a $300 million stake in Twitter. The deal was done entirely through private share purchases from existing stockholders, Fortune reported. All of Twitter's employees -- it currently has around 900 -- have equity in the company, but only Twitter's investors and its earliest employees hold actual stock. Last year, Twitter changed its approach and began granting new employees "restricted stock units" that will only be converted to common-stock shares after a "liquidity event" such as an IPO or corporate takeover. Those RSUs, which can't be sold to investors, don't count toward the 500-shareholder limit. Facebook used a similar tactic to delay its IPO filing. But for early Twitter employees -- who do hold actual, vested stock -- the 20% rule is a frustrating form of golden handcuffs. Some people who would like to leave Twitter feel stuck, according to several current and former employees. Without selling more shares, they don't have the cash to walk away. Some like Weaver have left anyway, because of their philosophical objections to the policy. Even those who leave, voluntarily or not, remain bound by the 20% restriction, which applies to all Twitter shareholders. The issue came up in a recent staff survey Twitter conducted. "Folks continue to be worried about the company losing its best talent," Janet Van Huysse, Twitter's vice president of human resources, wrote last month in a e-mail to employees summarizing survey's results. CNNMoney obtained a copy of the internal e-mail. "In most cases, the comments name specific employees -- most of who left over the stock policy," Van Huysse wrote. "You'll note that there are not necessarily solutions here -- more so just anxiety that we lost so many 'senior' people." Twitter experienced major employee turnover last year as the company worked to transform itself from a successful but haphazardly run startup to a more mature business. Two of Twitter's founders left while its third co-founder, Jack Dorsey, returned to take charge of its product vision. More than a dozen early company leaders departed, while hundreds of new employees joined Twitter's flock. Insiders say those changes have generally been for the best. There's widespread agreement that Twitter -- once famous for the "fail whale" icon that marked its frequent crashes -- needed to sharpen its focus and improve its execution. Twitter's internal overhaul is starting to pay off: The company unveiled a widely praised redesign in December and has rapidly expanded its client roster of paying advertisers. EMarketer predicts that Twitter's ad revenue will almost double this year. But for Twitter shareholders eager to cash out, the wait looks likely to be a long one. "We're trying to build a decades-long, lasting business. We don't care about what the market window is for going public," Costolo said in an interview at a media conference two weeks ago. "I don't pay any attention to that, and I try to get everyone else in the company to not pay any attention to that."

Published: Tue, 14 Feb 2012 11:12:19 GMT

Syrian residents bracing for full-blown war

Fear and horror paralyzed residents in the Syrian city of Homs Tuesday, with snipers preventing anyone from moving and heavy shelling blasting through the air, opposition activists said. "The snipers are even targeting those who intend to get bread from the bakeries," said one activist, who uses the pseudonym Abu Omar. "People now getting their groceries and bread carried over the fences of private homes." While U.N. diplomats slammed the Syrian regime for the country's mounting bloodshed, residents wondered out loud what the implications of total war might be. "Everyone we've been talking to ... believes that the country is heading towards, or already is in, a full-blown war, and recovering from that is going to be incredibly challenging," said CNN's Arwa Damon, who reported from inside Syria early Tuesday. She spoke from an opposition safe house, describing a near constant flow of people and information. CNN is not disclosing her exact location because of concerns for her safety. "What a lot of people are realizing and accepting at this stage is that this is going to be a bloody battle -- that more lives are going to be lost," Damon said. Her report came a day after the U.N. high commissioner for human rights denounced the Syrian government's "ongoing onslaught" against its citizens. Navi Pillay spoke before the U.N. General Assembly, which could issue a formal condemnation of the Syrian regime. "The nature and scale of abuses committed by Syrian forces indicates that crimes against humanity are likely to have been committed since March 2011," Pillay said. Her harsh comments prompted an angry defense from Syria's ambassador, who complained of an "unprecedented" media and political campaign to incite the opposition in his country. But Tuesday morning, like clockwork, government forces once again shelled the Baba Amr neighborhood of Homs at dawn, activists said. Tuesday's shelling was among the heaviest in the past five days, according to the Syrian Observatory for Human Rights, an opposition activist group. More than 680 people died last week in Syria, most of whom were killed in Homs, according to the Local Coordination Committees of Syria, a network of opposition activists. On Monday, 30 civilians -- including two children -- were killed in violence, the LCC said. Most were in the areas of Homs and Idlib. CNN cannot independently confirm details of the events in Syria because the government has severely limited the access of international journalists. But Pillay said evidence proves President Bashar al-Assad's forces are carrying out a gruesome crackdown. "Independent, credible and corroborated accounts indicate that these abuses have taken place as part of a widespread and systematic attack on civilians," Pillay said. By end of the day Monday, a General Assembly draft resolution that would condemn Syrian human rights violations had not been formally introduced. It was unclear when the draft would be presented and when diplomats would vote on it. The vote would not be binding, but would be the strongest U.N. statement yet on the violence. Russia and China vetoed previous attempts by the U.N. Security Council to condemn Syria for the crackdown. "The people of Syria justifiably feel that the United Nations has shamefully abandoned their cause," British Ambassador to the U.N. Mark Lyall Grant told diplomats. "We must, as individual member states and collectively, send them a clear signal that this is not the case." Syria's U.N. ambassador, Bashar Jaafari, said the "aggressive, illegitimate" criticism of his country is designed to undermine the government. An Arab League proposal over the weekend for a joint U.N.-Arab peacekeeping force in the country is an "incitement to terrorism," he said, because it would provide support to opposition fighters. Jaafari also said the proposal seeks to trample on Syria's sovereignty. "We in Syria could not imagine sending soldiers to defend Occupy Wall Street protesters. Neither we or any other government can imagine sending forces to protect demonstrators in London or Paris," he said. "The state has exclusive responsibility for defending security on its national territory." Along with a peacekeeping mission, the Arab League urged member states to provide political and financial support to the Syrian opposition and to cut ties with Damascus. Syria has said it is simply fighting armed terrorist groups in its country. Jaafari cited last week's bombing of two government buildings in Aleppo, which killed 28 people, and a January bombing in Damascus that killed 26 as examples of terrorist groups -- specifically al Qaeda -- that are active in the country. But residents of cities such as Homs, where hundreds have died in the past 10 days, say innocent civilians are under siege by government forces. They describe indiscriminate bombings of homes, snipers in the streets, arbitrary arrests and attacks on hospitals by government forces. The destruction by al-Assad forces has also yielded a humanitarian crisis. Residents in Homs report scarce or nonexistent access to food, water and electricity. "The humanitarian situation very bad -- big shortage in medications, limited water supply," Abu Omar said from the Homs neighborhood of Khaldiya. "All three field hospitals are full with wounded, most of them in a bad medical conditions." The United Nations is ready to deploy humanitarian supplies to Syria as soon as it gets access, Martin Nesirky, a spokesman for the U.N. secretary-general, said Monday. Pillay said most of the wounded avoid going to public hospitals for fear of being arrested or tortured. Instead, they are being treated in underground hospitals where hygiene and sterilization conditions are rudimentary and medical supplies are scarce, she said. Pillay said at least 5,400 people have died since protests seeking al-Assad's ouster began nearly a year ago, but has admitted it is difficult to update that figure due to the chaos on the ground. The LCC says the death toll has far exceeded 7,000. Damon said every person interviewed has a horror story to tell, but some are too petrified to speak publicly with their full names. "One man we met, he had four members of his family executed as government forces, he said, were raiding their village," she said. She said some members of the opposition believe the regime will fall someday, but it's uncertain how many more lives will be lost before that happens. "If there is military intervention, then yes, there will be a lot of bloodshed. But it's going to be over a lot quicker," one young activist said. "If there isn't military intervention, there is going to be even more bloodshed, and it's going to take a lot longer to bring down the regime."

