Sequestration: Surrender Is in the Air

The budget ax is about to fall, and there's little lawmakers in Washington are doing to stop it.

Despite a parade of dire warnings from the White House, an $85 billion package of deep automatic spending cuts appears poised to take effect at the stroke of midnight on Friday.

The cuts – known in Washington-speak as the sequester – will hit every federal budget, from defense to education, and even the president's own staff.

On Capitol Hill, Senate Democrats and Republicans each staged votes Thursday aimed at substituting the indiscriminate across-the-board cuts with more sensible ones. Democrats also called for including new tax revenue in the mix. Both measures failed.

Lleaders on both sides publicly conceded that the effort was largely for show, with little chance the opposing chamber would embrace the other's plan. They will discuss their differences with President Obama at the White House on Friday.

"It isn't a plan at all, it's a gimmick," Senate Minority Leader Mitch McConnell, R-Ky., said today of the Democrats' legislation.

"Republicans call the plan flexibility" in how the cuts are made, said Senate Majority Leader Harry Reid. "Let's call it what it is. It is a punt."

The budget crisis is the product of a longstanding failure of Congress and the White House to compromise on plans for deficit reduction. The sequester itself, enacted in late 2011, was intended to be so unpalatable as to help force a deal.

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Republicans and Democrats, however, remain gridlocked over the issue of taxes.

Obama has mandated that any steps to offset the automatic cuts must include new tax revenue through the elimination of loopholes and deductions. House Speaker John Boehner and the GOP insist the approach should be spending cuts-only, modifying the package to make it more reasonable.

"Do we want to close loopholes? We sure do. But if we are going to do tax reform, it should focus on creating jobs, not funding more government," House Speaker John Boehner said, explaining his opposition to Obama's plan.

Boehner, McConnell, Reid and House Minority Leader Nancy Pelosi will huddle with Obama at the White House on Friday for the first face-to-face meeting of the group this year.

"There are no preconditions to a meeting like this," White House spokesman Jay Carney said today. "The immediate purpose of the meeting is to discuss the imminent sequester deadline and to avert it."

Even if the leaders reach a deal, there's almost no chance a compromise could be enacted before the deadline. Lawmakers are expected to recess later today for a long weekend in their districts.

What will be the short-term impact of the automatic cuts?

Officials say it will be a gradual, "rolling impact" with limited visible impact across the country in the first few weeks that the cuts are allowed to stand.

Over the long term, however, the Congressional Budget Office and independent economic analysts have warned sequester could lead to economic contraction and possibly a recession.

"This is going to be a big hit on the economy," Obama said Wednesday night.

"It means that you have fewer customers with money in their pockets ready to buy your goods and services. It means that the global economy will be weaker," he said. "And the worst part of it is, it's entirely unnecessary."

Both sides say that if the cuts take effect, the next best chance for a resolution could come next month when the parties need to enact a new federal budget. Government funding runs out on March 27, raising the specter of a federal shutdown if they still can't reach a deal.

"As we anticipate an across-the-board budget cuts across our land, we still expect to see your goodness prevail, O God, " Senate Chaplain Barry Black prayed on the Senate floor this morning, "and save us from ourselves."

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Higher fines, longer jail term for animal abusers proposed

SINGAPORE: The Animal Welfare Legislative Review Committee is calling for heavier penalties for animal abuse and abandonment.

After a year-long review, the committee has submitted its recommendations to the National Development Ministry for consideration.

The current penalty for animal abuse is a fine of up to S$10,000, one year in jail, or both.

The Committee calls for a more detailed penalty structure that differentiates the intent and severity of the offence, with the maximum penalty for repeat and malicious cases going up to S$50,000, three years jail and a one-year ban on keeping animals.

At the same time, the proposal calls for higher penalties for businesses - between S$20,000 and S$100,000, and a ban on animal-related business for up to a year.

The Animal Welfare Legislative Review Committee said the objective is to send a strong message to deter wrongdoers.

Another key proposal is to legally require all staff in all pet businesses to be appropriately trained in animal care and handling.

The Committee is recommending regulation for all commercial pet breeding activities, and for all pet boarding facilities to be licensed.

It also wants to see pet shops screen potential buyers to ensure pets are sold to responsible and committed owners.

