Wednesday, May 8, 2013

Rich Chinese look abroad to preserve wealth

(AP) ? China's richest people are stepping up investment in U.S. real estate and other foreign assets as they try to preserve their fortunes in the face of a fast-changing economy, a report said Tuesday.

The report by China Merchants Bank and the consulting firm Bain & Co. in China reflects uncertainties about abrupt shifts in an economy in which growth slowed last year to 7.8 percent from the past decade's double-digit rates.

Beijing is trying to shift the basis of growth to domestic consumption and services, reducing reliance on exports and construction that made fortunes for earlier entrepreneurs. Communist leaders have pledged to use taxes and social spending to narrow the huge and politically sensitive gulf between China's small elite and its poor majority.

Investor attitudes are being influenced by "the political environment and possible changes in tax policy," said Chen Kunde, director of China Merchants' wealth management business. They are "switching their focus from deriving more profits to protecting their existing wealth."

Growth in the number of Chinese people with at least 10 million yuan ($1.6 million) in investable assets slowed in 2010-12, according to China Merchants and Bain. The total rose 18 percent over the previous two-year period to 700,000, down from 29 percent growth in 2008-10.

At least 100,000 of those people have more than 50 million yuan ($8 million) while 40,000 have more than 100 million yuan ($16 million), said the report, the third in a series following editions in 2009 and 2011. It was based on questionnaires filled out by 3,300 people and more detailed interviews with about 100 of them and with bank employees.

Sources of wealth for China's financial elite have shifted repeatedly over the past two decades as industries from real estate and manufacturing to the Internet and soft drinks developed.

More recently, entrepreneurs have been squeezed by government policy shifts such as Beijing's effort to rein in surging housing prices. Curbs on real estate purchases and financing have battered revenue for developers.

Almost 60 percent of people surveyed with investments abroad plan to increase them, the report said. Real estate makes up the bulk of investment and top destinations include the United States, Canada, Hong Kong and Singapore.

Half of those who haven't invested abroad plan to start, the report said.

Beijing is encouraging companies and households to invest overseas to diversify the economy. Money flows out of the country are tightly regulated but limits for individual investors have been steadily raised.

China Merchants and Bain caused a stir in 2009 when they reported 60 percent of wealthy Chinese had completed or were considering "investment immigration" ? temporary or permanent residency given by some countries to attract investors.

They said they found similar levels of interest in such immigration this year and added that more than 10 percent of people surveyed expect their children to also pursue it.

This week, Australia's government announced a Chinese toy manufacturer and his family have become the first people to receive visas under a program for "significant investors." It requires an investment of at least 5 million Australian dollars ($5.1 million) in the country.

___

China Merchants Bank: www.cmbchina.com

Bain & Co.: www.bain.com

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2013-05-07-China-Exporting%20Wealth/id-39b1722934cc49a6893723ef6da89201

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Pessimism abounds at annual fiscal 'summit'

House Budget Committee Chairman Rep. Paul Ryan, R-Wis., listens to questions from Chuck Todd of NBC News at the 2013 Fiscal Summit in Washington, Tuesday, May 7, 2013. (AP Photo/Charles Dharapak)

House Budget Committee Chairman Rep. Paul Ryan, R-Wis., listens to questions from Chuck Todd of NBC News at the 2013 Fiscal Summit in Washington, Tuesday, May 7, 2013. (AP Photo/Charles Dharapak)

Former President Bill Clinton and Microsoft founder and philanthropist Bill Gates, speak about debt at the 2013 Fiscal Summit in Washington, Tuesday, May 7, 2013. (AP Photo/Charles Dharapak)

Sen. Rob Portman, R-Ohio, speaks about the budget at the 2013 Fiscal Summit in Washington, Tuesday, May 7, 2013. (AP Photo/Charles Dharapak)

Gene Sperling, Director of the National Economic Council, speaks about President Barack Obama and his negotiations with Congress regarding the budget at the 2013 Fiscal Summit in Washington, Tuesday, May 7, 2013. (AP Photo/Charles Dharapak)

Rep. Chris Van Hollen, D-Md., ranking member on the House Budget Committee, speaks about the budget at the 2013 Fiscal Summit in Washington, Tuesday, May 7, 2013. (AP Photo/Charles Dharapak)

(AP) ? On this, some of Washington's highest-ranking budget players can agree: A "grand bargain" this year to close the nation's chronic budget deficits seems like a long shot.

That was the consensus at an annual Washington "fiscal summit" thrown by billionaire deficit hawk Pete Peterson, who's staked $1 billion of his fortune on a foundation aimed at raising public awareness of the dangers of the government's growing debt.