Published: Tue, 14 Feb 2012 10:34:43 GMT

U.S. to hold talks with North Korea

A U.S. envoy will meet with North Korean officials next week to test that nation's willingness to abandon its nuclear program, the State Department said Monday. Special Representative for North Korea Policy Glyn Davies will meet with his counterpart, North Korean First Vice Foreign Minister Kim Kye Gwan, in Beijing on February 23, State Department spokeswoman Victoria Nuland told reporters. Davies just returned from Russia, where he discussed continuing efforts to get North Korea to disarm. The talks will mark the first high-level contact since the death of North Korea's longtime leader, Kim Jong Il, in December and the subsequent transition of power to his youngest son, Kim Jong Un. Washington hopes the talks signal the new regime's desire to negotiate with the United States and address international concerns over its nuclear program. Kim's death last month threw into flux U.S. plans for renewed diplomacy with North Korea, including formal talks on ending Pyongyang's nuclear program and possible resumption of U.S. food assistance. The North Korea government was expected to suspend its uranium enrichment in exchange for food assistance as part of a deal that was to be announced around the time of Kim's death.

Published: Tue, 14 Feb 2012 10:33:33 GMT

China's vice president to meet with Obama

Vice President Xi Jinping of China, the man set become the country's next paramount leader, is scheduled to meet with President Barack Obama and other officials on Tuesday during a U.S. visit that is likely to help burnish Xi's statesmanly credentials at home and abroad. The planned meetings have thrust Xi, who is expected to become head of the ruling Communist Party later this year, onto center stage in both the American and Chinese news media. Hu undertook a similar visit 10 years ago as he was being groomed for the top job. But beneath the carefully choreographed presentation of the high-profile meetings lies a range of contentious issues on which Xi has little incentive to give ground, including trade and China's growing military presence. "I think he's going to be be tough with a smile on his face," said James McGregor, senior counselor for the communications firm APCO Worldwide in China. "He's gonna appear to be a very friendly man. But he has to be tough because he's still talking to an audience back here." The subject of Xi's five-day trip and what it portends for U.S.-Chinese relations in the coming years has received heavy coverage in state-run media in China. "The U.S. has never met a competitor like China before," the Global Times, an English-language newspaper run by the Communist Party, said in an editorial published Monday that noted China's global clout in manufacturing and exports. The Obama administration, under pressure from stubbornly high unemployment figures in an election year, has already taken steps concerning China's role in global trade. Obama mentioned China by name when he announced in his State of the Union address last month that he was creating a trade enforcement unit to bring cases against other countries. There is also persistent tension over China's efforts to control the level of its currency, the renminbi, which U.S. officials say make it undervalued. Xi, 58, is very well versed in these issues, according to Jon Huntsman, the former Republican presidential hopeful who was U.S. ambassador to China between 2009 and 2011. "He's gone out of his way in recent years to bone up economics and trade, knowing full well that these are the issues that are going to determine whether or not the United States and China are able to get through the years to come," Huntsman said. Chinese officials are aware of U.S. concerns, but Xi and other leaders face the challenge of keeping China's hundreds of millions of workers content as economic growth starts to ease from the torrid levels of recent years. Policy makers in Beijing are grappling with how to tackle rapidly rising prices and the widening gap between rich and poor. "I want a job," said Xie Yingling, an unemployed welder in the coastal province of Fujian, where Xi used to be governor. "Our local economy is just bad. I find even a bowl of noodles too expensive here." Xi's engagements in the United States began Monday with a dinner in Washington attended by the former U.S. secretaries of state Henry Kissinger and Madeleine Albright. He was given a less cordial welcome by activists advocating Tibetan independence who started unfurling a banner on Arlington Memorial Bridge in Washington on Monday afternoon. The activists were detained by the police before being released. Beijing has been struggling in recent weeks to contain unrest among ethnic Tibetans in the southwestern province of Sichuan. It has sent additional security forces to the region after Tibetan protesters set themselves on fire and clashed with police to express frustration with Chinese rule. On Tuesday, Xi was scheduled to meet with Obama, Vice President Joe Biden and Secretary of State Hillary Clinton. He will also attend a round-table discussion with U.S. and Chinese business executives. After Washington, Xi will travel Wednesday to Iowa, a state he first visited as a local official in the 1980s. He is visiting the United States amid the rhetoric and political uncertainty of presidential election campaigning. But upheaval is also under way in China through the leadership transition that is set to result in Xi's taking charge later this year. With about 70% of the country's top 200 officials expected to be swapped out during the process, Huntsman said Xi is "stepping into the forefront of China's political leadership structure at a time of enormous change."