On the Committee, Mr Chua Ming Kok represents the Pet Enterprises and Traders Association of Singapore, said: "There will definitely be some resistance from the smaller players. But we'll have in place schemes to train them, to try to help them come onboard this scheme. The major players in the industry have already given their consensus to be on this scheme."

Committee Chairman Mr Yeo Guat Kwang said their job is far from over.

"It's not a job that's been done. We definitely need to do more. But let's take one step at a time, and with this big step forward, I'm confident many other suggestions which are practical and reasonable will definitely also be taken into consideration in future," he said.

The Committee's report details 24 recommendations in total, including a call to set a minimum age of 16 years old for buying a pet.

- CNA/ck

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Movie studios target mobile apps for copyright infringement

Google Play app store.

(Credit:
Screenshot by Dara Kerr/CNET)

After targeting Web sites for copyright infringement for years, Hollywood is now setting its sights on mobile apps, according to Reuters.

Time Warner, Walt Disney, Sony, Viacom, and Twentieth Century Fox have all recently sent app "take down" notices to Google. Citing copyright infringement, these studios are demanding that the Web giant remove apps that use the likeness of characters in their movies or TV shows.

One of the offending apps is "Hobbit 3D Wallpaper HD," which has images from the popular movie, according to Reuters. Other apps are from movies like "Clash of the Titans," "Spiderman," and "Green Lantern."

The app market is a lucrative one. According to Reuters, it's worth $20 billion as of this year. Also, many of these apps get away without paying licensing fees.

"Smartphone apps that provide a direct link to infringing content have become a growing problem that needs to be addressed," Motion Picture Association of America's senior vice president for Internet content protection Marc Miller told Reuters. "Not only do these apps offer access to creative content that has been illegally copied, but they also pose risks to consumers from malware and often fail to provide viewers with the quality product they could often get through a growing number of legitimate sources."

According to Reuters, Google is complying with the studios' requests and is removing many of these apps from its Google Play app store. An Apple spokesperson wouldn't comment on take down notices for Reuters but did say that it reviews all apps before offering them in its App Store.

Over the past few years, Google has continually made more concessions to copyright owners, who have long demanded that it take steps to prevent copyright infringement. And, in August, it took action that was among the most significant antipiracy measures the company has ever adopted by penalizing sites that generated many complaints from copyright owners.

It's unclear if the Web giant has taken additional measures to curb copyright infringement on apps in Google Play.

CNET contacted Google and Apple for comment. We'll update the story when we get more information.

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Federal budget cuts free illegal immigrants from detention

(CBS News) -- The federal budget cuts expected to take effect this Friday are not simple. For example, hundreds of illegal immigrants are being released from detention because the administration says it can't afford to keep them.

Until recently, Fredi Alcazar was one of those detained. An illegal immigrant from Mexico, Alcazar spent a month in jail after a traffic stop near Atlanta last December. He now wears an electronic monitoring band on his ankle. The device lets immigration officials know where he is at all times.

(watch: Releasing illegal immigrants over budget cuts, below)

Alcazar was released unexpectedly in January.

"I was surprised they released me," Alcazar recalled. "They didn't say anything."

Officials at Immigration and Customs Enforcement (ICE) would not tell CBS exactly how many detainees they released ahead of for Friday's automatic budget cuts. They also declined to say where or when the releases occurred.

Those let go, like Fredi Alcazar, are required to wear electronic tracking devices, regularly call immigration officials or visit ICE offices.

"We started getting calls all of a sudden they had been released," said immigration advocate Dulce Guerrero. "We were very much in shock."

The early release of detainees was a surprise to Guerrero.

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"These folks are no criminals," she said. "These folks in there are moms, dads, students, community members who are in there for no license, for a broken tail light."

But some members of Congress are demanding ICE provide information on each detainee's case.

"When you release these people and expect them to show up at a court proceeding at a later date, we found before that 90 percent of them don't show up," said Congressman Michael McCaul, chair of the House Homeland Security Committee.

Besides Georgia, CBS did learn that many releases were in Arizona, California and Florida. Immigration advocates said that "supervised release" costs about $14 a day compared to about $160 a day to keep detainees in jail.

