India misguided, paranoid over China: Guha

MUMBAI: A good half-hour into the discussion on 'India, China and the World', historian Ramachandra Guha issued a disclaimer—all the three members on the panel had been to China only once. "We should learn their language, promote quality research, and have a panel on China driven by Chinese scholars," he said. And that was the general tenor of the debate—that the Indian attitude to China was influenced by a mix of ignorance, cautious optimism about partnerships and a whole lot of misguided paranoia. "Don't demonise the Chinese, please," Guha finally said in response to a question.

"China has existed in our imaginations," observed Sunil Khilnani, professor of politics and author of The Idea Of India. "There's been very little sustained engagement with the reality of China and very little of our own produced knowledge about China." It was after the events of 1962 ('war' in the popular imagination, 'skirmish' to the scholars participating in the discussion), explained Khilnani, that a miffed India "withdrew". It's the 50th anniversary of that exchange this year, and "what we haven't been able to do is learn from the defeat", observed Khilnani. Both could have benefited from greater engagement. "China has had a very clear focus on primary education and achieved high levels of literacy before its economic rise. It has also addressed the issue of land reform," said Khilnani. Guha added that China could learn from the "religious, cultural and linguistic pluralism" in India.

But China and India weren't always so out of sync with each other. Srinath Raghavan, a scholar of military history, got both Guha and Khilnani to talk about pre-1962 relations between the two when the picture was rosier. Tagore was interested in China and so was Gandhi. Both were very large countries with large populations and shared what Guha calls a "lack of cultural inferiority". "They were both," he continued, "also heavily dependent on peasant communities." Nehru was appreciative of China's will to modernize and industrialize and its adoption of technology to achieve those ends. In turn, Chinese politicians argued for Indian independence.

Things soured more, feel both Khilnani and Guha, after the Dalai Lama fled to India in 1959. "He was welcomed here as a spiritual leader but the intensification of the conflict dates to the Dalai Lama's flight," said Guha. Both Guha and Khilnani argued that Nehru's decision to not react aggressively to China's occupation of Tibet was, in the long run, the right one and prevented further "militarization" of the region. An audience member wondered if that didn't make India "China's puppet". Guha disagreed. "If there's a Tibetan culture alive today," he said, "it's not because of Richard Gere. Don't believe in the hypocrisy of the Western countries. Will they give them land, employment, dignified refuge? The Tibetans is one of the few cases in which our record is honorable."

But the difference in levels of development and the lopsided trade relations between the two countries have only fuelled the suspicions many Indians seem to harbour about China. People were worried, said Guha, even about cricket balls made in China. Audience questions reflected those worries. A member asked about China's "strategy to conquer the world" and its likely impact on India. Guha cautioned against stereotypes; Khilnani explained, "History is littered with the debris of states that have tried to dominate the world. What we're doing may be more long-lasting."

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Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

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Australian DJs Behind Prank Call Under Fire

An outpouring of anger is being directed today at the two Australian radio hosts after the death of a nurse who was caught in the DJs' prank call to hospital where Kate Middleton was treated earlier this week.

Lord Glenarthur, the chairman of King Edward VII's Hospital - the U.K. hospital where the Duchess of Cambridge was receiving treatment, condemned the prank in a letter to the Max Moore-Wilton, chairman of Southern Cross Austereo, the Australian radio station's parent company.

Glenarthur said the prank humiliated "two dedicated and caring nurses," and the consequences were "tragic beyond words," The Associated Press reported.

DJs Mel Greig and Michael Christian, radio shock jocks at Sydney's 2Day FM have been taken off the air, but the company they work for did not fire them or condemn them.

"I think that it's a bit early to be drawing conclusions from what is really a deeply tragic matter," Rhys Holleran, CEO of Southern Cross Austereo told a news conference in Sydney. "I mean, our main concern is for the family. I don't think anyone could have reasonably foreseen that this was going to be a result."

Nurse Jacintha Saldanha was found dead Friday morning after police were called to an address near the hospital to "reports of a woman found unconscious," according to a statement from Scotland Yard.

Circumstances of her death are still being investigated, but are not suspicious at this stage, authorities said Friday.

Following news of Saldanha's death, commentary on social media included posts expressing shock, sadness and anger.

Nurse Duped by 'Queen's' Prank Call Found Dead Watch Video

Jacintha Saldanha, Nurse at Kate Middleton's Hospital, Found Dead Watch Video

A sampling of some of the twitter posts directed at the DJs included: "you scumbag, hope you get what's coming to you" and "I hope you're happy now."

