Obama, Congress Fail to Avert Sequester Cuts

President Obama and congressional leaders today failed to reach a breakthrough to avert a sweeping package of automatic spending cuts, setting into motion $85 billion of across-the-board belt-tightening that neither had wanted to see.

Obama met for just over an hour at the White House today with Republican leaders House Speaker John Boehner and Senate Minority Leader Mitch McConnell and his Democratic allies, House Minority Leader Nancy Pelosi, Senate Majority Leader Harry Reid and Vice President Joe Biden.

But the parties emerged from their first face-to-face meeting of the year resigned to see the cuts take hold at midnight.

"This is not a win for anybody," Obama lamented in a statement to reporters after the meeting. "This is a loss for the American people."

READ MORE: 6 Questions (and Answers) About the Sequester

Officials have said the spending reductions immediately take effect Saturday but that the pain from reduced government services and furloughs of tens of thousands of federal employees would be felt gradually in the weeks ahead.

Federal agencies, including Homeland Security, the Pentagon, Internal Revenue Service and the Department of Education, have all prepared to notify employees that they will have to take one unpaid day off per week through the end of the year.

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The staffing trims could slow many government services, including airport screenings, air traffic control, and law enforcement investigations and prosecutions. Spending on education programs and health services for low-income families will also get clipped.

"It is absolutely true that this is not going to precipitate the crisis" that would have been caused by the so-called fiscal cliff, Obama said. "But people are going to be hurt. The economy will not grow as quickly as it would have. Unemployment will not go down as quickly as it would have. And there are lives behind that. And it's real."

The sticking point in the debate over the automatic cuts -- known as sequester -- has remained the same between the parties for more than a year since the cuts were first proposed: whether to include more new tax revenue in a broad deficit reduction plan.

The White House insists there must be higher tax revenue, through elimination of tax loopholes and deductions that benefit wealthier Americans and corporations. Republicans seek an approach of spending cuts only, with an emphasis on entitlement programs. It's a deep divide that both sides have proven unable to bridge.

"This discussion about revenue, in my view, is over," Boehner told reporters after the meeting. "It's about taking on the spending problem here in Washington."

Boehner: No New Taxes to Avert Sequester

Boehner says any elimination of tax loopholes or deductions should be part of a broader tax code overhaul aimed at lowering rates overall, not to offset spending cuts in the sequester.

Obama countered today that he's willing to "take on the problem where it exists, on entitlements, and do some things that my own party doesn't like."

But he says Republicans must be willing to eliminate some tax loopholes as part of a deal.

"They refuse to budge on closing a single wasteful loophole to help reduce the deficit," Obama said. "We can and must replace these cuts with a more balanced approach that asks something from everybody."

Can anything more be done by either side to reach a middle ground?

The president today claimed he's done all he can. "I am not a dictator, I'm the president," Obama said.

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WikiLeaks: Manning says he wanted "public debate" on war

WASHINGTON: US Army private Bradley Manning told a military tribunal on Thursday that he leaked incident logs from the wars in Iraq and Afghanistan to WikiLeaks in order to start a "public debate."

"For me they represent the underground realities of the conflicts of Iraq and Afghanistan," Manning told the court, after his lawyer said he plans to plead guilty to some of the charges leveled against him over the leaks.

The 25-year-old, who is being held in military custody pending trial, said he would plead guilty to ten of the less serious of the 22 charges against him, but would deny aiding America's enemies, a crime which carries a life term.

Even if the court agrees to pursue only the lesser allegations, Manning still faces 20 years in military custody for leaking classified material to Australian activist Julian Assange's WikiLeaks whistle-blower website.

Reading a statement to the tribunal, Manning said he had initially attempted to contact traditional media outlets -- the Washington Post, the New York Times and Politico -- before deciding to pass the documents to WikiLeaks.

He sent the organization, which campaigns against government secrecy and publishes leaked information on a secure website, two military logs of daily incidents during the US campaigns in Iraq and Afghanistan.

"At the time I believed, and I still believe, these are two of the most significant documents of our time," he said, adding that he wanted to "spark a domestic public debate about our foreign policy and the war in general."

He also provided a vast trove of US diplomatic cables and cockpit video from a US helicopter gunship involved in an incident in which Iraqi civilians died.