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Arias Prosecutor Too Combative, Experts Say

He has barked, yelled, been sarcastic and demanded answers from accused murderer Jodi Arias this week.

And in doing so, prosecutor Juan Martinez and his aggressive antics may be turning off the jury he is hoping to convince that Arias killed her ex-boyfriend Travis Alexander in June 2008, experts told ABCNews.com today.

"Martinez is his own worst enemy," Mel McDonald, a prominent Phoenix defense attorney and former judge, told ABC News. "He takes it to the point where it's ad nauseam. You have difficulty recognizing when he's driving the point home because he's always angry and pushy and pacing around the courtroom. He loses the effectiveness, rather than build it up."

"He's like a rabid dog and believes you've got to go to everybody's throat," he said.

"If they convict her and give her death, they do it in spite of Juan, not because of him," McDonald added.

Martinez's needling style was on display again today as he pestered Arias to admit that she willingly participated in kinky sex with Alexander, though she previously testified that she only succumbed to his erotic fantasies to please him.

Arias, now 32, and Alexander, who was 27 at the time of his death, dated for a year and continued to sleep together for another year following their break-up.

Arias drove to his house in Mesa, Ariz., in June 2008, had sex with him, they took nude photos together and she killed him in his shower. She claims it was in self-defense. If convicted, Arias could face the death penalty.

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Martinez also attempted to point out inconsistencies in her story of the killing, bickering with her over details about her journey from Yreka, Calif., to Mesa, Ariz., including why she borrowed gas cans from an ex-boyfriend, when she allegedly took naps and got lost while driving, and why she spontaneously decided to visit Alexander at his home in Mesa for a sexual liaison.

"I want to know what you're talking about," Arias said to Martinez at one point.

"No, I'm asking you," he yelled.

Later, he bellowed, "Am I asking you if you're telling the truth?"

"I don't know," Arias said, firing back at him. "Are you?"

During three days of cross examining Arias this week, Martinez has spent hours going back and forth with the defendant over word choice, her memory, and her answers to his questions.

"Everyone who takes witness stand for defense is an enemy," McDonald said. "He prides himself on being able to work by rarely referring to his notes, but what he's giving up in that is that there's so much time he wastes on stupid comments. A lot of what I've heard is utterly objectionable."

Martinez's behavior has spurred frequent objections of "witness badgering" from Arias' attorney Kirk Nurmi, who at one point Tuesday stood up in court and appealed to the judge to have a conference with all of the attorneys before questioning continued. Judge Sherry Stephens at one point admonished Martinez and Arias for speaking over one another.

Andy Hill, a former spokesperson for the Phoenix police department, and Steven Pitt, a forensic psychiatrist who has testified as an expert witness at many trials in the Phoenix area, both said that despite his aggressive style, Martinez would likely succeed in obtaining a guilty verdict.

"When it comes to cross examination, one size does not fit all," said Pitt. "But if you set aside the incessant sparring, what the prosecutor I believe is effectively doing is pointing out the various inconsistencies in the defendant's version of events."

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Iran upbeat on nuclear talks, West still wary

ALMATY (Reuters) - Iran was upbeat on Wednesday after talks with world powers about its nuclear work ended with an agreement to meet again, but Western officials said it had yet to take concrete steps to ease their fears about its atomic ambitions.

Rapid progress was unlikely with Iran's presidential election, due in June, raising domestic political tensions, diplomats and analysts had said ahead of the February 26-27 meeting in the Kazakh city of Almaty, the first in eight months.

The United States, China, France, Russia, Britain and Germany offered modest sanctions relief in return for Iran curbing its most sensitive nuclear work but made clear that they expected no immediate breakthrough.

In an attempt to make their proposals more palatable to Iran, the six powers appeared to have softened previous demands somewhat, for example regarding their requirement that the Islamic state ship out its stockpile of higher-grade uranium.

Iran's chief nuclear negotiator Saeed Jalili said the powers had tried to "get closer to our viewpoint", which he said was positive.

In Paris, U.S. Secretary of State John Kerry commented that the talks had been "useful" and that a serious engagement by Iran could lead to a comprehensive deal in a decade-old dispute that has threatened to trigger a new Middle East war.

Iran's foreign minister said in Vienna he was "very confident" an agreement could be reached and Jalili, the chief negotiator, said he believed the Almaty meeting could be a "turning point".

