Monday, June 29, 2015

Puerto Rico governor warns public debt not payable


Puerto Rico's governor believes the U.S. territory will not be able to pay back its $72 billion public debt, a spokesman told the Associated Press late Sunday.
Gov. Alejandro Garcia Padilla's spokesman, Jesus Manuel Ortiz, confirmed that the island's government is seeking to defer payments while negotiating with creditors.
He confirmed comments by Garcia that appeared in a report in The New York Times published late Sunday, less than a day before Garcia is scheduled to deliver a public address amid debate on a $9.8 billion budget that calls for $674 million in cuts and sets aside $1.5 billion to help pay off the debt. The budget has to be approved by Tuesday.
"There is no other option. I would love to have an easier option. This is not politics, this is math," Garcia is quoted as saying in the Times.
The island's debt figure is four times that of Detroit, according to the Washington Post.
Puerto Rico's bonds were popular with U.S. mutual funds because they were tax-free, but hedge funds and distressed-debt buyers have been stepping in to buy up the debt as the island's economy worsened and its credit rating dropped.
Puerto Rico's constitution dictates that the debt has to be paid before any other financial obligation is met. If Garcia seeks to not pay the debt at all, it will require a referendum and a vote on a constitutional amendment, said Rep. Jenniffer Gonzalez, spokeswoman for the main opposition party.
She said in a phone interview that she was taken aback by Garcia's comments, which came out just hours before he was scheduled to meet with legislators.
"I think it's irresponsible," Gonzalez said. "He met privately with The New York Times last week, but he hasn't met with the leaders of this island."
Puerto Rico's central government could run out of cash as soon as July, possibly leading to a government shutdown, according to the Wall Street Journal.
“This is going to be painful for the next two to three years,” said Rep. Pedro Pierluisi, D-Puerto Rico, told the paper. Pierluisi, the Resident Commissioner of Puerto Rico, is the island's non-voting representative to the U.S. House.
Puerto Rico's situation has drawn comparisons to Greece, where the government decreed this weekend that banks would be shuttered for six business days and restrictions imposed on cash withdrawals. The country's five-year financial crisis has sparked questions about its continued membership in the 19-nation shared euro currency and the European Union.
Puerto Rico's governor recently confirmed that he had considered having his government seek permission from the U.S. Congress to declare bankruptcy amid a nearly decade-long economic slump. His administration is currently pushing for the right for Puerto Rico's public agencies to file for bankruptcy under Chapter 9. Neither the agencies nor the island's government can file for bankruptcy under current U.S. rules.
Puerto Rico's public agencies owe a large portion of the debt, with the power company alone owing some $9 billion. The company is facing a restructuring as the government continues to negotiate with creditors as the deadline for a roughly $400 million payment nears.
Garcia has taken several measures to help generate more government revenue, including signing legislation raising the sales tax to 11.5 percent and creating a 4 percent tax on professional services. The sales tax increase goes into effect Wednesday and the new services tax on Oct. 1, to be followed by a transition to a value-added tax by April 1.

Calls grow for probe of Clinton's private server


Calls for Hillary Clinton to allow a third party to examine her private server grew louder Friday following revelations that she had withheld more than a dozen Benghazi-related emails from the State Department.
"Secretary Clinton's failure to turn over all Benghazi and Libya documents is the reason why we have been calling for an independent, third party review of her server," Rep. Lynn Westmoreland, R-Ga., a member of the House Select Committee on Benghazi, told the Washington Examiner.
"Her unusual email arrangement with herself allowed for Secretary Clinton to pick and choose which emails she deemed work related, and now we know that she failed to be honest and forthcoming with those emails to both the Select Committee and the State Department that were subpoenaed," Westmoreland added.
A State Department spokesman said Friday the agency had no plans to launch a probe of Clinton's private server, on which she hosted both her personal and work-related emails.

Police officer, law enforcement praised as escaped killer David Sweat is captured in upstate NY


