Obama: Not raising debt ceiling could be "catastrophic"

President Obama sternly warned congressional Republicans today that if they don't agree to raise the debt ceiling next month, the consequences could be "catastrophic."

"If Congress refuses to give the United States the ability to pay its bills on time, the consequences for the entire global economy could be catastrophic," the president said in his weekly address. "The last time Congress threatened this course of action, our entire economy suffered for it. Our families and our businesses cannot afford that dangerous game again."

House Ways and Means Committee chairman Rep. Dave Camp, R- Mich., in the Republicans' address suggested simply raising the debt ceiling isn't the answer - major spending cuts are.

"Many of our Democrat colleagues just don't seem to get it," Camp said. "Throughout the fiscal cliff discussions, the President and the Democrats who control Washington repeatedly refused to take any meaningful steps to make Washington live within its means. That position is irresponsible and fails to acknowledge what every family in America already knows - when you have no more money in your account and your credit cards are maxed out, then the spending must stop."

The president also fired a shot across the bow of Republicans who would like to believe that this week's "fiscal cliff" agreement put the tax issue to rest, signaling that any further deficit reduction efforts must again include tax reform that asks the wealthy to pay more. "Spending cuts must be balanced with more reforms to our tax code," said the president. "The wealthiest individuals and biggest corporations shouldn't be able to take advantage of loopholes and deductions that aren't available to most Americans."

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Rep. Camp delivers weekly GOP address

It seems this is an issue in which Mr. Obama and congressional Republicans can at least begin to have a conversation. Camp echoed the president on tax reform saying, "we have to start to work on real solutions to return accountability to our tax code by eliminating special interest loopholes."

"I believe in a simple principle," Camp continued. "When it comes to the tax code, everyone should play by the same rules. Your tax rate should be determined by what's fair, not who you know in Washington."

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Debt Limit Negotiating Tactic? No Negotiating

President Barack Obama and Vice President Joe Biden walk away from the podium after Obama made a statement regarding the passage of the fiscal cliff bill in the Brady Press Briefing Room at the White House in Washington, Tuesday, Jan. 1, 2013. (AP Photo/Charles Dharapak)

Analysis

New for 2013: In the Washington, D.C. fiscal wars we’ve gone from everything must be on the table to politicians declaring they won’t debate.

The fiscal cliff deal either averted disaster or compounded the problem, depending on who you ask. It certainly created new mini-cliffs in a few months as Congress and the president square off on the debt ceiling, spending cuts and government funding. But it also made sure the vast majority of Americans won’t see as big a tax hike as they might have.

President Obama was pretty clear late on New Year’s night as he reacted to Congress’s passage of a bill to take a turn away from the fiscal cliff. He won’t negotiate with Republicans about the debt ceiling.

“Now, one last point I want to make,” said the president, before wrapping up and hopping on Air Force One for a redeye to Hawaii. “While I will negotiate over many things, I will not have another debate with this Congress over whether or not they should pay the bills that they’ve already racked up through the laws that they passed.”

(Read more here about the Fiscal Cliff)

That’s pretty clear. No debt ceiling negotiation. Then he added for emphasis: ”Let me repeat: We can’t not pay bills that we’ve already incurred. If Congress refuses to give the United States government the ability to pay these bills on time, the consequences for the entire global economy would be catastrophic — far worse than the impact of a fiscal cliff.”

But in Washington, saying you won’t do something these days has almost become like an opening bid. At least, that’s how Republicans are treating the president’s line in the sand.

“The president may not want to have a fight about government spending over the next few months, but it’s the fight he is going to have because it’s a debate the country needs,” wrote Senate Minority Leader Mitch McConnell, the Kentucky Republican, in an op-Ed on Yahoo! News about 36 hours later. “For the sake of our future, the president must show up to this debate early and convince his party to do something that neither he nor they have been willing to do until now.”

“We simply cannot increase the nation’s borrowing limit without committing to long overdue reforms to spending programs that are the very cause of our debt,” McConnell said.

The national debt is soon set to reach $16.4 trillion. That’s not a problem that can be solved with one bill or budget. And the two sides will have to figure out some sort of way to talk about entitlement/social safety net reform – meaning things like Medicare, Medicaid, and Social Security – in addition to cutting spending and, most importantly, hope for an improving economy, to deal with those deficits.