But barely 100 days into President Barack Obama's second term ? supposedly a time of peak possibility in a divided capital city ? a bipartisan squad of Washington's budget big shots was decidedly downbeat on the chances of following up January's big tax increase on the wealthy with a follow-up deal.

"A 'grand bargain' implies you're going to fix the problem, but when you have the majority party in Washington unwilling to embrace the kinds of reforms that make Medicare solvent or make Social Security solvent ... I don't see a grand bargain happening," said House Budget Committee Chairman Paul Ryan, R-Wis., a frequent attendee at Peterson's event.

"The question is," Ryan continued, "'Can we make divided government work and can we make a down payment on the problem? Can we buy the country time and fiscal space?' That's what we're shooting for ? something that's realistic."

The cause for the gridlock is a familiar impasse over tax increases. GOP resolve against tax hikes has only intensified since Obama in January extracted a $600 billion-plus tax hike on the wealthy over 10 years as the price for extending the rest of the Bush-era tax cuts. Without GOP retreat on taxes, Democrats won't offer curbs on rapidly-growing benefit programs like Medicare.

Appearing a few minutes later, Ryan's counterpart as top Democrat on the Budget panel offered a similarly pessimistic assessment.

"There is no evidence that we are getting closer to an agreement," said Rep. Chris Van Hollen, D-Md.

Obama's representative, National Economic Council Chairman Gene Sperling, demurred when pressed by moderator Chuck Todd of NBC News about whether he was optimistic of a budget pact.

"He has shown that he is willing to go out of his comfort zone to put forward a real compromise," Sperling said, referring to Obama's proposal to reduce Social Security cost-of-living increases, which has inflamed his liberal allies.

"Deficit reduction is never easy. It's never fun. It requires hard choices. And when you have divided government, whether it's 1997 or now, it requires compromise," Sperling said. "What you need though is for both sides to be able to feel that they achieved enough of their objectives that the compromise in the areas they don't like is acceptable because the plan as a whole is balanced."

"You wouldn't get any sense that the ice was melting or the ground was shifting in any way," said audience member Robert Bixby, executive director of the Concord Coalition, a non-partisan anti-deficit group.

There was less nitty-gritty talk on the budget from Peterson's two marquee guests, former President Bill Clinton and Microsoft founder Bill Gates. Both called for protecting federal investments in science and research. And both fretted about global warming, a topic that's largely slid off of the Washington agenda.

For her part, Senate Budget Committee Chairwoman Patty Murray, D-Wash., was eager to exploit Republicans' refusal to appoint a House-Senate negotiating panel on the starkly different House GOP and Senate Democratic budget plans. She chided Republicans for spending years assaulting Democrats for not passing a budget only to refuse to negotiate under "regular order" now that Democrats have passed one.

Ryan gently pointed out that what Democrats are really after is the right, under Capitol Hill's arcane rules, to offer nonbinding, politically charged budget votes. They can't do that unless an official House-Senate conference committee is named. He observed that such votes would actually harm prospects for an agreement since it would put the House on record against reducing Social Security COLAs, for instance.

To sum up, Congress is not only gridlocked over the budget but it's gridlocked over how to begin negotiating over the budget.

"We can't even get an agreement in principle to begin talking," Ryan said.

Ryan and Sen. Rob Portman, R-Ohio, said an upcoming need to increase the government's borrowing cap could provide the impetus for any potential agreement. But it's increasingly looking as though the deadline for increasing the so-called debt limit won't come until October instead of August, adding months of further budget delays.

That's because the government's finances are doing a little better than had been earlier thought. The Congressional Budget Office offered the latest proof on Tuesday with a study saying the deficit for the 2013 budget year that started last October is running $231 billion below the deficit for a comparable period in 2012. Revenues are running 16 percent higher over the period, while spending is 2 percent less.

Associated Press

Source: http://hosted2.ap.org/apdefault/89ae8247abe8493fae24405546e9a1aa/Article_2013-05-07-Debt%20Summit/id-2eb6412c27bc42aeb0644e7016de8a3b

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Emotions run high at Benghazi hearing

(L-R): Witnesses Mark Thompson, the State Department's acting deputy assistant secretary for counterterrorism;??

His voice shrouded with emotion, a former top U.S. diplomat in Libya on Wednesday gave lawmakers a step-by-step account of the harrowing Sept. 11, 2012, terrorist attack in Benghazi and held back tears as he recounted learning that extremists had killed Ambassador Chris Stevens.

Gregory Hicks, the former deputy chief of mission in Tripoli, recounted to the House Oversight and Government Reform Committee how Stevens had gone missing and was thought to be in a hospital held by extremists hostile to the United States.