However, one diplomat said Iranian officials at the negotiations appeared to be suggesting that they were opening new avenues, but it was not clear if this was really the case.

Iran expert Dina Esfandiary of the International Institute for Strategic Studies said: "Everyone is saying Iran was more positive and portrayed the talks as a win."

"I reckon the reason for that is that they are saving face internally while buying time with the West until after the elections," she said.

The two sides agreed to hold expert-level talks in Istanbul on March 18 to discuss the powers' proposals, and return to Almaty for political discussions on April 5-6, when Western diplomats made clear they wanted to see a substantive response from Iran.

"Iran knows what it needs to do, the president has made clear his determination to implement his policy that Iran will not have a nuclear weapon," Kerry said.

A senior U.S. official in Almaty said, "What we care about at the end is concrete results."

ISRAELI WARNING

Israel, assumed to be the Middle East's only nuclear-armed power, was watching the talks closely. It has strongly hinted it might attack Iran if diplomacy and sanctions fail to ensure that it cannot build a nuclear weapon. Iran denies any such aim.

Israeli Prime Minister Benjamin Netanyahu said economic sanctions were failing and urged the international community to threaten Iran with military action.

Western officials said the offer presented by the six powers included an easing of a ban on trade in gold and other precious metals, and a relaxation of an import embargo on Iranian petrochemical products. They gave no further details.

In exchange, a senior U.S. official said, Iran would among other things have to suspend uranium enrichment to a fissile concentration of 20 percent at its Fordow underground facility and "constrain the ability to quickly resume operations there".

The official did not describe what was being asked of Iran as a "shutdown" of the plant as Western diplomats had said in previous meetings with Iran last year.

Iran says it has a sovereign right to enrich uranium for peaceful purposes, and wants to fuel nuclear power plants so that it can export more oil.

But 20-percent purity is far higher than that needed for nuclear power, and rings alarm bells abroad because it is only a short technical step away from weapons-grade uranium. Iran says it produces higher-grade uranium to fuel a research reactor.

Iran's growing stockpile of 20-percent-enriched uranium is already more than half-way to a "red line" that Israel has made clear it would consider sufficient for a bomb.

In Vienna on Wednesday, a senior U.N. nuclear agency official told diplomats in a closed-door briefing that Iran was technically ready to sharply increase this higher-grade enrichment, two Western diplomats said.

"Iran can triple 20 percent production in the blink of an eye," one of the diplomats said.

The U.S. official in Almaty said the powers' latest proposal would "significantly restrict the accumulation of near-20-percent enriched uranium in Iran, while enabling the Iranians to produce sufficient fuel" for their Tehran medical reactor.

This appeared to be a softening of a previous demand that Iran ship out its stockpile of higher-grade enriched uranium, which it says it needs to produce medical isotopes.

Iran has often indicated that 20-percent enrichment could be up for negotiation if it received the fuel from abroad instead.

Jalili suggested Iran could discuss the issue, although he appeared to rule out shutting down Fordow. He said the powers had not made that specific demand.

The Iranian rial, which has lost more than half its foreign exchange value in the last year as sanctions bite, rose some 2 percent on Wednesday, currency tracking websites reported.

(Additional reporting by Fredrik Dahl and Yeganeh Torbati in Almaty, Georgina Prodhan in Vienna, Zahra Hosseinian in Zurich, Gabriela Baczynska in Moscow, Dan Williams in Jerusalem and Marcus George in Dubai; Writing by Timothy Heritage and Fredrik Dahl; Editing by Louise Ireland)

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Basketball: Knicks withstand Curry's 54 points to beat Warriors

NEW YORK: The New York Knicks withstood a dazzling 54-point display from Golden State's Stephen Curry on Wednesday to post a 109-105 NBA victory over the Warriors at Madison Square Garden.

Curry's points total was the highest in the league this season, surpassing the 52 of Oklahoma City's Kevin Durant against Dallas last month.

But his individual effort was not enough against a Knicks team that received 35 points from Carmelo Anthony and 26 off the bench from JR Smith.

Tyson Chandler contributed 16 points for New York and grabbed a career-best 28 rebounds.

