Monday, December 31, 2012

FOXNews.com: 2013 CELEBRATIONS:Revelers Around the World Ring in the New Year

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2013 CELEBRATIONS:Revelers Around the World Ring in the New Year
Jan 1st 2013, 06:30

From the glittering New Year's ball dropping in New York's Times Square to joyous fireworks in London and cheers in a once-isolated Asian country, the world did its best to ring in 2013 with hope for renewal after a year of economic uncertainty, searing violence and natural disasters.

"With all the sadness in the country, we're looking for some good changes in 2013," Laura Concannon, of Hingham, Massachusetts, said as she, her husband, Kevin, and his parents joined hundreds of thousands of revelers lined up for blocks through bustling Times Square on Monday.

Revelers with New Year's hats and sunglasses boasting "2013" packed the streets in the 35-degree Fahrenheit cold to count down the first ball drop in decades without television host Dick Clark, who died in April and was honored with his name printed on pieces of confetti and on one of the crystal panels on the Times Square ball.

Yvonne Gomez, 53, a physician from Grand Forks, North Dakota, glowed as she and her husband, 63-year-old potato farmer Greg Halverson, took in the festivities in New York.

"I couldn't begin the new year in a more beautiful way," she said. "I married him two weeks ago and here we are in the middle of Times Square celebrating the new year -- two widowers who found each other."

Matias Dellanno, 37, of Buenos Aires, Argentina, stood in the middle of Times Square with his wife and 3-year-old son, beaming with joy as his eyes caught the multicolored lighting illuminating the square just before midnight.

"I feel a completely new hope for 2013," he said. "It can't be any worse than last year, when my business lost clients. It was a rough year for everyone. The new year has to be better!"

Security in Times Square was tight, with a mass of uniformed police and plainclothes officers assigned to blend into the crowd. With police Commissioner Raymond Kelly proclaiming that Times Square would be the "safest place in the world on New Year's Eve," officers used barriers to prevent overcrowding and checkpoints to inspect vehicles, enforce a ban on alcohol and check handbags.

Syracuse University student Taylor Nanz, 18, said she and a friend had been standing in Times Square since 1:20 p.m. Monday. They hadn't moved from their spot because "if you leave, you lose your place," she said, shivering behind an iron barricade with a clear view of One Times Square, the building where the crystal ball hovered.

"It's the first time - and the last time," she said.

Elsewhere, lavish fireworks displays lit up skylines in Sydney, Hong Kong and Shanghai. In the United Arab Emirates city of Dubai, multicolored fireworks danced early Tuesday up and down the world's tallest building, the Burj Khalifa.

In Rome, Pope Benedict XVI celebrated New Year's Eve with a vespers service in St. Peter's Basilica to give thanks for 2012 and look ahead to 2013. He said that despite all the death and injustice in the world, goodness prevails.

In Russia, spectators filled Moscow's iconic Red Square as fireworks exploded near the Kremlin. In Rio de Janeiro, revelers dressed head-to-toe in white as dictated by Brazilian New Year's tradition flooded onto Copacabana beach for a concert.

Organizers said about 90,000 people gathered in a large field Yangon, Myanmar, for their first chance to do what much of the world does every Dec. 31 - watch a countdown. The reformist government that took office in 2011 in the country, long under military rule, threw its first public New Year's celebration in decades.

"We feel like we are in a different world," said Yu Thawda, a university student who went with three of her friends.

Parts of Europe held scaled-back festivities and street parties, the mood a bit restrained - if hopeful - for a 2013 that is projected to be a sixth straight year of recession amid Greece's worst economic crisis since World War II.

London, the often soggy British capital, was dry and clear, as the familiar chimes of the clock inside the Big Ben tower counted down the final seconds of 2012 and a dazzling display of fireworks lit the skies above Parliament Square. People cheered as the landmarks were bathed in the light of the display, which included streamers shot out of the London Eye wheel and blazing rockets launched from the banks of the River Thames.

Elsewhere, the atmosphere of celebration was muted with concern.

Hotels, clubs and other sites in New Delhi, the Indian capital, canceled festivities after the death of a rape victim on Saturday touched off days of mourning and reflection about women's safety.

In Times Square, some revelers checked their cellphones to keep up with news of lawmakers' tentative deal to skirt the fiscal cliff combination of expiring tax cuts and across-the-board spending cuts that threatened to reverberate globally. And the elementary school massacre in Newtown, Connecticut, and Superstorm Sandy mingled into the memories of 2012.

"This has been a very eventful year, on many levels," Denise Norris said as she and her husband, the Rev. Urie Norris, surveyed the crowd.

In Times Square, Elvis Rivera, of Manhattan, was taking photos to capture the moment. He wasn't planning to ring in the New Year there but went by to take pictures.

How did he feel about the end of 2012?

"Relieved," Rivera said, adding that there had been a death and job losses in his family this year.

His hopes for 2013?

"A better life" and more money, he said.

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FOXNews.com: Congress Misses Fiscal Deal Deadline, But Senate Leaders Aim for Vote

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Congress Misses Fiscal Deal Deadline, But Senate Leaders Aim for Vote
Jan 1st 2013, 05:05

Congress blew past the deadline for averting historic tax hikes as the ball dropped and Americans rang in 2013, but lawmakers were making seemingly steady progress toward a deal that could contain the damage in the days ahead.

Senate leaders were trying to tee up a vote in the early morning hours, after White House and Senate Republican negotiators reached a late-night deal on the fiscal crisis. Negotiations were effectively capped after Vice President Biden visited the Hill in a bid to get rank-and-file Democrats on board.

A senior official told Fox News that President Obama has gotten the sign-off from Senate Democratic Leader Harry Reid and House Democratic Leader Nancy Pelosi. But the official said they are "not spiking the ball" yet.

Both chambers of Congress still must pass whatever is introduced, and negotiators could face some heavy lifting in selling the plan to skeptical House conservatives. Though Biden said he was feeling good about the Senate side, some liberal Democrats were still expressing reservations.

For the near-term, it appears a tax hike will technically go into effect on Jan. 1, as the midnight deadline was missed. The House adjourned for the night, and while the Senate could act in the coming hours, taxpayers were nevertheless left without a clear answer on how much they'll be paying in 2013.

In total, $600 billion in tax hikes and spending cuts are scheduled to hit in the new year.

But the goal in Washington is to produce a bill that could patch up the problem in the coming days, sparing most Americans from any major or lasting blow to their paychecks.

Senate leaders were tentatively moving toward a vote, after a marathon weekend of talks during which Biden and Senate Republican Leader Mitch McConnell did much of the hard bargaining.

According to a senior official, the White House and Senate Republicans struck an agreement Monday on the last major sticking point -- what to do about the $110 billion in automatic spending cuts set to kick in starting next month.

