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Showing posts with label new york times. Show all posts
Showing posts with label new york times. Show all posts

Saturday, May 29, 2010

NY TIMES ARTICLE ON CATHOLIC CHURCH & ECONOMIC NEW WORLD ORDER

July 8, 2009

Pope Urges Forming New World Economic Order to Work for the ‘Common Good’

VATICAN CITYPope Benedict XVI on Tuesday called for a radical rethinking of the global economy, criticizing a growing divide between rich and poor and urging the establishment of a “true world political authority” to oversee the economy and work for the “common good.”

He criticized the current economic system, “where the pernicious effects of sin are evident,” and urged financiers in particular to “rediscover the genuinely ethical foundation of their activity.”

He also called for “greater social responsibility” on the part of business. “Once profit becomes the exclusive goal, if it is produced by improper means and without the common good as its ultimate end, it risks destroying wealth and creating poverty,” Benedict wrote in his new encyclical, which the Vatican released on Tuesday.

More than two years in the making, “Caritas in Veritate,” or “Charity in Truth,” is Benedict’s third encyclical since he became pope in 2005. Filled with terms like “globalization,” “market economy,” “outsourcing,” “labor unions” and “alternative energy,” it is not surprising that the Italian media reported that the Vatican was having difficulty translating the 144-page document into Latin.

Reportedly delayed to take into consideration the financial crisis, it was released by the Vatican on the eve of the Group of 8 industrialized nations summit meeting, which opens in Italy on Wednesday, and before Benedict is expected to receive President Obama at the Vatican on Friday.

“It’s not an encyclical done for the crisis,” Cardinal Renato Martino, the president of the Vatican’s Council for Justice and Peace, said at a news conference on Tuesday. Still, he added, “if the encyclical had come out before the crisis, you would have said it was prophetic.”

In the encyclical, Benedict wrote that “financiers must rediscover the genuinely ethical foundation of their activity, so as not to abuse the sophisticated instruments which can serve to betray the interests of savers.”

In many ways, the document is a puzzling cross between an anti-globalization tract and a government white paper, another signal that the Vatican does not comfortably fit into traditional political categories of right and left.

“There are paragraphs that sound like Ayn Rand, next to paragraphs that sound like ‘The Grapes of Wrath.’ That’s quite intentional,” Vincent J. Miller, a theologian at the University of Dayton, a Catholic institution in Ohio, said by telephone.

“He’ll wax poetically about the virtuous capitalist, but then he’ll give you this very clear analysis of the ways in which global capital and the shareholder system cause managers to focus on short-term good at the expense of the community, of workers, of the environment.”

Indeed, sometimes Benedict sounds like an old-school European socialist, lamenting the decline of the social welfare state and praising the “importance” of labor unions to protect workers. Without stable work, he noted, people lose hope and tend not to get married and have children.

But he also wrote, “The so-called outsourcing of production can weaken the company’s sense of responsibility towards the stakeholders — namely the workers, the suppliers, the consumers, the natural environment and broader society — in favor of the shareholders.” And he argued that it was “erroneous to hold that the market economy has an inbuilt need for a quota of poverty and underdevelopment in order to function at its best.”

Benedict also called for a reform of the United Nations so there could be a unified “global political body” that allowed the less powerful of the earth to have a voice, and he called on rich nations to help less fortunate ones.

“In the search for solutions to the current economic crisis, development aid for poor countries must be considered a valid means of creating wealth for all,” he wrote.

John Sniegocki, a professor of Christian ethics at Xavier University in Cincinnati, said one of the most controversial elements of the encyclical, at least for some Americans, would be the call for international institutions to play a role in regulating the economy.

“One of the things he’s saying is that the global economy is escaping the power of individual states to regulate it,” Mr. Sniegocki said. He said the encyclical also contained elements “very critical” of how the International Monetary Fund and the World Bank “have required cuts in social spending in the third world.”

Michael Novak, a philosopher and theologian at the American Enterprise Institute in Washington, a conservative research organization, said he thought that the encyclical was stronger on principles than policy suggestions. He said he was particularly uncomfortable with the idea of a strong international institution to regulate the global economy.

“I like limited government. I would much prefer to have many limited governments than one overriding authority,” Mr. Novak said by telephone.

Benedict, arguably the most environmentally conscious pope in history, wrote, “One of the greatest challenges facing the economy is to achieve the most efficient use — not abuse — of natural resources, based on a realization that the notion of ‘efficiency’ is not value-free.”

Rachel Donadio reported from Vatican City, and Laurie Goodstein from New York.

Thursday, February 11, 2010

BERNANKE’S HOW-TO ON RATE INCREASE LACKS A WHEN

New York Times February 11, 2010 By SEWELL CHAN

WASHINGTON — “At some point.” “At the appropriate time.” “When the time comes.”

On Wednesday, the Federal Reserve’s chairman, Ben S. Bernanke, outlined a strategy — but not a timetable — for scaling back the extraordinary measures it began taking in 2007 to prop up the economy as financial markets teetered on collapse.

The Federal Reserve has eased borrowing by lowering short-term interest rates to nearly zero and built up a $2.2 trillion balance sheet by scooping up assets like mortgage-backed securities and even vast sums of Treasury bonds and notes.

Eventually, to avoid inflation, both actions will have to be reined in. But Mr. Bernanke, in a 10-page statement, provided few hints as to how long that period will be.

“Although at present the U.S. economy continues to require the support of highly accommodative monetary policies, at some point the Federal Reserve will need to tighten financial conditions by raising short-term interest rates and reducing the quantity of bank reserves outstanding,” he wrote.

“We have spent considerable effort in developing the tools we will need to remove policy accommodation, and we are fully confident that at the appropriate time we will be able to do so effectively.” However, Mr. Bernanke did provide new details of a major concern: how, as the recovery proceeds, to gradually shrink the balance sheet, which along with a vast array of assets also includes $1.1 trillion that banks are holding with the Fed.

Mr. Bernanke suggested that a new policy tool — the interest rate on excess reserves, which the Fed began paying in October 2008 — would be a vital part of the Fed’s strategy.

Increasing that interest rate, he said, will have the effect of pushing up other short-term interest rates, including the benchmark fed funds rate — the rate at which banks lend to each other overnight.

It is even possible, Mr. Bernanke said, that the Fed “could for a time use the interest rate paid on reserves, in combination with targets for reserve quantities,” to communicate its policy stance to the markets. Since 1994, the fed funds rate has been the much-watched centerpiece of statements by the Federal Open Market Committee, the Fed’s crucial policy-making arm.

Representative Spencer Bachus of Alabama, the senior Republican on the House Financial Services Committee, which requested Mr. Bernanke’s statement, noted on Wednesday that many in Congress never approved of the Fed’s extraordinary actions in the first place.

“An intervention creates an artificial condition in which the system becomes increasingly dependent on government action,” he said in a statement. “As with any addiction, an altered state is created where the only choices are permanent addiction or a sometimes painful withdrawal.”

For days, economists have been trying to forecast what Mr. Bernanke would say about the sequence of steps and the combination of tools the Fed will use to tighten credit. On that subject, Mr. Bernanke offered only hints of his thinking.

“One possible sequence would involve the Federal Reserve continuing to test its tools for draining reserves on a limited basis, in order to further ensure preparedness and to give market participants a period of time to become familiar with their operation,” he wrote.

“As the time for the removal of policy accommodation draws near, those operations could be scaled up to drain more significant volumes of reserve balances to provide tighter control over short-term interest rates. The actual firming of policy would then be implemented through an increase in the interest rate paid on reserves.”

But Mr. Bernanke suggested that “if economic and financial developments were to require a more rapid exit from the current highly accommodative policy” — that is, if fears emerge about inflation — the Fed “could increase the interest rate paid on reserves at about the same time it commences significant draining operations.”

Along with raising the interest rate on reserves, Mr. Bernanke discussed three other options for draining reserves. The first involves reverse repurchase agreements, in which the Fed would sell securities from its portfolio with an agreement to repurchase them at a later date.

The second involves term deposits — similar to certificates of deposit — to banks. That would convert part of the banks’ reserves into deposits that could not be used for short-term liquidity needs and would not be counted as reserves.

A third tool involves redeeming or selling securities. That strategy could carry risk, as the Fed’s large portfolio of mortgage-backed securities is helping to prop up the housing market and keep mortgage-interest rates low.