The hospital said that Saldanha worked at the hospital for more than four years. They called her a "first-class nurse" and "a well-respected and popular member of the staff."

The hospital extended their "deepest sympathies" to family and friends, saying that "everyone is shocked" at this "tragic event."

"I am devastated with the tragic loss of my beloved wife Jacintha in tragic circumstances, she will be laid to rest in Shirva, India," Saldanha's husband posted on Facebook.

The duchess spent three days at the hospital undergoing treatment for hyperemesis gravidarum, severe or debilitating nausea and vomiting. She was released from the hospital on Thursday morning.

"The Duke and Duchess of Cambridge are deeply saddened to learn of the death of Jacintha Saldanha," a spokesman from St. James Palace said in a statement.

On Friday, Greig and Christian had been gloating about their successful call to the hospital, in which they pretended to be Queen Elizabeth and Prince Charles and were able to obtain personal information about the Duchess's serious condition.

"You know what they were the worst accents ever and when we made that phone call we were sure a hundred people at least before us would have tried the same thing," said Grieg on air. She added with a laugh, "we were expecting to be hung up on we didn't even know what to say [when] we got through."

"We got through and now the entire world is talking, of course," said her co-host Christian.

When the royal impersonators called the hospital, Saldanha put through to a second nurse who told the royal impersonators that Kate was "quite stable" and hadn't "had any retching."

The hospital apologized for the mistake.

"The call was transferred through to a ward, and a short conversation was held with one of the nursing staff," the hospital said in a statement. "King Edward VII's Hospital deeply regrets this incident."

"This was a foolish prank call that we all deplore," John Lofthouse, the hospital's chief executive, said in the statement. "We take patient confidentiality extremely seriously, and we are now reviewing our telephone protocols."

The radio station also apologized for the prank call.

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Egyptian military says only dialogue can avert disaster

CAIRO (Reuters) - Egypt's military said on Saturday only dialogue could avert "catastrophe", stepping into a crisis pitting Islamist President Mohamed Mursi against opponents who accuse him of grabbing excessive power.

State broadcasters interrupted their programs to read out an army statement telling feuding factions that a solution to the upheaval in the most populous Arab nation should not contradict "legitimacy and the rules of democracy".

That sounded like a swipe at protesters who have besieged the palace of the freely elected president and called for his removal, going beyond mainstream opposition demands for him to retract a decree that expanded his powers.

The statement also called for a "serious" national dialogue - perhaps one more credible than talks convened by Mursi on Saturday in the absence of opposition leaders. They insist he must first scrap his November 22 decree, defer next week's popular vote on a new constitution and allow the text to be revised.

Deep rifts have emerged over the destiny of a country of 83 million where the end of Hosni Mubarak's 30 years of military-backed one-man rule led to a messy army-led transition, during which the Muslim Brotherhood and its allies won two elections. Many Egyptians crave a return to stability and economic recovery.

The spokesman for the main Islamist coalition demanded that the referendum go ahead on time on the constitution drafted by an Islamist-led assembly from which liberals had walked out.

The army, which ran Egypt for months after Mubarak fell in February 2011, again cast itself primarily as the neutral guarantor of the nation. A military source said there was no plan to retake control of the country or its turbulent streets.

"DARK TUNNEL"

"The armed forces affirm that dialogue is the best and only way to reach consensus," the statement said. "The opposite of that will bring us to a dark tunnel that will result in catastrophe and that is something we will not allow."

The instability in Egypt worries the West, especially the United States, which has given Cairo billions of dollars in military and other aid since it made peace with Israel in 1979.

The army might be pushing the opposition to join dialogue and Mursi to do more to draw them in, said Hassan Abu Taleb of the Al Ahram Center for Political and Strategic Studies.

He discounted the chance of direct military intervention, adding: "They realize that interfering again in a situation of civil combat will squeeze them between two rocks."

However, the military did seem poised to take a more active role in security arrangements for the December 15 referendum.

A cabinet source said the cabinet had discussed reviving the army's ability to make arrests if it were called upon to back up police, who are normally in charge of election security.

According to the state-run daily al-Ahram, an expanded military security role might extend to the next parliamentary election and, at the president's discretion, even beyond that.

Mursi's office said the "national dialogue", chaired by the president, had begun with about 40 political and other public figures discussing "means to reach a solution to differences over the referendum...and the constitutional decree".