The official said the two sides agreed to postpone the cuts by two months, in exchange for a 50-50 mix of revenue increases and spending cuts. Of those cuts, half would come from defense and half would come from other budgets.

The deal also includes an extension of current tax rates for everyone except families making above $450,000 -- up from Obama's earlier threshold of $250,000. The draft framework would also extend long-term jobless benefits for a year and address other expiring provisions like the estate tax.

The big question is whether the plan being drafted by Senate leaders can pass both chambers -- and if so, when. The longer the stalemate drags on, the greater the risk for the economy and taxpayers.

House conservatives could take issue with the way the spending cuts were overhauled -- particularly the inclusion of additional tax increases.

House Republican leaders made clear they were reserving judgment on the package. The House GOP leadership team said any decision on whether to accept or amend any Senate-passed bill would not be made until the House and the American people "have been able to review the legislation."

On the other side, Democrats were crying foul all afternoon over the move to raise taxes only on those making over $450,000.

"Looks like a very bad deal the way this is shaping up," Sen. Tom Harkin, D-Iowa, said.

But all sides were stressing the urgency of the situation.

Of the looming tax hike, Obama said: "Middle class families can't afford it, businesses can't afford it, our economy can't afford it."

The tax hikes, combined with the spending cuts, could trigger another recession if they are not dealt with soon, economists warn. The fiscal deal, though, still pushes off a permanent decision on the spending cuts until two months down the road, when lawmakers could find themselves in a similar position – only this time, with the debt ceiling playing a far more prominent role.

Fox News' Ed Henry, Chad Pergram and Mike Emanuel contributed to this report.

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FOXNews.com: 'BIGGER PICTURE'?Gun-Group Head Defends Mock School Shooting

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'BIGGER PICTURE'?Gun-Group Head Defends Mock School Shooting
Jan 1st 2013, 01:36

A Connecticut pro-gun organization held a simulated school shooting just 30 miles north of Newtown, where a gunman killed 20 first-graders and six adults earlier this month.

Kings33, a Southington, Conn.-based company that provides firearms training to citizens, companies and government, held the simulation at its headquarters. Lead instructor and Kings33 founder Chris Fields said the idea was to show how having armed teachers or security staff might help minimize casualties in an event like the Dec. 14 attack at Sandy Hook Elementary School.

"There is a bigger picture at work here and we're going to continue to have more scenarios and train more people," Fields told FoxNews.com. "These are going to continue happening on a continual basis."

Fields said his company, which was launched 18 months ago, aims to prepare citizens for "what to do" during a mass shooting before the first responders arrive.

"Nobody's saying anything bad," Fields, 34, said when asked if he's received complaints in connection to the exercise. "They are ready for more."

Twelve volunteers took part in Sunday's exercise, said Fields, adding that some were former clients returning for more training. He has trained more than 100 people in firearm and home defense since launching the company and understands the criticism that has been lobbed his way online.

"The criticism is valid, I don't discredit anyone for saying what they said," Fields said. "They are right for having an opinion and voicing that opinion as an American citizen. The only thing that I struggle with criticism-wise is the timing. We should have been training like this decades ago for the public.

"Some people say it's too soon. I say we're too late. And to the people who say it was inconsiderate, they need to consider the bigger picture."

Ladd Everitt, spokesman for the Coalition to Stop Gun Violence, said teachers groups have made clear they do not want educators armed.

"That's unfortunate," said Ladd Everitt, spokesman for the Coalition to Stop Gun Violence. "The people who are advocating the arming of teachers are the people who are responsible, at least in part, for weakening our gun laws to the point where homicidal maniacs can easily stockpile firearms – often legally."

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FOXNews.com: NYC GEARS UP FOR NYE:Revelers Secure Spots in Times Square Hours Early

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NYC GEARS UP FOR NYE:Revelers Secure Spots in Times Square Hours Early
Jan 1st 2013, 00:34

Sydney's skyline erupted with tons of exploding fireworks as revelers cheered in the new year from the city's crammed harbor in the world's first major celebration for 2013.

The enthusiastic welcome to 2013 was continuing on a grand scale across Asia.

Increasingly democratic Myanmar is having a public countdown for the first time. Jakarta plans a huge street party befitting Indonesia's powering economy.

The buoyant economies of the Asia-Pacific are prepared to party with renewed optimism despite the so-called fiscal cliff threatening to reverberate globally from the United States and the tattered economies of Europe.

Celebrations were planned around the world, with hundreds of thousands expected to fill Times Square in New York City to watch the drop of a Waterford crystal-studded ball.

Major cities across austerity-hit Europe were to burn off part of their battered budgets in spectacular fireworks displays, although some municipalities -- including the Cypriot capital, Nicosia -- canceled their celebrations in light of the economic crisis. Nicosia said 16,000 euros ($21,000) saved from the canceled event will be given to some 320 needy schoolchildren.

Sydney's balmy summer night was split by 7 tons of fireworks fired from roof tops and barges, many cascading from the Sydney Harbor Bridge, in a 6.6 million Australian dollar ($6.9 million) pyrotechnic extravaganza billed by organizers as the world's largest.

Eager revelers camped Sunday night to get the best vantage points.

In Hong Kong, this year's 12.5 million Hong Kong dollar ($1.6 million) fireworks display is said to be the biggest ever in the southern Chinese city. Police expected as many as 100,000 people to watch.

One day after dancing in the snow to celebrate the first anniversary of leader Kim Jong Un's ascension to supreme commander, North Koreans were preparing to mark the arrival of the new year, marked as "Juche 102" on North Korean calendars. Juche means self-reliance, the North Korean ideology of independence promoted by national founder Kim Il Sung, who was born 102 years ago. His grandson now rules North Korea.

In New Delhi, the festive mood was marred by the death Saturday of a young rape victim.

Hotels, clubs and residents' associations in the Indian capital decided to cancel planned festivities and asked people to light candles to express their solidarity with the victim whose plight sparked public rallies for women's safety.

"Let there be no New Year celebrations across the country. It will be a major tribute to the departed soul," said Praveen Khandelwal, secretary-general of the Confederation of All India Traders, an umbrella group of operators of shops and businesses across the country.

In a field in Myanmar's largest city, Yangon, workers were testing a giant digital countdown screen with the backdrop of the revered Shwedagon pagoda.

Arranged by local Forever Media group and Index Creative Village, a Thai event organizer, the celebration is the first public New Year countdown in Myanmar, a country ruled for almost five decades by military regimes that discouraged or banned big public gatherings.

"We are planning this public New Year event because we want residents of Yangon to enjoy the public countdown like in other countries," said Win Thura Hlaing, managing director of Forever Blossom company, a subsidiary of Forever Media.