As part of its special lending programs to inject liquidity into the market, the Fed modified its discount window — the traditional program for direct lending to banks — to make terms more generous and to make nonbanks eligible for borrowing. That effort is winding down, and Mr. Bernanke said that “before long, we expect to consider a modest increase in the spread” between the discount rate — the rate at which the Fed directly lends to banks — and the fed funds rate. He emphasized that the change “should not be interpreted as signaling any change in the outlook for monetary policy.”

Mr. Bernanke’s statement elicited mixed views from economists.

Laurence J. Kotlikoff, an economist at Boston University, said that despite Mr. Bernanke’s efforts to be reassuring, the prospect for serious inflation was real. “We could go from here to hyperinflation, basically overnight, because we’ve increased the basic supply of money by a factor of three,” he said.

Mr. Kotlikoff also was skeptical about Mr. Bernanke’s proposed solution. “The Fed printed more than $1 trillion in new money and then went out and handed it to the banks, and now they’re trying to bribe those banks not to actually release it into the public stream — that’s what these interest rates on reserves are,” he said, adding, that that interest also amounted to a free subsidy to banks.

Ricardo Reis, an economist at Columbia University, was more sympathetic, describing Mr. Bernanke’s actions as innovative and necessary.

“The Fed can now return to having a ‘boring’ balance sheet with mostly government securities as assets, and bank reserves and cash as liabilities,” he said. “The increase in reserves plus the payment of interest on reserves — two innovations of the past two years — are good things. They should remain.”

Mr. Bernanke did note that the balance sheet would shrink on its own, over time, as assets like mortgage-backed securities and debt guaranteed by Fannie Mae and Freddie Mac are prepaid or mature. “In the long run, the Federal Reserve anticipates that its balance sheet will shrink toward more historically normal levels and that most or all of its security holdings will be Treasury securities,” he wrote.

Friday, December 4, 2009

NY TIMES ARTICLE; HOW TO SELL ON AMAZON AND eBAY

December 3, 2009
Small-Business Guide

How to Sell on Amazon and eBay

Quick Tips:

  • Try out several marketplaces to get a feel.

  • Sell products that interest you but carve a niche.

  • Write detailed, professional listings and titles with key search terms for your products.

  • Communicate frequently and openly with buyers to maintain a good reputation.

Suggested Resources:

The online marketplaces eBay and Amazon once seemed like surefire places to make extra money or to build an online retail business. It’s not quite so simple anymore.

The sites are crowded with sellers, and new third-party marketplaces are cropping up all of the time. And the rules change frequently. EBay angered many longtime sellers in recent years by restricting payment options, changing seller feedback procedures and promoting fixed-price items over its original auction-style listings. Amazon’s Marketplace stopped accepting new sellers in some product categories and requires preapproval in others.

“Merely being listed on eBay or Amazon isn’t a sustainable business,” said Dennis Ceru, an entrepreneurship professor at Babson College in Wellesley, Mass. “There are a lot of people going down this path that are making little or no money.”

Building viable enterprises off these marketplaces requires sourcing inventory cost-effectively, researching each marketplace’s procedures and commissions, polishing customer-service practices and managing your online reputation.

Here’s how to get started:

Figure Out the Basics

Familiarize yourself with the various marketplaces, particularly the giants, eBay and Amazon.

Try listing a few items on each site, which usually costs less than a dollar. You will also have to pay a commission ranging anywhere from 6 percent to 20 percent of the final sales price of any items you sell. Trying out the marketplaces and their various sales methods will help you spot the differences quickly.

Figure out what to sell. For start-up sellers, new goods are typically more lucrative than used items because they are easier to price and list, according to Scot Wingo, chief executive of ChannelAdvisor, a company that helps small businesses sell on the Internet. Collectibles are more difficult to price and are better suited to being sold in auctions.

Identify product areas that interest you, and seek a niche. Rather than sell, say, digital cameras, you might sell a specialty tripod or other accessories that aren’t already sold abundantly online. Skip McGrath, an eBay Powerseller,, started with automatic pepper mills. Based in Anacortes, Wash., he decided to sell specialty kitchen gadgets on eBay. “They’re light, easy to ship and I’m one of the few sellers selling them,” he said. “If I had pots and pans, I’d have 200 competitors.”

Find a reliable wholesaler who offers low enough prices to generate high enough profit margins on resale. Mr. McGrath, who said he generated roughly $150,000 in annual revenue with his eBay store, buys his pepper mills from a Seattle-based wholesale dealer. Finding the right wholesaler can require an extensive search. Many sellers, Mr. McGrath said, source their products offline, through local wholesalers or flea markets. Comparison shopping can still be done online, using sites like Liquidation.com and eBay, which offer wholesale items in bulk.

Choose Your Marketplace

One key to success is identifying the marketplace where the buyers of your products shop. Experts say it’s better to master one site before expanding.

The fast-growing number of choices include Bonanzle.com, Overstock.com, and Etsy.com, a marketplace for handmade crafts. Even social-networking sites like Facebook offer their own marketplaces, although they tend to be geared more toward online classifieds than retail businesses.

In late August, Wal-Mart introduced Wal-Mart Marketplace, which works with other retailers to sell goods on Walmart.com. So far, however, only a few established retailers, including eBags, have been admitted to the program. Alibaba.com, operated by the Alibaba Group of China, is the largest online marketplace in the world but primarily serves audiences outside the United States. It’s a growing option, though, for American retailers looking to generate international business.

EBay and Amazon remain the primary choices for most American-based sellers because they offer far more shopper traffic, said Mr. Wingo of ChannelAdvisor. Amazon had about 54.5 million unique visitors in October, according to Nielsen Online, while eBay had about 51 million.

Still, comparing the big marketplaces can be tricky. Amazon has lured away many eBay sellers in recent years because it doesn’t charge listing fees, meaning sellers have no upfront risk. Overall seller fees on Amazon, however, are often comparable or even slightly higher than those on eBay.

Selling on Amazon is more automated and requires less buyer interaction. The site collects money from customers and deposits it in seller accounts. In most categories of goods, eBay requires that sellers accept payment only through electronic systems, including its own PayPal system. Amazon has no auctions — all items are sold at fixed prices — and automatically sets the shipping fees depending on the item being sold. EBay sellers can choose their own shipping fees and have more control over the look and timing of listings.

Mr. McGrath said that eBay was still the better option for selling clothes, toys and household goods. Books, music and other electronic media, he said, tend to do better on Amazon.

Write Clear, Detailed Listings

Once you have your product and your marketplace, you have to figure out how to stand out from the pack.

One way is to write listings and titles that lure prospective buyers by providing detailed, reliable information about the product and customer service. When possible, include at least one high-quality, attractive photo of every item being sold — more if the item is used or a collectible. Using keywords — words shoppers are likely to enter when searching for the product online — in the item headline and listing is also crucial.

Listings should fully and accurately describe the item’s condition, especially any defects, said Steve Lindhorst, an e-commerce consultant in Atascadero, Calif., and a former eBay University instructor. Include shipping fees and procedures, so buyers know what to expect. Sellers who offer next-day shipping or money-back guarantees, he added, can get a leg up.

Make sure the listing looks reliable. Proofread it carefully and don’t use too many exclamation points or language that suggests you’re inexperienced or unprofessional. “Stay positive, clear and concise — that’s really important,” Mr. Lindhorst said. “It’s all about making the buyer feel comfortable.”

Note that each marketplace displays listings in its search results differently. EBay’s “Best Match” search results, for instance, give higher placement to listings offering free shipping and sellers with high feedback ratings. That’s why many eBay sellers now wrap their shipping fees into the asking price on fixed-price items. Amazon, on the other hand, generally lists the lowest-priced products first. EBay lets sellers pay for “featured” listings that get better placement in search results.

Selling through auction requires more strategy. Sellers generally want their auction listings to expire at the time of week when the listed item tends to sell best. Mr. McGrath, for instance, found his pepper mills and other kitchen gadgets sold best on Sunday and Monday evenings.

Some third-party services like Terapeak.com and HammerTap.com give eBay sellers and other online auctioneers access to marketplace analytics that help them time and write their product listings. The sites show, for instance, the time of day certain products sell best on eBay and identify keywords to include in listings and titles. Monthly subscriptions start around $20 (HammerTap offers a 10-day free trial).

Watch Your Ratings

Maintaining a high seller rating is essential. Most marketplaces ask buyers to rate sellers on a five-star scale. One or two bad reviews can ruin a small seller’s rating, and some sites boot sellers whose positive ratings fall below a certain level.