At 3 a.m., according to Hicks, Libya?s prime minister called. ?I think it's the saddest phone call I've ever had in my life,? Hicks said softly but clearly. ?He told me that Ambassador Stevens had passed away. I immediately telephoned Washington that news afterwards.?

Hick?s recollections were not the only emotional moment in the early part of the hearing. Eric Nordstrom, a former regional security officer in Libya, teared up and his voice broke as he told the packed committee room that he wants the full story to come out. "It matters," he said. "It matters."

Lawmakers holding the contentious and politically charged session listened quietly. But in the opening moments of the hearing, they had wasted no time before trading partisan barbs?accusing each other of dark political motives, bad faith and just plain making stuff up.

Republican Rep. Darrell Issa, the committee chairman, started the session?the first to get testimony from an eyewitness on the ground in Libya?by describing the administration?s version of the events as ?their facts.? Issa accused the State Department and the White House of refusing to provide witnesses and documents to his committee.

Issa said he had invited the authors of the State Department-commissioned independent investigation into the tragedy, retired diplomat Tom Pickering and retired Adm. Mike Mullen, to testify and that they refused.

Issa vowed to ?make certain that our government learns the proper lessons? from the deaths of Stevens and three other Americans, and ensure that ?the right people are held accountable.?

Rep. Elijah Cummings, the panel?s top Democrat, used his opening statement to offer a rebuttal of what he denounced as ?irresponsible allegations? that the administration withheld military assets that might have made a difference. He accused Issa of suggesting a high-level ?conspiracy? grouping top military officers who have testified that the Pentagon did everything it could.

?I am not questioning the motives of the witnesses,? Cummings said. ?I am questioning the motives of those who want to use their statements for political purposes.?The hotly anticipated hearing, which drew an army of reporters to the hearing room, was unlikely to shift the partisan battle lines on Benghazi. But it was expected to tackle some thorny questions. All sides agree that heavily armed assailants stormed the U.S. facility in Benghazi on Sept. 11, 2012, and, in two separate attacks hours apart, killed Stevens and the three other Americans.

But did President Barack Obama?s administration do everything it could to save Americans? Did senior aides try to cover up findings that the strike was the work of terrorists? Should former Secretary of State Hillary Clinton, widely expected to be a presidential contender in 2016, pay a price? Or is this a Republican fishing expedition unfairly using the tragic death of four Americans for political gain?

In addition to Hicks and Nordstrom, the committee heard from Mark Thompson, the State Department?s acting deputy assistant secretary for counterterrorism.

Among the key points in their testimony:

- Thompson testified that he had urged the deployment of an elite response team?known as FEST?but was rebuffed by the White House. Republican Rep. Jason Chaffetz of Utah called the motivation for that decision one of the ?mysteries? that need to be solved.

- Hicks slammed U.N. Ambassador Susan Rice?s appearance on Sunday news shows days after the attack, when she linked it to angry demonstrations in the Muslim world against an Internet video denigrating Islam that was getting significant media attention at the time. ?I was stunned. My jaw dropped,? Hicks said in response to a question from Rep. Trey Gowdy, R-S.C. ?I was embarrassed.?

- Rice's comments flatly contradicted Libyan President Mohammed Magariaf's public statement that the attack was the work of terrorists, effectively humiliating him, with the result of delaying the FBI's access to the compound, Hicks said.

- Hicks said he spoke by telephone with Stevens shortly after armed men stormed the compound. ?Greg, we?re under attack,? Stevens said, according to Hicks. Hicks said American officials in Libya concluded from unspecified Twitter feeds that Islamist extremists, or terrorists, were carrying out the attack. He confirmed that officials on the ground never believed that the attack grew out of a demonstration.

- After Hicks received the phone call about Stevens' death, unidentified Libyans called to say Stevens was with them and American staff should come get him. ?We suspected that we were being baited into a trap,? Hicks said. ?We did not want to send our people into an ambush.? The Americans stayed put.

- Hicks said that, after years of glowing performance evaluations, higher-ups at the State Department soured on him when he questioned Rice's account of the events. He described his current position as a demotion.

- Hicks said that the State Department directed him not to speak to Chaffetz when he came to Libya as part of a congressional investigation into the attack. "We were not to be personally interviewed by Congressman Chaffetz," Hicks said. (A top aide to Clinton emailed NBC News to dispute the notion of a cover-up.)

- Hicks also suggested that the report from Pickering and Mullen had failed to hold senior figures responsible, pointedly naming Patrick Kennedy, undersecretary for management, as someone who bore some responsibility for poor security at the site.

