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Obama Urges Congress to Compromise on Sequester

Written By Unknown on Rabu, 27 Februari 2013 | 00.34

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President Barack Obama on Monday said looming automatic spending cuts are already affecting the economy, while a top administration official warned that the nation's borders would be less secure if billions of dollars are yanked from the budget Friday.

"The uncertainty is already having an effect," Obama said. "Companies are preparing layoff notices. Families are preparing to cut back on expenses. The longer these cuts are in place, the bigger the impact will become."

Despite the urgent rhetoric, there was no indication the White House and congressional Republicans were actively negotiating a deal to avoid the so-called sequester ahead of the end of the week deadline. The last known conversation between Obama and GOP leaders was last week and there have been no in-person meetings between the parties this year. 

For full U.S. news and politics coverage, visit NBCNews.com.

With Congress back from a weeklong recess, House Speaker John Boehner showed little willingness to move off his long-held position that the sequester be offset through targeted spending cuts, not the package of cuts and tax increases Obama supports. 

"Mr. President, you got your tax increase," Boehner said, referring to the tax rate increases that took effect on Jan. 1. "It's time to cut spending here in Washington."

The $85 billion budget-cutting mechanism could affect everything from commercial flights to classrooms to meat inspections. Domestic and defense spending alike would be trimmed, leading to furloughs for hundreds of thousands of government workers and contractors.

The White House continued laying out in stark terms what the cuts would mean for government services, dispatching Homeland Security Secretary Janet Napolitano to warn of the implications for critical security functions.

"I don't think we can maintain the same level of security at all places around the country with sequester as without sequester," said Napolitano, adding that the impact would be "like a rolling ball. It will keep growing."

Napolitano focused in particular on the impact to the border, saying her agency would be forced to furlough 5,000 patrol agents. She tamped down the notion that budget cuts would make the nation more vulnerable to terrorism, but said the sequester would make it "awfully, awfully tough" to minimize that risk.

Also Monday, Interior Secretary Ken Salazar said visiting hours would be cut at all 398 national parks, just as they prepare for an influx of spring and summer visitors.

Elsewhere in the government, Defense Secretary Leon Panetta has said the cuts would harm the readiness of U.S. fighting forces. Transportation Secretary Ray LaHood said travelers could see delayed flights. Education Secretary Arne Duncan said 70,000 fewer children from low-income families would have access to Head Start programs. And furloughed meat inspectors could leave plants idled.

Obama will seek to build public support for his sequester offset plan Tuesday when he travels to Newport News, Va., a community that would be impacted by the defense cuts.

The sequester was designed as an unpalatable fallback, meant to take effect only if a congressional super-committee failed to come up with at least $1 trillion in savings from benefit programs.

Many of the nation's governors, who are gathered in Washington for their annual meeting, voiced frustration over the impending cuts, saying Washington's inability to strike a deal had created widespread uncertainty in the economy and hampered economic recovery in their states. 

"The president needs to show leadership," said Louisiana Gov. Bobby Jindal, a Republican considered a potential 2016 presidential contender, following a meeting with Obama. "The reality is it can be done. This administration has an insatiable appetite for new revenue."

South Carolina Gov. Nikki Haley, a favorite of her party's conservative wing, pointed her anger at both Democrats and Republicans.

"No one should be playing golf. No one should be taking vacations," Haley said, taking a shot at Obama's recent golf outing and Congress' latest recess. "What they need to do is do what these governors do every day. We stay until we get it done."

Democratic Gov. Dannel Malloy of Connecticut concurred.

"They need to get out of that box that sits under the dome and understand that this has real implications in people's lives," he said. "Work with the president, find a way to get it done — or if you want, just turn it over to us governors, and we'll negotiate."

The governors, emerging from a closed-door meeting with Obama Monday, said the president had assured them the administration is pursuing solutions, but offered no assurances that officials would find a way ahead out ahead of the deadline.

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Hearing on AA, US Air Merger

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The Regulatory Reform, Commercial and Anti-Trust Law subcommittee of the House Judiciary Committee is holding a hearing on the merger between American Airlines and US Airways on Tuesday.

This hearing will examine the proposed merger's effects on competition and consumers in the airline industry.

Scheduled attendees include:

  • Mr. Stephen Johnson, Executive Vice President for Corporate & Government Affairs, US Airways
  • Mr. Gary Kennedy, Senior Vice President & General Counsel, American Airlines;
  • Mr. Kevin Mitchell, Chairman, Business Travel Coalition, Inc.;
  • Professor Christopher L. Sagers, Cleveland-Marshall College of Law; and
  • Dr. Clifford Winston, Ph.D., Senior Fellow, Economic Studies, The Brookings Institution

It is the first hearing of the year for the subcommittee.

American Airlines and US Airways sent out a press release announcing the prepared remarks from their representatives. They are included below.