Manning explained that he had chosen to work with WikiLeaks as it seemed to him, from what he had read, that the group "exposed illegal activities and corruption" and was "almost academic in nature."

Manning's plea offer was presented to a military tribunal at Fort Meade in Maryland by his lawyer David Coombs, and the young soldier confirmed to the court that he understood the implications of his offer.

He intends to plead guilty to "unauthorized possession and willful transmission" of the video and of documents recounting civilian deaths during US operations Iraq and Afghanistan.

He will also admit "knowingly, intelligently and voluntarily" providing WikiLeaks with the classified diplomatic cables.

Judge Denise Lind asked Manning whether he understood the implications of his plea offer: "Do you understand this? Do you have questions about this? Do you still want to go forward with this?"

"Yes, your honor," he replied, before reading out a 35-page statement of his own attempting to outline his motivation in leaking the material.

-AFP/ac

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Google testing new navigation design borrowed from Chrome

Google tests a new navigation system for its services that dumps the controversial black bar.

(Credit:
Google Operating System)

Google is testing a new version of its home page that eliminates the controversial navigation bar that has sat atop its services for two years, the company said.

The version now being tested requires users to click a grid icon borrowed from Chrome OS for links to Gmail, Google Maps, YouTube, and other products. The design, which was first spotted by blog Google Operating System, appears to be in an early stage of testing -- screenshots show the grid icon includes a redundant link to Google search, even when accessed from the search page.

"We're always experimenting with the look and feel of our home page," a Google rep told CNET.

If it tests well, the grid would replace the prominent black bar that has served as the company's site navigation tool since 2011. The nav bar has always polarized design-minded users: Some like the unified look it brings to Google products, while others think the interface could be improved. Among those who think that: Google itself, which has eliminated the navigation bar in the past only to bring it back later.

In November 2011, Google moved its list of services into a drop-down menu that descended from the Google logo. But some users criticized the move for making those services harder to find, and the experiment was dropped six weeks later.

A similar criticism might be levied at the new design, which buries the services under an icon in exchange for a cleaner overall look. And with the company putting greater emphasis on Chrome OS this year than ever before, perhaps we shouldn't be surprised to see elements from the operating system migrating into more and more Google services.

The test hasn't shown up for us yet. For more pictures, check out Google Operating System.

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Vatican hints at start date for papal conclave

VATICAN CITY Much speculation surrounds the date when leaders of the Roman Catholic Church will begin the process of selecting their new pope.

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Pope Benedict XVI: "I am no longer Pope"

The date for the conclave of cardinals to begin their deliberations has not yet been set, although one of Pope Benedict XVI's final acts before resigning his office was to amend the rules governing the election of a successor, allowing the cardinals to meet earlier than the usual 15-day transition between pontificates.

On Thursday, soon after Benedict left the Vatican on his final day as pope, Monsignor Carlo Maria Celli, a papal communications officer, hinted that the date could be March 11.

That could not be immediately confirmed.

The date of the conclave's start is important because Holy Week begins March 24, with Easter Sunday March 31. In order to have a new pope in place for the church's most solemn liturgical period, he would need to be installed by Sunday, March 17 -- a tight time frame if a conclave were to start March 15.

Cardinal Francis George, of the Archdiocese of Chicago, told CBS News he hopes the papal conclave will work quickly to name a new pope when it convenes next month -- but he does not know who he will vote for.

"Not yet, I honestly don't," he said. "I've got four or five names in mind. That's part of the next days' work, to check and see do the others think what I think?"

Regarding the issues the cardinals will be considering as they choose a new Pope, Cardinal Timothy Dolan, the Archbishop of New York, told CBS News that cleaning up the church after a number of scandals most likely will be part of the conclave's goal.

"Sadly, tragically, we leaders of the church have often given people reasons not to have trust in the church anymore," he said.

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Benedict Departs Vatican for the Last Time as Pope

Pope Benedict XVI bade his final farewell to the faithful today, lifting off from the Vatican in a white helicopter as the first pope to resign in six centuries.

Just before 5 p.m. local time, Benedict, 85, walked out of the Vatican for the last time as pope, waving to a cheering crowd in the Courtyard of San Damaso as he entered a black Mercedes for the short drive to a nearby heliport.

In a tweet sent from Benedict XVI @Pontifex as his motorcade rolled to the heliport, Benedict said, "Thank you for your love and support. May you always experience the joy that comes from putting Christ at the centre of your lives."