Published: Tue, 14 Feb 2012 10:19:53 GMT

Al-Qaida promotes overthrow of al-Assad

Last week, al-Qaida leader Ayman al-Zawahiri added to his ever-growing video collection, with an eight-minute lecture supporting the Syrian opposition against President Bashar al-Assad. It was the latest example of al-Zawahiri's growing focus on opportunities for al-Qaida amid the upheavals in the Arab world, from Iraq to Egypt to Yemen, Libya and now Syria. The video that appeared on jihadist forums Friday damned Syria's "sectarian, secular regime." "The brave, jihadi Syrian people rose and will never accept anything less than victory over the criminal butchers," al-Zawahiri said. His words were clearly designed to graft al-Qaida onto an uprising which has so far shown little association with or affinity for Salafist jihadism. But are his words anything more than bluster and opportunism? "It remains to be seen whether the message will resonate with the disparate elements of the Syrian opposition," one U.S. official who declined to be identified told CNN. "Nor is there a sense that the Syrian oppositionists want to see Syria heading in the direction of extremism." Nevertheless hard-line Salafist cells, whether associated with al-Qaida or not, are finding space in the upheavals cross the region. In particular, the Islamic State of Iraq -- al-Qaida's highly-active affiliate there -- is well-placed to play a role in neighboring Syria, and may have begun to do so already, according to U.S. officials. Direct evidence of its involvement is hard to establish, but a U.S. source says the United States has intercepted communications of operatives in Syria belonging to the Iraqi al-Qaida affiliate, also known as al-Qaida in Iraq. The source, who spoke on condition of anonymity, said the latest intelligence clearly indicates that small groups of operatives have been "pushed into Syria" by their commanders in Iraq and are able to carry out intelligence and reconnaissance against Syrian targets -- and subsequently carry out bombing attacks. Those operatives, the source says, are believed to be part of a network responsible for recent attacks. Three recent attacks stand out as unlike anything the Free Syrian Army or other opposition groups have been able or even willing to stage. The first was in Damascus in late December, when powerful bombs killed more than 40 people outside two branches of the security forces. The strike carried all the hallmarks of al-Qaida in Iraq: a powerful vehicle-borne bomb driven by a suicide bomber, aimed at a government building. But the group never claimed responsibility. The next was a January 6 suicide bombing targeting policemen on a bus in Damascus. And the third was Friday in Aleppo, Syria's commercial center and a city that is both vital to the regime's survival and had been little affected by the unrest until then. Syrian officials said 28 people were killed in a double suicide bombing on security service compounds. Again, the ISI has not claimed responsibility, where in Iraq it usually does proclaim its role in assassinations and bombings. But it's the type of attack that is typical of its operations. ISI fighters are battle-hardened by their struggle against the more moderate Sunni Awakening Councils in Iraq. They are now posing a growing challenge to Iraqi authorities after the withdrawal of U.S. forces. In recent years, many would-be ISI fighters from other Arab states passed through Syria on their way to wage jihad in Iraq. In 2008-09, jihadist forums were full of advice about the best route for would-be fighters through Syria, and U.S. military officials regularly complained that Damascus was not doing enough to stop infiltration across its border. In November, the ISI released a biography of an influential Syrian commander among its ranks who had been killed. One source in the region estimates that several hundred Syrian jihadists have returned home from Iraq. The ISI would also have the ideological motivation to join the fight in Syria, seeing it as a Sunni struggle to be free of the heterodox Shi'ite rule by Syria's ruling Alawite minority. The ISI and its predecessor have been among the most chauvinistic franchises of al Qaeda, with ISI spokesman Abu Muhammad al-Adnani describing Shiites as an "illness" that could only be remedied with the sword, according to a translation of a January audio posting by the SITE monitoring service. Other jihadist groups, such as northern Lebanon's Fatah al-Islam, have also called for Assad's overthrow. In a December statement, the group described the more moderate Muslim Brotherhood "as a summer cloud that will pass quickly to open the way for the leadership of the Mujahideen." There is no indication that Fatah al-Islam is actively involved in the Syrian unrest, but individuals associated with it may have helped smuggle arms across the border, according to sources in the region. The upheaval in Egypt has also provided a space for jihadist groups to emerge, especially in under-governed areas like he Sinai Peninsula. Ansar al-Jihad in the Sinai declared its allegiance to fellow Egyptian al-Zawahiri last month, adding: "We will never quit or surrender until the last drop of our blood [is spilled] in the Cause of Allah and until Islam rules by the help of Allah the Almighty." Egyptian military intelligence officials have told CNN in recent months they are concerned by the growth of militant cells in the Sinai. Border security has deteriorated, and in August, a jihadist group based in Gaza used Egyptian territory to attack Israeli civilian targets in Negev -- killing eight civilians. Al-Zawahiri has long harbored the dream of creating Islamic rule in his home country of Egypt and the Arab world. He was won round by Osama bin Laden in the 1990s to the need to focus attacks on the United States. But for al-Zawahiri, that was always a means to the end of pressuring the United States to stop supporting regimes like that of Hosni Mubarak in Egypt. His ultimate goal has always been to overturn the secular order in the Arab world. "If the successful operations against Islam's enemies and severe damage inflicted on them do not serve the ultimate goal of establishing the Muslim nation in the heart of the Islamic world, they will be nothing more than disturbing acts," al-Zawahiri wrote in a memoir published just after the 9/11 attacks. Al-Zawahiri has always stressed the importance of cultivating support the al-Qaida organization on the Arab street and the need to create a base of operations from which al-Qaida could operate and expand its operations. For a while, Iraq seemed the promised land - until a backlash against Abu Musab al-Zarqawi's brutal campaign of violence, which al-Zawahiri tried but failed to halt, tarnished the al-Qaida brand. The first weeks of the Arab Spring provided further bad news for al-Qaida, as it was bypassed by young, urban, pro-democracy protests. A series of videos al-Zawahiri released on Egypt last year mostly fell on deaf ears. While the partial dismantling of security apparatuses in several Arab countries offered the group the ability to rebuild its networks, its potential pool of recruits appeared to be narrowing. But al-Zawahiri appears to have sensed that political turmoil in Yemen, Libya and, Syria offer al-Qaida an opportunity to gain a foothold -- and in some instances, safe havens -- across the Arab world. And his call for volunteers to defend Syria's Sunnis appears to be calculated ploy to repair the damaged al-Qaida brand. In Yemen, al-Qaida in the Arabian Penisula (AQAP) has tried to win support by portraying itself as a defender of Yemenis against a U.S. backed-dictatorship. The group is linked to jihadist fighters who have taken control of swathes of southern Yemen. Al-Zawahiri's strategic advice appears to have been taken on board by AQAP. In a message pledging support to Zawahiri after the death of bin Laden, AQAP leader Nasir al-Wuhayshi said he was continuing along the plan drawn by him. As Libya descended into civil war last spring, al-Zawahiri dispatched a senior lieutenant to build up the group's operations in eastern Libya, according to a Libyan source briefed by Western intelligence officials. The al-Qaida operative has now built up a force of over 200 fighters, according to the source. Clearly the al-Qaida leader senses multiple opportunities across the Arab world by exploiting security vacuums and growing radicalism brought on by economic collapse. CNN Pentagon Correspondent Barbara Starr contributed to this report.

