Fiscal Cliff Creeps Closer With Few Signs of Optimism

"Absurd" -- that's the word one top Republican Hill aide used to describe the plan that Treasury Secretary Timothy Geithner presented to GOP leaders yesterday to avoid the fiscal cliff.

And an aide to House Speaker Boehner described the White House's offer as "completely unrealistic" and "a break with reality."

Meanwhile, a top Democratic insider complained to ABC's Jonathan Karl that "the Republicans have taken to screaming at us."

Sources familiar with the phone call Wednesday night between Speaker Boehner and President Obama -- which lasted 30 minutes -- told Karl it was as "unproductive" and "blunt." One source said the president did most of the taking, explaining why he will insist that tax rates go up.

Get more pure politics at ABCNews.com/Politics and a lighter take on the news at OTUSNews.com

"No substantive progress has been made over the last two weeks," said House Speaker John Boehner at a press conference yesterday. "It's time for the president and Congressional Democrats to tell the American people what spending cuts they're really willing to make."

With few signs of optimism in Washington and just 33 days before the end-of-the-year fiscal cliff deadline, President Obama is taking his show on the road.

ABC's Mary Bruce notes that the president is bypassing the wrangling between both sides and traveling to Hatfield, Pa. today where he will tour a toy manufacturing facility and speak to workers there.

AP Photo/Carolyn Kaster, File

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According to the White House, "the President will continue making the case for action by visiting a business that depends on middle class consumers during the holiday season, and could be impacted if taxes go up on 98 percent of Americans at the end of the year."

FROM THE SPEAKER'S OFFICE: Boehner's office gives six reasons why the Obama administration's fiscal cliff offer won't fly:

"1) Twice the Taxes: It's absolutely true that the President ran on a tax plan of raising the top two rates. That's what Americans heard from him. That yields about $800 billion in new tax revenue. He just asked for twice that. 2) Not Even the Votes in His Own Party: The Senate was barely able to pass a bill with $800 billion in new tax revenue a few months ago (51 votes). There is no chance there are votes in the Senate for anything close to $1.6 trillion. 3) Unbalanced: The President also ran on a so-called balanced approach. Apparently his idea of balance is four times as much revenue as spending cuts. 4) No Net Spending Cuts: The spending cuts they are offering (which come later) are wiped out by all the new goodies he's also requesting. (stimulus, UI, payroll, housing, etc). 5) Debt Limit Pipe Dream: Permanently doing away with the debt limit? Come on. Guess what - the debt limit is actually very popular. Raising it to infinity is not. 6) We're Far From Opening Bids: Even as an "opening bid," this offer would be ludicrous. But we're way past that. We had about seven weeks to resolve this. Three of those weeks are gone, and this is what he comes with?"

FROM THE WHITE HOUSE: White House spokesman Josh Earnest: "Right now, the only thing preventing us from reaching a deal that averts the fiscal cliff and avoids a tax hike on 98 percent of Americans is the refusal of Congressional Republicans to ask the very wealthiest individuals to pay higher tax rates. The President has already signed into law over $1 trillion in spending cuts and we remain willing to do tough things to compromise, and it's time for Republicans in Washington to join the chorus of other voices -- from the business community to middle class Americans across the country -- who support a balanced approach that asks more from the wealthiest Americans."

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U.N. set to implicitly recognize Palestinian state, despite threats

UNITED NATIONS (Reuters) - The U.N. General Assembly is set to implicitly recognize a sovereign state of Palestine on Thursday despite threats by the United States and Israel to punish the Palestinian Authority by withholding much-needed funds for the West Bank government.

A resolution that would lift the Palestinian Authority's U.N. observer status from "entity" to "non-member state," like the Vatican, is expected to pass easily in the 193-nation General Assembly. At least 15 European states plan to vote for it.

Israel, the United States and a handful of other members are set to vote against what they see as a largely symbolic and counterproductive move by the Palestinians, which takes place on the 65th anniversary of the assembly's adoption of resolution 181 on the partition of Palestine into Jewish and Arab states.

Palestinian President Mahmoud Abbas has been leading the campaign to win support for the resolution, which follows an eight-day conflict this month between Israel and Islamists in the Gaza Strip, who are pledged to Israel's destruction and oppose his efforts toward a negotiated peace.

