McAfee wants to return to US, ‘normal life’

BACALAR, Mexico (AP) — Software company founder John McAfee said Sunday he wants to return to the United States and “settle down to whatever normal life” he can.

In a live-stream Internet broadcast from the Guatemalan detention center where he is fighting a government order that he be returned to Belize, the 67-year-old said “I simply would like to live comfortably day by day, fish, swim, enjoy my declining years.”

Police in neighboring Belize want to question McAfee in the fatal shooting of a U.S. expatriate who lived near his home on a Belizean island in November.

The creator of the McAfee antivirus program again denied involvement in the killing during the Sunday Internet video hook-up, during which he answered what he said were reporters’ questions.

His comments were sometimes contradictory. McAfee is an acknowledged practical joker who has dabbled in yoga, ultra-light aircraft and the production of herbal medications.

The British-born McAfee first said that returning to the United States “is my only hope now.” But he later added, “I would be happy to go to England, I have dual citizenship.”

He was emphatic that “I cannot ever return to Belize …. there is no hope for my life if I am ever returned to Belize.”

“If I am returned,” he said, “bad things will clearly happen to me.”

He descibed the health problems that had him briefly hospitalized earlier this week after Guatemalan authorities detained him for entering the country illegally. He apparently snuck in across a rural, unguarded spot along the border.

“I did not eat for two days, I drank very little liquids, and for the first time in many years I’ve been smoking almost non-stop,” he said. “I stood up, passed out hit my head on the wall, came to,” though he now said he was feeling better.

McAfee praised the role his 20-year-old Belizean girlfriend, Samantha Vanegas, played in his escape from Belize, where he claims he is being persecuted by corrupt politicians. Authorities in Belize deny that they are persecuting him and have questioned his mental state.

“Sam saved the day many times” during their escape, he said, and suggested he would take her with him to the United States if he is allowed to go there.

He confirmed that journalists from Vice magazine who accompanied him on his escape after weeks of hiding in Belize had unwittingly posted photos with embedded data that revealed his exact location.

“It was an error anyone could make,” he said, noting they were under a lot of pressure at the time.

McAfee has led an eccentric life since he sold his stake in the anti-virus software company named after him in the early 1990s and moved to Belize about three years ago to lower his taxes.

He told The New York Times in 2009 that he had lost all but $ 4 million of his $ 100 million fortune in the U.S. financial crisis. However, a story on the Gizmodo website quoted him as describing that claim as “not very accurate at all.”

McAfee’s Guatemalan attorney, Telesforo Guerra, says that he has filed three separate legal appeals in the hope that his client can stay in Guatemala, where his political asylum request was rejected.

Guerra said he filed an appeal for a judge to make sure McAfee’s physical integrity is protected, an appeal against the asylum denial and a petition with immigration officials to allow his client to stay in this Central American country indefinitely.

The appeals could take several days to resolve, Guerra said. He added that he could still use several other legal resources but wouldn’t give any other details.

Fredy Viana, a spokesman for the Immigration Department, said that before the agency looks into the request to allow McAfee to stay in Guatemala, a judge must first deal with the appeal asking that authorities make sure McAfee’s physical integrity is protected.

“We won’t look into (allowing him to stay) until the other appeal is resolved,” Viana said. “The law gives me 30 days to resolve the issue.”

McAfee went on the run last month after Belizean officials tried to question him about the killing of Gregory Viant Faull, who was shot to death in early November.

McAfee acknowledges that his dogs were bothersome and that Faull had complained about them, but denies killing Faull. Faull’s home was a couple of houses down from McAfee’s compound in Ambergris Caye, off Belize’s Caribbean coast.

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RIM offers biggest clients incentives to adopt BB10

TORONTO (Reuters) – Research In Motion Ltd on Thursday outlined a program of incentives to encourage its biggest customers to run its soon-to-launch line of BlackBerry 10 devices, seeking to persuade corporations and government users to stick with its secure smartphones.

RIM is betting that the devices, to be launched on January 30, will revive its fortunes. That will depend to a large extent on the response from RIM’s enterprise customers — the business users who value BlackBerry’s strong security features.

Waterloo, Ontario-based RIM, once a smartphone pioneer, has bled market share to Apple Inc’s iPhone and devices powered by Google’s market-leading Android operating system, even among the business customers who once used BlackBerry exclusively.