Detailed and clear product listings can avert miscommunication between buyer and seller. Including contact information also encourages sellers to contact you directly with problems — rather than posting negative comments or ratings.

Belinda North, founder of SophiasStyle.com, began her children’s clothes business on eBay and now sells about 30 percent of her inventory on eBay and Amazon, while the rest is sold mostly from her own site.

Ms. North, based in Omaha, sends all of her buyers an e-mail message immediately after a purchase to let them know the order was received and when it will ship. She follows up by e-mail once the item is shipped and provides her contact information in case of questions or problems.

The e-mail messages, Ms. North said, reassure buyers and show that she’s committed to customer service. They also allow her to continue marketing to new customers and to direct them to her own Web site. “This is your chance to create a customer for life,” Ms. North added.

That kind of branding, experts say, is what separates people who sell online from people who build retail businesses online.

INTERESTING NY TIMES STORY ON THE SALE OF N.B.C UNIVERSAL

December 3, 2009
In Secret Meetings, Comcast Wooed G.E. and Won NBC
By ANDREW ROSS SORKIN and TIM ARANGO

The secret meeting was set for an early July afternoon in a condominium along the ninth hole of a golf course in Sun Valley, Idaho. Jeffrey R. Immelt, General Electric’s chief executive, arrived first, taking care to avoid being spotted by his own employee, Jeff Zucker, the chief executive of NBC Universal, who was mingling with other executives nearby.

Ralph J. Roberts, the 89-year-old co-founder of the cable giant Comcast, and its chief operating officer, Steve Burke, arrived 15 minutes later.

The gathering, which had been brokered by James B. Lee Jr., a vice chairman of JPMorgan Chase, was set up for one purpose: Mr. Immelt, who had resisted the urge to sell NBC for years, was finally ready to sell. For months, he had been in discussions with Mr. Roberts’s son, Brian, Comcast’s chief executive. But now, at the investment bank Allen & Company’s annual media conference — known for big deal-making — he wanted to hear it from the mouth of the company’s patriarch.

“Do you want to do this?” Mr. Immelt, dressed informally in a polo shirt, asked Mr. Roberts, who was wearing his trademark bow tie, and Mr. Burke, who was Mr. Immelt’s classmate at Harvard Business School.

“Yes,” Mr. Burke said.

Mr. Roberts, who founded Comcast in Tupelo, Miss., in 1963, said: “I’ve done a lot of deals in my life. Every deal has its time. This is the right time.”

On Thursday, G.E. is planning to finally announce what had leaked more than a month ago: it is selling a controlling stake in NBC Universal to Comcast, a deal that will once again reshape the media landscape.

The transaction, the largest during Mr. Immelt’s tenure as chief executive, will also reshape G.E., refocusing it into an industrial and financial conglomerate without the flash — and financial instability — of a television and film business. And in the process, he has been undoing much of the legacy of his predecessor, John F. Welch Jr.

The deal was a long time in the making and was filled with meetings at the Four Seasons hotel in Philadelphia, in New York City apartments and on helicopter rides. It also featured code names: G.E. was Green, NBC was Navy, Vivendi was Violet and Comcast was Crimson (because of the Harvard link).

More than a half-dozen executives involved in those discussions, speaking on the condition of anonymity because the deal had yet to be formally announced and because the negotiations were considered confidential, helped reconstruct a nearly yearlong dance between G.E. and Comcast.

Mr. Roberts had long wanted to control not just the pipes into people’s homes, but the television shows and movies that flow over them. But since 2004, when he sought and failed to buy the Walt Disney Company, the media industry’s economics had cratered. Broadcast television was suffering through ratings declines, and a falloff in DVD sales had dented profits in Hollywood. But cable channels, of which NBC Universal has many, were flourishing.

The prospect of a deal with G.E. began in earnest in the late afternoon on March 3 on the 48th floor of JPMorgan, when Mr. Roberts and Mr. Burke came to meet with that firm’s chief executive, Jamie Dimon, at the behest of Mr. Lee.

The meeting began with a general discussion of Comcast’s finances, but Mr. Roberts said the company did not need a bank to raise money. Instead, he changed direction by saying he had been pursuing Mr. Immelt about NBC but felt like he was getting nowhere. He felt that G.E. was in a vulnerable position and highlighted the fact that when NBC acquired the Weather Channel earlier in the year, it partnered with private equity instead of buying the network on its own. It was a sign, Mr. Roberts believed, that Mr. Immelt might not be fully committed to the television business. Mr. Lee said he was having breakfast the next morning with Mr. Immelt and agreed to mention Comcast’s interest.

A day later, Mr. Roberts was standing in the lobby of a Marriott hotel in Baltimore, where his daughter was playing in a squash tournament, when Mr. Immelt called his cellphone.

“I want you to know that I’m going to study this,” Mr. Immelt told Mr. Roberts. The two agreed that measures should be taken to ensure secrecy and that only a handful of executives should be informed. Mr. Roberts, who had the failed hostile takeover bid for Disney behind him, had one requirement: he said he would not participate in an auction.

“We’ve got to be monogamous,” he said.

Mr. Immelt’s evolution in thinking about NBC had come over the last year as his company’s fortunes were battered during the financial crisis. In the weeks after Lehman Brothers’ bankruptcy, Mr. Immelt had spent many hours on the phone with the Treasury secretary, Henry M. Paulson Jr., worrying about the conglomerate’s fate.

In the beginning of 2009, as the stock market continued to plunge and G.E. hovered as low as $5.87 a share, Mr. Immelt listened to presentations about its assets at a management retreat, where his thoughts began to crystallize. NBC Universal, whose cable channels continued to do well but whose flagship broadcast network was deteriorating, no longer appeared to be core to the business and he thought his capital could be redeployed better elsewhere.

Comcast had also undertaken an internal review to consider where the company could grow by acquisition. It considered buying another cable company, a mobile phone company or even Facebook. At one point, it considered acquiring Viacom, which owns several cable networks but is unencumbered by a broadcast network, but Sumner M. Redstone, the controlling shareholder in Viacom, was not interested in selling.

As the spring wore on, G.E. and Comcast met repeatedly, trying to come up with a structure for the deal. By August, the broad points, in which Comcast would acquire 51 percent of the company, with G.E. holding 49 percent, were agreed upon. G.E. can begin selling its remaining stake back to NBC three and a half years after the deal closes at a 20 percent premium to the market value. However, it would have to share 50 percent of any increase in the value of NBC with Comcast.

The deal nearly fell apart several times. Once, when it seemed that it had been derailed over price and structure, Michael J. Angelakis, Comcast’s chief financial officer, flew to the summer home of Keith S. Sherin, G.E.’s chief financial officer, in Cape Cod and took him and his wife out to dinner to put the deal back on track. By the end of dinner, they had shaken hands.

The largest complication was that Vivendi, the French conglomerate that owned 20 percent of the company, could force G.E. to pursue an initial public offering if they could not come to terms on a deal.

Even within the last two weeks amid a constant stream of leaks, it appeared the deal could collapse. Vivendi wanted to value the business at $6.1 billion; G.E. wanted to value it at $5.5 billion. They ended up at $5.8 billion, but there was still a worry about what would happen if G.E.’s deal with Comcast were blocked by regulators.

Mr. Immelt, after attending the state dinner last month at the White House, flew to Paris to persuade Vivendi to complete the deal. An agreement was reached over the weekend after he offered to pay Vivendi $2 billion even if the Comcast deal collapsed.

For nearly six months, only a small cadre of G.E. and Comcast executives knew about the deal — nobody at NBC was ever told — and it had not leaked. On Sept. 30, several hours after the talks were disclosed to a tiny group of executives at NBC, the blockbuster talks appeared on TheWrap.com, a Hollywood news site.

“I’m telling you to be prepared for this to leak,” Mr. Sherin had told Mr. Angelakis earlier that day.

Monday, November 30, 2009

NY TIMES ARTICLE ON FOOD STAMP USE INCREASE

November 29, 2009
The Safety Net
Food Stamp Use Soars, and Stigma Fades
By JASON DePARLE and ROBERT GEBELOFF

MARTINSVILLE, Ohio — With food stamp use at record highs and climbing every month, a program once scorned as a failed welfare scheme now helps feed one in eight Americans and one in four children.