With live music performances by celebrities, light shows, food stalls, fireworks and other activities, the countdown is expected to draw 50,000 people, Win Thura Hlaing said.

Jakarta's street party centers on a 7-kilometer (4-mile) thoroughfare closed to all traffic from nightfall until after midnight. Workers erected 16 large stages along the normally car-clogged, eight-lane highway through the heart of the city. Indonesia's booming economy is a rare bright spot amid global gloom and is bringing prosperity -- or the hope of it -- to Indonesians.

Spirits in the capital have been further raised by the election of a new, populist governor who is pledging to tackle the city's massive infrastructure problems.

The Sydney crowds were undiminished by Australian government warnings that the Washington deadlock on the U.S. debt crisis was partly to blame for a slowing Australian economy.

Australian pop singer Kylie Minogue hosted the event.

Florida tourist Melissa Sjostedt was among the thousands gathered near a southern pylon of the bridge. She said before the event that seeing the fireworks would fulfill an ambition that began a decade ago when she read about them in National Geographic magazine.

"Ever since that, I've always wanted to see this for real, live, in person," she said.

Despite a somber mood in the Philippines due to devastation from a recent typhoon, a key problem for authorities remained how to prevent revelers from setting off huge illegal firecrackers -- including some nicknamed "Goodbye Philippines" and "Bin Laden" -- that maim and injure hundreds of Filipinos each year, including many children.

A government scare tactic involving doctors displaying brutal-looking scalpels used for amputations for firecracker victims has not fully worked in the past so health officials came up with a novel idea: Go Gangnam style.

A government health official, Eric Tayag, donned the splashy outfit of South Korean star PSY and danced to his Youtube hit "Gangnam Style" video while preaching against the use of illegal firecrackers on TV, in schools and in public arenas.

"The campaign has become viral," Tayag said. "We've asked kids and adults to stay away from big firecrackers and just dance the Gangnam and they're doing it."

Hong Kong feng shui master Raymond Lo predicted 2013 would be less turbulent than 2012 because the Chinese New Year in February will usher in the year of the snake, bringing an end to the year of the dragon, which was associated with water. Water is one of the five elements in feng shui theory, the Chinese practice of arranging objects and choosing dates to improve luck.

"Water is fear. So that's why we have had so much turbulence especially in the winter months," such as doomsday prophecies, school shootings and concerns about the fiscal cliff, said Lo.

"But the good news is that the coming year of the snake is the first time that fire has come back since 2007. Fire actually is the opposite to water, fire is happiness. So therefore the year of the snake is a much more optimistic year. So you can see signs of economic recovery now," he added.

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FOXNews.com: TIME FOR PAY RAISES? Senator Asks Obama to Nix Order Hiking Congress Pay

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TIME FOR PAY RAISES? Senator Asks Obama to Nix Order Hiking Congress Pay
Dec 31st 2012, 21:51

Washington –  Republican Sen. Rob Portman is urging President Obama to rescind a recent executive order granting pay increases to Congress and other federal officials, saying the move doesn't exactly jibe with the country's debt crisis. 

Obama signed an executive order last week that will lift a ban on pay freezes for federal employees. 

Rank-and-file members of Congress would all see a $900 bump next year -- up from $174,000. Congressional leaders will receive a slightly higher raise, with the House speaker receiving a $1,100 salary increase to $224,600. The top two Senate leaders will see pay rise $1,000, to $194,400. 

Vice President Biden, meanwhile, will see his pay increase from $225,521 last year to $231,900 after his raise goes into effect March 27, 2013. 

But the pat on the back came as a surprise to some, given the lack of progress all year toward a deal to head off the looming fiscal crisis -- which includes $600 billion in tax hikes and spending cuts. Even if that is resolved, Washington has still done relatively little to address the more than $16 trillion debt. 

Portman said now is not the time for bigger salaries in Washington -- at least not until the country can deal aggressively with its debt and deficit problems.

"At a time when our country is facing record debt and trillion-dollar deficits, the last thing Washington should do is reward itself with a pay increase," the Ohio senator said. "I am calling on President Obama to withdraw his recent executive order raising federal salaries -- including for members of Congress. Until a long-term deficit reduction agreement is reached, we should not consider increasing the pay for Congress." 

Obama also OK'd raises for circuit and district court judges.

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FOXNews.com: AL QAEDA 'COUNTRY':Group Reportedly Carving Out New Territory in Mali

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AL QAEDA 'COUNTRY':Group Reportedly Carving Out New Territory in Mali
Dec 31st 2012, 20:55

MOPTI, Mali –  Deep inside caves, in remote desert bases, in the escarpments and cliff faces of northern Mali, Islamic fighters are burrowing into the earth, erecting a formidable set of defenses to protect what has essentially become Al Qaeda's new country.

They have used the bulldozers, earth movers and Caterpillar machines left behind by fleeing construction crews to dig what residents and local officials describe as an elaborate network of tunnels, trenches, shafts and ramparts. In just one case, inside a cave large enough to drive trucks into, they have stored up to 100 drums of gasoline, guaranteeing their fuel supply in the face of a foreign intervention, according to experts.

Northern Mali is now the biggest territory held by Al Qaeda and its allies. And as the world hesitates, delaying a military intervention, the extremists who seized control of the area earlier this year are preparing for a war they boast will be worse than the decade-old struggle in Afghanistan.

"Al-Qaeda never owned Afghanistan," said former United Nations diplomat Robert Fowler, a Canadian kidnapped and held for 130 days by Al Qaeda's local chapter, whose fighters now control the main cities in the north. "They do own northern Mali."

Al-Qaeda's affiliate in Africa has been a shadowy presence for years in the forests and deserts of Mali, a country hobbled by poverty and a relentless cycle of hunger. In recent months, the terror syndicate and its allies have taken advantage of political instability within the country to push out of their hiding place and into the towns, taking over an enormous territory which they are using to stock arms, train forces and prepare for global jihad.

The catalyst for the Islamic fighters was a military coup nine months ago that transformed Mali from a once-stable nation to the failed state it is today. On March 21, disgruntled soldiers invaded the presidential palace. The fall of the nation's democratically elected government at the hands of junior officers destroyed the military's command-and-control structure, creating the vacuum which allowed a mix of rebel groups to move in.

With no clear instructions from their higher-ups, the humiliated soldiers left to defend those towns tore off their uniforms, piled into trucks and beat a retreat as far as Mopti, roughly in the center of Mali. They abandoned everything north of this town to the advancing rebels, handing them an area that stretches over more than 240,000 square miles. It's a territory larger than Texas or France - and it's almost exactly the size of Afghanistan.

Turbaned fighters now control all the major towns in the north, carrying out amputations in public squares like the Taliban did. Just as in Afghanistan, they are flogging women for not covering up. Since taking control of Timbuktu, they have destroyed seven of the 16 mausoleums listed as world heritage sites.