House Speaker John Boehner, who has several times now failed to reach a big, broad fiscal deal with President Obama, told colleagues, according to The Hill newspaper, that he’s done with secret White House negotiations. He wants to stick with the constitutional way of doing things, with hearings and bills that are debated on Capitol Hill rather than hatched by the vice president and Senate Republicans.

Okay. Obama won’t negotiate on the debt ceiling. McConnell won’t not negotiate on the debt ceiling. Boehner doesn’t to do things by the book.

But McConnell won’t negotiate on taxes any more.

“Predictably,” McConnell had written earlier in his post, “the president is already claiming that his tax hike on the ‘rich’ isn’t enough. I have news for him: the moment that he and virtually every elected Democrat in Washington signed off on the terms of the current arrangement, it was the last word on taxes. That debate is over.”

It’s a new chapter in the ongoing fiscal saga in Washington. Back when the two sides were talking about a grand bargain or a big deal – some sort of all-inclusive reform that would right the listing deficit with one flip of the rudder – the popular trope was that “everything must be on the table.” That’s basically how Obama put it back in the summer of 2011 when he and Boehner failed to reach a grand bargain. He wanted higher taxes – they were calling them revenues back then. More recently, after Obama won the election and when he and Boehner were trying to hammer out another grand bargain to avert the fiscal cliff, Boehner wanted entitlements on the table. That means he wanted to find ways to curb future spending.

Both sides are declaring they won’t debate certain points, but this far – a full two months – before the mini-cliffs start, those are easier declarations to make than they will be when the government is in danger of defaulting or shutting down.

Even though they’re trying to take elements off the table, both men hope that coming negotiations can be a little more cordial and a little less down-to-the wire.

“Over the next two months they need to deliver the same kind of bipartisan resolution to the spending problem we have now achieved on revenue — before the 11th hour,” wrote McConnell.

“The one thing that I think, hopefully, in the New Year we’ll focus on is seeing if we can put a package like this together with a little bit less drama, a little less brinksmanship, not scare the heck out of folks quite as much,” said Obama.

That’ll be tough if neither side will talk about what the other side wants to talk about.

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Chavez swearing-in can be delayed: Venezuelan VP

CARACAS (Reuters) - President Hugo Chavez's formal swearing-in for a new six-year term scheduled for January 10 can be postponed if he is unable to attend due to his battle to recover from cancer surgery, Venezuela's vice president said on Friday.

Nicolas Maduro's comments were the clearest indication yet that the Venezuelan government is preparing to delay the swearing-in while avoiding naming a replacement for Chavez or calling a new election in the South American OPEC nation.

In power since 1999, the 58-year-old socialist leader has not been seen in public for more than three weeks. Allies say he is in delicate condition after a fourth operation in two years for an undisclosed form of cancer in his pelvic area.

The political opposition argues that Chavez's presence on January 10 in Cuba - where there are rumors he may be dying - is tantamount to the president's stepping down.

But Maduro, waving a copy of the constitution during an interview with state TV, said there was no problem if Chavez was sworn in at a later date by the nation's top court.

"The interpretation being given is that the 2013-2019 constitutional period starts on January 10. In the case of President Chavez, he is a re-elected president and continues in his functions," he said.

"The formality of his swearing-in can be resolved in the Supreme Court at the time the court deems appropriate in coordination with the head of state."

In the increasing "Kremlinology"-style analysis of Venezuela's extraordinary political situation, that could be interpreted in different ways: that Maduro and other allies trust Chavez will recover eventually, or that they are buying time to cement succession plans before going into an election.

Despite his serious medical condition, there was no reason to declare Chavez's "complete absence" from office, Maduro said. Such a declaration would trigger a new vote within 30 days, according to Venezuela's charter.

RECOVERY POSSIBLE?

Chavez was conscious and fighting to recover, said Maduro, who traveled to Havana to see his boss this week.

"We will have the Commander well again," he said.

Maduro, 50, whom Chavez named as his preferred successor should he be forced to leave office, said Venezuela's opposition had no right to go against the will of the people as expressed in the October 7 vote to re-elect the president.