The army issued its statement while protesters were still camped out by the gates of the presidential palace.

The tens of thousands of Mursi foes who surged past tanks and barbed wire to reach the palace gates on Friday night had dispersed. But a hard core stayed overnight in a score of tents.

"LEAVE"

Some had spray-painted "Down with Mursi" on tanks of the elite Republican Guard posted there after clashes between rival groups killed at least seven people and wounded 350 this week.

Others draped the tanks with posters of Mursi and the word "Leave" scored across his face in red letters.

"We are no longer calling for scrapping the decree and delaying the referendum," Samir Fayez, a Christian protester at the palace, said. "We have one demand in five letters: leave."

Nearby, a Mursi supporter named Mohamed Hassan was quietly observing the scene. He suggested that the Muslim Brotherhood and its ultra-orthodox Salafi Islamist allies could easily overwhelm their foes if they chose to mobilize their base.

"The Brotherhood and Salafis by themselves are few but they have millions of supporters who are at home and haven't taken it to the streets yet," murmured the 40-year-old engineer.

The Muslim Brotherhood's supreme guide, Mohamed Badie, denounced opposition protests that have swirled around the walls of Mursi's palace, saying they "ruin legitimacy".

Badie said eight people, all of them Brotherhood members, had been killed this week and urged the interior minister to explain why police had failed to prevent assailants from torching the organization's headquarters and 28 other offices.

"Get angry with the Brotherhood and hate us as much as you like, but be reasonable and preserve Egypt's unity," he told a news conference. "We hope everyone gets back to dialogue."

The well-organized Brotherhood, which thrust Mursi from obscurity to power, remains his surest source of support, with over 80 years of religious and political struggle behind it.

In the referendum, due to be followed by a parliamentary election, Islamist proponents of the constitution may benefit from the votes of millions of Egyptians desperate for the country to move on and revive its crippled economy.

(Additional reporting by Edmund Blair, Omar Fahmy and Yasmine Saleh; Editing by Mark Trevelyan)

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UN climate package passed in Doha

DOHA: A UN conference passed a package of agreements on Saturday combating climate change and extended the life of the Kyoto Protocol, the only binding pact on curbing Earth-warming greenhouse gas emissions, its chairman said.

Agreement on the modalities of a Kyoto "second commitment period," which seeks to rein in climate change pending a new global pact due to enter into force in 2020, concluded 12 days of tough haggling in Doha.

After several days of deadlocked talks, conference chairman Abdullah bin Hamad al-Attiyah finally rushed through the package of deals which he termed the Doha Climate Gateway, riding roughshod over country objections as he swung the gavel in quick succession proclaiming: "It is so decided."

Observers said Russia had been trying to halt the extension of Kyoto, whose first leg expires on December 31.

Moscow objected to the passing of the deal, and noted that it retained the right to appeal the president's action.

The talks, scheduled to have closed on Friday, ran a whole day into extra time, paralysed as rich and poor nations faced off on issues including finance and compensation for climate damage.

An extension of Kyoto was finally approved with the 27-member European Union, Australia, Switzerland and eight other industrialised nations signing up for binding emission cuts by 2020.

They represent about 15 percent of global emissions.

The protocol locks in only developed nations, excluding major developing polluters such as China and India, as well as the United States which refuses to ratify it.

One of the key disputes in Doha was "hot air," the name given to greenhouse gas emission quotas that countries were given under the first leg of the 1997 Kyoto Protocol and did not use -- some 13 billion tonnes in total.

The package also includes agreement to scale up funding to help poor countries deal with global warming and convert to planet-friendlier energy sources.

This had been a key area of dispute, with developed nations under pressure to show how they intend to keep a promise to raise climate funding for poorer nations to $100 billion (76 billion euros) per year by 2020 -- up from a total of $30 billion in 2010-2012.

- AFP/fa

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Haryana plans to buy hydel power from Arunachal Pradesh

CHANDIGARH: Haryana power minister, Capt Ajay Singh Yadav said on Friday that the visit of Haryana chief minister, Bhupinder Singh Hooda to Bhutan in connection with the purchase of 2000 MW of hydel power is very significant step for making the state free of any power shortage in the coming times. Hooda would visit Bhutan from December 14 and 16 regarding purchase of 2000 MW hydel power from Bhutan.