The area under their rule is mostly desert and sparsely populated, but analysts say that due to its size and the hostile nature of the terrain, rooting out the extremists here could prove even more difficult than it did in Afghanistan. Mali's former president has acknowledged, diplomatic cables show, that the country cannot patrol a frontier twice the length of the border between the United States and Mexico.

Al-Qaeda in the Islamic Maghreb, known as AQIM, operates not just in Mali, but in a corridor along much of the northern Sahel. This 4,300-mile long ribbon of land runs across the widest part of Africa, and includes sections of Mauritania, Niger, Algeria, Libya, Burkina Faso and Chad.

"One could come up with a conceivable containment strategy for the Swat Valley," said Africa expert Peter Pham, an adviser to the U.S. military's African command center, referring to the region of Pakistan where the Pakistan Taliban have been based. "There's no containment strategy for the Sahel, which runs from the Atlantic Ocean to the Red Sea."

Earlier this year, the 15 nations in West Africa, including Mali, agreed on a proposal for the military to take back the north, and sought backing from the United Nations. Earlier this month, the Security Council authorized the intervention but imposed certain conditions, including training Mali's military, which is accused of serious human rights abuses since the coup. Diplomats say the intervention will likely not happen before September of 2013.

In the meantime, the Islamists are getting ready, according to elected officials and residents in Kidal, Timbuktu and Gao, including a day laborer hired by  Al Qaeda's local chapter to clear rocks and debris for one of their defenses. They spoke on condition of anonymity out of fear for their safety at the hands of the Islamists, who have previously accused those who speak to reporters of espionage.

The Al Qaeda affiliate, which became part of the terror network in 2006, is one of three Islamist groups in northern Mali. The others are the Movement for the Unity and Jihad in West Africa, or MUJAO, based in Gao, and Ansar Dine, based in Kidal. Analysts agree that there is considerable overlap between the groups, and that all three can be considered sympathizers, even extensions, of Al Qaeda.

The Islamic fighters have stolen equipment from construction companies, including more than $11 million worth from a French company called SOGEA-SATOM, according to Elie Arama, who works with the European Development Fund. The company had been contracted to build a European Union-financed highway in the north between Timbuktu and the village of Goma Coura. An employee of SOGEA-SATOM in Bamako declined to comment.

The official from Kidal said his constituents have reported seeing Islamic fighters with construction equipment riding in convoys behind 4-by-4 trucks draped with their signature black flag. His contacts among the fighters, including friends from secondary school, have told him they have created two bases, around 120 and 180 miles north of Kidal, in the austere, rocky desert.

The first base is occupied by Al Qaeda's local fighters in the hills of Teghergharte, a region the official compared to Afghanistan's Tora Bora.

"The Islamists have dug tunnels, made roads, they've brought in generators, and solar panels in order to have electricity," he said. "They live inside the rocks."

Still further north, near Boghassa, is the second base, created by fighters from Ansar Dine. They too have used seized explosives, bulldozers and sledgehammers to make passages in the hills, he said.

In addition to creating defenses, the fighters are amassing supplies, experts said. A local who was taken by Islamists into a cave in the region of Kidal described an enormous room, where several cars were parked. Along the walls, he counted up to 100 barrels of gasoline, according to the man's testimony to New York-based Human Rights Watch.

In Timbuktu, the fighters are becoming more entrenched with each passing day, warned Mayor Ousmane Halle. Earlier in the year, he said, the Islamists left his city in a hurry after France called for an imminent military intervention. They returned when the U.N. released a report arguing for a more cautious approach.

"At first you could see that they were anxious," said Halle by telephone. "The more the date is pushed back, the more reinforcements they are able to get, the more prepared they become."

In the regional capital of Gao, a young man told The Associated Press that he and several others were offered 10,000 francs a day by Al Qaeda's local commanders (around $20), a rate several times the normal wage, to clear rocks and debris, and dig trenches. The youth said he saw Caterpillars and earth movers inside an Islamist camp at a former Malian military base 4 miles from Gao.

The fighters are piling mountains of sand from the ground along the dirt roads to force cars onto the pavement, where they have checkpoints everywhere, he said. In addition, they are modifying their all-terrain vehicles to mount them with arms.

"On the backs of their cars, it looks like they are mounting pipes," he said, describing a shape he thinks might be a rocket or missile launcher. "They are preparing themselves. Everyone is scared."

A university student from Gao confirmed seeing the modified cars. He said he also saw deep holes dug on the sides of the highway, possibly to give protection to fighters shooting at cars, along with cement barriers with small holes for guns.

In Gao, residents routinely see Moktar Belmoktar, the one-eyed emir of the Al Qaeda-linked cell that grabbed Fowler in 2008. Belmoktar, a native Algerian, traveled to Afghanistan in the 1980s and trained in Osama bin Laden's camp in Jalalabad, according to research by the Jamestown Foundation. His lieutenant Oumar Ould Hamaha, whom Fowler identified as one of his captors, brushed off questions about the tunnels and caves but said the fighters are prepared.

"We consider this land our land. It's an Islamic territory," he said, reached by telephone in an undisclosed location. "Right now our field of operation is Mali. If they bomb us, we are going to hit back everywhere."

He added that the threat of military intervention has helped recruit new fighters, including from Western countries.

In December, two U.S. citizens from Alabama were arrested on terrorism charges, accused of planning to fly to Morocco and travel by land to Mali to wage jihad, or holy war. Two French nationals have also been detained on suspicion of trying to travel to northern Mali to join the Islamists. Hamaha himself said he spent a month in France preaching his fundamentalist version of Islam in Parisian mosques after receiving a visa for all European Union countries in 2001.

Hamaha indicated the Islamists have inherited stores of Russian-made arms from former Malian army bases, as well as from the arsenal of toppled Libyan leader Muammar Qaddafi, a claim that military experts have confirmed.

Those weapons include the SA-7 and SA-2 surface-to-air missiles, according to Hamaha, which can shoot down aircrafts. His claim could not be verified, but Rudolph Atallah, the former counterterrorism director for Africa in the Office of the Secretary of Defense, said it makes sense.

"Gadhafi bought everything under the sun," said Atallah, a retired U.S. Air Force lieutenant colonel, who was a defense attache at the U.S. Embassy in Mali. "His weapons depots were packed with all kinds of stuff, so it's plausible that AQIM now has surface-to-air missiles."

Depending on the model, these missiles can range far enough to bring down planes used by ill-equipped African air forces, although not those used by U.S. and other Western forces, he said. There is significant disagreement in the international community on whether Western countries will carry out the planned bombardments.