We wanted to let you know that today, Gary Kennedy, Senior Vice President, General Counsel & Chief Compliance Officer, AMR Corporation and American Airlines, and Stephen Johnson, Executive Vice President, Corporate and Government Affairs, US Airways, will be testifying before the House Subcommittee on Regulatory Reform, Commercial and Antitrust Law on why the combination of American Airlines and US Airways represents the best path forward for the stakeholders of both companies. In their testimony, Mr. Kennedy and Mr. Johnson highlight the significant benefits inherent in this merger.

In his prepared remarks, Mr. Kennedy discusses how the merger will create value for all stakeholders:
"This transaction will give us the opportunity to become a stronger competitor, one with a degree of financial stability that we have not experienced in many years. We will be a company that is better positioned to deliver for customers and its people. This transaction is unique in that it is endorsed by all of our labor unions and embraced by the management and boards of both companies."

Mr. Johnson's prepared remarks focus on the significant benefits of the merger for customers:
"By providing our customers with a broader network, more choices and better service, the combination of American and US Airways will give passengers a stronger competitive alternative to Delta/Northwest and United/Continental… System wide, American Airlines serves 130 cities not served by US Airways, 48 of which are within the United States. Similarly, US Airways serves 62 cities not served by American Airlines, 48 of which are within the United States. By linking these destinations through our hub airports, the New American Airlines will give passengers new and improved online connecting options to get to the places they want to go, when they want to go. The result will be an airline that will have the most service across the Eastern and Central regions of the United States, and an expanded presence and stronger network in the Western United States… The new network will also enhance oneworld as a competitive alternative to other international airline alliances. By adding US Airways and its depth of service to the oneworld alliance, international travelers will have more options."

Mr. Kennedy also highlights how the combined company's expanded network will improve service and position the new American to further invest in new products and services:
"Of the more than 900 domestic routes flown by the two carriers, there are only 12 overlaps… The combination will make our company a much stronger competitor against the other large airlines. Consumers will have three strong, healthy global network carriers from which to choose, as well as a number of low cost carriers… The new American will have the financial strength to invest the resources needed to improve the customer experience, including new aircraft, cutting edge products and services, and the technology and tools designed to help our employees deliver superior service to our customers."

Mr. Kennedy's perspective is consistent with a recent report from PwC, which concluded that airline mergers have not caused significant increases in fares or resulted in drastic reductions in competition.

Finally, Mr. Johnson explains what the merger means for employees:
"The financial stability of the combined company will also provide very significant benefits to our employees including better pay and benefits and a path to compensation that is equal to that of their counterparts at Delta and United; more jobs and greatly improved job security; and better opportunities for advancement."


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Search Continues for Missing Fort Worth Man

Fort Worth Police Department

Jose Juan Salas, missing since Feb. 18.

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The search continues for a Fort Worth man missing for eight days.

Jose Juan Salas, 40, was last seen Feb. 18 in the 3000 block of Marine Court.  He was wearing a red dress shirt, jeans and black and grey sneakers.  He has brown hair and brown eyes, stands 5 feet 6 inches tall and weighs approximately 190 lbs.

He is on medication for schizophrenia and depression and may appear confused, family members told police. Anyone spotting a man matching his description is asked to call the police.

Officials said they have no active leads in the case and that it has been turned over to the missing persons unit for a follow-up investigation.

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Parents Brave Cold to Transfer in Arlington

Ben Russell, NBC 5 News

Dedicated parents are braving a very cold night to camp out so that their children can transfer to another school in the Arlington Independent School District.

Parents Camp Out in the Cold for Kids

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Twenty parents are still camping out in front of an Arlington school district building despite Tuesday's freezing temperatures and biting winds.

Most people who camped out did so in RV's or campers, but several toughed it out in tents with nothing more than a sleeping bag and some blankets to get through a freezing cold morning.

Victor Zuniga's tent was shaking in the wind all night long. Tears streamed down his face; his cheeks were red with cold.

"I feel very cold," Zuniga said. "It's very hard to stay all day in the cold."

Zuniga says he's making the sacrifice so he can transfer his five children to schools closer to home.

Already, a sort of camaraderie has formed among these parents. On Monday they dealt with rain. Tuesday, it was high winds and cold temperatures. One parent, Diane Willson, was wearing four jackets.

"This is layer one, which is a nice windbreaker jacket. Then I have a Nike down-filled jacket under that," Willson said. "Then I have a Nike sweatshirt under that. And then a jacket. Then a turtleneck."

On Monday night,  Willson approached another mom and invited her to spend the night in her camper, since there was space for one more.

"There was no way you were going to let her sleep in that tent?" asked NBC 5.

"That's correct," she said.

"Why's that?"

"Would you? It would not be the kind thing to do," she said.