- Gowdy provided one of the few surprises in the hearing, reading what he described as an email from the day after the attacks, Sept. 12, in which Acting Assistant Secretary for Near Eastern Affairs Beth Jones said she had told the Libyan governor that "the group that conducted the attacks, Ansar al-Sharia, is affiliated with Islamic terrorists." That raised fresh questions about why top Obama aides emphasized the role of spontaneous demonstrations against the video in public remarks for days afterwards.

While the testimony was underway, White House press secretary Jay Carney yet again cast overall criticism of the handling of the tragedy as a politicized attack, and branded Mitt Romney as the first offender.

"Within hours of the attack, beginning with a press release that was much-maligned even by members of his own party, the Republican nominee for president tried to politicize this, and that has been the case ever since," Carney told reporters during Wednesday's daily press briefing.

Carney said continued efforts to challenge the handling of the attack is "part of an effort to chase after what isn't the substance here" and that what should be looked at instead is the attack itself, those killed and how to prevent future attacks. Carney stated once again that the White House has been fully cooperative and forthcoming with the review board, members of Congress and others.

In a back-and-forth with reporters, Carney also responded Wednesday to a new report suggesting that more extensive revisions were made to talking points about the incident than the White House had originally suggested.

Carney had formerly stated that a "single adjustment" was made by the White House or State Department to those talking points. When asked to defend that statement Wednesday following a new report about the changes made, Carney said that "the only edits made by anyone here at the White House were stylistic and not substantive."

Carney also took aim at an argument made last week by Issa that Clinton's signature on a cable containing those talking points indicated she personally endorsed their content. "This effort last week to turn a pro-forma signature on a cable into a scandal ... has been laughed out of the room, appropriately, because it doesn't hold water," Carney said.

Republicans have waged an aggressive media campaign over the past week?releasing snippets of testimony and interview transcripts coupled with predictions that the hearing will offer blockbuster revelations.

But there?s cause for skepticism, and not just because GOP lawmakers seem to make these kinds of predictions regularly.

First, the independent investigation commissioned by the State Department has already delivered a blistering indictment of how top officials mishandled repeated warnings about extremist threats in Benghazi. That particular "system failure" has amply been documented.

Second, charges that the Obama administration could have deployed military assets that might have made a difference have been explored in previous hearings?and dismissed by the Pentagon.

Hicks testified that the military opted against sending a second special forces rescue team while the fighting raged. It's not clear that the team would have arrived in time to make a difference?and administration officials say there were "Black Hawk Down"-style concerns about dropping more Americans into an uncertain conflict.

Still, Republicans argue, the people who made the decision about the deployment couldn't have known the gesture would be futile.

The "after" part, though, has gotten progressively more interesting.

Republicans have charged that the Obama administration misled Americans by suggesting the Benghazi assault was tied to anger in the Muslim world over an Internet video denigrating Islam that was getting significant media attention at the time. The administration, Republicans insist, wrongly portrayed the attack as a demonstration that had gotten out of hand rather than an act of terrorism. Why? To protect Obama's re-election campaign claim that al-Qaida was on the run.

The flap has already cost Rice, who withdrew her name from consideration as Clinton's successor. The White House has repeatedly dismissed GOP attention to Rice's TV appearances as an "obsession" over "talking points" on Sunday shows. (Does that mean that if Obama misspoke in his State of the Union, the White House would shrug it off as "canned comments to Beltway insiders"?)

As it happens, the administration knew the Benghazi assault was terrorism from the start, even though its public message changed several times. And senior State Department officials, in an Oct. 9 2012 conference call, formally acknowledged that officials in Libya never indicated that there had been a demonstration in Benghazi.

But the real problem with the Republican claim that the administration tried to cover up the terrorist nature of the Benghazi assault is that Obama himself called it terrorism in a Rose Garden appearance shortly after the assault. There, the president tied Benghazi in with the attacks of Sept. 11, 2001, and said the country would never bow in the face of "acts of terror."

Source: http://news.yahoo.com/blogs/ticket/benghazi-hearing-promises-partisan-fireworks-144356871.html

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PC Cleaning Apps are a Scam: Here's Why (and How to Speed Up ...

slow-dirty-pc

PC cleaning apps are digital snake oil. The web is full of ads for applications that want to ?clean your PC? and ?make it feel like new.? Don?t pull out your credit card ? these apps are terrible and you don?t need them.

If you do want to ?clean your PC,? you can do it for free. Windows includes built-in PC cleaning tools that can do almost all of what the average PC cleaning app will do for you.