The Islamists' recent advances draw on Al Qaeda in the Islamic Maghreb's near decade of experience in Mali's northern desert, where Fowler and his fellow U.N. colleague were held captive for four months in 2008, an experience he recounts in his recent book, "A Season in Hell."

Originally from Algeria, the fighters fled across the border into Mali in 2003, after kidnapping 32 European tourists. Over the next decade, they used the country's vast northern desert to hold French, Spanish, Swiss, German, British, Austrian, Italian and Canadian hostages, raising an estimated $89 million in ransom payments, according to Stratfor, a global intelligence company.

During this time, they also established relationships with local clans, nurturing the ties that now protect them. Several commanders have taken local wives, and Hamaha, whose family is from Kidal, confirmed that Belmoktar is married to his niece.

Fowler described being driven for days by jihadists who knew Mali's featureless terrain by heart, navigating valleys of identical dunes with nothing more than the direction of the sun as their map. He saw them drive up to a thorn tree in the middle of nowhere to find barrels of diesel fuel. Elsewhere, he saw them dig a pit in the sand and bury a bag of boots, marking the spot on a GPS for future use.

In his four-month-long captivity, Fowler never saw his captors refill at a gas station, or shop in a market. Yet they never ran out of gas. And although their diet was meager, they never ran out of food, a testament to the extensive supply network which they set up and are now refining and expanding.

Among the many challenges an invading army will face is the inhospitable terrain, Fowler said, which is so hot that at times "it was difficult to draw breath." A cable published by WikiLeaks from the U.S. Embassy in Bamako described how even the Malian troops deployed in the north before the coup could only work from 4 a.m. to 10 a.m., and spent the sunlight hours in the shade of their vehicles.

Yet Fowler said he saw Al Qaeda fighters chant Quranic verses under the Sahara sun for hours, just one sign of their deep, ideological commitment.

"I have never seen a more focused group of young men," said Fowler, who now lives in Ottawa, Canada. "No one is sneaking off for R&R. They have left their wives and children behind. They believe they are on their way to paradise."

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FOXNews.com: RUSSIAN CRACKDOWN: Moscow Rings in 2013 By Arresting Protesters

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RUSSIAN CRACKDOWN: Moscow Rings in 2013 By Arresting Protesters
Dec 31st 2012, 20:55

MOSCOW –  About 25 people reportedly have been arrested in Moscow on New Year's Eve for trying to hold an unsanctioned protest.

The gathering at Triumphalnaya Square in central Moscow on Monday attracted 50 to 100 people.

Among those arrested was prominent radical writer Eduard Limonov; the Interfax news agency cited activists as saying about 25 people were taken into custody.

For about two years, activists have tried to rally on the 31st of each month with that many days, a reference to Article 31 of the Russian constitution that guarantees free assembly. Authorities routinely deny permission for the demonstrations. Limonov's faction has fallen out with other elements of the wave of opposition to President Vladimir Putin that arose last year.

In his New Year's Eve address, Putin made no reference to the protests of the past year, saying only of 2012 that "it was very important to us," according to the ITAR-Tass news agency.

"We believe that we can change the life around us and become better ourselves, that we can become more heedful, compassionate, gracious" he was quoted as saying. Russia's fate "depends on our enthusiasm and labor."

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FOXNews.com: ROSE TRIBUTE: Korean War Veterans To Be Honored in Parade

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ROSE TRIBUTE: Korean War Veterans To Be Honored in Parade
Dec 31st 2012, 17:59

It's been almost 60 years since James McEachin returned home with a bullet still lodged in his chest, finding an America indifferent toward the troops who fought in Korea. Now he will get the homecoming parade he had expected.

The Defense Department for the first time will put a float in Pasadena's Tournament of Roses -- one the most watched parades -- to commemorate the veterans from a conflict that still casts a shadow over the world.

"I think it's a magnificent gesture and it cures a lot of ills," said McEachin, who will be among six veterans who will ride on the float Monday. The 82-year-old author and actor starred in Perry Mason TV movies, among other things.

The $247,000 flower-covered float will be a replica of the Korean War Veterans Memorial in Washington, D.C.

The Pentagon's debut comes ahead of events marking the 60th anniversary of the July 1953 armistice that halted the bloodshed but did not declare peace.

Col. David Clark said the Pentagon decided to seize the opportunity to sponsor one of the 42 floats in the 124-year-old New Year's Day parade to raise awareness about what has been called "The Forgotten War."

Clark said the department wanted to remind Americans about the sacrifices that were made by the veterans, most of whom are now in their 80s. It has taken decades for the success of the war's efforts to be recognized, Clark said.

The war resulted in South Korea developing into a thriving democratic ally in sharp contrast to its bitterly poor, communist neighbor that is seen as a global threat.

"As a nation, this may be our last opportunity to say `thank you' to them and honor their service," said Clark, director of the department's 60th Anniversary of the Korean War Commemoration Committee.

The war began when North Korea invaded the South to try to reunify the nation, a liberated Japanese colony sliced in two in 1945 by the U.S. and Soviet victors of World War II.

North Korea had the upper hand at first, almost pushing a weak South Korean-U.S. force off the peninsula, but then U.S. reinforcements poured in and pushed them back.

Then, in late 1950, communist China stepped in and the Americans and South Koreans were forced back to the peninsula's midsection. The two sides battled there for two years before ending with a stalemate.

"We didn't march home in victory. We did what we were supposed to do, which is stop this aggressive force called communism," said McEachin, a Silver Star recipient.

Edward Chang, director of the Young Oak Kim Center for Korean American Studies at the University of California, Riverside, said U.S. intervention gave South Korea the opportunity to become one of the world's major economies.

"Most Americans simply are not aware of what is happening in Korea and how it happened," he said.

More than 36,000 U.S. service members were killed in the conflict, and millions overall.

The government did not talk to troops at the time about how pivotal the war was in stopping communism, McEachin said. After the victory in World War II, the Korean conflict seemed to almost provoke shame for Americans, he said.

The American public also felt no connection to the fighting in a faraway Asian country unlike during World War II when airwaves filled with patriotic fight songs, he said.

McEachin not only returned to indifference but discrimination as an African American soldier. Korea was the first conflict in which all U.S. military units were integrated racially.

After the plane carrying returning troops was delayed in Montana by snow, he was turned away from a hotel where his fellow white soldiers were staying.

Clark said the float's veterans reflect that important historical milestone.

Clark said it's important Americans learn the history because the problem is ever present, a point driven home by the heavily mined armistice line, a 4-kilometer-wide (2.5-mile-wide) demilitarized strip stretching 220 kilometers (135 miles) across the peninsula.

"This serves as a reminder that there is unfinished business on the Korean peninsula," he said.