Capt Ajay Singh Yadav said that he would not be able to become a part of this visit as he has to attend 'Vijay Divas Samaroh' pre-scheduled to be organized at Rewari on December 16 in the memory of martyrs of Rejangala on 50th anniversary of Indo-China war. He said that senior officers of Power Utilities would be part of this delegation.

He said that coal based power plants were operational in the State, but keeping in view the limited resources of coal and increasing rate of power, other alternatives of power generation needed to be sought to meet increasing future demands. He said that hydel power was available at cheaper rates as compared to coal based power plants. Also, nuclear power plant of 2800 MW was being set up at village Gorakhpur of district Fatehabad which would soon be operational and the state would not face power shortage anymore, said Yadav.

He said that senior officers of Power Utilities had already visited Bhutan and have interacted with them at official level. The rates of the power would be as per the MoU to be signed between the two countries. He said that the State Government was also exploring the possibilities of purchasing hydel power from Arunachal Pradesh in the future. He said that the power plants of Yamunanagar and Khedar had restarted power generation.

He said that with a view to provide uninterrupted power supply of 14 to 20 hours to the rural consumers, power utilities had already launched a campaign in the State. Uninterrupted power would be supplied to those villages where line losses would be less than 25%, each house equipped with power connection, the electricity meters installed outside the house and timely payment of electricity bills. He said that continuous efforts were being made to prevent power theft for which eight special police stations had been set up in the State and about 2000 such cases had been caught. He said that power utilities were also encouraging the people to pay off their electricity bills on time. Capt. Ajay Singh Yadav had appealed the people to join hands with the government to prevent power theft.

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Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

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'Fiscal Cliff' Talks: Tax Increases Seem Inevitable

Dec 7, 2012 11:51am

Another week comes to a close with seemingly little progress in the on-going “fiscal cliff” negotiations. With only 24 days left to negotiate and the House of Representatives heading out of town for a long weekend, the outlook for a deal before December 31 is looking increasingly slim, and Republicans and Democrats don’t appear to be moving away from the right and the left and toward some middle ground.

But this week, several Republicans seemed to voice a sense of inevitability on a key issue in cliff negotiations–an increase in tax rates. While Republicans continue to be staunchly opposed to raising tax rates–one of the major sticking points in the discussions–GOP House and Senate members this week shared their belief that a hike in rates is going to happen.

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

“We have no leverage on that, so whether we want taxes to go up or not they’re going to,” Oklahoma Republican Sen. Tom Coburn told ABC’s Jonathan Karl on Thursday. “We can’t stop that from happening. But the real elephant in the room is entitlements.”

“The sense was that there’s a growing number of folks in our party that are saying, you know what, the president has won this round relative to the rates, but we need to you to sit down and get the second half of the deal and that’s the spending,” Ohio Republican Congressman Steve LaTourette said on CNN’s “Starting Point with Soledad O’Brien.

LaTourette’s office did not immediately respond to ABC’s inquiry for a follow-up statement.

The reason for this sense of inevitability, which both LaTourette and Coburn made clear were not to be confused with a desire to raise taxes, is in large part simply a factor of time. On January 1, if a deal has not been reached, the combination of expiring Bush-era tax cuts and Obama era-tax cuts will yield an increase in tax rates. Taxes are expected to rise by more than $500 billion if this occurs–an average of about $3,500 per household, according to calculations by the Tax Policy Center. And this week the Obama administration expressed a willingness to pass that deadline and go over the cliff if Republicans don’t agree to raising tax rates on top earners.

“Oh, absolutely,” Treasury Secretary Tim Geithner said in an interview on CNBC when asked if the administration was willing to accept the impending tax increases and spending cuts. “There’s no prospect for an agreement that doesn’t involve those rates going up on the top 2 percent of the wealthiest.”

It’s unclear how this reality will figure into the negotiations. Republicans and Democrats are both walking a tight rope in the negotiations, but polling indicates that Republicans are likely to bear the brunt of the blame if the country goes over the cliff.  A newly released Washington Post/Pew Poll found that 53 percent of those surveyed said that they would point the finger at Republicans if Congress and the administration fail to reach a deal, while just 27 percent would blame President Obama.

“A slew of polls have made it abundantly obvious that Republicans will take a big political hit if the country goes off the political cliff,” says Larry Sabato, director of the University of Virginia Center for Politics. “Yes, that won’t affect loads of GOP incumbents, but it WILL affect some, a couple dozen in more moderate states and swing districts. Plus, it influences Republican chances to make progress in the Senate in 2014.”