RIM says its new devices will be faster and smoother than previous BlackBerry phones and will have a large catalog of apps, which are crucial to the success of any new line of smartphones.

It now plans to phase in a BlackBerry 10 Ready Program for enterprise customers, initially offering online training and webcasts, and then providing free trade-ups of licenses and services.

“We will be aggressively reaching out to our customers to make sure they are aware of this program,” said Bryan Lee, senior director of enterprise at RIM. “We see this as really the linchpin for helping our customers to transition to BB10.”

Early adoption of BlackBerry 10 by government and corporate clients will go a long way in easing the concerns of both RIM’s clients and investors. Many fear that a lackluster market reception to BB10 could seal RIM’s fate.

RIM, which does not say what percentage of its business comes from the enterprise customers, said its online training and webcast series are already in place. Trade-ups, including free upgrades on the licenses for BB10 operating system, will be available ahead of the January 30 launch.

Evercore Partners analyst Mark McKechnie said RIM’s step-by-step program to woo enterprise customers was a positive move, though it highlights the challenges RIM faces.

“We are encouraged with an ‘all out’ marketing campaign with the right incentives to motivate enterprises to upgrade,” he said in a note to clients. “Our take is that this will remove a roadblock for those already planning to upgrade, but likely won’t push too many who prefer to wait.”

McKechnie, who has an “equal-weight” rating on RIM’s stock, said the move is unlikely to tempt back customers who have already abandoned the BlackBerry in favor of iPhones and Android devices. RIM offers support for the rival devices, but needs corporates to update to Blackberry Enterprise Service 10 so they can power and run BB10 devices on their networks.

BB10 READY

RIM’s Lee said he sees tremendous excitement from enterprise customers who want to use the new platform, but he would not speculate on how many would be ready to transition to the new platform come launch day.

RIM said last month that its BlackBerry Enterprise Server 10, which runs the devices on corporate networks, is in beta testing with around 20 key government agencies and corporates.

Feedback on the BB10 devices and platform has been largely positive from both carriers and developers. Financial analysts remain divided.

Some have upgraded their ratings and targets on RIM’s share price in anticipation of a successful launch of BB10, while others believe the new platform has little chance of succeeding.

TD Securities analyst Scott Penner on Wednesday raised his price target on RIM to $ 12 from $ 9.50, but said RIM still faces significant hurdles.

RIM’s stock has surged over the last two months from multi-year lows around $ 6 as the launch date for the new devices nears. The stock is still more than 90 percent below the 2008 all-time high around $ 148.

The latest TSX data indicates that short positions in RIM shares have fallen dramatically in the last two weeks. The total short positions in RIM, a bet that the stock price will fall, on the TSX fell to 15.2 million as of November 30, down from 20.6 million in the prior two weeks.

RIM shares slipped 0.4 percent to $ 11.89 on the Nasdaq on Thursday. The Toronto-listed shares ended down 0.3 percent at C$ 11.81.

(Reporting by Euan Rocha; Editing by Jeremy Laurence, Janet Guttsman and Leslie Adler)

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U.S.-Mexican singer Jenni Rivera dies in plane crash

MEXICO CITY (Reuters) – Mexican-American singer Jenni Rivera died in a plane crash after the small jet she was travelling in went down in northern Mexico, her father said on Sunday.

A spokesman for the state government of Nuevo Leon said investigators had found the remains of Rivera’s Learjet, which disappeared from the radar 62 miles from the northern city of Monterrey at about 3:30 a.m. local time/4.30 a.m. EST.

Speaking after the wreckage was discovered, the singer’s father, Pedro Rivera, told Telemundo television all seven of the people on board the plane, including two pilots, had died.

“Everyone was lost,” Rivera said, flanked by two sons.

Investigators are still searching the crash site in the municipality of Iturbide, south of Monterrey. The transportation and communications ministry said the wreckage was strewn so far and wide that it was hard to recognize anything.

It was not clear what caused the crash.

Rivera, 43, was heading for the city of Toluca in central Mexico after a concert in Monterrey on Saturday night.

Born in Long Beach, California, to Mexican immigrants, Rivera sold some 15 million records in her career, won several awards and received Grammy nominations, her website said.

A mother of five, Rivera was a renowned performer of the Nortena and Banda musical styles.