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FOXNews.com: 'DAD' FIGHTS BACK: Sperm Donor to Battle Order to Pay Child Support

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'DAD' FIGHTS BACK: Sperm Donor to Battle Order to Pay Child Support
Dec 31st 2012, 17:59

A Kansas sperm donor who was ordered to pay child support for the baby he helped a lesbian couple conceive plans to fight back in court, and suggested he might be a victim of bias against same-sex parenting.

William Marotta told FoxNews.com he might never have agreed to provide sperm to Angela Bauer and her former partner, Jennifer Schreiner, had he known the legal morass that awaited him after responding to the women's Craigslist ad for a donor in March 2009. The Kansas Department for Children and Families (DCF) recently filed a child support claim against Marotta after the couple filed for state assistance this year, leading the department to demand they provide the donor's name so it could collect.

"I have a hunch part of the reason this is going this way is because of people's feelings toward same-sex couples," Marotta said in an exclusive interview with FoxNews.com. "I can't help but feel this is somewhat of a political issue."

The 46-year-old machinist said he received notice in late October that he was being targeted by state officials to pay child support after the couple — who parted ways in 2010 but still co-parent their eight children ranging in age from 3 months to 25 years — were ordered by DCF officials to provide the sperm donor's name. State officials argued that if the women did not identify the donor, the agency would deny health benefits due to withheld information.

"I can't help but feel this is somewhat of a political issue."

- William Marotta, sperm donor

Bauer, who could not be reached for comment Monday, told The Topeka Capital-Journal on Saturday that she and Schreiner were "kind of at a loss" about the development.

"We are going to support him in whatever action he wants to go forward with," Bauer told the newspaper.

Bauer, 40, and Schreiner, 34, had been together for eight years and previously adopted other children when Marotta responded to their ad and later provided sperm used to artificially inseminate Schreiner, who could not be reached for comment Monday.

"This was a wonderful opportunity with a guy with an admirable, giving character who wanted nothing more than to help us have a child," Bauer said. "I feel like the state of Kansas has made a mess out of the situation."

Angela de Rocha, a spokeswoman for the Department for Children and Families, declined to speak on the matter on Friday, saying Kansas law prevented her from commenting.

Bauer can no longer provide health benefits for the now 3-year-old girl because a "significant illness" has prevented her from working since March. The girl's birth certificate lists no father, she told the newspaper, and only identifies Schreiner as the mother — as does the birth certificate for each of the couple's remaining children.

Since Kansas does not recognize same-sex marriage, the women had to file each adoption as a single parent. That law also prevents the state from collecting child support from same-sex partners, despite Bauer's assumption of financial responsibility for her daughter. Bauer characterized the latest development in the case as a "step backward" in the fight for marriage equality.

"More and more gays and lesbians are adopting and reproducing, and this, to me, is a step backward," Bauer told the Topeka Capital-Journal. "I think a lot of progressive movement is happening currently in the world as far as gays and lesbians go. Maybe this is Kansas' stand against some of that."

Marotta — who has relinquished all parental rights, including financial responsibility, under the 2009 agreement — said he's preparing for a lengthy legal fight that has already cost him several thousand dollars. He expects it will likely "put a damper on things" for other people considering the same move.

"As the legal bills mount, I'm sure it's going to leave more of a distaste," he said. "In the long run, I think this will be a good thing, but I'm the one getting squashed. I can't even believe it's gone this far at this point and there's not a damn thing I can do about it."

Marotta said a hearing on the matter will be held on Jan. 8, at which point he expects to have a hearing date set to appear before a judge.

"The only good thing I can see about this is it's going to open a lot of eyes," Marotta told FoxNews.com. "But I'm like, 'Why me?'"

The Associated Press contributed to this report.

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FOXNews.com: PLOT FOILED? NYPD Busts Couple After Finding Explosive Powder

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PLOT FOILED? NYPD Busts Couple After Finding Explosive Powder
Dec 31st 2012, 17:59

NEW YORK –  A Manhattan couple was facing weapons charges Monday after authorities said they found a substance used to make bombs and papers titled "The Terrorist Encyclopedia" in their Greenwich Village apartment.

Morgan Gliedman, 27, and her 31-year-old boyfriend, Aaron Greene, were arrested on weapons-possession charges Saturday after officers with a search warrant discovered a plastic container with 7 grams of HMTD, a highly explosive white powder used in bomb making, police and prosecutors said.

Also found in the living room were numerous written items containing instructions on the manufacture of explosive materials and bombs, including a collection of pages that had a cover page entitled "The Terrorist Encyclopedia," court papers said.

According to the court papers, chemical precursors to HMTD also were found in the living room.

Greene was held without bail after he appeared in state court in Manhattan on Sunday. Gliedman, who is nine months pregnant, was awaiting an initial court appearance. It was not clear who will represent her in court.

"The whole situation's sad," said attorney Lisa Pelosi, who represented Greene. She declined further comment. He is due back in court Friday.

The New York Post reported in its Monday editions that Gliedman is the daughter of a prominent Manhattan doctor. It described her boyfriend as a Harvard graduate and an Occupy Wall Street activist.

The newspaper said police went to the apartment with a search warrant stemming from a credit card-theft case. It said weapons recovered included a flare launcher, a commercial replica of a grenade launcher, a 12-gauge shotgun, ammunition and nine high-capacity rifle magazines.

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FOXNews.com: DEADLY AMBUSH: Attack Sheds Light on Dangers Firefighters Face

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DEADLY AMBUSH: Attack Sheds Light on Dangers Firefighters Face
Dec 31st 2012, 15:32

For the men and women who earn a living by rushing into hazardous situations to help, the Christmas Eve ambush of two firefighters in upstate New York was a chilling reminder of how unpredictable the dangers of the job can be.

Mike Chiapperini and Tomasz Kaczowka, volunteer firefighters of the West Webster Fire Department, were gunned down by William Spangler, who had set his family's home ablaze as a sick trap for those selfless and brave enough to come to his rescue. What prompted Spangler, who killed himself, to hatch the diabolical plan may never be known. But it gives firefighters and medics everywhere something else to consider when responding to calls for help.

"If a police officer shows up, he or she is likely going to arrest someone and usually deals with some sort of altercation. When a firefighter or a medic shows up to a scene, it's to save lives," Peter Matthews, a firefighter and editor for Firehouse.com told FoxNews.com. "When you arrive at a scene you are thinking about so many different things; the last thing you would expect is gun shots."

"When you arrive at a scene you are thinking about so many different things, the last thing you would expect is gun shots."

- Peter Matthews,firefighter and editor for Firehouse.com

In a recent survey of 256 firefighters and emergency medical workers from throughout the U.S., more than 48 percent said that they had been physically assaulted at least once while on duty. Experts estimate that there are 700,000 assaults on paramedics and EMTs every year, and the National Fallen Firefighters Foundation lists assaults as one of the top 16 safety issues that firefighters face when responding to calls.