Let?s Investigate a PC Cleaning App

So what do these apps do, anyway? To investigate, we ran MyCleanPC ? don?t try this at home; we installed this bad software so you don?t have to. MyCleanPC is one of the most prominent PC cleaning apps ? it even advertises itself with television commercials.

First, let?s look at its Frequently Asked Questions to see what it promises:

?The full, paid version of the MyCleanPC software will attempt to remove issues found with your PC?s registry and hard drive, including removal of junk files, unneeded registry entries, Internet browsing traces, and fragmented portions of your hard drive.?

We?re already on thin ice here ? Windows can remove junk files, clear Internet browsing traces, and defragment your hard drive without installing additional software.

MyCleanPC offers a ?free diagnosis,? which is little more than an attempt to scare people into thinking their computers have thousands of ?issues? that can be fixed for an easy $39.99 payment.

After running a scan, you?ll see an alarming count of the number of problems on your computer. It found 26267 issues on our computer. That?s an extremely alarming number ? but what exactly is an issue?

  • Every browser cookie and history entry counts as a single issue.
  • Every temporary file file counts as a single issue, no matter how tiny it is.
  • Invalid registry entries are considered issues, although they shouldn?t actually slow down your computer.
  • Our registry can be compacted a bit, but this shouldn?t make a noticeable different in performance
  • Every fragmented file counts as a single issue. MyCleanPC is measuring fragmentation based on the number of fragmented files, leading to a scary-looking 21.33% data fragmentation statistic. For comparison, the Windows Disk Defragmenter tells us we have 2% fragmentation.

Now that they?ve scared you, this is the part where you would take out your credit card and give them $39.99 to clean your PC.

Don?t Believe the Hype

Temporary files are not slowing down your computer, and neither are browser history entries or cookies. Registry entries are generally not a problem ? there?s a reason Microsoft once created a registry cleaner of their own before discontinuing it and advising people not to use registry cleaners.

Yes, your computer can be slow because its file system is fragmented. You can fix this by running the Disk Defragmenter tool included with Windows ? the Disk Defragmenter runs automatically on a schedule, anyway. Most people shouldn?t have to worry about defragmenting their hard drives anymore.

How to Actually Clean Your PC

Let?s say you want to clean your PC just like a PC cleaner would. Here?s what you can do:

  • Run the Disk Cleanup tool included with Windows. It?s focused on freeing up space on your hard drive, but it will also delete old temporary files and other useless things. Just tap the Windows key, type Disk Cleanup, and press Enter to launch it. You can even schedule a Disk Cleanup to clean your computer automatically.
  • Clear your browser history or ? even better ? set your browser to automatically clear its history when you close it if you don?t want to store a history.
  • Run the Disk Defragmenter included with Windows. This isn?t necessary if you use a solid-state drive.
  • Don?t bother with a registry cleaner. If you must, use the free CCleaner, which has the best-tested registry cleaner out there. It will also delete temporary files for other programs ? CCleaner alone does much more than these PC cleaning apps do.

A test performed in 2011 by Windows Secrets found that the Disk Cleanup tool included with Windows was just as good as paid PC cleaning apps. Note that this is true even though PC cleaning apps fix ?registry errors? while the Disk Cleanup app doesn?t, which shows just how unnecessary registry cleaners are.

So yes, it?s been tested ? PC cleaning apps are worthless.

Speeding Up Your Computer

The best tools for speeding up your computer are things that a PC cleanup app won?t do for you:

  • Uninstall software you no longer use, especially programs that run at startup and browser plug-ins.
  • Disable unnecessary startup apps to improve Windows? boot time.

If you regularly see errors on your computer:

  • Run an antimalware program like Microsoft Security Essentials to scan your computer for malware producing error messages.
  • Google error messages you see regularly to find fixes for them.

Don?t forget the nuclear option:


At worst, PC cleaning apps are digital snake oil. At best, they do a few marginally useful things that you can do with tools included with Windows. Don?t believe the hype ? skip the PC cleaning apps.

Chris Hoffman is a technology writer and all-around computer geek. He's as at home using the Linux terminal as he is digging into the Windows registry. Connect with him on Google+.

Source: http://www.howtogeek.com/162683/pc-cleaning-apps-are-a-scam-heres-why-and-how-to-speed-up-your-pc/

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HP Slate 7 Review

HP Slate 7 Review

Two years after the debacle of webOS, HP's jumping back into tablets with the Android-powered Slate 7. Priced at just $169.99, just how good can it be?

A titan of Silicon Valley, HP has seen more than its fair share of struggles over the past few years. The company long has grappled with the tablet formula, though often at the mercy of whatever Microsoft pushed down from Redmond. They've launched several Windows XP and Windows 7 convertible tablets, and most recently launched a pair of Windows 8-powered tablets.