(Writing by Dave Graham; Editing by Philip Barbara and Stacey Joyce)

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Obama met with Boehner on Sunday over fiscal cliff: aides

WASHINGTON (Reuters) – President Barack Obama met with Republican Speaker of the House of Representatives John Boehner on Sunday at the White House to negotiate ways to avoid the “fiscal cliff,” according to White House officials and a congressional aide.

The two sides declined to provide further details about the unannounced meeting. Obama and Boehner aides used the same language to describe it.

“This afternoon, the president and Speaker Boehner met at the White House to discuss efforts to resolve the fiscal cliff,” White House spokesman Josh Earnest said.

“We’re not reading out details of the conversation, but the lines of communication remain open,” he said.

An aide to Boehner emailed an identical quote.

The two sides are trying to reach an agreement that would stop automatic spending cuts and tax increases from going into effect at the beginning of the year. Analysts say if that so-called “fiscal cliff” occurs, the U.S. economy could swing back into a recession.

Obama has made clear he will not accept a deal unless tax rates for the wealthiest Americans rise. Boehner and many of his fellow Republicans say any tax increases would hurt a still fragile economy.

Last week Boehner and Obama spoke by phone, a conversation that the Republican leader described as pleasant but unproductive.

The common language used by both men’s aides suggests an agreement to keep details about their discussions private, which could help both of them sell less politically palatable aspects of an eventual deal to lawmakers in their respective parties.

(additional reporting by Rachelle Younglai; editing by Stacey Joyce)

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India’s Strange Obsession With Hitler

All that remains of the sign above the Hitler clothing store in Ahmedabad, India, is the swastika that used to dot its “i.” Citing cultural insensitivity, the municipality tore it down on Oct. 30 after the store’s owners refused to change it. Rajesh Shah, a co-owner of the shop, which opened in August, is flummoxed. “We are popular because of the name,” he says. “Our customers were not upset about the name. They said, ‘Don’t change it.’ Ahmedabadis like the name because they know Hitler [has not done] anything harmful to India.”

Lacking the sting of anti-Semitism but troubling nonetheless, the Hitler brand is gaining strength in India. Mein Kampf is a bestseller, and bossy people are often nicknamed Hitler on television and in movies.

In 2006 a cafe called Hitler’s Cross opened in Mumbai; in 2011 a pool hall named Hitler’s Den opened nearby in Nagpur. Owners of both say Hitler was a draw; the names were changed in the face of criticism from Jewish groups. (In Ahmedabad, store owner Shah says that only foreigners complained.)

Hero Hitler in Love, a Punjabi comedy about a man with an explosive temper, and the Hindi film Gandhi to Hitler, a sympathetic portrait of the dictator’s last days (Gandhi once wrote to the Führer), came out last year. A soap opera, Hitler Didi—or “big sister Hitler”—is a hit. Bal Thackeray, the leader of a far-right Hindu party who recently died, professed admiration for Hitler.

Unlike in some parts of Europe such as Russia and Austria, where Mein Kampf has been embraced by the extreme right, Hitler’s popularity in India is not the result of anti-Semitism, says Navras Jaat Aafreedi, a professor of social sciences at Gautam Buddha University in New Delhi. He says it stems from a dearth of European history classes in schools. To the extent that German history is taught, he says, it’s in the context of “the view that had Hitler not weakened the British Empire by the Second World War, the British would have never voluntarily left India.” The country’s Jewish community—some 5,300 people—is one of a few in the world to have never been persecuted by their countrymen, he says.

Solomon Sopher, president of the Baghdadi Jewish community in Mumbai, agrees: “We have never been persecuted by any caste or creed. Not even by the Muslims.” He adds that Indians are prone to “hero worship” of strong military leaders. “Lack of examples of strong leadership in India leads the Indian youth to admire Hitler,” explains Aafreedi.

That may explain why Mein Kampf, the dictator’s memoir, sells briskly in Mumbai and is printed by at least 13 publishers in India, according to Economic & Political Weekly. Mein Kampf is also becoming a must-read for some business schools applicants. “Each year, when I sit for admission interviews, there [are] books that are mentioned as favorite reads” by applicants, says Uma Narain, a professor at S.P. Jain Institute of Management & Research. “This year, many referred to Mein Kampf.” While Narain says she wouldn’t dream of teaching Mein Kampf, she can understand the lure of “the autobiographical account and political ideology of a charismatic man who supposedly got things done.”