And shooting incidents are not altogether uncommon: 

- In March 2011, Justin Angell, a 20-year-old firefighter from Long Island, N.Y., was shot when he responded to a call about a car that had struck a utility pole. As he approached the car, one of its occupants opened fire. Angell was hit in the hip and recovered.

- In 2004, Brenda Denise Cowan, a fire lieutenant from Lexington, Ky., was shot to death while aiding another shooting victim lying on the side of a road. The husband of the victim she was trying to help was charged with both shootings.

- In July 2008, Ryan Hummert, a firefighter in Maplewood, Mo., was shot to death when he responded to a call of a car fire that was deliberately set by the shooter as a trap.

- An incident eerily similar to West Webster occurred in 1977 in the Pennsylvania town of Shippensburg, when Fire Chief James Cutchall responded to a cabin blaze and was fatally wounded by sniper fire. Other firefighters responding soon after Cutchall were also greeted by a hail of bullets, which wounded Deputy Chief Robert Monn and 18-year-old Scott Riechenbach.

The problem for firefighters and medics, said Billy Goldfeder, a nationally recognized expert in firefighter survival and operations, is that the hidden dangers cannot influence how they go about their jobs. Chiapperini and Kaczowka did what any firefighters would do, he said.

"Every fire department that I know of would of handled it the same way," said Goldfeder, who is deputy fire chief for the Cincinnati suburb of Loveland-Symmes. "Those responders in West Webster are us. Any one of us could have done the same thing.

"The West Webster firefighters did everything right. How would they have been able to seen a sniper ready and waiting for them? It was early in the morning and dark, plus they had a smoke condition."

Goldfeder says that many fire departments across the country already have plans in place to prevent violent assaults on first responders. But risking their lives to save innocent civilians will always leave first responders exposed to the evil plans of monsters like Spangler. 

"All firefighters are aware of the possibilities, but when we respond, our main focus is saving lives," he said. "We don't go in with blinders on, but our main concern is helping others."

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FOXNews.com: New Year: Ball Drops, Taxes Rise?

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New Year: Ball Drops, Taxes Rise?
Dec 31st 2012, 14:27

Lawmakers were racing Monday to produce at least the framework for a deal that can avert the imminent fiscal crisis, as it appeared increasingly likely that the New Year's Eve ball drop will coincide with massive tax hikes and spending cuts. 

A last-ditch effort over the weekend by the Senate so far has failed to produce an agreement, bringing talks -- as they often are in Congress -- right down to the deadline.  

Senate Majority Leader Harry Reid said Sunday afternoon that "there's still significant distance between the two sides." His Republican counterpart, Sen. Mitch McConnell, continued talks on the sidelines with Vice President Biden well into the night, according to an aide. 

While Biden was brought in Sunday to help referee, it's unclear whether the three figures might be able to produce a proposal at a reasonable hour Monday. President Obama has already made clear he will press Reid to call a vote on a separate White House plan if nothing is produced. 

And even if a bill is produced, drafting it and passing it through both chambers before midnight would be a herculean task. As an alternative, lawmakers could potentially pass a bare-bones bridge bill extending current tax rates until a broader package can be approved. Or they could let the tax rates lapse, only to patch up the problem in early January. 

Or, in the worst-case scenario, the stalemate drags on, and more than $600 billion in tax hikes and spending cuts kicks in with no relief in sight. 

This scenario, economists warn, could easily trigger another recession. 

Several stumbling blocks emerged Sunday in negotiations that could hold up a deal in the near-term. Initially, Democrats objected to a Republican proposal that would change the way Social Security benefits are calculated -- effectively reducing benefits over time. 

But as Republicans began to ease off that demand, both sides continue to haggle over which Americans should see their taxes rise. Democrats want households making over $250,000 to see a hike, while Republicans want to raise that threshold significantly. Late Sunday, Republicans voiced the most concern about a Democratic push to use new tax revenue for new spending. 

"The biggest obstacle we face is that President Obama and Majority Leader Reid continue to insist on new taxes that will be used to fund more new spending, not for meaningful deficit reduction," said Alabama Sen. Jeff Sessions, the ranking Republican on the Senate Budget Committee. 

Reid said late Sunday afternoon the Social Security provision -- knows as chained CPI -- never should have been added to what would now be a basic, final-hour deal that would include taxes increases for top earners and perhaps an extension of unemployment insurance and a promise to negotiate later on spending cuts. 

Reid mentioned in passing that he had a new proposal, but a Reid staffer clarified afterward that Democrats have yet to make a formal counter offer. 

Should Congress fail to reach a deal, a mix of $600 billion on tax increases and federal cuts in 2013 would start to kick in Jan. 1. 

"We can't accept a bad deal just because we're here," said Sen. Patty Murray, D-Wash. "It's real disturbing we were thrown in a change to Social Security at the last minute." 

Signs that a deal was unraveling surfaced by mid-afternoon when Reid said his party could not make a counteroffer to Republicans. And McConnell said he had to call Biden to "jump-start" the negotiations. 

The Senate got to work on a compromise plan after House Speaker John Boehner's proposal in the Republican-controlled House collapsed less than two weeks ago. 

Republican Sen. Lindsey Graham said earlier Sunday the chances of Congress cutting a deal before the deadline were "exceedingly good." However, he sounded downcast about the process and the outcome. 

"Whatever we accomplish, political victory to the president," the South Carolina senator said on "Fox News Sunday." "He's going to get tax rate increases. ... And the sad news for the country is, that we have accomplished little in terms of not becoming Greece or getting out of debt." 

If Reid and McConnell cannot reach a deal, Reid purportedly will present Obama's bare-boned plan of tax increases for families making more than $250,000 annually and extending unemployment insurance. 

Obama said on NBC's "Meet the Press" that Congress should "first and foremost" prevent taxes increases for the "vast majority" of Americans. 

"We have been talking to the Republicans ever since the election was over," the president said during the interview, taped Saturday. "They have had trouble saying yes to a number of repeated offers." 

Republicans immediately criticized Obama's remarks. 

"Americans elected President Obama to lead, not cast blame," Boehner said. 

McConnell spokesman Don Stewart said Sunday: "While the president was taping those discordant remarks yesterday, Senator McConnell was in the office working to bring Republicans and Democrats together on a solution."

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FOXNews.com: STATE DEPT. SLAMMED: Senate Libya Report Cites 'Shocking Irresponsibility'

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STATE DEPT. SLAMMED: Senate Libya Report Cites 'Shocking Irresponsibility'
Dec 31st 2012, 10:51

A scathing Senate committee report on the Benghazi terrorist attack faults the State Department for failing to adequately respond to mounting security threats in the lead-up to the assault. The report says the facility was woefully under-protected at a time when the region, according to a top department official, was "flashing red" -- yet security was not improved, and nobody recommended the compound be shut down.