The U.S. State Department said on Wednesday that Deputy Secretary of State Bill Burns and U.S. Middle East peace envoy David Hale traveled to New York on Wednesday in a last-ditch effort to get Abbas to reconsider.

The Palestinians gave no sign they were turning back.

Secretary of State Hillary Clinton repeated to reporters in Washington on Wednesday the U.S. view that the Palestinian move was misguided and efforts should focus instead on reviving the stalled Middle East peace process.

"The path to a two-state solution that fulfills the aspirations of the Palestinian people is through Jerusalem and Ramallah, not New York," she said. "The only way to get a lasting solution is to commence direct negotiations."

State Department spokeswoman Victoria Nuland reiterated U.S. warnings that the move could cause a reduction of U.S. economic support for the Palestinians. The Israelis have also warned they might take significant deductions out of monthly transfers of duties that Israel collects on the Palestinians' behalf.

Despite its fierce opposition, Israel seems concerned not to find itself diplomatically isolated. It has recently toned down threats of retaliation in the face of wide international support for the initiative, notably among its European allies.

"The decision at the United Nations will change nothing on the ground," Israeli Prime Minister Benjamin Netanyahu said in Jerusalem. "It will not advance the establishment of a Palestinian state. It will delay it further.

CRIMINAL COURT ACCESS

Granting Palestinians the title of "non-member observer state" falls short of full U.N. membership - something the Palestinians failed to achieve last year. But it would allow them access to the International Criminal Court and other international bodies, should they choose to join them.

Hanan Ashrawi, a top Palestine Liberation Organization official, told a news conference in Ramallah that "the Palestinians can't be blackmailed all the time with money."

"If Israel wants to destabilize the whole region, it can," she said. "We are talking to the Arab world about their support, if Israel responds with financial measures, and the EU has indicated they will not stop their support to us."

Peace talks have been stalled for two years, mainly over Israeli settlements in the West Bank, which have expanded despite being deemed illegal by most of the world. There are 4.3 million Palestinians in the West Bank and Gaza.

In the draft resolution, the Palestinians have pledged to relaunch the peace process immediately following the U.N. vote.

As there is little doubt about how the United States will vote when the resolution is put to a vote sometime after 3 p.m. (2000 GMT) on Thursday, the Palestinian Authority has been concentrating its efforts on lobbying wealthy European states, diplomats say.

With strong support from the developing world that makes up the majority of U.N. members, it is virtually assured of securing more than the requisite simple majority. Palestinian officials hope for more than 130 yes votes.

Abbas has been trying to get as many European votes as possible.

Austria, Denmark, Norway, Finland, France, Greece, Iceland, Ireland, Italy, Luxembourg, Malta, Portugal, Spain, Sweden and Switzerland all pledged to support the resolution. Britain said it was prepared to vote yes, but only if the Palestinians fulfilled certain conditions.

The fiercely pro-Israel Czech Republic was planning to vote against the move, dashing European hopes of avoiding a three-way split in the continent's vote.

It was unclear whether some of the many undecided Europeans would join the Czechs. Germany, Hungary and the Netherlands plan to abstain, like Estonia and Lithuania.

Ashrawi said the positive responses from European states were encouraging and sent a message of hope to all Palestinians.

"This constitutes a historical turning point and opportunity for the world to rectify a grave historical injustice that the Palestinians have undergone since the creation of the state of Israel in 1948," she said.

A strong backing from European nations could make it awkward for Israel to implement harsh retaliatory measures. But Israel's reaction might not be so measured if the Palestinians seek ICC action against Israel on charges of war crimes, crimes against humanity or other crimes the court would have jurisdiction over.

Israel also seems wary of weakening the Western-backed Abbas, especially after the political boost rival Hamas received from recent solidarity visits to Gaza by top officials from Egypt, Qatar and Tunisia.

Hamas militants, who control Gaza and have had icy relations with the Palestinian Authority in the West Bank, unexpectedly offered Abbas their support this week.

(Andrew Quinn in Washington, Noah Browning in Ramallah, Jeffrey Heller in Jerusalem, Michelle Nichols in New York, Robert Mueller in Prague and Reuters bureaux in Europe and elsewhere; Editing by Xavier Briand)

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Some contract manufacturers struggling despite demand for mobile devices: analysts

SINGAPORE : Apple and Samsung are riding high on the growing demand for mobile devices.