Although Shah says the Hitler clothing store’s name was apolitical, he says the controversy has been good for business. He is petitioning the courts to reverse the decision to take the name down. “We’re going to fight for the name ‘Hitler,’ ” he says.

The bottom line: The popularity of Hitler is rising in India, reflecting the national attraction to strong leaders.

Shaftel is a Bloomberg Businessweek contributor.

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Peru’s capital highly vulnerable to major quake

LIMA, Peru (AP) — The earthquake all but flattened colonial Lima, the shaking so violent that people tossed to the ground couldn’t get back up. Minutes later, a 50-foot (15-meter) wall of Pacific Ocean crashed into the adjacent port of Callao, killing all but 200 of its 5,000 inhabitants. Bodies washed ashore for weeks.

Plenty of earthquakes have shaken Peru‘s capital in the 266 years since that fateful night of Oct. 28, 1746, though none with anything near the violence.

The relatively long “seismic silence” means that Lima, set astride one of the most volatile ruptures in the Earth’s crust, is increasingly at risk of being hammered by a one-two, quake-tsunami punch as calamitous as what devastated Japan last year and traumatized Santiago, Chile, and its nearby coast a year earlier, seismologists say.

Yet this city of 9 million people is sorely unprepared. Its acute vulnerability, from densely clustered, unstable housing to a dearth of first-responders, is unmatched regionally. Peru’s National Civil Defense Institute forecasts up to 50,000 dead, 686,000 injured and 200,000 homes destroyed if Lima is hit by a magnitude-8.0 quake.

“In South America, it is the most at risk,” said architect Jose Sato, director of the Center for Disaster Study and Prevention, or PREDES, a non-governmental group financed by the charity Oxfam that is working on reducing Lima’s quake vulnerability.

Lima is home to a third of Peru’s population, 70 percent of its industry, 85 percent of its financial sector, its entire central government and the bulk of international commerce.

“A quake similar to what happened in Santiago would break the country economically,” said Gabriel Prado, Lima’s top official for quake preparedness. That quake had a magnitude of 8.8.

Quakes are frequent in Peru, with about 170 felt by people annually, said Hernando Tavera, director of seismology at the country’s Geophysical Institute. A big one is due, and the chances of it striking increase daily, he said. The same collision of tectonic plates responsible for the most powerful quake ever recorded, a magnitude-9.5 quake that hit Chile in 1960, occurs just off Lima’s coast, where about 3 inches of oceanic crust slides annually beneath the continent.

A 7.5-magnitude quake in 1974 a day’s drive from Lima in the Cordillera Blanca range killed about 70,000 people as landslides buried villages. Seventy-eight people died in the capital. In 2007, a 7.9-magnitude quake struck even closer, killing 596 people in the south-central coastal city of Pisco.

A shallow, direct hit is the big danger.

More than two in five Lima residents live either in rickety structures on unstable, sandy soil and wetlands that amplify a quake’s destructive power or in hillside settlements that sprang up over a generation as people fled conflict and poverty in Peru’s interior. Thousands are built of colonial-era adobe.

Most quake-prone countries have rigorous building codes to resist seismic events. In Chile, if engineers and builders don’t adhere to them they can face prison. Not so in Peru.

“People are building with adobe just as they did in the 17th century,” said Carlos Zavala, director of Lima’s Japanese-Peruvian Center for Seismic Investigation and Disaster Mitigation.

Environmental and human-made perils compound the danger.

Situated in a coastal desert, Lima gets its water from a single river, the Rimac, which a landslide could easily block. That risk is compounded by a containment pond full of toxic heavy metals from an old mine that could rupture and contaminate the Rimac, said Agustin Gonzalez, a PREDES official advising Lima’s government.

Most of Lima’s food supply arrives via a two-lane highway that parallels the river, another potential chokepoint.

Lima’s airport and seaport, the key entry points for international aid, are also vulnerable. Both are in Callao, which seismologists expect to be scoured by a 20-foot (6-meter) tsunami if a big quake is centered offshore, the most likely scenario.

Mayor Susana Villaran’s administration is Lima’s first to organize a quake-response and disaster mitigation plan. A February 2011 law obliged Peru’s municipalities to do so. Yet Lima’s remains incipient.

“How are the injured going to be attended to? What is the ability of hospitals to respond? Of basic services? Water, energy, food reserves? I don’t think this is being addressed with enough responsibility,” said Tavera of the Geophysical Institute.