READ MORE: Pope Benedict XVI Delivers Farewell Address

With church bells ringing across Rome, he then embarked on the 15-minute flight to Castel Gandolfo, the papal summer residence just south of the city and his home for the coming months when he'll be recognized by the church as His Holiness Benedict XVI, Pope Emeritus.

When Benedict landed in the gardens at Castel Gandolfo, he was greeted by a group of dignitaries, including the governor of the Vatican City state Giovanni Bertello, two bishops, the director of the pontifical villas, and the mayor and parish priest. Off the helicopter and back into a car, Benedict headed to the palace.

Vincenzo Pinto/AFP/Getty Images

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Pope Benedict XVI Says Goodbye to Cardinals Watch Video

In the plaza at Castel Gandolfo, a crowd of supporters, many waving flags or banners, some peering out of windows, gathered to welcome Benedict. When Benedict finally appeared on the balcony, the crowd erupted in applause.

"Thank you for your friendship, your affection," Benedict told them.

Benedict said he was "just a pilgrim starting the last lap of his earthly journey."

After his brief address to the crowd, Benedict waved one last time and walked back into the palace as the sun set around the square.

9 Men Who Could Replace Pope Benedict XVI

In his final remarks earlier in the day to colleagues in the Roman Catholic Church, Benedict had promised "unconditional reverence and obedience" to his eventual successor.

Benedict, in a morning meeting at the Vatican, urged the cardinals to act "like an orchestra" to find "harmony" moving forward.

Benedict spent a quiet final day as pope, bidding farewell to his colleagues and moving on to a secluded life of prayer, far from the grueling demands of the papacy and the scandals that have recently plagued the church.

His first order of business was a morning meeting with the cardinals in the Clementine Hall, a room in the Apostolic Palace. Despite the historical nature of Benedict's resignation, not all cardinals attended the event.

Angelo Sodano, the dean of the College of Cardinals, thanked Benedict for his service to the church during the eight years he has spent as pontiff.

Pope Benedict's Last Sunday Prayer Service

For some U.S. Catholics in Rome for the historic occasion, Benedict's departure is bittersweet. Christopher Kerzich, a Chicago resident studying at the Pontifical North American College of Rome, said Wednesday he is sad to see Benedict leave, but excited to see what comes next.

"Many Catholics have come to love this pontiff, this very humble man," Kerzich said. "He is a man who's really fought this and prayed this through and has peace in his heart. I take comfort in that and I think a lot of Catholics should take comfort in that."

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Iran upbeat on nuclear talks, West still wary

ALMATY (Reuters) - Iran was upbeat on Wednesday after talks with world powers about its nuclear work ended with an agreement to meet again, but Western officials said it had yet to take concrete steps to ease their fears of a secret weapons program.

The United States, China, France, Russia, Britain and Germany offered to ease sanctions slightly in return for Iran curbing its most sensitive work, but had made clear they expected no breakthrough in the talks in Kazakhstan, the first in eight months.

U.S. Secretary of State John Kerry said the talks had been "useful" and that a serious engagement by Iran could lead to a comprehensive deal in a decade-old dispute that has threatened to trigger a new Middle East war.

Iran's foreign minister said in Vienna he was "very confident" a deal could be reached and its chief negotiator said he believed the Almaty meeting could be a "turning point".

The two sides agreed to hold expert-level talks in Istanbul on March 18 to discuss the offer, and return to Almaty for political discussions on April 5-6, when Western diplomats made clear they wanted to see substantive movement by Iran.

"Iran knows what it needs to do, the president has made clear his determination to implement his policy that Iran will not have a nuclear weapon," Kerry said in Paris.

A senior U.S. official in Almaty added: "What we care about at the end is concrete results."

ISRAELI WARNING

Israel, assumed to be the Middle East's only nuclear-armed power, was watching the talks closely. It has strongly hinted it might attack Iran if diplomacy and sanctions fail to ensure that it cannot build a nuclear weapon. Iran denies any such aim.

Israeli Prime Minister Benjamin Netanyahu said economic sanctions were failing and urged the international community to threaten Iran with military action.

Western officials said the offer presented by the six powers included an easing of a ban on trade in gold and other precious metals, and a relaxation of an import embargo on Iranian petrochemical products. They gave no further details.