It has grown so rapidly in places so diverse that it is becoming nearly as ordinary as the groceries it buys. More than 36 million people use inconspicuous plastic cards for staples like milk, bread and cheese, swiping them at counters in blighted cities and in suburbs pocked with foreclosure signs.

Virtually all have incomes near or below the federal poverty line, but their eclectic ranks testify to the range of people struggling with basic needs. They include single mothers and married couples, the newly jobless and the chronically poor, longtime recipients of welfare checks and workers whose reduced hours or slender wages leave pantries bare.

While the numbers have soared during the recession, the path was cleared in better times when the Bush administration led a campaign to erase the program’s stigma, calling food stamps “nutritional aid” instead of welfare, and made it easier to apply. That bipartisan effort capped an extraordinary reversal from the 1990s, when some conservatives tried to abolish the program, Congress enacted large cuts and bureaucratic hurdles chased many needy people away.

From the ailing resorts of the Florida Keys to Alaskan villages along the Bering Sea, the program is now expanding at a pace of about 20,000 people a day.

There are 239 counties in the United States where at least a quarter of the population receives food stamps, according to an analysis of local data collected by The New York Times.

The counties are as big as the Bronx and Philadelphia and as small as Owsley County in Kentucky, a patch of Appalachian distress where half of the 4,600 residents receive food stamps.

In more than 750 counties, the program helps feed one in three blacks. In more than 800 counties, it helps feed one in three children. In the Mississippi River cities of St. Louis, Memphis and New Orleans, half of the children or more receive food stamps. Even in Peoria, Ill. — Everytown, U.S.A. — nearly 40 percent of children receive aid.

While use is greatest where poverty runs deep, the growth has been especially swift in once-prosperous places hit by the housing bust. There are about 50 small counties and a dozen sizable ones where the rolls have doubled in the last two years. In another 205 counties, they have risen by at least two-thirds. These places with soaring rolls include populous Riverside County, Calif., most of greater Phoenix and Las Vegas, a ring of affluent Atlanta suburbs, and a 150-mile stretch of southwest Florida from Bradenton to the Everglades.

Although the program is growing at a record rate, the federal official who oversees it would like it to grow even faster.

“I think the response of the program has been tremendous,” said Kevin Concannon, an under secretary of agriculture, “but we’re mindful that there are another 15, 16 million who could benefit.”

Nationwide, food stamps reach about two-thirds of those eligible, with rates ranging from an estimated 50 percent in California to 98 percent in Missouri. Mr. Concannon urged lagging states to do more to enroll the needy, citing a recent government report that found a sharp rise in Americans with inconsistent access to adequate food.

“This is the most urgent time for our feeding programs in our lifetime, with the exception of the Depression,” he said. “It’s time for us to face up to the fact that in this country of plenty, there are hungry people.”

The program’s growing reach can be seen in a corner of southwestern Ohio where red state politics reign and blue-collar workers have often called food stamps a sign of laziness. But unemployment has soared, and food stamp use in a six-county area outside Cincinnati has risen more than 50 percent.

With most of his co-workers laid off, Greg Dawson, a third-generation electrician in rural Martinsville, considers himself lucky to still have a job. He works the night shift for a contracting firm, installing freezer lights in a chain of grocery stores. But when his overtime income vanished and his expenses went up, Mr. Dawson started skimping on meals to feed his wife and five children.

He tried to fill up on cereal and eggs. He ate a lot of Spam. Then he went to work with a grumbling stomach to shine lights on food he could not afford. When an outreach worker appeared at his son’s Head Start program, Mr. Dawson gave in.

“It’s embarrassing,” said Mr. Dawson, 29, a taciturn man with a wispy goatee who is so uneasy about the monthly benefit of $300 that he has not told his parents. “I always thought it was people trying to milk the system. But we just felt like we really needed the help right now.”

The outreach worker is a telltale sign. Like many states, Ohio has campaigned hard to raise the share of eligible people collecting benefits, which are financed entirely by the federal government and brought the state about $2.2 billion last year.

By contrast, in the federal cash welfare program, states until recently bore the entire cost of caseload growth, and nationally the rolls have stayed virtually flat. Unemployment insurance, despite rapid growth, reaches about only half the jobless (and replaces about half their income), making food stamps the only aid many people can get — the safety net’s safety net.

Support for the food stamp program reached a nadir in the mid-1990s when critics, likening the benefit to cash welfare, won significant restrictions and sought even more. But after use plunged for several years, President Bill Clinton began promoting the program, in part as a way to help the working poor. President George W. Bush expanded that effort, a strategy Mr. Obama has embraced.

The revival was crowned last year with an upbeat change of name. What most people still call food stamps is technically the Supplemental Nutrition Assistance Program, or SNAP.

By the time the recession began, in December 2007, “the whole message around this program had changed,” said Stacy Dean of the Center on Budget and Policy Priorities, a Washington group that has supported food stamp expansions. “The general pitch was, ‘This program is here to help you.’ ”

Now nearly 12 percent of Americans receive aid — 28 percent of blacks, 15 percent of Latinos and 8 percent of whites. Benefits average about $130 a month for each person in the household, but vary with shelter and child care costs.

In the promotion of the program, critics see a sleight of hand.

“Some people like to camouflage this by calling it a nutrition program, but it’s really not different from cash welfare,” said Robert Rector of the Heritage Foundation, whose views have a following among conservatives on Capitol Hill. “Food stamps is quasi money.”

Arguing that aid discourages work and marriage, Mr. Rector said food stamps should contain work requirements as strict as those placed on cash assistance. “The food stamp program is a fossil that repeats all the errors of the war on poverty,” he said.

Suburbs Are Hit Hard

Across the country, the food stamp rolls can be read like a scan of a sick economy. The counties of northwest Ohio, where car parts are made, take sick when Detroit falls ill. Food stamp use is up by about 60 percent in Erie County (vibration controls), 77 percent in Wood County (floor mats) and 84 percent in hard-hit Van Wert (shifting components and cooling fans).

Just west, in Indiana, Elkhart County makes the majority of the nation’s recreational vehicles. Sales have fallen more than half during the recession, and nearly 30 percent of the county’s children are receiving food stamps.

The pox in southwest Florida is the housing bust, with foreclosure rates in Fort Myers often leading the nation in the last two years. Across six contiguous counties from Manatee to Monroe, the food stamp rolls have more than doubled.

In sheer numbers, growth has come about equally from places where food stamp use was common and places where it was rare. Since 2007, the 600 counties with the highest percentage of people on the rolls added 1.3 million new recipients. So did the 600 counties where use was lowest.

The richest counties are often where aid is growing fastest, although from a small base. In 2007, Forsyth County, outside Atlanta, had the highest household income in the South. (One author dubbed it “Whitopia.”) Food stamp use there has more than doubled.

This is the first recession in which a majority of the poor in metropolitan areas live in the suburbs, giving food stamps new prominence there. Use has grown by half or more in dozens of suburban counties from Boston to Seattle, including such bulwarks of modern conservatism as California’s Orange County, where the rolls are up more than 50 percent.

While food stamp use is still the exception in places like Orange County (where 4 percent of the population get food aid), the program reaches deep in places of chronic poverty. It feeds half the people in stretches of white Appalachia, in a Yupik-speaking region of Alaska and on the Pine Ridge Indian Reservation in South Dakota.

Across the 10 core counties of the Mississippi Delta, 45 percent of black residents receive aid. In a city as big as St. Louis, the share is 60 percent.

Use among children is especially high. A third of the children in Louisiana, Missouri and Tennessee receive food aid. In the Bronx, the rate is 46 percent. In East Carroll Parish, La., three-quarters of the children receive food stamps.

A recent study by Mark R. Rank, a professor at Washington University in St. Louis, startled some policy makers in finding that half of Americans receive food stamps, at least briefly, by the time they turn 20. Among black children, the figure was 90 percent.

Need Overcomes Scorn

Across the small towns and rolling farmland outside Cincinnati, old disdain for the program has collided with new needs. Warren County, the second-richest in Ohio, is so averse to government aid that it turned down a federal stimulus grant. But the market for its high-end suburban homes has sagged, people who build them are idle and food stamp use has doubled.

Next door, in Clinton County, the blow has been worse. DHL, the international package carrier, has closed most of its giant airfield, costing the county its biggest employer and about 7,500 jobs. The county unemployment rate nearly tripled, to more than 14 percent.