Global shipments of smartphones and tablets are expected to reach some 680 million this year, according to Frost & Sullivan.

Analysts have said the success of mobile devices may not necessarily benefit many contract manufacturers.

Some are instead struggling to change their production lines from falling personal computer (PC) shipments.

Japanese tech giants that once dominated the electronics market are finding themselves in an increasing perilous fight for relevance.

Companies like Sony, Sharp and Panasonic are struggling to turn in profits, and close the gap on rivals with innovative products such as smartphones and tablets.

PC makers are also suffering.

Andrew Milroy, vice president of ICT (Asia Pacific) at Frost & Sullivan, said: "All sorts of new devices are emerging - tablets and smartphones are one type that do the the same kind of thing that PCs once did."

Global shipments of PCs tumbled by 8 per cent year-on-year to 87.5 million units in the third quarter of this year.

Apple and Samsung are currently leading in the market for smartphones and tablets.

In the third quarter of this year, they had a combined marketshare of 46.5 per cent in the smartphone market, and close to 70 per cent in the tablet market.

The success of Apple has turned Taiwan's Hon Hai Precision Industry into the world's largest contract manufacturer.

But other such manufacturers in Southeast Asia have not been so fortunate.

Edison Chen, a tech analyst at DMG & Partners Research, said: "For example, Broadway Industrial, the one making actuator arms for the HDD (hard disk drive) market...they have been trying very hard to diversify..."

Broadway has diversified into making foams, pulps and thermo-formed packaging products, while others have ventured into corporate devices like medical instrument components.

- CNA/ms

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BJP slams Prime Minister's Office for giving ‘clean chit’ to Vadra

NEW DELHI: BJP today hit out at the Prime Minister's Office for giving a "clean chit" to Congress President Sonia Gandhi's son-in-law Robert Vadra in the land deals with realty major DLF in Haryana and sought to know how it arrived at this conclusion without conducting any probe.

"Is it the Prime Minister's Office or a bailout office? We say this with full responsibility," BJP Chief spokesperson Ravi Shankar Prasad said. Prasad pointed out that several questions had been raised about the deals between Vadra and DLF including how his seed capital of Rs 50 Lakh turned into Rs 300 crore within a short span of time, the controversy on an overdraft that Vadra claimed was given by Corporation Bank which the latter denied, and how Congress governments in Rajasthan and Haryana had sprung to his defence.

The PMO has said in an affidavit before the Lucknow bench of the Allahabad High Court that the allegations regarding irregular land dealings between Vadra and DLF "appear to be false, based on heresay and vexatious". Asking how the PMO had reached this conclusion, Prasad said "did you conduct an inquiry?... How can the PMO be used to shield corruption?" BJP alleged that even in the past in other cases, the PMO had given a "clean chit" to individuals who faced charges later.

"In the case of former Telecom Minister A Raja, Finance Minister P Chidambaram, Commonwealth Games, and Coalgate, the PMO had given a clean chit. The Prime Minister himself has been giving repeated certificates of innocence inside and outside Parliament," Prasad said. He demanded the PMO should come come clear on who probed the charges against Vadra and how he was given a "clean chit".

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Simple measures cut infections caught in hospitals

CHICAGO (AP) — Preventing surgery-linked infections is a major concern for hospitals and it turns out some simple measures can make a big difference.

A project at seven big hospitals reduced infections after colorectal surgeries by nearly one-third. It prevented an estimated 135 infections, saving almost $4 million, the Joint Commission hospital regulating group and the American College of Surgeons announced Wednesday. The two groups directed the 2 1/2-year project.

Solutions included having patients shower with special germ-fighting soap before surgery, and having surgery teams change gowns, gloves and instruments during operations to prevent spreading germs picked up during the procedures.

Some hospitals used special wound-protecting devices on surgery openings to keep intestine germs from reaching the skin.

The average rate of infections linked with colorectal operations at the seven hospitals dropped from about 16 percent of patients during a 10-month phase when hospitals started adopting changes to almost 11 percent once all the changes had been made.

Hospital stays for patients who got infections dropped from an average of 15 days to 13 days, which helped cut costs.