"The president right now is president ... Don't mess with the people. Respect democracy."

Despite insisting Chavez remains president and there is hope for recovery, the government has acknowledged the gravity of his condition, saying he is having trouble breathing due to a "severe" respiratory infection.

Social networks are abuzz with rumors he is on life support or facing uncontrollable metastasis of his cancer.

Chavez's abrupt exit from the political scene would be a huge shock for Venezuela. His oil-financed socialism has made him a hero to the poor, while critics call him a dictator seeking to impose Cuban-style communism on Venezuelans.

Should Chavez leave office, a new election is likely to pitch former bus driver and union activist Maduro against opposition leader Henrique Capriles, the 40-year-old governor of Miranda state.

Capriles lost to Chavez in the October presidential election, but won an impressive 44 percent of the vote. Though past polls have shown him to be more popular than all of Chavez's allies, the equation is now different given Maduro has received the president's personal blessing - a factor likely to fire up Chavez's fanatical supporters.

His condition is being watched closely by Latin American allies that have benefited from his help, as well as investors attracted by Venezuela's lucrative and widely traded debt.

"The odds are growing that the country will soon undergo a possibly tumultuous transition," the U.S.-based think tank Stratfor said this week.

(Additional reporting by Marianna Parraga; editing by Christopher Wilson)

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Tennis: China's Li beats Zakopalova in Shenzhen final

BEIJING: Chinese star Li Na captured her seventh career title and second on home soil when she beat Klara Zakopalova of the Czech Republic 6-3, 1-6, 7-5 on Saturday in the Shenzhen Open final.

The world number seven and the competition's top seed had lost two of the pair's three previous meetings and suffered some final set jitters at the $500,000 tournament when she allowed the fifth-seeded Czech to come back from 2-5 down to 5-5.

But Li closed out victory with two quick games.

Li's previous victory in China came at Guangzhou in 2004 that made her the first Chinese player ever to win a tour trophy.

Her other five WTA titles came at Gold Coast in 2008, Birmingham in 2010, Sydney and the French Open in 2011 and Cincinnati in 2012.

"Klara played well and I managed my mood swings well, and I'm glad I made it," Li said as she continued her build-up to the opening Grand Slam event of the year, the Australian Open which starts in Melbourne on January 14.

"Winning the title certainly helps boost my confidence for the coming weeks, but it also depends on how I'm playing on the courts. Confidence itself won't guarantee a win.

"But I'm very happy to win and the Shenzhen Open was a great tournament - I believe it will get even better in future years."

Zakopalova is now 2-10 in WTA finals, but she has the consolation of knowing that she is projected to rise from her current world ranking of 28 past her career-high of 26, which she set back in 2006.

"It was about a few points today but she really proved she's a top player - she played her best from 5-all," Zakopalova said.

"She's playing unbelievably fast and flat, and she's hitting her backhand down the line very well. To me she's one of the top three players right now and I hope she can make it there.

"There's no way to be sad about losing - I lost to a top player and I'm happy to reach the final."

- AFP/de

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Acer brings its Windows 8 launch lineup to CES

Like many PC companies, Acer released a wide range of new laptops and hybrids alongside Windows 8 at the tail end of 2012. With fresh systems just hitting shelves, the company is highlighting those products at
CES 2013, rather than announcing new additions.

We've gotten a few chances to check out Acer's
Windows 8 launch lineup over the past two months, and have come away with a generally favorable impression. They run the gamut from traditional clamshell laptops with added touch screens to hybrids that straddle the line between PC and
tablet. Highlights include:

Acer Aspire S7
This was one of the sharpest-looking new Windows 8 systems, incredibly thin and light, although the glass-covered lid makes it a bit top-heavy. While the hardware and design of the Aspire S7 is definitely premium, it's a tough sell at $1,649 (for the Core i7 version), especially with touch-screen Windows 8 laptops available for as little as $529.

Acer Iconia W700
The Acer Iconia W700 is one of only a handful of Core i5-or-better slates we've seen with Windows 8. When docked, it feels like a mini all-in-one desktop, although some felt this full Windows 8 touch-screen tablet and keyboard combo looked ridiculous.