But they've all been more PC than mobile device. The most spectacular of HP's consumer failings in recent years came in the form of a mobile-derived tablet: the webOS-powered HP TouchPad. Unveiled in February 2011 and launched in July of the same year, the TouchPad was generally well-received by the technology press but failed to catch on with consumers. Of course, one could easily argue that given its cancelation 49 days after launch it didn't have a chance to catch on. But all that is in the past, and after two years of turmoil, HP's dipping its toes back into the tablet waters.

Where the TouchPad ran webOS 3.0, had a 9.7-inch screen, and carried a $499.99 price tag at launch, HP's newest tablet offering tacks in a different direction. It's the HP Slate 7; it runs Android 4.1.1 on a 7-inch screen, and it's priced at an affordable $169.99. Unlike the Google-financed Asus Nexus 7 and Amazon's Kindle Fire tablets, HP doesn't have a software ecosystem to be supported by selling the Slate 7 at or below break-even. Even so, it looks like it should be competitively spec'd for its price bracket - but how does it really measure up?

read more

    


Source: http://feedproxy.google.com/~r/androidcentral/~3/-S3ODtHWlBE/story01.htm

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Saturday, May 4, 2013

Guantanamo camp burns through $900,000 a year per inmate

WASHINGTON (Reuters) - It's been dubbed the most expensive prison on Earth and President Barack Obama cited the cost this week as one of many reasons to shut down the detention center at Guantanamo Bay, which burns through some $900,000 per prisoner annually.

The Pentagon estimates it spends about $150 million each year to operate the prison and military court system at the U.S. Naval Base in Cuba, which was set up 11 years ago to house foreign terrorism suspects. With 166 inmates currently in custody, that amounts to an annual cost of $903,614 per prisoner.

By comparison, super-maximum security prisons in the United States spend about $60,000 to $70,000 at most to house their inmates, analysts say. And the average cost across all federal prisons is about $30,000, they say.

The high cost was just one reason Obama cited when he returned this week to an unfulfilled promise to close the prison and said he would try again. Obama also said that the prison, set up under his Republican predecessor George W. Bush and long the target of criticism by rights groups and foreign governments, is a stain on the reputation of the United States.

"It's extremely inefficient," said Ken Gude, chief of staff and vice president at the liberal Center for American Progress think tank, who has followed developments at Guantanamo Bay since 2005.

"That ... may be what finally gets us to actually close the prison. I mean the costs are astronomical, when you compare them to what it would cost to detain somebody in the United States," Gude said.

The cost argument could be a potent weapon at a time of running budget battles between Obama and the Republican-controlled House of Representatives, and of across-the-board federal spending cuts that kicked in in March. The "sequestration" as it is known, is due to cut some $109 billion in spending up to the end of September and has cut government services small and large.

Just one inmate from Guantanamo, for example, is equivalent to the cost of 12 weeks of White House tours for the public - a treasured tradition that the Secret Service says costs $74,000 a week and that has been axed under sequestration.

A single inmate is also the equivalent of keeping open the control tower at the Northwest Arkansas Regional Airport for 45 months. That control tower, another victim of cuts, costs $20,000 per month to run.

The $900,000 also matches the funding for nearly seven states to help serve home delivered meals to the elderly. Sequestration has cost Meals on Wheels a median shortfall of $129,497 per state, the organization says.

Or measured in terms of military spending and national security, the cost of four inmates represents the cost of training an Air Force fighter pilot - based on the Department of Defense's figure of $3.6 million per pilot.

WHY THE HUGE COST?

The huge cost of running the prison and judicial complex stem from its offshore location at a 45-square-mile U.S. Naval Base on the southeastern coast of Cuba. Because ties between the two countries are almost nonexistent, almost everything for the facilities has to be ferried in from outside.

When the military tribunals are in session, everyone from judges and lawyers to observers and media have to fly into Guantanamo on military aircraft. Food, construction materials and other goods are shipped in from outside, experts say.

But despite the high cost of the camp, and despite the fact that Republicans traditionally demand belt-tightening by the federal government, a Republican aide with the House of Representatives Armed Services Committee said there was little point in asking if the price was worth it because "there isn't an alternative at the moment."

"No one has any particular affection for Guantanamo Bay, but no one has come up with a practical solution that's better," the aide said.

Obama needs to produce a plan for what to do with the detainees at Guantanamo "who are too dangerous to release," Representative Buck McKeon, the chairman of the House Armed Services Committee, said in an opinion piece in USA Today this week. "Until a better solution is offered, at Guantanamo they must stay," he wrote.