"The improvements translate into safer patient care," said Dr. Mark Chassin, president of the Joint Commission. "Now it's our job to spread these effective interventions to all hospitals."

Almost 2 million health care-related infections occur each year nationwide; more than 90,000 of these are fatal.

Besides wanting to keep patients healthy, hospitals have a monetary incentive to prevent these infections. Medicare cuts payments to hospitals that have lots of certain health care-related infections, and those cuts are expected to increase under the new health care law.

The project involved surgeries for cancer and other colorectal problems. Infections linked with colorectal surgery are particularly common because intestinal tract bacteria are so abundant.

To succeed at reducing infection rates requires hospitals to commit to changing habits, "to really look in the mirror and identify these things," said Dr. Clifford Ko of the American College of Surgeons.

The hospitals involved were Cedars-Sinai Medical Center in Los Angeles; Cleveland Clinic in Ohio; Mayo Clinic-Rochester Methodist Hospital in Rochester, Minn.; North Shore-Long Island Jewish Health System in Great Neck, NY; Northwestern Memorial Hospital in Chicago; OSF Saint Francis Medical Center in Peoria, Ill.; and Stanford Hospital & Clinics in Palo Alto, Calif.

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Online:

Joint Commission: http://www.jointcommission.org

American College of Surgeons: http://www.facs.org

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AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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Death at School: Parents Protest Dangerous Discipline for Autistic, Disabled Kids

Thousands of autistic and disabled schoolchildren have been injured and dozens have died after being restrained by poorly trained teachers and school aides who tried to subdue them using at times unduly harsh techniques, an ABC News investigation has found.

With no agreed upon national standards for how teachers can restrain an unruly child, school officials around the country have been employing a wide array of methods that range from sitting on children, to handcuffing them, even jolting them with an electric shock at one specialized school. Some have locked children in padded rooms for hours at a time. One Kentucky teacher's aide is alleged to have stuffed 9-year-old Christopher Baker, who is autistic and was swinging a chair around him, into a draw-string duffle bag.

"When I got to the end of the hall and saw the bag, I stood there like, 'Hmmm, what in the world?'" the boy's mother, Sandra Baker, recalled in an interview with ABC News. She had arrived at the school to find her son wriggling inside the "sensory bag." "It was really heartbreaking to walk up and see him in that."

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Earlier this year, Sheila Foster's son Corey, 16, was the latest child to die at school, when staff members at a special needs facility in Yonkers, New York held him face down for allegedly refusing to get off the basketball court. Sheila Foster said witnesses later informed her that Corey told the staffers he couldn't breathe, but they allegedly persisted, reportedly telling him, "If you can talk, you can breathe." The school said this account is not substantiated.

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In an interview that will air on "Nightline" Thursday, Sheila Foster said she watches the time-lapse security video of her son nearly every day, hoping for a different ending. "Every time just looking at these pictures, I know I won't feel him hug me anymore, or say, 'I love you mommy,'" she said. "That was the last time he was alive and I want to see that."

How to safely handle an out-of-control student has been a longstanding issue for parents whose children attend special schools for those with autism or with behavioral or developmental problems. But experts told ABC News it has become increasingly vexing for officials in traditional public schools as they have sought to accommodate children with special needs. Many of the schools provide little or no training to teachers and staff for how to intervene when the student misbehaves. That has left teachers and school administrators to find their own solutions, at times with terrible outcomes.

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Egypt protests continue in crisis over Mursi powers

CAIRO (Reuters) - Hundreds of demonstrators were in Cairo's Tahrir Square for a sixth day on Wednesday to demand that President Mohamed Mursi rescind a decree they say gives him dictatorial powers, and two of Egypt's top courts stopped work in protest.

But in a move that one Muslim Brotherhood official said could help resolve the worst crisis of Mursi's five-month presidency, the assembly drawing up a new constitution said it would complete work on a final draft on Wednesday.

The official said the final draft could go to a popular referendum by mid-December. If approved it would cancel the constitutional declaration that extended Mursi's powers and sparked street protests that drew tens of thousands on Tuesday. Brotherhood and other Islamists have called for a rally backing the president on Saturday.

"We will start now and finish today, God willing," Hossam el-Gheriyani, the constituent assembly speaker, said at the start of a meeting to finalize drafting the constitution.