Published: Tue, 14 Feb 2012 10:00:27 GMT

Obama's budget cuts billions

President Obama released a budget Monday that moves the country a tiny bit closer to sound fiscal ground. He does it by raising taxes on the rich, while slashing projected spending levels and counting savings from winding down the wars in Afghanistan and Iraq. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, praised Obama for his "focus on deficit reduction" but said more must be done. "His proposals would barely stabilize the debt -- and at too high a level," MacGuineas said in a statement. The budget projects a $1.3 trillion deficit this year, and $901 billion in 2013. But by 2018, the deficit is forecast to fall to $575 billion, before increasing slightly as 2022 approaches. How does Obama get there? Non-security discretionary spending -- subject to the caps laid out in the Budget Control Act -- would be hard hit. Currently $450 billion, it would fall to $410 billion in 2013 and $385 billion by 2015. That part of the budget, which does not include military spending, entitlements or interest on the debt, is what many Americans think of as the federal government. In 2015, the $385 billion allotted for non-security discretionary spending would amount to only 9.5% of total federal outlays. The White House notes that when coupled with less spending on overseas wars, the reductions "would bring discretionary spending to its lowest level as a share of the economy since Dwight D. Eisenhower sat in the Oval Office." This year, the administration details 210 places where programs will be cut or eliminated, for savings of $24 billion in 2013 and $520 billion over a decade. The Obama administration wants to slash $33 million from the Superfund remedial program, an effort to clean up and monitor areas where hazardous waste poses a risk to humans or the environment. According to the White House, the funding reduction "reflects difficult budget choices" and will negatively impact program performance. Translation: Fewer inspections, less monitoring and no new projects. And the budget cuts $359 million in EPA funds that help finance infrastructure projects at the state level designed to ensure safe drinking water. Funding for the government's Low Income Home Energy Assistance Program, which subsidized energy bills for 9 million households last year, is also targeted for a $452 million reduction. That's more than the Obama administration asked for in 2012, but less than Congress approved. As for agencies, most will get a smaller increase than they might have expected. A few, like the Environmental Protection Agency, NASA and the Department of Agriculture, will see a real reduction in funding. Mandatory programs -- which don't need annual authorization from Congress to spend -- would also be cut. Those cuts would include select farm subsidies and federal employee retirement and health benefits, for savings of $217 billion over a decade. The military is also preparing for some belt-tightening. The Pentagon plans to spend $487 billion less over 10 years, a course that Secretary of Defense Leon Panetta has already laid out in some detail. For example, Panetta has said the Army will save money by pulling two of its four brigades out of permanent bases in Europe to bases in the United States. And the Navy will be getting rid of older ships that don't have the latest ballistic missile defense. The White House is including nearly $1 trillion in savings from winding down the wars in Iraq and Afghanistan as deficit reduction, but since that money was never going to be spent, critics say it shouldn't be counted. Where Obama is a little short on ambition is entitlement spending. The budget would cut more than $360 billion from Medicare, Medicaid and other health programs over a decade. But that's a drop in the bucket when compared to the rapid expansion of costs expected for entitlement programs in the not-so-distant future. And the White House stayed away from fundamental reforms to Social Security. In the end, many of the proposals in the Obama budget are likely to fall by the wayside since the measure stands no chance of being enacted. And Obama's 2013 budget is only the first step in a convoluted process that involves no less than 40 congressional committees, 24 subcommittees, countless hearings and a number of floor votes in the House and Senate.

Published: Tue, 14 Feb 2012 07:49:34 GMT

Obama budget hikes transportation spending

President Barack Obama wants to raise the Department of Transportation budget by 2% next year. The plan is part of a $3.8 trillion government-wide budget proposal released Monday by the White House. It provides $74 billion in proposed transportation spending for the fiscal year starting in October. That is $1.4 billion above the amount authorized in 2012. "It's part of (Obama's) blueprint for an America built to last," Transportation Secretary Ray LaHood said in a conference call with reporters. "We like what the president put forth. It is very balanced." The budget calls for spending $476 billion on surface transportation over the next six years and an additional $50 billion in the current fiscal year, which the administration says will "generate hundreds of thousands of jobs in the first few years." The administration says it plans to use money saved from ramping down military expenses from the wars in Iraq and Afghanistan to pay for the spending transportation increases. The proposal also calls for consolidating 55 highway programs into five; increasing funding for air traffic control modernization; laying out $30 billion over the next six years for highway safety programs, including $330 million for the ongoing campaign against distracted driving; and spending $47 billion over the same time period for passenger rail service, including high-speed rail and intercity passenger rail corridors. Obama's budget proposals highlight his priorities, but they are just requests. The House and the Senate are each considering their own transportation bills. LaHood criticized the Republican-led House version, saying, "It's a lousy bill. ... It doesn't reflect the transportation values of this administration or the country." Republican members of Congress have criticized Obama's budget proposal for not doing enough to manage budget deficits, suggesting it could be dead on arrival. "Rather than emphasize more deficit spending, from whatever source, the president's focus should change to making transportation programs and projects more efficient and cutting the red tape" said Rep. John Mica of Florida, the Republican chair of the House Transportation and Infrastructure Committee. "The definition of insanity is doing the same thing over and over again and expecting different results. " The federal government's next budget year starts October 1.

Published: Tue, 14 Feb 2012 07:48:58 GMT

Iraq blocks Exxon Mobil exploration bids

Exxon Mobil is being shut out of bidding on the next round of oil and gas exploration contracts in Iraq because of its decision to sign an exploration deal with Kurdistan's regional government in the northern part of that country. Iraq's decision, confirmed by a spokesman for Deputy Prime Minster for Energy Hussein al-Shahristani on Monday, is not a surprise. Iraq has plans to increase its oil production capacity to about 12 million barrels a day by the end of 2017 from current capacity of just over 3 million barrels a day. But so far it has not been willing to share the profits with the western oil companies doing business in Iraq, limiting their take to about $2 a barrel, no matter the market price, said Fadel Gheit, oil analyst with Oppenheimer. Gheit said the fact that Exxon Mobil made a deal with the Kurds, essentially walking away from bidding on further Iraqi contracts, could just as much be seen as the company sending a message to Iraq as it is Iraq taking a hard line with Exxon Mobil. A couple of years ago, the newly formed Iraqi government began awarding big contracts to the world's major oil companies including France's Total, England's BP, China's CNPC and Russia's Lukoil, as well as Royal Dutch Shell, Occidental, and Marathon, in an effort to boost its nascent production. "Nobody is making money there," Gheit said. "They all hope to make a lot of money, but so far they have seen only the appetizer, not the full meal." Other companies might follow Exxon's lead, he said. Iraqi opposition to anyone striking a separate deal with the Kurds to explore for oil in the semi-autonomous region was already well established. But the Iraqi central government has yet to finalize an oil law establishing how the oil royalties will get divvied up. The Kurds are known to be offering terms that are more generous to foreign oil firms. Deputy Prime Minster for Energy Hussein al-Shahristani told CNN earlier this month that Exxon Mobil's agreement with the Kurds would be a deal breaker for any other western oil company. "We really want to see Exxon works in Iraq , it's the largest oil company and they can do a lot to develop Iraqi fields," said said al-Shahristani in that earlier interview. "However, it is more important to abide by the Iraqi laws and they've been told that in a very clear terms and they are aware of our options." Exxon Mobil has not yet commented on the controversy related to the Kurdish contracts, and the company did not have an immediate reaction to the news out of Baghdad Monday. Monday's decision comes as Iraq battles to increase its oil exports which have been hurt by limited capacity to move oil overseas. On Sunday, the Iraqi government announced the inauguration a new offshore oil terminal in the al-Faw port south of Basra, with a capacity of 900,000 barrels per day. Iraq plans three more of the terminals by the end of this year. Shares of Exxon Mobil were slightly higher in early-afternoon trading Monday. -- CNNMoney's Steve Hargreaves contributed to this report.