Among current inmates, nine have been charged with crimes or convicted, 24 are considered eligible for possible prosecution, 86 have been cleared for transfer or release and 47 are considered too dangerous for release but are not facing prosecution.

But until now, worries about security have prevented the idea of transferring some or all of the inmates to the United States from getting much traction.

Obama pledged to close the prison within a year after first taking office in January 2009 but his efforts ran aground, partly because of congressional opposition, from both Republicans and some in his own Democratic Party, to transferring prisoners to the United States.

Inmates started a hunger strike in February that has swelled to some 100 prisoners and has led to force-feeding of 23 of the prisoners. With the camp back under a critical spotlight, Obama told a news conference on Tuesday he would renew efforts to shut it down. He has an array of options, some of which would be more achievable than others.

Gude said it was difficult to figure out how much the United States has spent overall on Guantanamo detention facilities since it began housing prisoners there in 2002 because administrations only recently have been noting the expense in a budget line item.

"I don't know if I've ever seen an estimate but it is certainly more than $1 billion by a comfortable margin, I would say, probably more than $2 billion," Gude said.

Above the annual operating cost, capital spending on the prison could rise again if the Pentagon receives the funding it says it needs to renovate the place.

General John Kelly, the head of Southern Command, which is responsible for Guantanamo, told a House of Representatives panel in March that he needed some $170 million to improve the facilities for troops stationed at the base as part of detention operations. Kelly said the living conditions were "pretty questionable" and told the panel, "We need to take care of our troops."

(Reporting By David Alexander; Editing by Frances Kerry and Tim Dobbyn)

Source: http://news.yahoo.com/guantanamo-camp-burns-900-000-per-inmate-234528966.html

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Skullcandy Q1 Net Sales Drop 30.4% To $37.1 Million; International ...

Skullcandy Announces First Quarter 2013 Financial Results

PRESS RELEASE: PARK CITY, Utah, May 2, 2013 (GLOBE NEWSWIRE) ? Skullcandy, Inc. (Nasdaq:SKUL) today announced financial results for the first quarter ended March 31, 2013. Some highlights include:

  • First Quarter Results?Net sales were $37.1 million
  • Net loss was ($0.25) per diluted share
  • Non-GAAP adjusted net loss was ($0.23) per diluted share

?While our first quarter results were in line with expectations, there is still much work to be done in order to improve on our recent performance,? stated Hoby Darling, President and CEO. ?Skullcandy rapidly expanded its share of the headphone category the past few years driven in large part by a disruptive market position and strong brand equity within action sports. We now need to broaden our growth pillars in order to evolve as an audio leader and expand the category. Our go-forward plans will focus on developing more technology driven, consumer innovative products, creating deeper connections with consumers through authentic and clear brand messages, and winning at the point of sale. Through diligent focus on these key areas, combined with establishing a balanced distribution platform, we believe we can achieve our near-term operating goals while setting the Company up to deliver consistent sales and earnings growth over the long-term.?

Net sales in the first quarter of 2013 decreased 30.4% to $37.1 million from $53.3 million in the same quarter of the prior year. North America net sales decreased 37.9% to $28.7 million from $46.1 million in the same quarter of the prior year. The prior year?s first quarter was aided by lower retail customer inventory coming out of the holiday season and a packaging change that led to higher sales, creating a challenging year over year quarterly comparison. Further, the Company chose to scale back its sales to the highly discounted off-price channel by approximately 67%. This decrease was partially offset by an increase in gaming net sales of 43.8%. International net sales increased 17.5% to $8.4 million from $7.1 million in the same quarter of the prior year. Included in the North America segment in Q1 2013 and Q1 2012 are net sales of $2.1 million and $3.4 million, respectively, that were sold from North America to customers with a ?ship to? location outside of North America. Adjusting these sales into the international segment, international net sales are flat year over year.

Gross profit in the first quarter of 2013 decreased 35.6% to $16.5 million from $25.6 million in the same quarter of the prior year. Gross profit as a percentage of net sales, or gross margin, was 44.5% in the first quarter of 2013 compared to 48.1% in the first quarter of 2012. The decrease in gross margin is primarily due to a write off of $0.8 million related to end of life products (?EOL?). Certain reclassifications have been made to the 2012 balances to conform to the 2013 presentation so as to better reflect where these costs should reside in the statement of operations. For this reason, tooling depreciation and warranty related expenses are being included in cost of goods sold for all comparable periods.