Acer Iconia W510
Overpriced for a system with an Intel Atom, this laptop with a detachable screen works as a standalone Windows 8 tablet when separated. Still, the idea of a touch-screen slate running a full Windows operating system that can instantly transform into a working laptop is an appealing one.

The three PCs referenced above were originally announced alongside the launch of Windows 8 in late 2012, and are available to buy now.

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House passes $9.7B Sandy relief bill

The House today passed a bill approving more than $9 billion in aid for regions impacted by superstorm Sandy, the first of two Sandy relief measures making their way through Congress between now and the end of the month.

The measure, which allows FEMA to temporarily increase the National Flood Insurance program's borrowing limit by $9.7 billion, needed two thirds support to pass through the House.

On January 15, the first full day of legislative business on Capitol Hill, House Speaker John Boehner is expected to bring up a vote for additional Sandy relief measures totaling the remaining $51 billion requested by President Obama.

The House was expected to vote on a Sandy relief package earlier this week, before the close of the 112th Congress. But after the House passed a Democrat-crafted deal to avert the so-called "fiscal cliff" -- a deal many Republicans disliked due to a lack of spending cuts and an increase in tax rates -- Boehner pulled the Sandy legislation at the last minute.

His decision was met with outrage on both sides of the aisle, and Republican New Jersey Gov. Chris Christie lashed out at the speaker in a press conference the following day. Several House Republicans also threatened to vote against Boehner's bid to be re-elected Speaker of the House.

In light of the backlash, Boehner quickly scheduled the $9.7 billion flood insurance package for today and pledged to conduct a vote on the remaining funds on January 15.

The first portion of Sandy aid was expected to pass, though there were objections among conservative Republicans. The Club for Growth sent out a press release urging House members to vote "no" on the bill, arguing that "Congress should not allow the federal government to be involved in the flood insurance industry in the first place, let alone expand the national flood insurance program's authority."

Republican Jeb Hensarling, R-Tex., also expressed his opposition to the legislation, citing general objections to the national flood insurance program as well as a desire for the $9.7 billion to be offset by reductions elsewhere.

"There is no doubt that Hurricane Sandy rendered unspeakable damage to both lives and property on our East Coast," he said in remarks on the House floor. "The tragic reality [is] the national flood insurance program is broke. It is beyond broke... Members are faced with a tragic choice of not paying contractual claims to victims who pay premiums or adding $9.7 billion to an an insane national debt that threatens our national security, our economic well-being, and our children's future."

He continued: "Emergency bills like this should not come to the floor without offsets to pay for it or structural reforms to ensure that taxpayer bailouts are never needed again. Regrettably, less than 24 hours into a new congress, there is simply not time for this."

Democrats fiercely defended the legislation, and continued to blast Republicans for stalling on the original vote. They also expressed some concern that the bill could be held up by the Senate, which is expected to pass the package by voice vote this afternoon.

"I am concerned that whatever here passes in the United States Senate," said House Minority Leader Nancy Pelosi, D-Calif., in a press conference today. "That's why I thought, really in the interest of confidence-building, comfort to those affected by loss of life, loss of home, loss of job, loss of community, character of their community, that it would have been important just to pass that bill."

"The victims of superstorm sandy can wait no longer. It's been 11 weeks," added Carolyn Maloney, D-N.Y., in remarks during debate over the bill. "Haven't they suffered and waited long enough?"

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Quadruple Amputee Gets Two New Hands on Life

It's the simplest thing, the grasp of one hand in another. But Lindsay Ess will never see it that way, because her hands once belonged to someone else.

Growing up in Texas and Virginia, Lindsay, 29, was always one of the pretty girls. She went to college, did some modeling and started building a career in fashion, with an eye on producing fashion shows.

Then she lost her hands and feet.

Watch the full show in a special edition of "Nightline," "To Hold Again," TONIGHT at 11:35 p.m. ET on ABC

When she was 24 years old, Lindsay had just graduated from Virginia Commonwealth University's well-regarded fashion program when she developed a blockage in her small intestine from Crohn's Disease. After having surgery to correct the problem, an infection took over and shut down her entire body. To save her life, doctors put her in a medically-induced coma. When she came out of the coma a month later, still in a haze, Lindsay said she knew something was wrong with her hands and feet.