Published: Tue, 14 Feb 2012 07:47:54 GMT

Opposing conservative group counters Occupy DC

In what is being called "Occupy Occupy DC," conservative counterprotesters Monday held the first of what they say will be daily rallies at the site of the Occupy encampment at Washington's Freedom Plaza. The "take back the park" protest is being organized by two Washington-based conservative think tanks -- the National Center for Public Policy Research and FreedomWorks. Their goal is to make the case for "economic freedom," but do so in a way that is within the law, according to a statement from National Center for Public Policy Research. Chairman Amy Ridenour said, "The Occupiers are fundamentally undemocratic. They want the public to agree to whatever it is they want, even though they can't or won't articulate it, or else they'll commit crimes, infest cities with rats, cost police overtime and refuse to go away." The small group of conservative activists gathered amid freezing temperatures at noon in Washington for what they claimed was the first legally permitted counterprotest to the Occupy movement. "We have the same First Amendment rights as the Occupiers and any legitimate petitioner has for access to our nation's public sites," said National Center Executive Director David W. Almasi. Occupy protesters and affiliated groups have been camped in the park two blocks from the White House since October. The counterprotest consisted of about a dozen activists who carried signs and spoke from a bullhorn. Their message focused on themes of smaller government and free market values, but they found common ground with Occupiers. "Occupiers, we have some common themes together. We both don't like bailouts. We opposed the Wall Street bailouts. We also opposed the auto bailouts," said Tom Borelli a senior fellow with the National Center for Public Policy Research. A handful of Occupy protesters emerged from their tattered tents to speak with the conservative activists. "We think this is beautiful. Every revolution begins with common ground," said an Occupy protester who only identified himself as James. "Take back the park" organizers said they plan to continue their daily rally during the lunch hour through the middle of March. National Park Service spokeswoman Carol Johnson confirmed the counterprotest permit is for 11 a.m. to 2 p.m. daily through March 15.

Published: Tue, 14 Feb 2012 03:26:33 GMT

Machete-wielding intruder robs Supreme Court justice

Supreme Court Justice Stephen Breyer was robbed last week by an intruder armed with a machete while Breyer was vacationing on the Caribbean island of Nevis, court officials said Monday. Breyer, his wife and two other guests were in the justice's vacation home at the time, but officials said no one was hurt in the incident. The male assailant took $1,000 in cash and fled the scene, according to court spokeswoman Kathy Arberg. The robbery was reported to local authorities shortly after it happened last Thursday night, and local media said no arrests had been made as of Monday. It was unclear whether the intruder knew Breyer's professional identity. The U.S. Marshals Service provides protection for members of the high court when they are traveling, and agency spokesman Jeff Carter said Monday that the marshals service "is aware of the incident involving Justice Breyer on the Caribbean island of Nevis and is assisting the Supreme Court Police and local law enforcement authorities with the investigation as needed." He did not elaborate. FBI spokesman Paul Bresson said, "We are assisting the local police with their investigation." Meanwhile, police on the island were "actively searching for a known person of interest," Commissioner C.G. Walwyn of the Royal St. Christopher and Nevis Police Force said Monday. "Our American-trained crime scene investigators and the members of our Criminal Investigators (unit) are working closely with the FBI on this case," he added. Breyer had no comment on the matter, and the court would not say if he had returned to the United States. The high court is in recess this week, but the justices have scheduled a closed-door meeting Friday to go over pending court business, and they resume public sessions next week. Nevis is part of the West Indies chain known as the Leeward Islands, located about 350 miles southeast of Puerto Rico. The court does not talk publicly about specific security arrangements for the justices, either when they are at home or on their frequent travels. Justice Ruth Bader Ginsburg traveled to Egypt and Tunisia last month as part of an outreach program sponsored by the State Department, which provided her security in the volatile region. Attacks on members of the federal judiciary are not new. Then-Justice David Souter was assaulted by a group of young males in 2004 while jogging alone in the evening near his Washington home. Souter suffered some minor bruises and was briefly treated then released from a local hospital. Justice Byron White was attacked in July 1982 while giving a speech in Utah. That incident led to regular protection by U.S. marshals for members of the court when they travel. The 73-year-old Breyer was nominated to the high court in 1994, and is known as one of the most active and engaging members of the court. His wife is Dr. Joanna Breyer, a renowned pediatric psychologist. CNN's Nigel Walwyn and Carol Cratty contributed to this report.

Published: Tue, 14 Feb 2012 03:19:55 GMT

Syria draws U.N. ire as it heads toward 'war'