In exchange, a senior U.S. official said, Iran would among other things have to suspend uranium enrichment to a fissile concentration of 20 percent at its Fordow underground facility and "constrain the ability to quickly resume operations there".

This appeared to be a softening of a previous demand that Iran ship out its entire stockpile of higher-grade enriched uranium, which it says it needs to produce medical isotopes.

Iran says it has a sovereign right to enrich uranium for peaceful purposes, and wants to fuel nuclear power plants so that it can export more oil.

But 20-percent purity is far higher than that needed for nuclear power, and rings alarm bells abroad because it is only a short technical step away from weapons-grade.

Iran's growing stockpile of 20-percent-enriched uranium is already more than half-way to a "red line" that Israel has made clear it would consider sufficient for a bomb.

ELECTION LOOMING

The U.S. official said the latest proposal would "significantly restrict the accumulation of near-20-percent enriched uranium in Iran, while enabling the Iranians to produce sufficient fuel" for their Tehran medical reactor.

Iran had previously indicated that 20-percent enrichment was up for negotiation if it received the fuel from abroad instead.

Chief negotiator Saeed Jalili suggested Iran could discuss the issue, although he appeared to rule out shutting down Fordow. He said the powers had not made that specific demand.

Western officials were aware that the closeness of Iran's presidential election in June is raising political tensions in Tehran and made rapid progress unlikely.

One diplomat in Almaty said the Iranians appeared to be suggesting at the negotiations that they were opening new avenues, but that it was not clear if this was really the case.

"Everyone is saying Iran was more positive and portrayed the talks as a win," said Iran expert Dina Esfandiary of the International Institute for Strategic Studies. "I reckon the reason for that is that they are saving face internally while buying time with the West until after the elections."

The Iranian rial, which has lost more than half its foreign exchange value in the last year as sanctions bite, rose some 2 percent on Wednesday, currency tracking web sites reported.

(Additional reporting by Fredrik Dahl in Almaty, Georgina Prodhan in Vienna, Zahra Hosseinian in Zurich, Gabriela Baczynska in Moscow, Dan Williams in Jerusalem and Marcus George in Dubai; Writing by Timothy Heritage and Fredrik Dahl; Editing by Kevin Liffey)

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US Supreme Court takes up voting rights law

WASHINGTON: The US Supreme Court Wednesday took up the US voting rights law, a cornerstone of efforts to guard against a resurgence of racial discrimination in American states with a segregationist past.

At issue is the 1965 law's Section 5, which requires nine mainly southern states and local governments in seven other states to obtain Justice Department approval for any changes in their electoral codes.

The nearly half-century-old law, which bars all racial discrimination at the polls, is opposed by some states as outmoded, but a number of civil rights organizations argue it is still needed.

"Though there have been improvements, this past election has shown that the law is not outdated and sadly continues to be extremely necessary," said Caroline Fredrickson, head of the American Constitution Society.

Texas, for one, has faced repeated Justice Department challenges to its election redistricting laws as well as a state law requiring voters to present photo identification.

In both instances, a federal appeals court in Washington ruled that the provisions were "discriminatory," and now Texas is waiting to argue its position before the Supreme Court.

Several states are challenging the law's Section 5, but the Supreme Court is considering just one complaint brought by Shelby county in Alabama.

It comes immediately after the re-election of the United States' first black president, Barack Obama -- something critics point to as evidence that the law is unnecessary.

"The violence, intimidation, and subterfuge that led Congress to pass Section 5 and this court to uphold it no longer remains," Shelby County's brief says.

The county points out that 83 percent of its 200,000 inhabitants are white, a demographic mix that it contends puts it above suspicion of racial discrimination.

It maintains that Section 5 should be simply thrown out, complaining that the Obama administration is enforcing it with greater zealousness than in the past.

More than 20 religious, civic and human rights organizations have joined in calling on the top court to confirm Section 5's constitutionality as "the heart of the voting rights act," as the NAACP, the country's most prominent black civil rights organization, put it.

The law "has played a key role in protecting our democracy and ensuring the vitality of the right of minorities to vote and fully participate in the political process", said NAACP president Sherrilyn Ifill.

Defenders of the law rested their arguments on the Constitution's 15th amendment, which bans racial discrimination at the polls.