Despite the seemingly bleak outlook right now though, Sabato notes that the timing is actually favorable right now for both party’s to strike an agreement.

“The underlying conditions are not bad for a deal. The next election is two years away, and the president’s preferences on tax rates received something of a mandate in November,” Sabato said. ”Everyone can see the outlines of a reasonable compromise. The rates for wealthier Americans go up but not by as much as Obama wants. The Republicans acquiesce–though they let their base see that they are being dragged kicking and screaming to the rate increase. In exchange, they get some entitlement reform and spending reductions.”

SHOWS: World News

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Protesters surge around Egypt's presidential palace

CAIRO (Reuters) - Tens of thousands of Egyptian protesters surged around President Mohamed Mursi's palace in Cairo on Friday after breaking through barbed wire barricades and climbing onto army tanks guarding the premises.

"The people want the downfall of the regime" and "Leave, leave," they chanted, using slogans used in the uprising that toppled Mursi's predecessor Hosni Mubarak in February 2011.

Opposition leaders earlier rejected a national dialogue proposed by the Islamist president as a way out of a crisis that has polarized the nation and provoked deadly street clashes.

Elite Republican Guard units had ringed the palace with tanks and barbed wire on Thursday after a night of violence between Islamist supporters of Mursi and their opponents, in which seven people were killed and 350 wounded.

Islamists, who had obeyed a military order for demonstrators to leave the palace environs, held funerals on Friday at Cairo's al-Azhar mosque for six Mursi partisans who were among the dead. "With our blood and souls, we sacrifice to Islam," they chanted.

Mursi had offered few concessions in a speech late on Thursday, refusing to retract a November 22 decree in which he assumed sweeping powers or cancel a referendum next week on a constitution newly drafted by an Islamist-dominated assembly.

Instead, he called for a dialogue at his office on Saturday to chart a way forward for Egypt after the referendum, an idea that liberal, leftist and other opposition leaders rebuffed.

They have demanded that Mursi rescind the decree in which he temporarily shielded his decisions from judicial review and that he postpone the December 15 referendum before any talks begin.

A leader of the main opposition coalition said it would not join Mursi's dialogue: "The National Salvation Front is not taking part in the dialogue," said Ahmed Said, a leader of the coalition, who also heads the liberal Free Egyptians Party.

The Front's coordinator, Mohamed ElBaradei, a Nobel peace laureate, urged "national forces" to shun what he called an offer based on "arm-twisting and imposition of a fait accompli".

Murad Ali, spokesman of the Brotherhood's Freedom and Justice Party (FJP), said opposition reactions were sad: "What exit to this crisis do they have other than dialogue?" he asked.

Mursi's decree giving himself extra powers sparked the worst political crisis since he took office in June and set off renewed unrest that is dimming Egypt's hopes of stability and economic recovery after nearly two years of turmoil following the overthrow of Mubarak, a military-backed strongman.

The turmoil has exposed contrasting visions for Egypt, one held by Islamists, who were suppressed for decades by the army, and another by their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms.

Caught in the middle are many of Egypt's 83 million people who are desperate for an end to political turbulence threatening their precarious livelihoods in an economy under severe strain.

"We are so tired, by God," said Mohamed Ali, a laborer. "I did not vote for Mursi nor anyone else. I only care about bringing food to my family, but I haven't had work for a week."

ECONOMIC PAIN

A long political standoff will make it harder for Mursi's government to tackle the crushing budget deficit and stave off a balance of payments crisis. Austerity measures, especially cuts in costly fuel subsidies, seem inevitable to meet the terms of a $4.8-billion IMF loan that Egypt hopes to clinch this month.

U.S. President Barack Obama told Mursi on Thursday of his "deep concern" about casualties in this week's clashes and said "dialogue should occur without preconditions"..

The upheaval in the most populous Arab nation worries the United States, which has given billions of dollars in military and other aid since Egypt made peace with Israel in 1979.

Said, the leader of the Free Egyptians Party, accused Mursi of ignoring all the opposition's demands in his "shocking" speech on Thursday and of fixing the dialogue agenda in advance.

Ayman Mohamed, 29, a protester at the palace, said Mursi should scrap the draft constitution and heed popular demands.

"He is the president of the republic. He can't just work for the Muslim Brotherhood," Mohamed said of the eight-decade-old Islamist movement that propelled Mursi from obscurity to power.