By necessity, most injured will be treated where they fall, but Peru’s police have no comprehensive first-aid training. Only Lima’s 4,000 firefighters, all volunteers, have such training, as does a 1,000-officer police emergency squadron.

But because the firefighters are volunteers, a quake’s timing could influence rescue efforts.

“If you go to a fire station at 10 in the morning there’s hardly anyone there,” said Gonzalez, who advocates a full-time professional force.

In the next two months, Lima will spend nearly $ 2 million on the three fire companies that cover downtown Lima, its first direct investment in firefighters in 25 years, Prado said. The national government is spending $ 18 million citywide for 50 new fire trucks and ambulances.

But where would the ambulances go?

A 1997 study by the Pan American Health Organization found that three of Lima’s principal public hospitals would likely collapse in a major quake, but nothing has been done to reinforce them.

And there are no free beds. One public hospital, Maria Auxiliadora, serves more than 1.2 million people in Lima’s south but has just 400 beds, and they are always full.

Contingency plans call for setting up mobile hospitals in tents in city parks. But Gonzalez said only about 10,000 injured could be treated.

Water is also a worry. The fire threat to Lima is severe — from refineries to densely-backed neighborhoods honeycombed with colonial-era wood and adobe. Lima’s firefighters often can’t get enough water pressure to douse a blaze.

“We should have places where we can store water not just to put out fires but also to distribute water to the population,” said Sato, former head of the disaster mitigation department at Peru’s National Engineering University.

The city’s lone water-and-sewer utility can barely provide water to one-tenth of Lima in the best of times.

Another big concern: Lima has no emergency operations center and the radio networks of the police, firefighters and the Health Ministry, which runs city hospitals, use different frequencies, hindering effective communication.

Nearly half of the city’s schools require a detailed evaluation to determine how to reinforce them against collapse, Sato said.

A recent media blitz, along with three nationwide quake-tsunami drills this year, helped raise consciousness. The city has spent more than $ 77 million for retention walls and concrete stairs to aid evacuation in hillside neighborhoods, Prado said, but much more is needed.

At the biggest risk, apart from tsunami-vulnerable Callao, are places like Nueva Rinconada.

A treeless moonscape in the southern hills, it is a haven for economic refugees who arrive daily from Peru’s countryside and cobble together precarious homes on lots they scored into steep hillsides with pickaxes.

Engineers who have surveyed Nueva Rinconada call its upper reaches a death trap. Most residents understand this but say they have nowhere else to go.

Water arrives in tanker trucks at $ 1 per 200 liters (52 gallons) but is unsafe to drink unless boiled. There is no sanitation; people dig their own latrines. There are no streetlamps, and visibility is erased at night as Lima’s bone-chilling fog settles into the hills.

Homes of wood, adobe and straw matting rest on piled-rock foundations that engineers say will crumble and rain down on people below in a major quake.

A recently built concrete retaining wall at the valley’s head lies a block beneath the thin-walled wood home of Hilarion Lopez, a 55-year-old janitor and community leader. It might keep his house from sliding downhill, but boulders resting on uphill slopes could shake loose and crush him and his neighbors.

“We’ve made holes and poured concrete around some of the more unstable boulders,” he says, squinting uphill in a strong late morning sun.

He’s not so worried if a quake strikes during daylight.

“But if I get caught at night? How do I see a rock?”

___

Associated Press writer Franklin Briceno contributed to this report.

___

Frank Bajak on Twitter: http://twitter.com/fbajak

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7 Apps You Don’t Want To Miss

Twitterific

Twitter client Twitterific released version 5 of its iOS app this week. Overhauled and redesigned, the updated app has a new customizable user interface, gesture support, and the ability to sync timeline positions between several different devices.

Click here to view this gallery.

[More from Mashable: Google Now Updated With Boarding Passes, Improved Voice Search]

It can be tough to keep up with all the new apps released every week. But you’re in luck — we take care of that for you, creating a roundup each weekend of our favorite new and updated apps.

This week a popular mobile photo editing app for iOS finally made its way to Android, and a hot email app for iOS saw a huge update.

[More from Mashable: Chihuly App Brings Glassblowing To The iPhone]

We found an app that lets you create virtual glass art projects with your iPhone, and an app for Android that lets you find and purchase art projects that others have created.

Check out the gallery above for a look at this week’s app highlights.

If you’re still looking for more, check out last week’s Apps You Don’t Want To Miss.