As diplomats at the United Nations slammed Syria, violence continued to rage on the ground and residents wondered out loud what the implications of total war might be. "Everyone we've been talking to ... believes that the country is heading towards, or already is in, a full-blown war, and recovering from that is going to be incredibly challenging," said CNN's Arwa Damon, who reported from inside Syria early Tuesday. She spoke from an opposition safe house, describing a near constant flow of people and information. CNN is not disclosing her exact location because of concerns for her safety. "What a lot of people are realizing and accepting at this stage is that this is going to be bloody battle -- that more lives are going to be lost," said Damon. She reported from Syria one day after the U.N. high commissioner for human rights said she is outraged by the country's "ongoing onslaught" on its citizens. Navi Pillay spoke before the U.N. General Assembly, which could issue a formal condemnation of the Syrian regime. Her harsh comments prompted an angry defense from Syria's ambassador, who complained of an "unprecedented" media and political campaign to incite the opposition in his country. As they spoke, some Syrian towns and cities came under fresh attack with soldiers going door to door rounding up civilians, rolling their tanks through towns, or continuing their shelling of neighborhoods, according to activists and residents. More than 680 people died last week in Syria, most of whom were killed in Homs, according to the Local Coordination Committees of Syria, a network of opposition activists. On Monday, 30 civilians -- including two children -- were killed in violence, the LCC said. Most were in the areas of Homs and Idlib. The state-run Syrian Arab News Agency reported a funeral was held for 19 soldiers and officers killed by terrorists throughout the country. CNN cannot independently confirm details of the events in Syria because the government has severely limited the access of international journalists. "The nature and scale of abuses committed by Syrian forces indicates that crimes against humanity are likely to have been committed since March 2011," Pillay said, referring to the start of the popular uprising against the regime of Syrian President Bashar al-Assad, which prompted his government to crack down on protesters. "Independent, credible, and corroborated accounts indicate that these abuses have taken place as part of a widespread and systematic attack on civilians. "Furthermore, the breadth and patterns of attacks by military and security forces on civilians and the widespread destruction of homes, hospitals, schools, and other civilian infrastructure indicate approval or complicity by the authorities at the highest levels," Pillay said. By end of the day Monday, a General Assembly draft resolution that would condemn Syrian human rights violations had not been formally introduced. It was unclear when it would be, also when there might be a vote. The vote would be nonbinding but would be the strongest U.N. statement yet on the violence. Russia and China vetoed a previous attempt by the U.N. Security Council to condemn Syria for the crackdown. "The people of Syria justifiably feel that the United Nations has shamefully abandoned their cause. We must, as individual member states and collectively, send them a clear signal that this is not the case," British Ambassador to the U.N. Mark Lyall Grant told diplomats. Syria's U.N. ambassador, Bashar Jaafari, said the "aggressive, illegitimate" criticism of his country is designed to undermine the government. An Arab League proposal over the weekend for a joint U.N.-Arab peacekeeping force in the country is an "incitement to terrorism," he said, because it would provide support to opposition fighters. Jaafari also said the proposal seeks to trample on Syria's sovereignty. "We in Syria could not imagine sending soldiers to defend Occupy Wall Street protesters. Neither we or any other government can imagine sending forces to protect demonstrators in London or Paris," he said. "The state has exclusive responsibility for defending security on its national territory." Russian officials said Monday they were studying the Arab League proposal, but they indicated reluctance to sign on, saying the permission of the host country is necessary for peacekeepers to enter. A peacekeeping mission also implies there is peace first, which is not the case in Syria, Russian Foreign Minister Sergey Lavrov said. China supports the league's mediation in Syria, said Foreign Ministry spokesman Liu Weimin, but he stopped short of saying whether Beijing would approve the proposal. Along with a peacekeeping mission, the Arab League urged member states to provide political and financial support to the Syrian opposition and to cut ties with Damascus. Syria has said it is simply fighting armed terrorist groups in its country. Jaafari cited last week's bombing of two government buildings in Aleppo, which killed 28 people, and a January bombing in Damascus that killed 26 as examples of terrorist groups -- specifically al Qaeda -- that are active in the country. "The vast losses in Syria among civilians and security forces is a deep wound," Jaafari said. "We are sad, but we place the responsibility for those losses at the door of those who are attempting to obtain political interests by using Syrian blood as currency." Residents of besieged Syrian areas such as Homs, where hundreds have died in the past nine days, say it is civilians who are bearing the brunt of the attacks. They describe indiscriminate bombings of homes, snipers in the streets, arbitrary arrests and attacks on hospitals by government forces. The destruction by al-Assad forces has also yielded a humanitarian crisis. Residents in Homs report scarce or nonexistent access to food, water and electricity. The United Nations is putting humanitarian supplies in place for distribution as soon as access is granted, Martin Nesirky, a spokesman for the U.N. secretary-general, said Monday. Syrian Arab Red Crescent volunteers were able to distribute food, blankets and other supplies to Homs and another city thanks to a brief cease-fire but say other areas are too dangerous for them to enter, the International Committee of the Red Cross said. Pillay said most of the wounded avoid going to public hospitals for fear of being arrested or tortured. Instead, they are being treated in underground hospitals where hygiene and sterilization conditions are rudimentary and medical supplies are scarce, she said. Speaking in Washington alongside the Turkish Foreign Minster, U.S. Secretary of State Hillary Clinton promised to help get aid to those wounded and dying. "We are increasing our funding to organizations like the Red Crescent, the International Committee for the Red Cross and we're working directly with Syrian organizations at the grassroots to help families who have no electricity, food or clean water," she said. Pillay said at least 5,400 people have died since protests seeking al-Assad's ouster began nearly a year ago. The LCC says the toll has far exceeded 7,000.

Published: Tue, 14 Feb 2012 03:00:31 GMT

Mourners Gather At Houston's NJ Church

As the sun rose the morning after Whitney Houston's death, congregants at the Baptist church where she began her singing career as a member of the junior gospel choir to mourn, pray and share stories of the pop superstar. The Houston family has been "inseparable" from New Hope Baptist Church, Pastor Joe A. Carter said in an interview Saturday night, and Whitney would continue to visit throughout her life. Carter led the congregation in a prayer service for Whitney Houston on Sunday morning, "petitioning the Lord on behalf of Whitney's daughter, her mother, and the entire Houston Family," according to a statement on the church's website. Houston, 48, was found dead Saturday by her bodyguard at a Beverly Hills, California, hotel. Whitney Houston's mom, Cissy Houston - herself a renowned gospel singer - was director of sacred music at the church for 54 years and is still a member there. Asked whether he had spoken to Cissy Houston, Carter said Sunday he had, and "she needs our prayers and support." "Whitney was a mother, a daughter, a sister, and that's the focus that we want to keep in front of everyone today, to continue to lift the family up and respect this time of grief." Those arriving for the service Sunday at the large brick church in a residential stretch of Newark were quiet and somber. Reporters were not allowed inside. One woman leaving Sunday services said the flock had prayed for Houston's family. Church member Karen Winfield told CNN New York affiliate WABC that she has followed the Houstons' musical careers for 60 years and has heard Whitney and Cissy Houston sing at the church. "Her and her family have been real legends up North," she said Sunday, referring to Whitney. "So I'm here to support them at this time of sorrow." "I haven't slept - I've been up all night," she said. "Just going over, listening to her songs and reminiscing about her life. And what's going to happen to her daughter. Her mom. Her brothers. But she's in a better place." Alvin Sims, associate minister at New Hope, called Houston a "powerful, powerful woman." "I have never heard a voice like hers, never" he told WABC. "That certainly is a gift from God." Whitney was born in Newark in 1963 and was soloing in the junior choir by age 11, according to the All Music Guide. "Whitney's mother and cousins nurtured her passion for gospel music since birth," according to Houston's official website. Her cousins include singers Dee Dee Warwick and Dionne Warwick, and her godmother was Aretha Franklin. As a teenager, Houston would accompany her mother in concert. A video posted on the Internet sharing site YouTube shows a young Houston singing the lead on the gospel song, "Have a Little Talk with Jesus," at the church. The church's history is "deeply associated with the power of Whitney's voice and the influence that she's had, not only in this church but across the world," Carter said. "We're saddened at this loss." One of the country's highest profile pastors, T.D. Jakes, said Sunday that Houston had completed work on a remake of the film "Sparkle," on which Jakes is a producer. "We ask the world to join us in lifting up Whitney's family in prayer and ask God for their strength and comfort during this devastatingly difficult time," the Dallas, Texas based Jakes said in a statement. "At the apex of her career, Whitney had no peer, with a voice that shaped a generation. She has left behind a musical and film legacy that will endure." Cissy Houston got her musical start in her family's gospel troupe and went on to record her own albums and to provide backup vocals to well-known soul and pop acts. New Hope Baptist began operating in a Newark home in 1903, originally led by a preacher from North Carolina. "As the world mourns the loss of one of the all-time greats, we in Newark feel an especially deep sadness," Newark Mayor Corey Booker said in a statement Saturday night. "She went from a Newark church to the global stage, but she always remained a deep part of our pride and collective heart." "This church, the church that Whitney grew up in, is calling for prayer for her daughter, Bobbi Kristina, her mother ... and the entire Houston family and Whitney's fans," Carter said, appealing for privacy on behalf of the church and Houston's family.

