The Michigan Daily - michiganclaily.com Wednesday, January 28, 2009 - 3A The Michigan Daily - michigandailycom Wednesday, January 28, 2009 - 3A NEWS BRIEFS ATLANTA Food inspectors didn't consider salmonella a threat Food regulators didn't consider salmonella a threat to most pea- nut products before they traced an outbreak to a peanut butter plant in Georgia two years ago. Officials in the nation's top peanut-producing state promptly began checking for the bacteria during routine inspec- tions, and everything went fine for about a year. + Then this month, investigators zeroed in on another Georgia plant while probing a second bout of sal- monella that began in the fall and has sickened some 500 people in 43 states, and may have contributed to at least eight deaths. As health officials scramble to limit the effects of the latest out- break, food safety advocates have renewed calls for increased test- ing at peanut processing plants. It's a costly and time-consuming proposition for an inspection pro- cess that, as an Associated Press review of state and federal proce- dures shows, already suffers from a lack of manpower and transpar- ency, and from uncertainty over how much testing is enough. LANSING State senate panel votes to lower business tax Michigan Republicans are again trying to repeal a 22 percent sur- charge added to the state's main business tax to help resolve a bud- get crisis 14 months ago. The Senate Finance Committee voted along party lines Tuesday to send a business tax cut to the full Senate. The GOP-led chamber may vote as early as Wednesday. Similar legislation approved last year died in the Democratic-con- trolled House. The new measure again faces tough odds because the state is confronting a big deficit in the next budget. Gov. Jennifer Granholm has been open to reducing the Michi- gan Business Tax in exchange for cuts in prison spending. WASHINGTON Bill Clinton made millions from foreign sources Former President Bill Clinton earned nearly $6 million in speak- ing fees last year, almost all of it from foreign companies, accord- ing to financial documents filed by his wife, Secretary of State Hillary Rodham Clinton. The documents obtained yester- day by The Associated Press show that $4.6 million of the former presi- dent's reported $5.7 million in 2008 honoraria came from foreign sourc- es, including Kuwait's national bank, other firms and groups in Canada, Germany, India, Malaysia, Mexico andPortugalandaHongKong-based company that spent $100,000 on fed- eral lobbyinglastyear. Executives at many of the firms that paid honoraria to Bill Clinton have also donated large amounts of money to the Clinton Foundation, according to documents it released last year as part of an agreement A with Congress on Hillary Clinton's nomination as secretary of state. NEW YORK John Updike, prize- winning writer dead at age 76 John Updike, the Pulitzer Prize-winning novelist, prolific man of letters and erudite chroni- cler of sex, divorce and other adventures in the postwar prime of the American empire, died yes- terday at age 76. Updike, best known for his four "Rabbit" novels, died of lung can- cer at a hospice near his home in Beverly Farms, Mass., according to his longtime publisher, Alfred A. Knopf. A literary writer who frequently appeared on best-seller lists, the tall, hawk-nosed Updike wrote nov- els, short stories, poems, criticism, the memoir "Self-Consciousness" and even a famous essay about baseball great Ted Williams. He released more than 50 books in a career that started in the 1950s, winning virtually every lit- erary prize, including two Pulit- zers, for "Rabbit Is Rich" and "Rabbit at Rest," and two National Book Awards. Compiled from Gaily wire reports Obama looks to GOP for compromise President asks Republicans to work together for job creation, stimulus WASHINGTON (AP) - On the eve of a key vote, President Barack Obama privately promised Republican critics he stands ready to accept changes in $825 billion economic stimulus legislation, and urged lawmakers to "put politics aside" in the interest of creating badly needed jobs. "The American people expect action," Obama said Tuesday as he shuttled between closed-door meetings with House and Senate Republicans on atrip to the Capitol that blended substance with politi- cal symbolism. Republicans who attended the sessions said the president did not agree to any specific changes but did pledge to have his aides consid- er some that GOP lawmakers raised dealing with additional tax relief for businesses. Prodded to budge on another point, Obama said that despite Republican opposition, he will insist on giving relief to wage- earners who pay Social Security taxes but do not earn enough to