"I would look down and I would see black, almost like a body that had decomposed," she said.

The infection had turned her extremities into dead tissue. Still sedated, Lindsay said she didn't realize what that meant at first.

"There was a period of time where they didn't tell me that they had to amputate, but somebody from the staff said, 'Oh honey, you know what they are going to do to your hands, right?' That's when I knew," she said.

After having her hands and feet amputated, Lindsay adapted. She learned how to drink from a cup, brush her teeth and even text on her cellphone with her arms, which were amputated just below the elbow.

"The most common questions I get are, 'How do you type,'" she said. "It's just like chicken-pecking."

PHOTOS: Lindsay Ess Gets New Hands

Despite her progress, Lindsay said she faced challenges being independent. Her mother, Judith Aronson, basically moved back into her daughter's life to provide basic care, including bathing, dressing and feeding. Having also lost her feet, Lindsay needed her mother to help put on her prosthetic legs.

"I've accepted the fact that my feet are gone, that's acceptable to me," Lindsay said. "My hands [are] not. It's still not. In my dreams I always have my hands."

Through her amputation recovery, Lindsay discovered a lot of things about herself, including that she felt better emotionally by not focusing on the life that was gone and how much she hated needing so much help but that she also truly depends on it.

"I'm such an independent person," she said. "But I'm also grateful that I have a mother like that, because what could I do?"

Lindsay said she found that her prosthetic arms were a struggle.

"These prosthetics are s---," she said. "I can't do anything with them. I can't do anything behind my head. They are heavy. They are made for men. They are claws, they are not feminine whatsoever."

For the next couple of years, Lindsay exercised diligently as part of the commitment she made to qualify for a hand transplant, which required her to be in shape. But the tough young woman now said she saw her body in a different way now.

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Damascus blames "terrorists" for petrol station blast

BEIRUT (Reuters) - Syria on Friday said a car bomb at a crowded petrol station in Damascus on Thursday night was set off by "terrorists", a term it uses for rebels seeking to topple President Bashar al-Assad.

The bomb killed 11 people and wounded 40 at a station packed with Syrians queuing for fuel, which has become scarce in the 21-month insurgency against Assad, in the second petrol station attack in the capital this week, opposition activists said.

"Terrorists ... blew up an explosive device at Qassioun Petrol Station near Hamish Hospital in Barzeh, Damascus, martyring several civilians," state news agency SANA said.

The United Nations says more than 60,000 people have been killed in the civil war, the longest, bloodiest conflict born from uprisings across the Arab world in the past two years.

Dozens of people were incinerated in an air strike as they waited for fuel at another Damascus petrol station on Wednesday, according to opposition sources.

The semi-official al-Ikhbariya television station aired its own footage from Barzeh, indicating the attack struck a government-held area. Barzeh's residents include members of the Sunni Muslim majority and religious and ethnic minorities.

The rebels hold a crescent of suburbs on the southern and eastern edges of Damascus, which have come under bombardment by government forces. Rebel forces also seized territory in Syria's north and east during advances in the second half of 2012.

The war pits rebels, mainly from the Sunni Muslim majority, against a government supported by members of Assad's Shi'ite-derived Alawite sect and some members of other minorities who fear revenge if he falls. Assad's family has ruled for 42 years since his father seized power in a coup.

Fighting has forced 560,000 Syrians to flee to neighboring countries, according to the U.N.

Lebanon, a country which has so far tried to distance itself from the conflict next door for fear it will inflame sectarian tensions, approved a plan to start registering 170,000 Syrian refugees and ask international donors for $180 million in aid.

"The Lebanese state will register the refugees...and guarantee aid and protection for the actual refugees in Lebanon," Social Affairs Minister Wael Abu Faour said after a six-hour cabinet session on Thursday night.

Most Sunni-ruled Arab states, as well as the West and Turkey have called for Assad to step down. He is supported by Russia and Shi'ite Iran.

ARMY WITHDRAWAL?

A Lebanese citizen who crossed into Syria through a mountainous frontier region said the army appeared to have withdrawn from several border posts and villages in the area.