Curry and the Warriors nearly claimed the victory despite the absence of David Lee, serving a one-game suspension for his role in an altercation with the Pacers' Roy Hibbert at Indiana on Tuesday that included several players and saw the shoving match spill into the spectator area behind the basket.

Curry made 11 of his 13 attempts from three-point range, one short of the league single-game record. He added seven assists and six rebounds.

Carl Landry scored 15 points and Jarrett Jack chipped in 14 for the Warriors.

Curry became the first player to score at least 50 points at Madison Square Garden since LeBron James did it with the Cavaliers in 2009.

He scored or assisted on Golden State's last 20 points. By then the New York crowd was cheering him, but the Knicks held the Warriors scoreless for the last two minutes of the contest.

After Raymond Felton denied Curry's jump shot with 1:28 remaining and the score knotted at 105-105, New York's Smith made a jump shot that gave the Knicks the lead for good.

"We closed out," Knicks coach Mike Woodson said. "We made the defensive stops we had to make coming down the stretch.

"We made plays, but boy, you've got to tip your hat to Curry. He played great."

- AFP/fa

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Viddy doubles length of clips, adds video enhancement tools

Viddy's new iOS app.

(Credit:
Viddy)

Social video startup video has released a new iOS app with a bevy of new features to help users enhance the videos they produce and stave off Twitter's upstart video-sharing app Vine.

Debuting this evening in Apple's App Store, the new app doubles the size of videos users can upload from 15 seconds to 30 seconds, as well as adding the Vine-like ability to pause recording to splice together segments into a single clip. The app also adds 15 new video filters, licensed music tracks from popular artists that can be added to videos, and stop-motion functionality that adjusts video frame rates.

Viddy, which is sometimes referred to as the Instagram of video, also social discovery tools to help users find and share videos that are important to them. The update adds a section with curated video categories and trending topics. A geo-centric feed spotlights videos from specific regions, while another feed focuses on user interests and preferences.

In another Twitter-like feature, Viddy will add a verified user program for celebrities, public figures, and company brands.

The new video comes in the wake of corporate upheaval at the Venice, Calif.-based startup. The company, which claims 40 million users, revealed earlier this week that it had laid off a dozen employees, or about a third of its work force. The cuts came less than a month after the firing of co-founder and CEO Brett O'Brien, who was rumored to have turned down a buyout offer from Twitter, which ended up buying Vine and launching its app last month.

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Two cops, suspect dead in Calif. shootings

Updated 1:50 a.m. EST

SANTA CRUZ, Calif. Two police officers were shot and killed Tuesday while investigating a sexual assault, and a suspect was also fatally shot, authorities said.

Santa Cruz police Chief Kevin Vogel says Sgt. Loren Butch Baker and Detective Elizabeth Butler were gunned down in mid-afternoon Tuesday as they followed up on a sexual assault investigation. He says Baker was a 28-year veteran of the department and Butler had been with the department 10 years. Vogel says Baker was married and the father of two daughters, while Butler leaves behind two young sons.

A suspect, identified as 35-year-old Jeremy Goulet, was shot and killed a short time later while authorities were pursuing the gunman, the Santa Cruz County sheriff's office said.

Residents on the adjoining streets where the shootings occurred received an automatic police call warning them to stay locked inside. About half an hour later, more than a dozen semi-automatic shots echoed down the streets in a brief shootout that killed the suspect.

Witnesses described hearing a "multitude of gunfire" - with 20 or more shots fired during that gun battle between the suspect and law enforcement, reports CBS San Francisco station station KPIX-TV.

Police were going door-to-door in the neighborhood, searching homes, garages, even closets, although the sheriff said authorities didn't know if another suspect remained at large.

Police, sheriff's deputies and FBI agents filled intersections, some with guns drawn, in what is ordinarily a quiet, residential neighborhood in the community about 60 miles south of San Francisco.

A store clerk a few buildings away from the shooting said the barrage of gunfire was "terrifying."

"We ducked. We have big desks, so under the desks we went," said the clerk, who spoke on condition of anonymity and asked that her store not be identified because she feared for her safety.

She said she remained locked in her store hours after the shooting and was still scared.

Two schools were locked down during the shooting. The students were later evacuated by bus to the County Government Center about half a mile away.