Think we left a great new app off the list? Let us know in the comments below.

Photo courtesy iStockphoto, scanrail

This story originally published on Mashable here.

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Orlando Bloom’s Legolas returns to Middle Earth in 2014′s “There and Back Again”

LOS ANGELES (TheWrap.com) – Legolas was a fan favorite in Peter Jackson‘s “Lord of the Rings” trilogy, but J.R.R. Tolkien enthusiasts won’t see the warrior Elf return to Middle Earth until 2014 when “The Hobbit: There and Back Again” hits theaters.

Entertainment Weekly published the first image of Orlando Bloom reprising his role and he looks pretty much the same, with the exception of his very blue eyes (weren’t they brown before?).

It’s true that the character is not featured in the book this trilogy is being adapted from, but luckily for Bloom’s bank account, his father is.

“He’s Thranduil’s son, and Thranduil is one of the characters in ‘The Hobbit,’” Jackson explained. “And because elves are immortal it makes sense Legolas would be part of the sequence in the Woodland Realm.”

If you don’t recognize the man standing next to Legolas, it’s because he’s a new face in the franchise. Bard the Bowman – played by Luke Evans – is a heroic human Laketown warrior who (if you couldn’t tell by his name) is also quite the marksman. He’ll come into the picture when “The Hobbit: The Desolation of Smaug” lands in theaters on December 13, 2013.

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On the edge of the “cliff,” U.S. cities like Charleston

CHARLESTON, South Carolina (Reuters) – For 37 years straight, Joseph P. Riley Jr. has sat behind the mayor’s desk here, shaping this city and its budget.

On a recent afternoon, Riley, 69, reached for a draft copy of next year’s spending plan and wondered aloud about what might get cut should politicians in Washington fail to find an agreement this month, unleashing $ 600 billion worth of spending reductions and tax hikes next year.

Hiring new police officers for the city of 123,000 could be put on hold, Riley said. A new piece of equipment for the fire department would have to wait. Sanitation workers might be in trouble, too.

“The thought that they would allow the economic harm that would ensue if we went over the fiscal cliff is mind-boggling,” said Riley, a Democrat who was elected to his 10th term last year.

Charleston, a beautiful city steeped in history and awash in tourist dollars, would seem at first glance a world apart from the harm that could be caused by the combination of spending cuts and higher taxes. Economists predict its arrival could send the United States hurtling back into a recession.

At its edges, however, Charleston harbors the people who are most vulnerable to Washington’s intransigence, making the city an emblem of a country’s worry and of the powerlessness people feel in the face of Washington’s indecision.

The sting of automatic cuts would be felt acutely by those who work in the defense sector and the poor. They form two prominent groups in Charleston County who may share little but the knowledge that federal belt-tightening is less a nuisance than an existential threat.

In South Carolina, defense spending accounts for $ 15.7 billion in annual economic activity – more than one in 10 dollars spent in the state – and nearly 140,000 jobs.

The Charleston area alone, which includes a large Air Force base and a Navy facility, holds more than 66,000 defense jobs and nearly half of the state’s military economic activity, according to a report released last month by the South Carolina Department of Commerce.

While Charleston, like the rest of the state, has seen a boom in military spending over the last decade, the area has the state’s second-highest concentration of people living in poverty, according to 2010 U.S. census data. More than one in four children live in poverty in the surrounding county.

From the anticipated cuts to the military to the shrinking of the safety net, Charleston shows what’s at stake should the United States fall off the fiscal cliff.

‘DEVASTATION’

A fast-talking engineer originally from Detroit, Michigan, Rebecca Ufkes founded UEC Electronics with her husband in neighboring Hanahan 17 years ago. Walking past employees in blue lab coats assembling components for military vehicles and commercial products last week, Ufkes described the chilling effect the possibility of cuts have had on Charleston’s defense industry.

In September, Ufkes traveled to Washington as a part of a lobbying effort organized by the Aerospace Industry Association, hoping to impress politicians with the dangers facing her 200-person company and its competitors should the anticipated $ 500 billion in defense cuts, over 10 years, come to pass.

She came away encouraged by her state’s largely Republican representation in Washington but frustrated by other lawmakers.

“South Carolina is a very pro-business state,” she said. “They are very keen on economics. It’s just that we are only one of 50 states.”