owe income tax. In a measure of the complicated political dynamic in Congress, one Republican quoted the president as saying any changes would have to come after the House gives what is expected to be largely party- line approval Wednesday to the Democratic-backed bill. The mea- sure includes about $550 billion in spending and roughly $275 billion in tax cuts. The Senate shows signs of greater bipartisanship, including a deci- sion in the Finance Committee on Tuesday to add a new tax break for upper middle-income taxpayers, at a two-year cost of $70 billion. It was advanced by Sen. Chuck Grassley of Iowa, the panel's senior Republican. Democratic leaders in both houses have promised to have legislation ready for Obama's sig- nature by mid-February, and Tues- day's developments coincided with fresh evidence of deterioration in a national economy seemingly grow- ing weaker bythe day. Housing prices tumbled by the sharpest annual rate on record in November, according to a closely watched private report released during the day, and a measure of consumer confidence dropped to a historic low. Separately, the Treasury Depart- ment announced distribution of $386 million to 23 troubled banks, the first awards from the federal bailout fund since Obama took office a week ago. Obama traveled to and from the Capitol in a snowy motorcade on Tuesday, far different from the inaugural parade seven days earlier. This was a business trip, marking his second reach across party lines in as many days in keeping with a pledge to seek bipartisan solutions to major problems. On Monday, he leaned on House Democrats to jettison an item that would make it easier for states to provide family planning funds for the poor under Medicaid, a pro- vision in the legislation that had become a target of ridicule for Republicans. Press Secretary Rob- ert Gibbs said Obama supports the concept but wants it included in a different bill. Ironically; Democrats said delet- ing the provision would wind up increasing federalspending, since it probably would mean more money spent on higher pregnancy and post-natal care. - House Republican leaders wel- comed the president a few hours after urging their rank-and-file to oppose the stimulus bill, and it was far from clearthat Obama had man- aged to pick up any GOP support during the day. Gibbs said the White House expects some GOP lawmakers will vote for the measure on Wednes- day in the House, and indicated he hopes there willbe more in the Sen- ate and even more later when a final compromise is reached. One Republican senator, speak- ing on condition of anonymity, said the president pledged to Sen. John Ensign, R-Nev., to have aides reviev two specific proposals. One would affect businesses that pay down their debt. The other would provide a temporary tax holiday for companies that have money over- seas and bring it back to the United States to invest. Obama ventured into an uncer- tain political environment when he stepped intothe Capitol, apresident with high approval ratings pitching a plan that also has been favorably received in the polls. I U.S. economic mood darkens One of Gov. Rod Blagojevich's quotes is displayed as evidence during the second day of his impeachment trial in the Illinois senate in Springfield, Ill. on Tuesday, Jan. 27, 2009. FBI tapes played for jurors. during Blagoj evich trial Tapes document Ill. Gov. demands for money in exchange for signing bills SPRINGFIELD, Ill. (AP) - Gov. Rod Blagojevich was hun- dreds of miles away but his voice boomed through the Illinois Sen- ate's chambers yesterday as his impeachment jurors listened to FBI wiretaps of conversations in which he seems to demand cam- paign contributions in exchange for signing legislation. One person on the recordings assures Blagojevich that a horse- racing track owner "is good for it" and just has to decide "what accounts to get it out of." Anoth- er assures him the track owner knows he must keep his "com- mitment" soon. Blagojevich replies with com- ments like "good" and "good job." Legislation sought by the racing industry had been sent to the governor's desk, and on the tapes, he says to reassure a rac- ing lobbyist he hopes "to do this so we can get together and start picking some dates to do a bill- signing." Senators conducting the trial, which Blagojevich is boycot- ting though it could remove him from office within days, listened intently as the fuzzy, indistinct conversations echoed through the room - the heating system, reporters typing on laptops and the occasional cough accounting for the only other noise. Neither the governor nor the others on the call - the gover- nor's brother and chief fund- raiser Robert Blagojevich and former chief of staff Lon