“We’re seeing people getting food stamps who never thought they’d get them,” said Tina Osso, the director of the Shared Harvest Food Bank in Fairfield, which runs an outreach program in five area counties.

While Mr. Dawson, the electrician, has kept his job, the drive to distant work sites has doubled his gas bill, food prices rose sharply last year and his health insurance premiums have soared. His monthly expenses have risen by about $400, and the elimination of overtime has cost him $200 a month. Food stamps help fill the gap.

Like many new beneficiaries here, Mr. Dawson argues that people often abuse the program and is quick to say he is different. While some people “choose not to get married, just so they can apply for benefits,” he is a married, churchgoing man who works and owns his home. While “some people put piles of steaks in their carts,” he will not use the government’s money for luxuries like coffee or soda. “To me, that’s just morally wrong,” he said.

He has noticed crowds of midnight shoppers once a month when benefits get renewed. While policy analysts, spotting similar crowds nationwide, have called them a sign of increased hunger, he sees idleness. “Generally, if you’re up at that hour and not working, what are you into?” he said.

Still, the program has filled the Dawsons’ home with fresh fruit, vegetables, bread and meat, and something they had not fully expected — an enormous sense of relief. “I know if I run out of milk, I could run down to the gas station,” said Mr. Dawson’s wife, Sheila.

As others here tell it, that is a benefit not to be overlooked.

Sarah and Tyrone Mangold started the year on track to make $70,000 — she was selling health insurance, and he was working on a heating and air conditioning crew. She got laid off in the spring, and he a few months later. Together they had one unemployment check and a blended family of three children, including one with a neurological disorder aggravated by poor nutrition.

They ate at his mother’s house twice a week. They pawned jewelry. She scoured the food pantry. He scrounged for side jobs. Their frustration peaked one night over a can of pinto beans. Each blamed the other when that was all they had to eat.

“We were being really snippy, having anxiety attacks,” Ms. Mangold said. “People get irritable when they’re hungry.”

Food stamps now fortify the family income by $623 a month, and Mr. Mangold, who is still patching together odd jobs, no longer objects.

“I always thought people on public assistance were lazy,” he said, “but it helps me know I can feed my kids.”

Shifting Views

So far, few elected officials have objected to the program’s growth. Almost 90 percent of beneficiaries nationwide live below the poverty line (about $22,000 a year for a family of four). But a minor tempest hit Ohio’s Warren County after a woman drove to the food stamp office in a Mercedes-Benz and word spread that she owned a $300,000 home loan-free. Since Ohio ignores the value of houses and cars, she qualified.

“I’m a hard-core conservative Republican guy — I found that appalling,” said Dave Young, a member of the county board of commissioners, which briefly threatened to withdraw from the federal program.

“As soon as people figure out they can vote representatives in to give them benefits, that’s the end of democracy,” Mr. Young said. “More and more people will be taking, and fewer will be producing.”

At the same time, the recession left Sandi Bernstein more sympathetic to the needy. After years of success in the insurance business, Ms. Bernstein, 66, had just settled into what she had expected to be a comfortable retirement when the financial crisis last year sent her brokerage accounts plummeting. Feeling newly vulnerable herself, she volunteered with an outreach program run by AARP and the Ohio Association of Second Harvest Food Banks.

Having assumed that poor people clamored for aid, she was surprised to find that some needed convincing to apply.“I come here and I see people who are knowledgeable, normal, well-spoken, well-dressed,” she said. “These are people I could be having lunch with.”

That could describe Franny and Shawn Wardlow, whose house in nearby Oregonia conjures middle-American stability rather than the struggle to meet basic needs. Their three daughters have heads of neat blond hair, pink bedroom curtains and a turtle bought in better times on vacation in Daytona Beach, Fla. One wrote a fourth-grade story about her parents that concluded “They lived happily ever after.”

Ms. Wardlow, who worked at a nursing home, lost her job first. Soon after, Mr. Wardlow was laid off from the construction job he had held for nearly nine years. As Ms. Wardlow tells the story of the subsequent fall — cutoff threats from the power company, the dinners of egg noodles, the soap from the Salvation Army — she dwells on one unlikely symbol of the security she lost.

Pot roast.

“I was raised on eating pot roast,” she said. “Just a nice decent meal.”

Mr. Wardlow, 32, is a strapping man with a friendly air. He talked his way into a job at an envelope factory although his boss said he was overqualified. But it pays less than what he made muscling a jackhammer, and with Ms. Wardlow still jobless, they are two months behind on the rent. A monthly food stamp benefit of $429 fills the shelves and puts an occasional roast on the Sunday table.

It reminds Ms. Wardlow of what she has lost, and what she hopes to regain.

“I would consider us middle class at one time,” she said. “I like to have a nice decent meal for dinner.”

Matthew Ericson and Janet Roberts contributed reporting.

NY TIMES ARTICLE ON ILLEGAL AFGHANI DETENTION

November 29, 2009
Afghans Detail Detention in ‘Black Jail’ at U.S. Base
By ALISSA J. RUBIN

KABUL, Afghanistan — An American military detention camp in Afghanistan is still holding inmates, sometimes for weeks at a time, without access to the International Committee of the Red Cross, according to human rights researchers and former detainees held at the site on the Bagram Air Base.

The site, known to detainees as the black jail, consists of individual windowless concrete cells, each illuminated by a single light bulb glowing 24 hours a day. In interviews, former detainees said that their only human contact was at twice-daily interrogation sessions.

“The black jail was the most dangerous and fearful place,” said Hamidullah, a spare-parts dealer in Kandahar who said he was detained there in June. “They don’t let the I.C.R.C. officials or any other civilians see or communicate with the people they keep there. Because I did not know what time it was, I did not know when to pray.”

The jail’s operation highlights a tension between President Obama’s goal to improve detention conditions that had drawn condemnation under the Bush administration and his stated desire to give military commanders leeway to operate. While Mr. Obama signed an order to eliminate so-called black sites run by the Central Intelligence Agency in January, it did not also close this jail, which is run by military Special Operations forces.

Military officials said as recently as this summer that the Afghanistan jail and another like it at the Balad Air Base in Iraq were being used to interrogate high-value detainees. And officials said recently that there were no plans to close the jails.

In August, the administration restricted the time that detainees could be held at the military jails to two weeks, changing previous Pentagon policy. In the past, the military could obtain extensions.

The interviewed detainees had been held longer, but before the new policy went into effect. Mr. Hamidullah, who, like some Afghans, uses only one name, was released in October after five and half months in detention, five to six weeks of it in the black jail, he said.

Although his and other detainees’ accounts could not be independently corroborated, each was interviewed separately and described similar conditions. Their descriptions also matched those obtained by two human rights workers who had interviewed other former detainees at the site.

While two of the detainees were captured before the Obama administration took office, one was captured in June of this year.

All three detainees were later released without charges. None said they had been tortured, though they said they heard sounds of abuse going on and certainly felt humiliated and roughly used. “They beat up other people in the black jail, but not me,” Hamidullah said. “But the problem was that they didn’t let me sleep. There was shouting noise so you couldn’t sleep."

Others, however, have given accounts of abuse at the site, including two Afghan teenagers who told The Washington Post that they had been subjected to beatings and humiliation by American guards.

A Defense Department spokesman, Bryan Whitman, said Saturday that the military routinely sought to verify allegations of detainee abuse, and that it was looking into whether the two Afghan teenagers who spoke to The Post had been detained.

Without commenting specifically on the site at Bagram, which is still considered classified, Mr. Whitman said that the Pentagon’s policy required that all detainees in American custody in Afghanistan be treated humanely and according to United States and international law.

All three former detainees interviewed by The New York Times complained of being held for months after the intensive interrogations were over without being told why. One detainee said he remained at the Bagram prison complex for two years and four months; another was held for 10 months total.

Human rights officials said the existence of a jail where prisoners were denied contact with the Red Cross or their families contradicted the Obama administration’s drive to improve detention conditions.

“Holding people in what appears to be incommunicado detention runs against the grain of the administration’s commitment to greater transparency, accountability, and respect for the dignity of Afghans,” said Jonathan Horowitz, a human rights researcher with the Open Society Institute.

Mr. Horowitz said he understood that “the necessities of war requires the U.S. to detain people, but there are limits to how to detain.”

The black jail is separate from the larger Bagram detention center, which now holds about 700 detainees, mostly in cages accommodating about 20 men apiece, and which had become notorious to the Afghan public as a symbol of abuse. That center will be closed by early next year and the detainees moved to a new larger detention site as part of the administration’s effort to improve conditions at Bagram.