Ufkes, 48, said she worries not only about the uncertainty that has left defense contractors unsure where to invest but the impending tax increases, which she said will put her company, active in the commercial marketplace as well, at a disadvantage against foreign rivals.

“Probably the solution is not going to be perfect for UEC,” she said, “but I don’t want it to be devastating. Compromise and devastation are not the same thing.”

With a mug declaring, “Failure is not an option,” sitting on her desk, Ufkes predicted that her company would make it, no matter how devastating the cuts are.

“If we don’t survive,” she said. “I don’t know who will.”

NO ‘GIFTS’

Five miles (eight km) from Ufkes’ cutting-edge electronics manufacturer is the struggling North Charleston neighborhood of Chicora-Cherokee, where Bill Stanfield and his wife, Evelyn Oliveira, arrived fresh out of Princeton Theological Seminary 10 years ago.

They founded Metanoia, a development organization focusing on bettering the community by securing housing loans, planting a garden, and running after-school and summer programs.

Through government services like AmeriCorps, the national volunteer group, and funds from sources like the U.S. Department of Housing and Urban Development, Stanfield said his group received nearly a fifth of its funding from the federal government last year.

With politicians facing immense pressure over limiting cuts to entitlements like the Medicare health insurance program for seniors and the Social Security retirement program, advocates for the poor say they expect painful reductions in spending on education and housing.

“I don’t know if our housing program would survive,” Stanfield, 39, said.

Cuts to education will hit South Carolina hard, where the schools have bled money over the last five years.

According to the left-leaning Center on Budget and Policy Priorities, South Carolina’s cuts to education have been the fifth largest in the country, slicing 18 percent off of per-student spending during that period.

The Obama administration, which Republicans consider a profligate spender, has felt like lean times in neighborhoods like Chicora-Cherokee, Stanfield said.

“You know Mitt Romney said that people voted for Obama because of gifts?” Stanfield said. “There’s this misconception that President Obama has been a gravy train of funding. There was more funding under President Bush of these organizations than under Obama.”

‘GAME OF CHICKEN’

Last month, Riley, the Charleston mayor, went to Washington with a group of fellow city leaders, Democrats and Republicans, to lobby the White House and Congress to save cities from drastic cuts.

Vice President Joseph Biden and Democratic leaders from the House of Representatives and Senate met with the mayors. House Speaker John Boehner and other Republican leaders in Congress declined their invitation, Riley said.

While Riley supports Obama’s proposal to increase taxes on income earned over $ 250,000, a sticking point in the negotiations, he and other mayors cautioned that ending the tax-free status of municipal bonds would strangle cities’ access to needed capital.

Riley returned to Charleston feeling like a deal, which could prevent the harshest blows from hitting his city, its residents and jobs, was in the offing. Now, he said, he is not so sure.

“It looks like it’s a game of chicken,” he said, “and there are signals that they are going to go through with it.”

(Reporting By Samuel P. Jacobs Editing by Fred Barbash and Eric Beech)

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Cities see ‘anti-cuts’ marches

8 December 2012 Last updated at 08:47 ET

Campaigners “protesting against the Autumn Statement” have taken part in marches in Manchester and Liverpool.

Demonstrations were held in both cities by protest groups, including UK Uncut and Boycott Workfare, and trade unions.

Manchester organiser Mark Krantz said the “poorest will be going without” as a result of the Chancellor’s statement on Wednesday.

Prime Minister David Cameron has said the Chancellor’s plans would be “hugely helpful for working people”.

Mr Krantz, of Manchester Coalition Against Cuts, said the plans meant working people “face further cuts to their household budgets as pay and benefits have been set at below inflation levels”.

“Claims that ‘we now really are all in it together’ are clearly not true – rich people will not go hungry this Christmas, but the poorest will be going without,” he said.

“Council budgets for cities like Manchester and Liverpool, which have already suffered with jobs slashed and vital services shut, are now facing further cuts due to Osborne’s announcements.”

Michelle Smith, of Liverpool Against the Cuts, said the plans would “hit the most vulnerable in our society”.

She added that the Liverpool protest would be “highlighting the effect of the cuts on women in particular” and that all the groups involved were “protesting against the Chancellor’s Autumn Statement”.

Chancellor George Osborne delivered the coalition government’s plans for taxing and spending in his annual Autumn Statement on Wednesday.

The statement laid out changes to welfare and tax and cuts to local government budgets amongst other measures.

BBC News – Business

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