The report, produced by the Senate homeland security committee and obtained by Fox News, follows the release of a State Department-commissioned review earlier in the month. Both are highly critical of the department.

Click to read the Senate report

The Senate report noted the "large amount of evidence" in the months preceding the attack that Benghazi was "increasingly dangerous and unstable," with an attack on Americans becoming "much more likely."

"While this intelligence was effectively shared within the Intelligence Community (IC) and with key officials at the Department of State, it did not lead to a commensurate increase in security at Benghazi nor to a decision to close the American mission there, either of which would have been more than justified by the intelligence presented," the report said.

The report said it was "widely understood" that the Libyan government could not adequately protect U.S. personnel, yet the State Department did not move to fill the "security gap." The Senate committee said "no security standards" applied to the Benghazi post -- there were "few meaningful physical barriers," according to the report.

Despite the increasing threat in the region and the apparent vulnerability of the compound, the Senate committee said it appears nobody recommended closing the facility or even temporarily shutting it down. "That was a grievous mistake," the report said.

The investigation turned up details that show "a shocking irresponsibility to protect American diplomatic personnel in Benghazi," said Sen. Joe Liberman, I-Conn., the Wall Street Journal reports.

According to the Wall Street Journal, the report also cites past internal State Department accountability reports recommending security measures dating back to 1998 that were not widely implemented.

According to the report, State Department Under Secretary for Management Patrick Kennedy told lawmakers that Libya and Benghazi were "flashing red" by the time of the attack.

Fox News' Catherine Herridge contributed to this report.

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FOXNews.com: No Deal Hours Before Fiscal Deadline

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No Deal Hours Before Fiscal Deadline
Dec 31st 2012, 09:09

Capitol Hill negotiations to avert a fiscal crisis before the New Year's deadline appeared to falter Sunday in the Senate, as lawmakers struggled to find common ground while bringing the country ever-closer to a 2013 shockwave of tax hikes and spending cuts.

Senators spent the weekend trying to craft a new proposal that they originally claimed could be ready as early as Sunday. But Senate Democratic Leader Harry Reid reported late in the day that there was significant distance between the two sides, following a tense afternoon during which Vice President Biden was brought in to referee.  

Talks will now push on into Monday -- but President Obama has already made clear he will press Reid to call a vote on a separate White House plan if nothing is produced by then.

The stumbling block Sunday initially appeared to be a provision in the Republican proposal that would change the way Social Security benefits are calculated -- effectively reducing benefits over time.

But while that drew the ire of Democrats, some Republicans indicated they were willing to drop the provision. Instead, they voiced serious concern about a Democratic push to use new tax revenue for new spending.

"The biggest obstacle we face is that President Obama and Majority Leader Reid continue to insist on new taxes that will be used to fund more new spending, not for meaningful deficit reduction," said Alabama Sen. Jeff Sessions, the ranking Republican on the Senate Budget Committee.

Reid said late Sunday afternoon the Social Security provision -- knows as chained CPI -- never should have been added to what would now be a basic, final-hour deal that would include taxes increases for top earners and perhaps an extension of unemployment insurance and a promise to negotiate later on spending cuts.  

Reid said later that he was gratified that Republicans had taken the provision off the table but added "there's still significant distance between the two sides."

Reid mentioned in passing that he had a new proposal, but a Reid staffer clarified afterward that Democrats have yet to make a formal counter offer.

Should Congress fail to reach a deal, a mix of $600 billion on tax increases and federal cuts in 2013 would start to kick in Jan. 1.

"We can't accept a bad deal just because we're here," said Sen. Patty Murray, D-Wash. "It's real disturbing we were thrown in a change to Social Security at the last minute."

Signs that a deal was unraveling surfaced by mid-afternoon when Reid said his party could not make a counteroffer to Republicans. And Minority Leader Mitch McConnell said he had to call Biden to "jump-start" the negotiations.

The Senate got to work on a compromise plan after House Speaker John Boehner's proposal in the Republican-controlled House collapsed less than two weeks ago.

Before Sunday, Hill lawmakers and staffers were working behind the scenes to craft a deal that can pass in both chambers.

Republican Sen. Lindsey Graham said earlier Sunday the chances of Congress cutting a deal before the deadline were "exceedingly good." However, he sounded downcast about the process and the outcome.

"Whatever we accomplish, political victory to the president," the South Carolina senator said on "Fox News Sunday." "He's going to get tax rate increases. … And the sad news for the country is, that we have accomplished little in terms of not becoming Greece or getting out of debt."

If Reid and McConnell cannot reach a deal, Reid purportedly will present Obama's bare-boned plan of tax increases for families making more than $250,000 annually and extending unemployment insurance.
Obama said on "Meet the Press" that Congress should "first and foremost" prevent taxes increases for the "vast majority" of Americans.

"We have been talking to the Republicans ever since the election was over," the president said during the interview, taped Saturday. "They have had trouble saying yes to a number of repeated offers."
Republicans immediately criticized Obama's remarks.

"Americans elected President Obama to lead, not cast blame," Boehner said.

McConnell spokesman Don Stewart said Sunday: "While the president was taping those discordant remarks yesterday, Senator McConnell was in the office working to bring Republicans and Democrats together on a solution."

A House Democrat and a House Republican said Saturday they didn't expect a vote until after the weekend on any proposal to avert the looming fiscal crisis.

Reps. Steve Stivers, R-Ohio, and John Yarmuth, D-Ky., both told Fox News they expected the Senate to work on a proposal through Sunday and perhaps into Monday morning before voting, then pass the legislation to the House for a final vote.

Senate leaders from both sides of the aisle vowed late Friday to scramble over the weekend to produce a new bill, on the heels of a high-stakes White House meeting with Obama. At the time, several senior administration officials told Fox News that McConnell, R-Ky., was showing strong signs that he will help seal a deal.

However, they acknowledged he will have a difficult time getting a deal passed in the Republican-controlled House, which has so far rejected any plan that includes allowing tax rates to increase for higher-earning Americans.

The immediate challenge for negotiators, though, will be to craft a plan that does enough to spare most Americans a big hike without doing so much as to complicate the bill's passage. There is a host of expiring provisions next year -- from Medicare rates to doctors to payroll tax cuts -- that some lawmakers hoped to address before the end of the month. The more items added to the bill, the trickier it gets to pass it.
Lawmakers have been hesitant to predict whether Congress will be able to arrive at any solution.

Fox News' Ed Henry, Mike Emanuel, Chad Pergram and Fox Business Network's Rich Edson contributed to this report.

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