The former detainees interviewed by The Times said they were held at the site for 35 to 40 days. All three were sent there upon arriving at Bagram and eventually transferred to the larger detention center on the base, which allows access to the Red Cross. The three were hooded and handcuffed when they were taken for questioning at the black jail so they did not know where they were or anything about other detainees, they said.

Mr. Horowitz said he had heard similar descriptions of the jail from former detainees, as had Sahr MuhammedAlly, a lawyer with Human Rights First, a nonprofit organization that has tracked detention issues in Guantánamo Bay, Cuba, Iraq and Afghanistan.

The International Committee of the Red Cross does not discuss its findings publicly and would not say whether its officials had visited the black jail. But, in early 2008, military officials acknowledged receiving a confidential complaint from the I.C.R.C. that the military was holding some detainees incommunicado.

In August, the military said that it had begun to give the Red Cross the names of everyone detained, including those held in the Special Operations camps, within two weeks of capture. But it still does not allow the group face-to-face access to the detainees.

All three detainees said the hardest part of their detention was that their families did not know whether they were alive.

“For my whole family it was disastrous,” said Hayatullah, a Kandahar resident who said he was working in his pharmacy when he was arrested. “Because they knew the Americans were sometimes killing people, and they thought they had killed me because for two to three months they didn’t know where I was.”

The three detainees said the military had mistaken them for Taliban fighters.

“They kept saying to me, ‘Are you Qari Idris?’ ” said Gulham Khan, 25, an impoverished, illiterate sheep trader, who mostly delivers sheep and goats for people who buy the animals in the livestock market in Ghazni, the capital of the province of the same name. He was captured in late October 2008 and released in early September this year, he said.

“I said, ‘I’m not Qari Idris.’ But they kept asking me over and over, and I kept saying, ‘I’m Gulham. This is my name, that is my father’s name, you can ask the elders.’ ”

Ten months after his initial detention, American soldiers went to the group cell where he was then being held and told him he had been mistakenly picked up under the wrong name, he said.

“They said, ‘Please accept our apology, and we are sorry that we kept you here for this time.’ And that was it. They kept me for more than 10 months and gave me nothing back.”

In their search for him, Mr. Khan’s family members spent the equivalent of $6,000, a fortune for a sheep dealer, who often makes just a dollar a day. Some of the money was spent on bribes to local Afghan soldiers to get information on where he was being held; they said soldiers took the money and never came back with the information.

In Mr. Hamidullah’s case, interrogators at the black jail insisted that he was a Taliban fighter named Faida Muhammad. “I said, ‘That’s not me,’ ” he recalled.

“They blamed me and said, ‘You are making bombs and are a facilitator of bomb making and helping militants,’ ” he said. “I said, ‘I have a shop. I sell spare parts for vehicles, for trucks and cars.’ ”

Human rights researchers say they worry that the jail remains in the shadows and largely inaccessible both to the Red Cross and the Afghan Independent Human Rights Commission, which has responsibility for ensuring humane treatment of detainees under the Afghan Constitution. Manfred Nowak, the United Nations’ special rapporteur on torture, said that the site fell into something of a legal limbo but that the Red Cross should still have access to all detainees.

Eric Schmitt contributed reporting from Washington.

Saturday, November 21, 2009

NEW YORK TIMES ARTICLE CONFIRMS ARTICLE IN ALEX JONES VIDEO FALL OF REPUBLIC

Report by Tetractys Merkaba Editor-in-Chief

This is a copy of a newspaper report from the New York Times that flashes across the screen during the important Alex Jones documentary Fall of the Republic.

Watch Fall of the Republic on the mikiverse.

This illustrates and confirms the fact that, firstly, the Jones documentary uses researched and verifiable facts in his documentaries, and, secondly, that there are politician's that are looking to violate the principles of 'innocent until proven guilty' by getting people to spy on their fellow beings. This is similar to the thought police in George Orwell's 1984, or, the actions of people in Communist nations during the Cold War. If we are not careful, we shall be hearing the slogan; "Four Legs Good, Two Legs, Better".

Opinions of all kind are encouraged. The Mikiverse shall endeavour to keep verifying articles that flash over our screens in documentaries for your enjoyment and perusal.


May 18, 2008

As Prices Rise, Crime Tipsters Work Overtime

To gas prices, foreclosure rates and the cost of rice, add this rising economic indicator: the number of tips to the police from people hoping to collect reward money.

Calls to the Southwest Florida Crime Stoppers hot line in the first quarter of this year were up 30 percent over last year. San Antonio had a 44 percent increase. Cities and towns from Detroit to Omaha to Beaufort County, N.C., all report increases of 25 percent or more in the first quarter, with tipsters telling operators they need the money for rent, light bills or baby formula.

“For this year, everyone that’s called has pretty much been just looking for money,” said Sgt. Lawrence Beller, who answers Crime Stoppers calls at the Sussex County, N.J., sheriff’s office. “That’s as opposed to the last couple of years, where some people were just sick of the crime and wanting to do something about it.”

As a result, many programs report a substantial increase in Crime Stopper-related arrests and recovered property, as callers turn in neighbors, grandchildren or former boyfriends in exchange for a little cash.

On Friday, a woman called the Regional Crime Stoppers line in Macon, Ga., to find out when she could pick up her reward money for a recent tip. She was irritated to learn that she would have to wait until Monday.

“I’m in a bind, I’m really in a bind,” she told the hot-line operator. “There’s a lot of stuff I know, but I didn’t open my mouth. If I weren’t in a bind, I wouldn’t open my mouth.”

When she learned the money was not available, she said she would call back with the whereabouts of another suspect whom she had just seen “going down the road.”

Elaine Cloyd, the president of Crime Stoppers U.S.A., a national organization of local tip programs, said that not all of the 323 programs in the country had reported an increase in calls, and that some, like those in Lafayette, La., and Broward County, Fla., attributed most of their spike to increased publicity or technological improvements like accepting tips by text message. But there was no doubt, Ms. Cloyd said, that the faltering economy was a significant factor.

“When the economy gets rough, people have to be creative,” she said. “They might give a tip where they wouldn’t have in the past.”

For tips that bring results, programs in most places pay $50 to $1,000, with some jurisdictions giving bonuses for help solving the most serious crimes, or an extra “gun bounty” if a weapon is recovered. In Sussex County, the average payment for a tip that results in an arrest is $400, Sergeant Beller said.

“Usually you deliver the money in an unmarked car and meet them somewhere,” he said. “But these people come right to the office and walk right through the front door.”

Some Crime Stoppers coordinators say their program appeals to community spirit and emphasize that not everyone who calls is after money. But their advertising makes no bones about the benefits of a good tip.

“Crime doesn’t pay but we do,” say the mobile billboards cruising Jacksonville, Fla. A poster in Jackson, Tenn., draws a neat equation: “Ring Ring + Bling Bling = Cha-Ching.” The bling, in this case, is a pair of handcuffs.

Some coordinators suggest that rising crime rates might be driving up the number of tips. But in Jackson, Tenn., Sgt. Mike Johnson said his call volume had gone from two or three a day to eight or nine. He theorized that rising crime there was not a factor because the program advertises steadily regardless of trends. “People just need money,” Sergeant Johnson said.

Sergeant Johnson has been a Crime Stoppers coordinator for 15 years, watching crime rates and tips fluctuate. But, he said, “I’ve never seen an increase like it is now.”

Crime Stoppers programs strictly protect the anonymity of callers. Each tip is assigned a number, and if the tip results in an arrest, the caller can collect a cash reward, usually by going to a designated bank. Some programs pay tipsters within hours of an arrest; others have monthly meetings to approve reward amounts.

Not only have the number of tips increased, several program coordinators said, but people are also more diligent about calling back to find out if and when they can collect.

Jim Cogan, director of the Silicon Valley Crime Stoppers program in California, said most of the rewards offered by his program used to go unclaimed. But with large numbers of foreclosures and heavy job losses, Mr. Cogan said, “now we’re seeing rewards get picked up right away and our tipsters being frustrated when tips aren’t available as quickly as they need the money.”

Karen Keen, the tips coordinator for First Coast Crime Stoppers in Jacksonville, said she had, on occasion, been given approval to pay tipsters early, if they persuaded her that they needed the money to pay a light bill or some other necessity.