Monk, officials say - specifically men- tions money or any amounts. Thegovernor was arrested last month on a variety of corruption charges, including scheming to benefit from appointing Presi- dent Barack Obama's U.S. Sen- ate replacement and demanding campaign contributions in exchange for state services. He denies any wrongdoing and nei- ther his brother nor Monk has been c rged. Before the tapes were played Tuesday, an FBI agent vouched for the accuracy of those and other Blagojevich quotes that were included the federal crimi- nal complaint against him. Again and again, agent Daniel Cain told state senators he had accurately quoted Blagojevich in a sworn affidavit filed when the governor was arrested. At each stage, House prosecutor David Ellis displayed the most damn- ing quote on a poster board. ' The affidavit quoted Blagojevich saying his power to- name a replacement to Obama's vacant Senate seat was a "valu- able thing, you just don't give it away for nothing." Ellis asked if that was accurate. Yes, Cain replied. As Blagojevich's private words took center stage in Springfield, the governor remained in New York for the second day of a media tour focused on portray- ing the impeachment as unfair and politically motivated. Consumer The gloomy news initially sent the Dow Jones industrial average confidence down 50 lower, but by mid-afternoon it took heart from some positive earn- points, hits record low ings reports, finishing up about 58 points at 8,174. NEW YORK (AP) - This is one President Barack Obama and recession Americans aren't going to Congress are scrambling to enact spend their way out of. a $825 billion package of increased The Conference Board said yes- federal spending, including money terday its Consumer Confidence for big public works projects and for Index edged down to 37.7 this states, as well as tax cuts to revive month, a record low, from a revised the economy. 38.6 in December. It stood at about That could encourage Ameri- 87 just a year ago. cans to spend more, but Baumohl Americans are battered by head- believes the relief would be only lines about massive job cuts, includ- temporary unless financial insti- ing thousands at Home Depot, tutions become healthy enough to Corning, General Motors and Cat- revive lending. Tighter credit has erpillar in just the past two days,. been a challenge for shoppers and and are still watching the values of businesses alike. their homes and retirement funds Feder-al Reserve p6licrnakers 'dwindle. are gathering this week to exam- "Virtually, there is no confi- ine what other tools they-can use dence out there," said Bernard to help ease a recession that start- 7iauiiiT,-chief g o al eonsrmist ed in December 2007. They are all at The Economic Outlook Group but certain to leave the benchmark LLC. "Household anxiety has interest rate at its current record reached a point that we can count low. them out to get us out of the reces- But without the help of consumer sion." spending, which accounts for more Economists believe Americans than two-thirds of economic activ- will remain in a financial funk ity, the economy faces a slow recov- until they start seeing fundamen- ery. In past recessions, consumers tal improvements in the economy, had helped the economy dig itself includingaturnaround inthe hous- out of its funk. ing and job markets. And two other Americans"arefeelingextreme- reports Tuesday suggested that's ly bad about jobs - both current unlikely to come soon. and expected," said Lynn Franco, The Labor Department director of The Conference Board announced that state unemploy- Consumer Research Center. ment rates shot up nationwide The Conference Board survey in December, with Indiana and showed fewer people expect to get South Carolina racking up the raises over the next few months, or largest monthly increases. South for jobs to be plentiful. Carolina's jobless rate bolted to 9.5 Nationally, the unemployment percent, more than 2 percentage rate, which stands at a 16-year points above the national rate. high of 7.2 percent, could hit 10 And the Standard & Poor's/ percent or more later this year or Case-Shiller 20-city housing early next year, according to some index dropped by a record 18.2 analysts' estimates. Michigan and percent in November from the Rhode island already had unem- same month a year earlier - the ployment rates in double digits sharpest annual rate since the last month. And the pink' slips index's inception in 2000. keep coming. Gates: U.S. missile strikes to continue in1 Pakistan Citigroup won't buy new jet after $45B gov't bailout Pressure from politicians leads bank to reject plane NEW YORK (AP) - Citigroup won't be getting a new corporate jet after all. Under pressure from