The Muslim Brotherhood's spokesman, Mahmoud Ghozlan, told Reuters that if the opposition shunned the dialogue "it shows that their intention is to remove Mursi from the presidency and not to cancel the decree or the constitution as they claim".

The conflict between Islamists and opponents who each believe the other is twisting the democratic rules to thwart them has poisoned the political atmosphere in Egypt.

"Is this an environment for people to say 'yes' or 'no' to a document that is going to divide them rather than unite them?" Said asked, referring to the planned vote on the constitution.

Voting for Egyptians abroad starts on Saturday, a week before the ballot in the country itself, the Egyptian Foreign Ministry said on its official Facebook page.

(Additional reporting by Omar Fahmy; Writing by Edmund Blair and Alistair Lyon; Editing by Alastair Macdonald and Jon Hemming)

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Protesters break through barrier round Egypt palace

CAIRO: More than 10,000 protesters opposing Egyptian President Mohamed Morsi swarmed the square in front of his Cairo palace on Friday evening, breaking through barbed wire barriers protecting the compound.

A cordon of soldiers prevented the crowd from nearing the palace's main gate, but elsewhere protesters sprayed graffiti on the outside walls, telling Morsi to "Go" and leave power, AFP correspondents at the scene said.

There was no visible violence, but tensions were high after clashes at the same spot on Wednesday between pro- and anti-Morsi supporters left seven people dead and more than 600 injured.

Several army tanks were stationed in the square and nearby but made no movement against the protesters, some of whom clambered atop them to declare the army was "hand in hand" with them.

That was reminiscent of the popular uprising that ousted long-time president Hosni Mubarak early last year, when tanks stood idle amid massive protests in Cairo's Tahrir Square, as protesters mixed with soldiers.

The crowd also shouted "We want to see the fall of the regime" -- a slogan common during the anti-Mubarak revolt.

The increasingly strident calls for Morsi to step down followed an address on Thursday in which the president dismissed demands he give up sweeping new powers he decreed for himself two weeks ago and postpone a December 15 referendum on a constitution drafted by a panel of Islamist allies.

Leaders of the main opposition group, the National Salvation Front, rebuffed a grudging offer from Morsi to talk with them about the political crisis his decisions have triggered.

Both Morsi's Islamist backers and the largely secular opposition have dug in their heels in the confrontation, raising the prospect of further escalation.

In his speech, Morsi sought to portray elements of the opposition as "thugs" allied to remnants of Mubarak's regime.

The Front shot back, accusing the president of "dividing Egyptians between his 'supporters of legitimacy'... and his opponents."

The opposition sees the decree as a brazen power grab, and the draft constitution as an attempt to quash Egypt's secular underpinnings in favour of Islamic aspirations.

Demonstrators taking to Cairo's streets said they were determined to stop Morsi.

"We will use any means to bring down the regime," said a young man in his 20s, Ahmad Dewedar, camping out in Tahrir Square, one of the other focal points of protest.

"We won't be peaceful forever," warned a fellow activist Mahmud Ghazawi, 35.

But determination flashed just as brightly among those backing Morsi.

Late Friday, police fired tear gas at hundreds of Islamist protesters, mostly hardline Salafists, who tried to storming the Cairo studios of private Egyptian television channels critical of Morsi's supporters.

Prominent Salafist leader Hazim Abu Ismail had called for the demonstrations on his Twitter and Facebook accounts in order to "cleanse the media" of reporting they see as biased against the Islamists' cause.

Many Egyptian media say the Muslim Brotherhood was seeking to suppress freedom of expression through the new draft constitution.

At a Cairo funeral on Friday for several of the seven killed this week and said to be Muslim Brotherhood members, pro-Morsi supporters dismissed the public protests against the president.

"All the people are with us, with the (draft) constitution," said one Brotherhood supporter attending the service in the Al-Azhar mosque.

That unquestioning backing was not shared by Egypt's top Islamic body, which on Thursday called on Morsi to suspend the decree.

The demonstrations seen this week were the biggest since Morsi took office in June with a slim election victory.

The United States and European Union have called for dialogue to resolve the crisis.

US President Barack Obama expressed "deep concern" in a call to Morsi on Thursday, the White House said.

And on Friday, UN human rights chief Navi Pillay criticised the draft constitution and "the way the process has been short-circuited," saying "people are right to be very concerned."

She highlighted the proposed charter's perceived weaknesses in upholding human rights and gender equality, the primacy of Islamic sharia law in the text and its potential to give the president "excessive power" over the judiciary.

- AFP/fa

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