Three assembly members said a vote on the draft by the assembly was planned for Thursday.

Many liberals and other opponents of Mursi have walked out of the constituent assembly, which is dominated by Islamists, saying their voices are not being heard.

Once drafted, the constitution will go to Mursi for approval, and he must then put it to a popular referendum within 15 days, which could mean the plebiscite would be held by mid-December.

The move immediately drew scorn from leading Egyptian opposition figure Amr Moussa, a former Arab League chief.

"This is nonsensical and one of the steps that shouldn't be taken, given the background of anger and resentment to the current constitutional assembly," he told Reuters.

Adding to the tension, Egypt's Cassation and Appeals courts said they would suspend their work until the constitutional court rules on the decree.

The judiciary, largely unreformed since the popular uprising that unseated Mursi's autocratic predecessor Hosni Mubarak, was seen as a major target in the decree issued last Thursday, which extended his powers and put his decisions temporarily beyond legal challenge. The decree also protected the constituent assembly from judicial oversight, fending off court cases that call for it to be dissolved.

DEPTH OF ANGER

"The president wants to create a new dictatorship," said 38-year-old Mohamed Sayyed Ahmed in Tahrir. He has not had a job for two years and is one of many in the square who are as angry over economic hardship as they are about Mursi's actions.

"We want the scrapping of the constitutional declaration and the constituent assembly, so a new one is created representing all the people and not just one section," he said.

Showing the depth of distrust of Mursi in parts of the judiciary, a spokesman for the Supreme Constitutional Court, which earlier this year declared void the Islamist-led parliament, said it felt under attack by the president.

In a speech on Friday, Mursi praised the judiciary as a whole but referred to corrupt elements he aimed to weed out.

"The really sad thing that has pained the members of this court is when the president of the republic joined, in a painful surprise, the campaign of continuous attack on the Constitutional Court," said the spokesman Maher Samy.

Senior judges have been negotiating with Mursi about how to restrict his new powers.

Mursi's administration insists that his actions were aimed at breaking a political logjam to push Egypt more swiftly towards democracy, an assertion his opponents dismiss.

The West worries about turbulence in a nation that has a peace treaty with Israel and is now ruled by Islamists they long kept at arms length. The United States, a big donor to Egypt's military, has called for "peaceful democratic dialogue".

Two people have been killed in violence since the decree, while low-level clashes between protesters and police have gone on for days near Tahrir. Violence has flared in other cities.

Trying to ease tensions with judges, Mursi said elements of his decree giving his decisions immunity applied only to matters of "sovereign" importance, a compromise suggested by the judges.

That should limit it to issues such as declaring war, but experts said there was much room for interpretation. The judges themselves are divided, and the broader judiciary has yet to back the compromise. Some have gone on strike over the decree.

A constitution must be in place before a new parliament can be elected, and until that time Mursi holds both executive and legislative powers. An election could take place in early 2013.

One presidential source said Mursi wanted to re-make the Supreme Constitutional Court after it declared the parliament void, which led to its dissolution by the then ruling military.

Both Islamists and their opponents broadly agree that the judiciary needs reform, but Mursi's rivals oppose his methods.

(Additional reporting by Tom Perry and Marwa Awad; Writing by Edmund Blair; Editing by Will Waterman)

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BP banned from US government contracts

WASHINGTON: British oil giant BP was banned from US government contracts on Wednesday after pleading guilty to criminal charges stemming from the deadly 2010 Gulf of Mexico oil disaster.

Two weeks after agreeing to pay $4.5 billion to settle Justice Department charges in the case, the US Environmental Protection Agency ordered BP temporarily blocked from contracts until it can prove it meets US government business standards.

"EPA is taking this action due to BP's lack of business integrity as demonstrated by the company's conduct with regard to the Deepwater Horizon blowout, explosion, oil spill, and response," the agency said.

The EPA cited BP's admission of guilt on November 15 to 11 counts of manslaughter, one count of felony obstruction of Congress and two environmental violations arising from the April 20, 2010 well blowout, which caused the worst ecological disaster in US history.

The blowout and sinking of the Deepwater Horizon drilling platform left 11 people dead and spewed some 4.9 million barrels of oil into the Gulf of Mexico over 87 days, blackening beaches in five states.