Rebels controlled a line of border towns and villages north of the capital Damascus, stretching about 40 km (25 miles) from Yabroud south to Rankus, said the man, who did not want to be named and visited Syria on Wednesday and Thursday.

Rebels in the area reported that some of Assad's forces have pulled back to defend the main north-south highway linking Syria's main cities of Damascus, Homs, Hama and Aleppo, while others were sent to reinforce the northern approach to Damascus.

"The border is controlled by the Free Syrian Army rebels," he said on Friday, adding he had crossed through mountainous terrain, covered in parts by more than a meter of snow.

(Additional reporting by Dominic Evans in Beirut and Khaled Yacoub Oweis in Amman; Editing by Jason Webb)

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Delhi gang-rape victim's boyfriend speaks out

NEW DELHI: The boyfriend of a 23-year-old woman who died after a brutal gang rape on a New Delhi bus spoke out Friday for the first time about the savage attack that has sparked protests across the nation and his own trauma over his inability to save her.

The 28-year-old man, who suffered a fractured leg and other injuries in the attack, has been deeply traumatised and is currently at his parents' home in rural northern India where he is taking time out from his job at a software firm in New Delhi.

"What can I say? The cruelty I saw should not be seen ever. I tried to fight against the men but later I begged them again and again to leave her," he told AFP in an interview by phone from Gorakhpur, a town in Uttar Pradesh state.

On December 16, the couple had been out to watch a movie and decided to get into a private bus when several rickshaws had refused to drive them back to the victim's home in a New Delhi suburb.

Once in the bus, he was attacked and his girlfriend was gang-raped by six allegedly drunk men, including the driver, who also violated her with an iron bar causing immense internal damage that would lead to her death last weekend.

The horrifying crime has appalled India and brought simmering anger about widespread crime against women to the boil amid angry calls for better protection by police and changed social attitudes.

The boyfriend, who asked not to be named, also recounted how passersby had failed to come to their rescue after they were thrown out of the moving vehicle at the end of their nearly hour-long ordeal.

He was also critical of police for failing to be sensitive to his and his girlfriend's mental condition and also raised questions about the emergency care given in the public hospital where she was admitted.

"A passerby found us (after the attack), but he did not even give my friend his jacket. We waited for the police to come and save us," he told AFP.

The police have since arrested six suspects for the crime -- five men and a minor believed to be aged 17 -- who were charged with murder, rape and kidnapping in a city court on Thursday.

"I was not very confident about getting into the bus but my friend was running late, so we got into it. This was the biggest mistake I made and after that everything went out of control."

The driver of the bus then made lewd remarks and his accomplices joined him "to taunt" the couple, the boyfriend said.

He said he told the driver to stop the bus, but by then his accomplices had locked the two doors.

"They hit me with a small stick and dragged my friend to a seat near the driver's cabin."

After that the "driver and the other men raped my friend and hit her in the worst possible ways in the most private parts of her body".

"I cannot tell you what I feel when I think of it. I shiver in pain," he said.

He said the police who came to their rescue took his girlfriend to a government hospital, but failed to take into account his injuries and mental trauma.

"I was treated like an object by the police.... They wanted all the help to solve the case even before getting me the right treatment. Nobody witnessed the trauma I suffered," he said.

- AFP/jc

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CNET's Twitter team for CES 2013

CNET is ready to bring you everything under the Las Vegas sun at
CES 2013, including all the best product releases, press conferences, photography, live video, shows, panels, awards, swag... you get the picture.

Here are the accounts to follow for all the best at CES. We're sending a few people...

Master CNET accounts:

CNET - The best of everything at CES.

CNET News - Live-tweets from major press events and all the top stories.

CNET TV - Live coverage of press events, product videos, and CNET shows.

Crave - All the gorgeous gadgets.

CNET TV:

Brian Cooley, Editor at large

Molly Wood, Executive editor

Brian Tong, Senior editor

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CNET News:

Dan Farber, Editor in chief, CNET News

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Casey Newton, Senior writer

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Josh Lowensohn, Senior writer

Marguerite Reardon, Senior writer

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CNET Reviews:

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Car Tech

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CNET Twitter Lists:

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