Selling, general and administrative (SG&A) expenses in the first quarter 2013 increased 9.0% to $26.3 million from $24.1 million in the same quarter of the prior year. As a percentage of net sales, selling, general and administrative expenses increased to 71.0% from 45.3% in the same quarter of the prior year. SG&A expenses in the first quarter 2013 include $1.2 million in certain severance related expenses. During the three months ended March 31, 2013, the Company recorded a loss of $2.0 million related to disposals of property and equipment for certain EOL products.

Income (loss) from operations decreased to ($9.8 million) from $1.5 million in the same quarter of the prior year.

Net loss attributable to Skullcandy, Inc. in the first quarter of 2013 was ($7.0 million), or ($0.25) per diluted share, based on 27.7 million diluted weighted average common shares outstanding. Net income attributable to Skullcandy, Inc. in the same quarter of the prior year was $1.1 million, or $0.04 per diluted share, based on 27.9 million diluted weighted average common shares outstanding. Excluding certain severance related expenses, non-GAAP adjusted net loss in the first quarter of 2013 was ($6.3 million), or ($0.23) per diluted share based on 27.7 million diluted weighted average common shares outstanding. For a reconciliation of non-GAAP adjusted net income (loss) to net income (loss), see the accompanying tables at the end of this release.

Balance Sheet Highlights

As of March 31, 2013, cash and cash equivalents totaled $33.5 million compared to $10.9 million as of March 31, 2012 and the Company had no long-term debt. As of March 31, 2013, the Company had $25.6 million of availability under its credit facility. Accounts receivable decreased 11.0% to $34.8 million as of March 31, 2013 from $39.2 million as of March 31, 2012 and were down $41.5 million from December 31, 2012. Inventory as of March 31, 2013 was consistent with levels as of March 31, 2012.

Call Information

A conference call to discuss the first quarter 2013 results is scheduled for today, May 2, 2013, at 4:30 PM Eastern Time/2:30 PM Mountain Time. A broadcast of the call will be available on the Company?s website, www.skullcandy.com. Analysts and investors can participate in the live call by dialing (877) 705-6003 or (201) 493-6725. In addition, a replay of the call will be available shortly after the conclusion of the call and remain available through May 9, 2013. To access the telephone replay, listeners should dial (877) 870-5176 or (858) 384-5517 and enter ID #413283.

About Skullcandy, Inc.

Skullcandy is a leading global designer, marketer and distributor of performance audio and gaming headphones and other accessory related products under the Skullcandy, Astro Gaming and 2XL by Skullcandy brands. Skullcandy was launched in 2003 and quickly became one of the world?s most distinct audio brands by bringing unique technology, color, character and performance to an otherwise monochromatic space; helping to revolutionize the audio arena by introducing headphones, earbuds and other audio and wireless lifestyle products that possess unmistakable style and exceptional performance. The Company?s products are sold and distributed through a variety of channels in the U.S. and approximately 80 countries worldwide. Visit skullcandy.com, or join us at facebook.com/skullcandy or on Twitter @skullcandy.

Forward-Looking Statements

Certain statements in this press release and oral statements made from time to time by representatives of the Company are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, statements regarding the Company?s guidance, outlook, future financial and operating results and any other statements about the Company?s future expectations, beliefs or prospects expressed by management are forward-looking statements. These forward-looking statements are based on management?s current expectations and beliefs, but they involve a number of risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements. Important factors that could cause actual results to differ materially from expectations are disclosed under the ?Risk Factors? section of the 2012 10-K filed with the Securities and Exchange Commission on March 13, 2013. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise

Non-GAAP Measures

Non-GAAP adjusted net income and non-GAAP adjusted fully diluted earnings per share, for the periods presented, represents diluted net income per share excluding the impact of severance expenses associated with the departure of the Company?s former Chief Executive Officer and the settlement of litigation. Management does not believe these expenses correlate to the underlying performance of the business. As a result, the Company believes that non-GAAP adjusted net income and non-GAAP adjusted fully diluted earnings per share provides important additional information for measuring its performance, provides consistency and comparability with the Company?s past financial performance, facilitates period to period comparisons of the Company?s operations, and facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. The Company?s management team uses these metrics to evaluate the Company?s business and believes they are a measure used frequently by securities analysts and investors. Non-GAAP adjusted net income and adjusted fully diluted earnings per share do not represent, and should not be used as a substitute for net income and diluted earnings per share, as determined in accordance with GAAP. The Company?s method of calculating non-GAAP adjusted net income and adjusted fully diluted earnings per share may differ from that of other companies.

Source: http://business.transworld.net/128529/news/skullcandy-q1-net-sales-drop-30-4-to-37-1-million-international-sales-up-17-5/

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