President Barack Obama, one of the nation's largest banks reversed course, announcing that it will not take delivery of the jet it had planned to purchase before the credit cri- sis unfolded. The canceled deal came as many politicians voiced concern about how banks are spending government bailout money. The White House reached out to Citigroup on Monday to reiterate Obama's position that such jets are not "the best use of money at this point," calling them "outrageous" spending for a com- pany getting taxpayer dollars, said a White House official who spoke on condition of anonymity because the official was describ- ing private conversations. In a statement late Mon- day, Citigroup Inc. said it paid a deposit in 2005 to acquire the jet. The New York-based bank said jt did not plan to use government money for the purchase, and it noted that any cancellation of the deal would probably lead to mul- timillion-dollar penalties. On Monday, the New York Post reported that Citi was set to take possession of the jet even after receiving $45 billion from the government. The government is also provid- ing guarantees on hundreds of billions of dollars of Citi invest- ments in mortgages and other troubled investments. With the cancellation of the jet deal, a deposit on the plane will be lost, but is recoverable once the jet is sold, according to a person familiar with the situation. Citi was in the process of purchasing a Dassault Falcon 7X for $50 mil- lion, the person said. Citi is also planning to cut the number of corporate jets in its existing fleet from five to two, said the person, who also spoke on condition of anonymity because the details have not been made public. Corporate jets have become controversial during the credit crisis as critics of large companies question the cost of owning and operating the aircraft especially for businesses receiving govern- ment help. In November, executives of automakers Ford Motor Co., Gen- eral Motors Corp. and Chrysler LLC were sharply criticized for flying on corporate jets to Wash- ington to ask Congress for federal bailout money. Amid the credit woes, Citi has been working to streamline its operations and shed assets to regain profitability. The bank has posted five consecutive quarterly losses, including a fourth-quarter loss of $8.29 billion. Earlier thismonth,Citireached a deal to sell a majority stake in its Smith Barney brokerage unit to Morgan Stanley. xCiti has also announced plans to split its oper- ations into two units, separating its traditional banking businesses from its riskier operations. Citi may have to wait a while to recover its deposit on the can- celed jet deal, as the market for corporate aircraft has softened with the economy. Before the jet market cooled last year, speculators sometimes placed orders with no intention of taking delivery of the plane. They would sell their position in line. ; 22 people killed in attacks last week WASHINGTON (AP) - Presi- dent Barack Obama is retaining a powerful but controversial weapon left over from the Bush administra- tion's war on terror: Predator mis- sile strikes on Pakistan. Defense Secretary Robert Gates signaled to senators yesterday that missile strikes will continue. He did not directly refer to the Preda- tor hunt-and-kill dronwe program but said the U.S. would continue to strike at al-Qaida inside Pakistan along its border with Afghanistan. But senior Obama administra- tion and Capitol Hill officials say the Predator strikes are effective, and there is no plan to discontinue the program. The Predator attacks have strained U.S. relations with Paki- stan, which has urged Obama to halt them. Pakistan was struck last week by missiles that killed at least 22 people. The strike was part of a continuing wav of more than 30 missile attacks since August. In testimony Tuesday to the Senate Armed Services Commit- tee, Gates said Obama and former President George W. Bush were twinned in their efforts to pursue al-Qaida. "Both President Bush and Presi- dent Obama have made clear that we will go after al-Qaida wherever al-Qaida is, and we will continue to pursue them," Gates said. "Has that decision been trans- mitted to the 'Pakistan govern- ment?" the panel's chairman, Sen. Carl Levin, D-Mich., ssked. "Yes, sir," Gates responded. The U.S. rarely acknowledges such missile strikes, at least some of which are carried out with unmanned Predator drones, used by the Pentagon and CIA to hunt down and kill terrorists. A senior Obama administration official told The Associated Press that the Predator program would remain, saying simply: "It works." The comments were made on con- dition of anonymity because the official was not authorized to dis- cussihe program publicly.