As darkness fell, helicopters and light aircraft patrolled above the neighborhood, which is about a mile from downtown Santa Cruz and the Santa Cruz Beach Boardwalk. The campus of University of California, Santa Cruz, is about five miles away.

The city's mayor, Hilary Bryant, said in a statement that the city was shocked over the shootings.

"Tonight we are heartbroken at the loss of two of our finest police officers who were killed in the line of duty, protecting the community we love," the statement said. "This is an exceptionally shocking and sad day for Santa Cruz and our Police Department."

Santa Cruz has faced a recent spate of violence, and community leaders had scheduled a downtown rally Tuesday to speak out against shootings. That and a city council meeting were canceled after teary-eyed city leaders learned of the deaths.

Those shootings include the killing of Pauly Silva, a 32-year-old martial arts instructor who was shot outside a popular downtown bar and restaurant on Feb. 9.

Two days later, a UC Santa Cruz student waiting at a bus stop was shot in the head during a robbery. She is recovering from her injuries.

Then on Feb. 17, a 21-year-old woman was raped and beaten on the UC Santa Cruz campus. Four days later, a Santa Cruz couple fought off two men who came in their home before dawn and threatened them with a sword.

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Inside Organized Retail Crime Raids

We used to call it shoplifting, but these days the foot soldiers of retail crime rings are known as boosters. Police even have an acronym for these operations: ORC, which stands for Organized Retail Crime.

"It's just like a Fortune 500 company," said Sergeant Eric Lee of the Gardena Police Department in Gardena, Calif. "All of this is just organized."

Watch the full story on "Nightline" TONIGHT at 12:35 a.m. ET

Police say big retail stores, from Walgreens to J.C. Penny, are getting hit by highly sophisticated shoplifting networks that steal and resell everything from underwear to razors to milk. According to the National Retail Federation, theft can amount to annual losses as high as a $37 billion for retail businesses.

"Every store in every city has to go through this," Lee said. "They wait until no one's paying attention and they walk out."

Tide detergent is currently a hot target because it is compact, expensive and easy to sell on the streets for profit, police said. The Street name: "liquid gold."

"Sometimes we get rings that just do alcohol," Lee said. "And then we get some that do just meat and seafood."

Investigators say boosters move the loot for cents on the dollar to fencing operations -- the black market resellers of the stolen goods -- which sell the stolen merchandise in plain sight in stores. Boosters, fencers, Mr. Bigs, all of those involved in these shoplifting operations can potentially make millions a year from boosting and re-selling stolen goods.

Craigslist Crackdown: Cops Go After Thieves Watch Video

And Mike Swett is on the case. A former Riverside County sheriff's deputy in Los Angeles, Swett was badly injured in a car wreck and now works as a full-time private investigator on the ORC beat who has worked with Target, Marshalls, T.J. Maxx. Stores hire him to do his own undercover police work, catching thieves before involving local law enforcement.

"Kind of like working a narcotics case, it's like you've got low-level, mid-level and then top dog," Swett said. "We like to go after the top dog and the only way to get to the top dog is mid-level first."

At his command center -- his apartment -- Swett showed off the boxes upon boxes of tapes and photographs he has collected, the fruits of countless silent stake-out hours.

Swett said he has been casing two joints in L.A. for months, both alleged to be mid-level fencing operations. "Nightline" was invited to ride along with him when he sent undercover agents in for a final reconnaissance mission.

At some stores and shopping malls, clerks do little to stop shoplifters and often let them run, which has contributed to the growing fencing operations.

"[The stores] don't want their employees to get injured," Swett said. "So oftentimes they will call the police, but by the time we get there they are already in their car and they are gone."

This leaves professional investigators like Swett to put the pieces together and bust open the gangs to lead over-stretched police departments to the prey.

When raid day arrived, a motorcade of squad cars departed from the Gardena, Calif., police department and pulled up to one fencing operation. Swett said the merchandise being sold was boosted goods.

"There is Victoria's Secret, expensive Victoria's Secret, the gift sets," he said, pointing down a line of tables. "J.C. Penny, Miramax, its real stuff not counterfeit."

He spotted a bottle of Katy Perry brand perfume, which usually retails for around $90 but one seller had it priced at $59.

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