Published: Tue, 14 Feb 2012 01:54:25 GMT

Rats training in Colombia to detect explosives

At a Colombian National Police base in the outskirts of Bogota, the nation's capital, a new recruit is being trained. This new recruit is unlike any other. It stands on four legs, has white hair all over its body and weighs slightly less than a pound. Its name is Rattus Norvegicus -- but it's more commonly known as a lab rat. During a recent training session, trainers set the white rat on a patch of grass where they had hidden an explosive device underground. It took the rat less than a minute to find it. The rodent was showered with praise. Its trainers also gave it its favorite reward, a treat. Though safer than a decade ago, Colombia is a country where landmines and car bombs are still a threat. Earlier this month, six people were killed by a car bomb targeting a police station in the town of Villa Rica in the southern province of El Cauca. The day before the February 2 bombing, nine people were killed and 70 were injured by another explosion in the neighboring province of Narino. Edgar Ramirez, a second lieutenant with the Colombian National Police, says his country still "faces conflicts such as guerrillas, and criminal and paramilitary groups. There are many disputed territories because of the drug trade or simply to take control, and many groups set up land mines in these territories." In the past, Colombian police used bomb-sniffing dogs; but the dogs' weight would often trigger the explosives. That's not a problem for lab rats that weigh slightly less than a pound. And according to the trainers, their sense of smell is just as good as a dog's. Colombia is not the first country to use rodents in this fashion. Rats have already been put to work in Mozambique to detect landmines. Ramirez says that the only disadvantage he can think of about using rats is their short life span. "These animals live only three to four years, which is a relatively short period of time from a human perspective. On the other hand, they're very prolific. They reproduce themselves exponentially in a very short time," Ramirez said. So far, the rats have been trained to detect seven different kinds of explosives including ammonium nitrate and fuel oil, gunpowder and TNT. The project is directed by Luisa Fernanda Mendez Pardo, a veterinarian who specializes in canine explosives-detection training. Mendez said that in the last four years her team has produced five generations of between 15 and 18 rodents each. "As a researcher," Mendez said, "I can tell you that this project has exceeded the expectations we had at the beginning. We have been able to condition the rats to follow simple verbal commands. We have also trained them to not be afraid of their human handlers." Their trust has also gone beyond humans. The rats even get on with the cat that protects them from other predators at the lab where they're trained. Mendez also says the rats are much more cost-effective than their canine counterparts. "With the money it takes to feed a dog per day, you can feed seven rats for seven days," Mendez said. Officials with the Colombian National Police say they expect to take the bomb-sniffing rats into the field in later this year. "The main goal is to tackle a humanitarian problem in Colombia," says Mendez. "In my career, I have seen many civilians, police officers and soldiers who have been killed or severely injured in mine fields. It has become a personal challenge, and I want to use this project to help my country." The team has been able to successfully train more than 70 rats in the last four years since the project began. The process has allowed them to acquire important knowledge about how the rodents can help authorities clear fields full of landmines in the Colombian countryside.