The EPA said the ban on BP and affiliates from receiving federal contracts will continue "until the company can provide sufficient evidence to EPA demonstrating that it meets federal business standards."

The November 15 deal settled most but not all federal criminal charges against the company.

Two of the British energy giant's on-board supervisors still face involuntary manslaughter, and a former BP executive is also charged with obstruction of justice for lying about how much oil was gushing out of the runaway well.

Announcing the settlement, US Attorney General Eric Holder warned that BP's legal troubles were far from over, saying: "Our criminal investigation remains ongoing - and we'll continue to follow all credible leads and pursue any charges that are warranted."

He also said that the Justice Department had yet to resolve a civil case on environmental fines which could amount to as much as $18 billion.

"We're looking forward to the trial - which is scheduled to begin in February of next year - in which we intend to prove that BP was grossly negligent in causing the oil spill," Holder told a press conference.

BP has signalled it will continue to aggressively pursue damages from rig operator Transocean and well operations subcontractor Halliburton, which BP blames for faulty work leading up to the blowout.

- AFP/de

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Another shocker from Kerala: Police arrest rapist father

KOTTAYAM: In yet another shocker, police in Kerala have arrested a man on charges of sexually abusing his two minor daughters for the past two years.

The plight of the two girls -- aged 13 and 15 -- came to light following a complaint by the man's wife, police said.

The man, a hotel employee, arrested near Kadurthuruthi in Kottayam district yesterday, has been charged under sections 376 (rape) and 377 (unnatural offences) of the IPC.

The mother, who had just returned from work, was informed by the crying girls about the assault after which she informed the police.

The incident comes close on the heels of a similar incident from Dharmadom in Kannur district where a 13-year-old girl had been sexually assaulted by her father, 15-year-old brother and an uncle for nearly two years. All the three have been arrested.

Kerala Home Minister Thiruvanchoor Radhakrishnan said in Thiruvananthapuram that police had been asked to conduct a thorough probe into both the cases and bring the culprits to book without delay.

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Susan Rice Made Allies, Enemies Before Benghazi

United Nations Ambassador Susan Rice, on Capitol Hill this week answering questions about her role after the U.S. consulate attack in Benghazi, has become yet another player in the divide between the left and right, with her possible nomination as the next Secretary of State hanging in the balance.

But who was Susan Rice before she told ABC's "This Week" and other Sunday morning shows the attack was a spontaneous response to an anti-Islam film and not a premeditated act of terror? Four Americans died in the September attack.

Unlike many in government, Rice holds a rare claim to Washington, D.C.: she's a local. She hails from a prominent family with deep ties to the Democratic Party. She was born Nov. 17, 1964 to Emmett Rice, a deputy director at the Treasury Department who served as a member of Jimmy Carter's Federal Reserve board, and Lois Dickson Rice, a former program officer at the Ford Foundation who is now a higher education expert at the Brookings Institution.

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As a high school student at the all-girl National Cathedral School in Washington, Rice was known as an overachiever; valedictorian, star athlete and class president. After graduating high school in 1982, she went on to study history at Stanford, where she graduated as a Truman scholar and junior Phi Beta Kappa. Rice also attended Oxford as a Rhodes Scholar.

The family has roots in Maine. In an interview with the Portland Press Herald in 2008, Lois Dickson Rice said that she held the same high expectations for her children as her mother had held for her. According to the paper, Ambassador Rice's drive to achieve spanned generations. Her maternal grandmother, an immigrant from Jamaica, was named Maine State Mother of the Year in 1950. Rice's father was only the second African-American man to be chosen for the Federal Reserve board.

Two years out of Stanford, Rice joined Massachusetts Democrat Michael Dukakis as a foreign policy aide during his 1988 run for president. After his defeat, Rice tried her hand in the private sector, where she went on to work as a management consultant with McKinsey and Company. After President Clinton's election in 1992, she joined Clinton's National Security Council, eventually joining her mentor, former Secretary of State Madeleine Albright. She served as Assistant Secretary of State for African Affairs.

A profile of the diplomat from Stanford paints the Rices and Albrights as old family friends.

"The Rice and Albright kids went to school together and shared meals at Hamburger Hamlet," Stanford Magazine reported in 2000.

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