The nine-member court, which has a conservative majority, left the law alone the last time they reviewed it in 2009, but strongly urged the Congress to reform it on grounds that "things have changed in the South."

It also expressed concern that it puts states' rights at the mercy of the federal government, despite protections afforded by the 10th amendment to the constitution.

The federal government for its part calls on the justices to consider that the Congress in 2006 extended the law for another 30 years.

This time, however, the top court could prove deaf to those appeals because the Congress failed to heed its warning.

-AFP/ac

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Tim McGraw samples new system to sell album in a status update

Tim McGraw turns to Facebook to sell his latest album.

(Credit:
Screenshot/Jennifer Van Grove)

Country singer Tim McGraw wants you to buy his album -- on Facebook. Tuesday, the recording artist became one of the first people to try out a new system for selling through status updates on the social network.

McGraw's team used e-commerce platform Chirpify to encourage Facebook fans to type "buy" in the comments section of a post to instantly purchase a special edition of the star's "Two Lanes Of Freedom" album.

The in-stream album sale marks the start of Chirpify's foray over to Facebook. Chirpify was founded in 2011 and initially started by turning tweets into instant transactions. The Portland-based company has since expanded to include support for selling on Instagram, and is now working on perfecting buying through Facebook comments.

"Chirpify is enabling in-stream commerce by comment on Facebook for select top tier brands and musicians before a wider rollout and official launch," Chirpify Chief Executive Chris Teso told CNET.

Chirpify integrates with Facebook so that social network users need only type "buy" -- but only "buy," and nothing more -- in the comments section on a for-sale post to grab the item offered. The transaction is a one-step process if the person is already a Chirpify user.

Though novel, Chirpify's in-stream approach to e-commerce will likely be a little too avant-garde for most social networkers, especially those who want to avoid the process of signing up for another service. Thankfully, the company has the help of notable celebrities such as McGraw, Kat Von D, and Green Day to help it acclimate people to the idea of spending via tweet or Facebook comment.

[via Digital Trends]

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Anti-virus firm makes new revelation on Stuxnet

Updated at 11:22 a.m. ET

LONDON The sophisticated cyberweapon which targeted an Iranian nuclear plant is older than previously believed, an anti-virus firm said Tuesday, peeling back another layer of mystery on a series of attacks attributed to U.S. and Israeli intelligence.

The Stuxnet worm, aimed at the centrifuges in Iran's Natanz plant, transformed the cybersecurity field because it was the first known computer attack specifically designed to cause physical damage. The precise origins of the worm remain unclear, but until now the earliest samples of Stuxnet had been dated to 2009.

Security experts generally agree that Stuxnet was an attempt to sabotage Iran's uranium enrichment centrifuges, which can be used to make fuel for reactors or weapons-usable material for atomic bombs. Iran maintains its nuclear program is for peaceful purposes.

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As "60 Minutes" correspondent Steve Kroft reported last year, Stuxnet was incredibly complicated and sophisticated, beyond the cutting edge. By the time it was first detected in June 2010, it had been out in the wild for a year without drawing anyone's attention, and seemed to spread by way of USB thumb drives, not over the Internet.

By the fall of 2010, the consensus was that Iran's top secret uranium enrichment plant at Natanz was the target and that Stuxnet was a carefully constructed weapon designed to be carried into the plant on a corrupted laptop or thumb drive, then infect the system, disguise its presence, move through the network, changing computer code and subtly alter the speed of the centrifuges without the Iranians ever noticing, Kroft reported.

"Stuxnet's entire purpose is to control centrifuges," Liam O Murchu, an operations manager for Symantec, told Kroft. "To make centrifuges speed up past what they're meant to spin at and to damage them. Certainly it would damage the uranium enrichment facility and they would need to be replaced."

Last June, The New York Times traced the origins of the top-secret program back to 2006.

In a new report issued late Tuesday, Symantec Corp. pushed that timeline further back, saying it had found a primitive version of Stuxnet circulating online in 2007 and that elements of the program had been in place as far back as 2005.

One independent expert who examined the report said it showed that the worm's creators were particularly far-sighted.

"What it looks like is that somebody's been thinking about this for a long, long time — the better part of a decade," said Alan Woodward, a computer science professor at the University of Surrey. "It really points to a very clever bunch of people behind all of this."