Some people have made a cottage industry of calling in tips. Although repeat callers do not give their names, operators recognize their voices.

“We have people out there that, realistically, this could be their job,” said Sgt. Zachary Self, who answers Crime Stoppers calls for the Macon Police Department.

“Two or three arrests per week, you could make $700, $750 per week,” Sergeant Self said. “You could make better than a minimum-wage job.”

He said that his program typically averaged 215 arrests per year, but that this year it had already hit 100, and he projected it would make more than 300, a record, by year’s end.

In some cases, the quality of the tips is lagging as people grasp for any shred of information that might result in an arrest. A woman in Macon, for example, recently called to report that a family member — who was wanted for burglary and whose name and address were already known to the police — was at home. His home.

Such a tip might seem worthless on its face, said Jean Davis, who took the call. But many police departments do not have the personnel to watch a suspect’s comings and going. In that case, the young man was arrested.

Typically, the greatest number of calls comes in response to news coverage of a specific crime or a weekly list of wanted suspects. At other times, people call to report a crime the police might not even be aware of. Or, they might just call to report the whereabouts of someone with an old warrant. Warrant tips for minor crimes generate the lowest rewards, but that has not stopped people from turning in suspects.

“We’re getting a lot more calls related to wanted persons,” said Sgt. Tommi Bridgeman, who coordinates the Beaufort County Crime Stoppers program. “People who know that these people have warrants out for their arrest are calling to turn them in.”

Sergeant Bridgeman said her calls were up 25 percent even though the program’s one advertisement, a patrol car emblazoned with the hot-line number, was out of commission.

“Folks around here need the money,” she said. “There’s not a lot of jobs here. We try to pay out every two weeks because we know they need the money.”

Places with quick payments and particularly bleak economic conditions tended to report increases in call volume. Lee County, Fla., had the highest rate for home foreclosures in the United States in February and March, and its once-plentiful construction jobs have dried up.

Last week, the Crime Stoppers coordinator there, Trish Routte, got a call from a man reporting drug activity, a tip that paid him $450. It was his second call in a week, said Ms. Routte, who recognized the caller’s voice.

“He told me he really didn’t want to call but he just had a new grandbaby and he needed the money,” Ms. Routte said.

Economic problems for families, Ms. Routte acknowledged, were good business for Crime Stoppers. “We’re kind of banking on that, really,” she said. “If it helps put dinner on the table for somebody, that’s wonderful.”

Friday, November 20, 2009


November 19, 2009

Obama Takes Stern Tone on North Korea and Iran

SEOUL, South Korea — President Obama delivered a stern message on Thursday to North Korea and Iran that they risk further sanctions and isolation if they do not rein in their nuclear ambitions.

Appearing at a joint press conference with President Lee Myung-bak of South Korea, Mr. Obama singled out Iran, where leaders have apparently rejected an offer from the West to take Iran’s stockpile of enriched uranium to another country to turn it into fuel rods, which would buy time for diplomatic negotiations.

“We’ve seen indications that for internal political reasons or perhaps because they are stuck in some of their own rhetoric, they are unable to get to ‘yes,’ ” Mr. Obama said. “As a consequence, we have begun discussion with our international partners” on sanctions, he said.

He said that over the next few weeks the United States would be developing a package of “potential steps we can take that will indicate our seriousness.”

Mr. Obama’s words were his strongest to date and seemed to signal that he was ready to move to sanctions.

On the North, Mr. Obama said he was sending his North Korea envoy to Pyongyang next month for talks designed to try to get the nation back to the bargaining table. But he warned that even getting the North back to the table would not be enough.

“I want to emphasize that President Lee and I both agree on the need to break the pattern that existed in the past in which North Korea behaves in a provocative fashion, then is willing to return to talks, and then talks for a while, and then leaves the talks and seeks further concessions,” Mr. Obama said.

Mr. Obama’s visit to Seoul is the last — and perhaps easiest — leg of an Asia trip in which he was forced to deal with a newly assertive Japan and an increasingly powerful China.

South Korea quickly proved true the predictions that it would be more accommodating to Mr. Obama, with whom Mr. Lee has been cooperating closely on key issues, including efforts to eventually halt North Korea’s nuclear program.

On Thursday morning, the Koreans put on a rousing welcoming ceremony for Mr. Obama. On the terraced lawn in front of the Blue House, the presidential offices in Seoul, a colorful array of ceremonial guardsmen, band members and local children greeted Mr. Obama, playing “The Star-Spangled Banner” and waving American flags.

South Korean government officials and diplomatic analysts said that the visit represented a chance for Seoul to raise its profile with the Obama administration by stressing its reliability as a partner in Asia.

Mr. Lee is more closely aligned with American policy than were his liberal predecessors, who saw President George W. Bush’s tough stance on North Korea as counterproductive, and he was elected on a platform of getting tough with Pyongyang. But Mr. Lee has been criticized by the left for his decision to send more aid workers and a small military contingent to Afghanistan in support of the American-led effort there.

During large antigovernment protests last year over beef imports from the United States — an issue that tapped into an undercurrent of anti-American feelings — Mr. Lee was accused of kowtowing to American leaders. In anticipation of demonstrators this visit, the government says it will deploy about 13,000 police and soldiers.

The only potential point of contention on the visit was that Washington still was not moving to ratify a free-trade agreement agreed upon two years ago. Mr. Obama said that he wanted to get it done but acknowledged that “there is obviously a concern in the United States of the incredible trade imbalances that have grown in the past few years.”

Tuesday, November 17, 2009

November 16, 2009

Drug Makers Raise Prices in Face of Health Care Reform

Even as drug makers promise to support Washington’s health care overhaul by shaving $8 billion a year off the nation’s drug costs after the legislation takes effect, the industry has been raising its prices at the fastest rate in years.

In the last year, the industry has raised the wholesale prices of brand-name prescription drugs by about 9 percent, according to industry analysts. That will add more than $10 billion to the nation’s drug bill, which is on track to exceed $300 billion this year. By at least one analysis, it is the highest annual rate of inflation for drug prices since 1992.

The drug trend is distinctly at odds with the direction of the Consumer Price Index, which has fallen by 1.3 percent in the last year.

Drug makers say they have valid business reasons for the price increases. Critics say the industry is trying to establish a higher price base before Congress passes legislation that tries to curb drug spending in coming years.

“When we have major legislation anticipated, we see a run-up in price increases,” says Stephen W. Schondelmeyer, a professor of pharmaceutical economics at the University of Minnesota. He has analyzed drug pricing for AARP, the advocacy group for seniors that supports the House health care legislation that the drug industry opposes.

A Harvard health economist, Joseph P. Newhouse, said he found a similar pattern of unusual price increases after Congress added drug benefits to Medicare a few years ago, giving tens of millions of older Americans federally subsidized drug insurance. Just as the program was taking effect in 2006, the drug industry raised prices by the widest margin in a half-dozen years.

“They try to maximize their profits,” Mr. Newhouse said.

But drug companies say they are having to raise prices to maintain the profits necessary to invest in research and development of new drugs as the patents on many of their most popular drugs are set to expire over the next few years.

“Price adjustments for our products have no connection to health care reform,” said Ron Rogers, a spokesman for Merck, which raised its prices about 8.9 percent in the last year, according to a stock analyst’s report.

This year’s increases mean the average annual cost for a brand-name prescription drug that is taken daily would be more than $2,000 — $200 higher than last year, Professor Schondelmeyer said.

And this means that the cost of many popular drugs has risen even faster. Merck, for example, now sells daily 10-milligram pills of Singulair, the blockbuster asthma drug, at a wholesale price of $1,330 a year — $147 more than last year. Singulair is now selling at retail, on drugstore.com, for nearly $1,478 a year.

The drug companies “can charge what they want — it’s not fair,” Eric White, the 42-year-old owner of a small jewelry store in Queens, said as he left a pharmacy recently.

Despite having drug insurance, Mr. White says he now pays $110 a month out of pocket for two brand-name allergy medicines, even as he has cut prices in his jewelry store by at least 40 percent to keep customers coming through the door.

He shook his head. “What can I do?” he said. “I need my medicines.”

The drug industry has actively opposed some of the cost-cutting provisions in the House legislation, which passed Nov. 7 and aims to cut drug spending by about $14 billion a year over a decade.