Published: Tue, 14 Feb 2012 01:35:53 GMT

Source: Houston's body being flown to NJ

What killed Whitney Houston is still an official mystery despite widespread media speculation, but a Los Angeles County coroner official downplayed the suspicion that drugs played a major role Monday. Assistant Chief Coroner Ed Winter said that "not many prescription bottles" were found in the singer's Beverly Hilton hotel room after her death. The amount of medications recovered by investigators was less than usually present in deaths attributed to overdoses, Winter said. "I know there are reports that she maybe was drowned or did she overdose, but we won't make a final determination until all the tests are in," he said. Winter ruled out foul play and said there were no injuries to her body. There were more questions than answers Monday about Houston's sudden death, as authorities were offering few details. The singer's soaring voice and impressive talent had taken a back seat in recent years to her struggles with drug addiction. With the autopsy completed Sunday, Houston's body was released to her family Monday, Winter said. Los Angeles police deployed around the Van Nuys, California, airport Monday afternoon to provide traffic control support for the expected arrival of Houston's body for a flight, and Winter later said it was his understanding that the body was in a jet that had departed from the Van Nuys airport. A source close to Houston said Monday that her body will be flown to her native New Jersey, and a funeral service will be held there Friday or Saturday. Authorities have not released a cause of death pending toxicology tests, which should be be available in six to eight weeks. "We do not know (the cause) yet," Winter said. When it is known, the coroner's office will notify police and Houston's family, he said. Winter said Sunday that no additional details, including what was discovered in Houston's room, would be released. Beverly Hills police have requested a "security hold" on the coroner's report, a common practice in high-profile cases that limits what can be revealed about an investigation while it is ongoing. Asked how long Houston had been dead before she was found, he said she was seen by someone -- a family member or someone at the hotel -- within an hour of her death. Winter confirmed reports that Houston was found in the bathtub of her hotel room. "I believe somebody removed her from the bathtub and the paramedics did CPR on her," he said Sunday. Paramedics found Houston "unconscious and unresponsive" when they arrived and she was pronounced dead after several minutes of resuscitation efforts, Beverly Hills Police Lt. Mark Rosen said Monday. The police are conducting a "normal" death investigation, not a criminal probe, Rosen said. "We have not ruled anything out at this time," Rosen said. "Everything is on the table." A singer who participated in an impromptu duet with Houston at a party two days before Houston's death said Monday that she noticed nothing amiss and the superstar was "upbeat and joyful." "She did not seem disheveled. She was dancing; she was laughing. ... We were having a good time," said Kelly Price. "What I saw on Thursday night was not erratic behavior. I didn't see someone who was high." Price said the party was held to celebrate her Grammy nominations. During the party, Houston took the stage unexpectedly and sang a hoarse rendition of "Jesus Loves Me" with Price. Price told CNN's "Starting Point" that Houston's voice is "naturally raspy," but "she sounded good on Thursday night." She acknowledged that Houston did have champagne, which "was flowing" at the party, and said she was glad to see her friend happy. "It was a genuine moment of celebration," she said. "She was in good spirits leaving the club," Price said. "Yes, she was a little messy, as I was, as every other person was at 2, 3, 3:30 ... in the morning after having sung half the night, danced half the night." Price said she never expected to receive the call Saturday that Houston, 48, was found dead in her suite at the upscale Beverly Hilton, just hours before she was to attend another pre-Grammys party at the hotel. "It doesn't resonate to anything that happened on Thursday," Price said. Meanwhile, a source close to the family said Monday that Houston's 18-year-old daughter, Bobbi Kristina Brown, was taken to Los Angeles' Cedars-Sinai Medical Center twice after her mother's death -- once on Saturday night and then again on Sunday. She was treated for stress and anxiety, the source said. Police had said Sunday that the teenager was taken to the hospital. A source close to the family said she had been released as of Sunday night and would be heading back to New Jersey, possibly as early as Sunday night. She was expected to go to the home of her grandmother, gospel singer Cissy Houston, in New Jersey, said the source, who spoke on condition of anonymity because of the sensitive nature of the issue. Kim Burrell, a gospel singer and Houston's friend, said she was with the teenager late Saturday and said the girl had felt "overwhelmed." But Burrell expressed confidence that "she'll pull through." Bobbi Kristina Brown was born during Houston's marriage to singer Bobby Brown, which ended in divorce in 2007. As late as Monday morning, remembrances continued to pour in from around the world. Nelson Mandela issued a statement extending his condolences to Houston's family and friends. He recalled how she dedicated her performance of "Greatest Love of All" to him during a White House dinner in his honor in October 1994. "May she rest in peace," the statement said. Songstress Celine Dion, speaking on ABC's "Good Morning America" in regard to rumors that Houston's death might have been connected to prescription drugs, admitted that she stays away from the "show business" scene because of its risks. "It's just very unfortunate that drugs and, I don't know, bad people or bad influence, took over," Dion said. "It took over her dreams. It took over love and motherhood. ... When you, you know, you think about Elvis Presley and Marilyn Monroe and Michael Jackson and Amy Winehouse, I mean, to get into drugs like that for whatever reason ... what happens when you have the love, the support, family, motherhood, you have responsibilities of a mother and then something happens and it destroys everything? "There's something that happens that I don't understand," she said, "and that's why I'm so scared. I'm scared of show business. I'm scared of drugs. I'm scared of hanging out. And that's why I don't do parties, and that's why I don't hang out. That's why I'm not part of show business, because we have to be afraid." Whatever the exact cause, the grief over the death of Houston was evident Sunday at the Grammy Awards. Host LL Cool J began his Grammy monologue by acknowledging "we've had a death in our family" and offering a prayer thanking God "for sharing our sister Whitney with us." "Although she's gone too soon, we remain truly blessed to have been touched by her beautiful spirit and to have her lasting legacy of music to cherish and share forever," the rapper and actor said. Toward the end of the show, under a bright, solitary spotlight, Jennifer Hudson took to the stage at the Staples Center to perform Houston's megahit "I Will Always Love You." Accompanied by a piano, Hudson delivered a searing, heartfelt performance that brought the audience to its feet, ending the song with one new line: "Whitney, we love you." Earlier, on the red carpet, Burrell told CNN she'd exchanged voice mails with her good friend Houston shortly before her death, describing her as being "in great spirits, as always." She said she always thought of Houston as a "fighter" and a "survivor," which made the idea of her passing all the more difficult to comprehend. "She's my sister, and she'll always be my sister," said an emotional Burrell. "I love her dearly." Burrell said Monday that she is comforted by the knowledge that Houston had a solid religious foundation. She said she and Houston spoke weekly for 13 years, sometimes praying over the phone. "Whitney knew to go to God. Whitney knew how to pray," a tearful Burrell said Monday. "I'm very confident that whatever her last moments were, she knew that God could be there for her. ... She's with him today." Burrell said she'd flown to California to join Houston in attending a pre-Grammy party Saturday night hosted by the songstress' longtime mentor, Clive Davis. Houston died a few hours before the party. On Houston's last voice mail, left as Burrell was on the plane, she said, gospel music was playing in the background. "It's just very hard today to see all of this," she said. "It's very surreal, but I'm trying very hard to be strong for her." Brown was swarmed by media when he arrived at Los Angeles International Airport on Sunday night after pulling out of a performance with his group New Edition in Nashville, Tennessee, in the wake of the death. Brown did not take any questions and was whisked into a waiting limousine. The night Houston died, he was openly emotional during a concert in Southaven, Mississippi, said attendee and CNN iReporter Moshiu Knox, at one point asking people to say a prayer for his daughter, for his mother and "for me, because I'm going to need it." "Bobby was crying during his performance and at one point had to walk off stage," Knox said. Houston's family issued a statement Sunday saying, "We are devastated by the loss of our beloved Whitney. This is an unimaginable tragedy and we will miss her terribly. We appreciate the outpouring of love and support from her fans and friends."

Published: Tue, 14 Feb 2012 01:07:36 GMT

Planetary exploration hit in NASA budget

So, NASA's proposed budget for 2013 is sort of a good news, bad news proposition. The good news is that it could have been a lot worse. If it stands, the space agency will have just under $18 billion, a little less than last year. So what's the bad news? Planetary exploration would fall by $300 million. As expected, Mars exploration is getting hit hardest, a whopping $226 million cut, about 38%. In its budget statement the agency says, "NASA is taking a fresh look at robotic Mars exploration." A joint Mars mission with the European Space Agency for 2016 is out. Another planned for 2018 with ESA is off the table, too. During a news conference held on Monday, NASA Administrator Charles Bolden said, "tough choices had to be made." But at the same time, the space agency insists, "NASA remains interested in working with ESA." For many in the science community, this is a terrible development. In a statement, the Planetary Society wrote, "this would strike at the heart of one of NASA's most productive and successful programs over the past decade." It continued, "If Congress enacts the proposed budget there will be no flagship missions of any kind, killing the tradition of great missions of exploration." Republican presidential candidate Newt Gingrich won't like NASA's near term plans for the moon either. The Lunar Quest Program, small to medium satellites, barely has a heartbeat. There's one more moon mission on the table and then Quest gets phased out. There's no moon base in this budget. Not even a moon rock. During a news conference, NASA Administrator Charles Bolden said the budget preserves the agency's three primary goals: to continue the development of a new heavy lift rocket and the Orion capsule for human deep space missions, fully implement the International Space Station as a science laboratory, and fund the continued work on the James Webb Telescope. Bolden said, "It's a great news story." The budget, he insisted, will keep the U.S. as the world's leader in space exploration. Of course, that's a tough sell when you don't even have a vehicle any longer to get astronauts into space. According to the 2013 budget proposal, it will be another four years before commercial companies will be ready to start flying astronauts to the Space Station. By then, there will only be three years left in the station's current life expectancy. Much of NASA's money is being gobbled up by the PacMan like Webb Telescope. It is already about $6 billion dollars over budget and years delayed. It may fly in 2018. When it does, space agency scientists say it will revolutionize our understanding of the universe. It will be the Hubble Telescope on steroids. Clearly, NASA is flying, or at least attempting to fly, on a shoestring budget. It $17.7 billion is less than half of 1% of the overall federal budget. It appears the agency will be "NASA lite" for many years to come.

Published: Tue, 14 Feb 2012 00:50:09 GMT

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