Those 20 parents had to pay a $50 permit fee to be able to camp out for the week, until their transfer applications can be processed on Saturday.

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Bomb Threat Investigated Near Bridgeport

Wise County Sheriff's Department is responding to a bomb threat at the Devon Gas Plant facility on U.S. Highway 380.

The call was received at about 8:40 a.m. Tuesday and all employees were evacuated from the facility.

The Denton Fire Department bomb squad is investigating and security cameras are being reviewed for any suspicious activity.

Highway 380 has been closed to traffic near the site, along with Farm-to-Market Road 1658 and County Road 3504 where they intersect 380.  Bridgeport police are assisting with the road closures, which they expect to be in place until about 1:30 p.m.

Officials said there is no immediate threat to the public and no injuries have been reported.

NBC 5 will update this story with more information as it's received.
 

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Mediterranean Diet Helps Cut Risk of Heart Attacks, Strokes: Study

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About 30 percent of heart attacks, stroke and deaths from heart disease can be prevented for high risk individuals by adjusting eating habits to mimic those of Spain, Greece and Italy according to a study published by the New England Journal of Medicine this week.

A diet rich in olive oil, nuts, beans, fish, fruits and vegetables, while low in dairy, sweets and red meats has commonly been referenced as a healthier approach. The new study, conducted by Spanish researchers for almost five years, is the first major clinical trial to measure the diet's effect on cardiovascular risks, The New York Times reported. This Mediterranean method even allows drinking wine with meals.

The study included 7,447 subjects - men and women aged 55 to 80, all at risk for but not diagnosed with heart disease. Subjects either had type 2 diabetes, or at least 3 risk factors like high blood pressure, high cholesterol, obesity, family history or were smokers. Most of the subjects were already taking blood pressure or diabetes medication to lower their chance for heart disease.

Subjects were randomly assigned to 3 different groups, one given a low-fat, control diet, one given a Mediterranean diet high in olive oil, and the third given a nut-based Mediterranean diet. The low-fat diet group was found less likely to follow restrictions, perhaps attributed to their lessened counseling at the beginning of the study. This essentially transformed the study to the usual, modern Northern European or American eating habits against the Mediterranean diet. Subjects experienced quarterly checkups and were provided either olive oil, nuts, or nonfood gift items accordingly.

The magnitude of the study shocked and impressed experts. Rachel Johnson, a professor of nutrition at the University of Vermont and a spokesperson for the American Heart Association, told The New York Times that the study "used very meaningful endpoints. They did not look at risk factors...They looked at heart attacks and strokes and death. At the end of the day, that's what really matters."

Even if no weight loss was detected, the diet was proven to help lower health risks. The study even ended ahead of schedule, as the results were so clear that it was decided unethical to continue.

Dr. Ramon Esturch, a professor of medicine at the University of Barcelona and his colleagues were so impressed with the results of their study that they themselves reportedly are now following the diet.


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Texas Again Takes Up Banning Texting While Driving

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Tuesday, a Texas lawmaker is pushing for a statewide ban on texting while driving.

Loved ones who have had relatives killed by distracted drivers are testifying in support of it at the state capitol.

One North Texas community already has the ban and said it's making the streets safer.  Since Nov. 2011, it's been against the law in Arlington to text, tweet, or do anything on your cell phone besides talk while driving.

"On our way here, a guy, he was texting and almost ran us off the road. We had to blow our horn at him.  It's a big issue," said Arlington resident Lawanda Williams.

Williams said even a trip to the store can be treacherous for her and her family sharing the road with texters behind the wheel. 

"There's a lot of accident[s] because people wanting to text and drive at the same time.  I think it's wonderful," said Williams.

In the past 15 months, police have handed out 65 citations at $200 each, at least 21 written warnings and countless verbal warnings.

Sgt. Chris Cook, with the Arlington Police Department, said it's all about educating violations about the dangers of distracted driving.

"The goal is to make Arlington roadways the safest in the nation by focusing on multiple contributing factors related to crashes –- that is reducing crashes related to distracted driving, speeding, seatbelt non-compliance, intersection violations, and alcohol and drug impairments," said Cook.

A Texas A&M study revealed a driver's reaction time doubles when distracted by reading or sending a text message.

"They ought to ban for sure texting," said driver Jerry McWhorter. "To save lives, you bet they need to do that."

Texas Representative Tom Craddick wants the entire state covered by a texting while driving ban.  Tuesday the House Transportation Committee is hearing for loved ones who have truly been impacted by distracted driving crashes.

The bill is named after Texas teenager Alex Brown.  She was killed when her truck rolled while texting on her way to school.

In 2011, Gov. Rick Perry vetoed a bill that would have banned texting while driving statewide saying it was an "overreach" and a "government effort to micromanage the behavior of adults."

To date, 39 states have already banned texting behind the wheel.


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