But the drug makers have been proudly citing the agreement they reached with the White House and the Senate Finance Committee chairman to trim $8 billion a year — $80 billion over 10 years — from the nation’s drug bill by giving rebates to older Americans and the government. That provision is likely to be part of the legislation that will reach the Senate floor in coming weeks.

But this year’s price increases would effectively cancel out the savings from at least the first year of the Senate Finance agreement. And some critics say the surge in drug prices could change the dynamics of the entire 10-year deal.

“It makes it much easier for the drug companies to pony up the $80 billion because they’ll be making more money,” said Steven D. Findlay, senior health care analyst with the advocacy group Consumers Union.

Name-brand prices have risen even as prices of widely used generic drugs have fallen by about 9 percent in the last year, Professor Schondelmeyer said. But name brands account for 78 percent of total prescription drug spending in this country. And as long as a name-brand drug still has patent protection it faces no price competition from generics.

Ken Johnson, senior vice president of the industry association — the Pharmaceutical Research and Manufacturers of America — criticized the analysis Professor Schondelmeyer had conducted for AARP, saying it was politically motivated.

“In AARP’s skewed view of the world, medicines are always looked at as a cost and never seen as a savings — even though medicines often reduce unnecessary hospitalization, help avoid costly medical procedures and increase productivity through better prevention and management of chronic diseases,” he said.

But Professor Schondelmeyer’s analysis — which found prices for the name-brand drugs most widely used by the Medicare population rising by 9.3 percent in the last year, the fastest rate since 1992 — is in line with the findings of a leading Wall Street analyst, too. The report was released on Monday.

Catherine J. Arnold, a drug industry analyst at Credit Suisse, said her latest study of the nation’s eight biggest pharmaceutical companies showed markedly similar results: list prices rising an average of 8.7 percent in the 12 months ending Sept. 30 — the highest rate of growth since at least 2004.

As does Professor Schondelmeyer, Ms. Arnold based her price calculations on reported wholesale prices and a formula that puts more emphasis on each company’s best-selling drugs.

Ms. Arnold said the prospect of cost containment under health care reform, as well as the tougher business environment, entered into the decisions of manufacturers to raise prices this year.

The industry stands to gain about 30 million customers with drug insurance from the legislation pending in Congress. But the industry also faces the prospect of tougher negotiations from both public and private buyers as the government tries to squeeze savings out of the health system.

“If you’re going to take price increases,” Ms. Arnold said, “here and now might be the place to do that, because the next year and the year after that might be tough.”

Mr. Johnson did not dispute the Credit Suisse study or deny Ms. Arnold’s finding that American drug makers have raised prices at the fastest rate in five years.

He said both studies were incomplete by failing to include rebates that drug makers give distributors. But Ms. Arnold, Professor Schondelmeyer and a 2007 Congressional study of Medicare said the rebates often accrue to the middlemen, not consumers, and higher manufacturer prices lead to higher retail prices.

And the drug industry’s own major consulting firm, IMS Health, has also reported a significant run-up in prices. Back in April, IMS predicted that United States drug sales might actually decline this year.

Billy Tauzin, president of the industry’s trade association, highlighted the gloomy prediction in a June 1 letter to President Obama shortly before striking the deal to cut drug costs by $80 billion. In negotiating the deal, the drug makers argued that they could not afford to give up more than that.

But in October, IMS made an unusual change in the middle of its forecasting cycle, saying it now believed United States sales would grow at least 4.5 percent in 2009 — or $21 billion more than expected six months earlier.

A major reason, IMS said, was higher-than-expected price increases for drugs in the United States.

Wednesday, November 4, 2009

NOVEMBER 3, 2009, 8:00 AM

Colons, Dashes and Trouble

Notes from the newsroom on grammar, usage and style.

Colons can be useful; dashes, ditto. But they should be used sparingly and with care.

Overused, they can seem contrived, a journalistic mannerism. Used carelessly, they can confuse a sentence instead of clarifying. And sometimes a procession of such punctuation is a hint that a sentence is overstuffed or needs rethinking.

A few recent examples:

•••

In making it easier for traditionalist Anglicans to become Catholic, Pope Benedict XVI once again revealed the character of his papacy: to reach out to the most fervent of like-minded believers, even if they are not Catholic. Yet some observers wonder whether his move could paradoxically liberalize the church — or at least wedge it open — on a crucial issue: celibacy.

Two colon constructions in successive sentences seemed like too much. And a pair of dashes added to the awkward, stop-and-go effect.

•••

The results of the violence may prove short-lived — and possibly counterproductive; condemnation of Israel and Hamas is likely to grow after the United Nations Human Rights Council voted Friday to endorse a report detailing evidence of war crimes in Gaza.

This odd combination of dash and semicolon seemed clunky and potentially confusing. How about no punctuation after “short-lived,” then a period after “counterproductive” and a new sentence starting with “condemnation”?

•••

Less romantic and — with instantly available pornography online and graphic sex talk, including on Mr. Hefner’s own show, “The Girls Next Door,’’ on TV — it’s a time that makes Playboy’s ideals seem quaint. Mr. Hefner — who uses the word “cat’’ to describe himself, as in, “I’m the luckiest cat on the planet’’ — doesn’t think much of today’s cultural landscape.

The first dash may have belonged before the “and.” But beyond that, the succession of dashes, commas and clauses makes this passage awfully tough to decipher.

In a Word

This week’s grab bag of grammar, style and other editing missteps, compiled with help from colleagues and readers.

•••

News of the government’s plan to on average halve pay for the top 25 employees of firms that took two bailouts ricocheted down Wall Street on Wednesday.

We’re prepared to split infinitives when that makes the best sentence, but this was awfully awkward.

•••

Those cold figures threaten an image of the battle [Henry V's victory at Agincourt] that even professional researchers and academics have been reluctant to challenge in the face of Shakespearean prose and centuries of English pride, Ms. Curry said.

Nothing wrong with well-wrought prose, but that “band of brothers” spiel definitely qualifies as “poetry” or “verse.”

•••

The case, which centers around a private contract between the two brothers, will be followed closely by investors and global companies, particularly as they look to developing countries like India for growth. … Their Supreme Court case centers around a resource India desperately needs to develop: natural gas. India is rich in energy resources including natural gas and coal, but bureaucracy and political infighting have kept these resources from being exploited.

The Times’s stylebook says this:

center (v.). Do not write center around because the verb means gather at a point. Logic calls for center on, center in or revolve around.

•••

For years his name was anathema. Reviled as a Nazi collaborator whom an Israeli judge said had “sold his soul to the devil,” Mr. Kasztner, a journalist and official in Israel’s ruling leftist workers party, Mapai, was denounced in court, demonized in print and spat upon on the street.

Recorded announcement: Make it “who.”

•••

Wanting design help, Ms. Sperling responded to a posting on The New York Times Web site (which is no longer online) offering to match people struggling with “a furniture budget that feels too tight,” with a professional designer.

NYTimes.com is no longer online? Oh, no, that’s not what we meant. (Also, the two “with” phrases in a row were awkward.)

•••

As for the cost of the makeover, which ran more than $500 over budget after Ms. Sperling purchased the coffee table and lamp from West Elm and bought mohair for the side chair (“That was my splurge,” she said), Ms. Sperling seemed nonplussed. “I’m happy to spend a little extra,” she said, “to make the investment in some pieces I’ll have around for a long time.”

“Nonplused” (one “s” is the dictionary’s first spelling) means “bewildered; at a loss.” Here it seems we meant something more like “unfazed.”

•••

“But it [parents' yelling] effects a child. If someone yelled at you at work, you’d find that pretty jarring. We don’t apply that standard to children.”

“Affects,” not “effects.”

•••

In offices, churches, hospitals, college dorms and schools — and even at yoga classes and in apple orchards — the fear of swine flu is turning age-old rituals on their head. What used to be O.K. is not anymore, as the flu has ushered in new standards of etiquette that can be, in turns, mundane, absurd and heartbreaking.

The tone of this Page One story was somewhat conversational, but there still was no need for this colloquialism.

•••

More than seven decades after her death the aviatrix Amelia Earhart still fascinates.

With a new movie about Earhart, this precious term for “female aviator” keeps popping up. Better: pilot, aviator. We know she’s a woman. (Also, a comma after “death” would have made this more readable.)

•••

After Deadline examines questions of grammar, usage and style encountered by writers and editors of The Times. It is adapted from a weekly newsroom critique overseen by Philip B. Corbett, the associate managing editor for standards, who is also in charge of The Times’s style manual.

from the New York Times