Nuclear Iran: Sites and potential targets

A look at the locations where Iran carries out work linked to its suspected pursuit of nuclear weapons

The Times reported that President George W. Bush ordered the deployment of Stuxnet against Iran in a bid to put the brakes on its atomic energy program, detailing how the worm tampered with the operation of Natanz's centrifuge machines to send them spinning out of control.

President Obama, who succeeded Bush shortly after the first attacks, expanded the campaign, the report said.

U.S. and Israeli officials have long declined to comment publicly on Stuxnet or their alleged involvement in creating and deploying the computer worm.

Symantec's report suggests that an intermediate version of the worm — Stuxnet 0.5 — was completed in November 2007. That worm lacked some of the sophistication of its descendant, Symantec said, and was designed to interfere with the centrifuges by opening and closing the valves which control the flow of uranium gas, causing a potentially damaging buildup in pressure.

That approach was dropped in later, improved versions of the Stuxnet code.

Symantec said the servers used to control the primitive worm were set up in November 2005, suggesting that Stuxnet's trailblazing authors were plotting out their attack at a time when many parts of the Internet now taken for granted were not yet in place. Twitter did not exist, Facebook was still largely limited to U.S. college campuses, and YouTube was in its infancy.

Woodward said that had troubling implications.

"Clearly these were very forward-thinking, clever people that were doing this," he said. "There's no reason to think that they're less forward-thinking now. What are they up to?"

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Bring on the Cuts: Some Want the Sequester

Mark Lucas wouldn't mind seeing America's defense budget cut by billions.

"There's quite a bit of waste within the military," Lucas, who serves as Iowa state director for the conservative group Americans for Prosperity (AFP), told ABC News. "Being in there for 10 years, I've seen quite a bit of it."

With the budget sequester set to kick in on Friday, the former Army ranger is among a small chorus of conservatives saying bring on the cuts.

Read more: Bernanke on Sequester Cuts: Too Much, Too Soon

Lucas cited duplicative equipment purchases, military-run golf courses and lavish food on larger bases -- unlike the chow he endured at a combat operations post in Afghanistan with about 120 other soldiers.

"These guys would have very good food, and I'm talking almost like a buffet style, shrimp and steak once a week, ice cream, all this stuff," Lucas said. "They had Burger Kings and Pizza Huts and McDonald's. And I said to myself, 'Do we really need this?'"

Lucas and AFP would like to see the sequester modified, with federal agencies granted more authority to target the cuts and avoid the more dire consequences. But the group wants the cuts to happen.

"We're very supportive of the sequestration cuts but would prefer to see more targeted cuts at the same level," said the group's spokesman, Levi Russell.

As President Obama and his Cabinet members are sounding the sequester alarm bells, AFP's willingness shows that not everyone is running for the hills.

Charles Dharapak/Pool/AP Photo

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Obama traveled to Norfolk, Va., on Tuesday to speak at a shipyard about cuts and layoffs to defense contractors. In his most recent weekly radio address, he told Americans that the Navy has already kept an aircraft carrier home instead of deploying it to the Persian Gulf. And last week, he spoke before national TV cameras at the White House, warning that first responders would be laid off.

Homeland Security Secretary Jane Napolitano has warned that the sequester will "leave critical infrastructure vulnerable to attacks." Transportation Secretary Ray LaHood has warned that air travel will back up after the Federal Aviation Administration furloughs air traffic controllers. And the heads of 18 other federal agencies told Congress that terrible things will happen unless the sequester is pushed off.

Some Republicans have accused the president of scaremongering to gin up popular support for tax hikes. Obama has warned of calamity and demanded compromise in the next breath, and a few Republicans have rejected this as a false choice.

Read more: Boehner Hopes Senate 'Gets Off Their Ass'

"I don't think the president's focused on trying to find a solution to the sequester," House Speaker John Boehner told reporters at a press conference on Tuesday. "For 16 months, the president's been traveling all over the country holding rallies, instead of sitting down with Senate leaders in order to try to forge an agreement over there in order to move the bill."

After Obama spoke to governors at the this week, Republican Louisiana Gov. Bobby Jindal told ABC News' Jonathan Karl outside the White House that the president is exaggerating the sequester's consequences.

"He's trying to scare the American people," Jindal said. "He's trying to distort the impact."

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