A New York State police officer was being hailed as a hero Sunday for spotting and shooting escaped prisoner David Sweat, bringing to an end a marathon 22-day manhunt for the cop killer and a fellow inmate.
Sweat, 35, had been on the run since he and Richard Matt broke out of the Clinton Correctional Facility in Dannemora, N.Y., on June 6. The manhunt for the two killers involved 1,200 law enforcement personnel.
Sweat was taken into custody and is in stable condition at Albany Medical Center, authorities said Sunday. Matt was gunned down by police on Friday.
“This was an unprecedented coming together of law enforcement on every level,” New York Gov. Andrew Cuomo told reporters Sunday afternoon.
New York State Police Supt. Joseph D’Amico said Sgt. Jay Cook, a 21-year veteran of the force, first spotted Sweat jogging down a road in the town of Constable Sunday afternoon, about 2 miles from the Canadian border.
Cook, a local troop B member who was on patrol in the area alone, approached Sweat and recognized the convict from his description, Cuomo said.
Sweat then ran away on foot while Cook gave chase. Fearing Sweat could make it to the tree line and disappear into the forest, Cook fired two shots and hit Sweat in the torso, D’Amico said.
Police then took Sweat into custody.
“It was a very courageous act,” Cuomo said at the press conference, which was filled with cheers from the audience.
According to U.S. Sen. Charles Schumer, D-N.Y., federal law enforcement said Sweat was coughing up blood as he was taken to a hospital. Sweat reportedly underwent surgery and was transferred to the state's capital to receive further medical attention.
Albany Medical Center medical director Dr. Dennis McKenna told reporters at a press conference that Sweat was in critical condition as of late Sunday.
“The nightmare is finally over,” Cuomo said. “It took 22 days but we can now confirm…Mr. Matt is deceased and Mr. Sweat is in custody is in stable condition.”
State police had flooded the area Saturday night after developing evidence that Sweat was there.
"I can only assume he was going for the border," D'Amico said.
Sweat, who was unarmed, has not been formally interviewed by investigators as of late Sunday, but any information he provides could be critical to the investigation, Clinton County District Attorney Andrew Wylie said.
An Amish dairy farmer said Sweat was captured on her property near a tree line, just feet from an electrified fence where the cows graze.
Verba Bontrager, 38, who has run her family's farm in Constable for the last nine years, said she was chatting with visitors inside when she heard two gunshots. Her children and a family friend went outside, saw a caravan of police cars and ambulances, and learned from a trooper that Sweat had been captured.
She said her children had been home alone earlier, and even though she knew police were looking for Sweat, she never thought to be worried. Now, she said, they're a little shaken.
"I think it's kind of hard for them to go back to bed and sleep because of everything that went on," Bontrager said. "We're all kind of scared, I guess."
Sweat will be charged with escape, burglary and other charges, Wylie said. The inmates are suspected of breaking into some of the region's many cabins during their time on the lam. Wylie said prosecutors would wait for Sweat to recover before charging him.
"I'm just glad it's over."
- Constable resident Trevor Buchanan
The search for the escaped killers was initially concentrated around the prison and a rural community where search dogs had caught the scent of both men. The search had since been expanded to neighboring counties, and, while authorities said there was no evidence the men had gotten out of the general area, they conceded they could have been almost anywhere.
"It's a little unnerving, him being so close," said Constable resident Trevor Buchanan. "I'm just glad it's over."
 D'Amico said the men may have used black pepper to mask their trail; he said Sweat's DNA was recovered from pepper shakers found at one camp where the fugitives may have spent time.
"We did have difficulty tracking so, you know, it was fairly effective in that respect," D'Amico said.
On Friday, Matt, 49, was killed by a border patrol agent near the town of Malone.
An autopsy showed Matt had been shot three times in the head, state police said Sunday.  Officials say Matt also had bug bites on his legs, blisters and minor abrasions that would be expected for someone who had been living in the woods.
Matt smelled of alcohol after a border patrol agent killed him Friday, the Buffalo News reported. He was also sick, possibly after consuming spoiled food or bad water, a law enforcement source told the paper.
The indication Matt was ill came after searchers found soiled underwear at a burglarized cabin Wednesday, the Buffalo News reported.
A DNA test showed the underwear belonged to Matt, the paper said.
The paper also reported that based on his clothes and appearance, it looked like Matt had not bathed in a long time and had spent a great deal of time on the lam in the outdoors.
Authorities said Matt was shot by a border patrol agent when he failed to comply with orders to show his hands. A 20-gauge shotgun was found on Matt, though he didn’t fire it at officers, authorities said.
"They verbally challenged him, told him to put up his hands. And at that time, he was shot when he didn't comply," D'Amico said at a news conference late Friday.
The breakthrough came Friday shortly before 2 p.m., when a person towing a camper head a loud sound and thought a tire had blown out. Finding the tire intact, the driver drove another eight miles before discovering a bullet hole.
Authorities converged on the location where the sound was heard and discovered the smell of gunfire inside a cabin. D’Amico said there was also evidence someone had fled out the back door.
A noise -- perhaps a cough -- ultimately did Matt in. A border patrol team discovered Matt, who was shot after failing to heed a command to raise his hands.
"As we were doing the ground search in the area, there was movement detected by officers on the ground, what they believed to be coughs. So they knew that they were dealing with humans as opposed to wildlife," he said.
"We have a lot of people in the area. We have canines and we have a decent perimeter set up and we're searching for Sweat at this time," he said.
Mitch Johnson said one of his best friends checked on his hunting cabin in Malone Friday afternoon and called police after noticing the scent of grape flavored gin as soon as he stepped into his cabin and spotting the bottle that had gone untouched for years resting on a kitchen table.
Johnson said his friend, correction officer Bob Willett, told him he summoned police about an hour before Matt was fatally shot and then heard a flurry of gun blasts.
Sweat was serving a sentence of life without parole in the killing of a sheriff's deputy in Broome County in 2002. Matt was serving 25 years to life for the killing and dismembering of his former boss.
Matt and Sweat used power tools to saw through a steel cell wall and several steel steam pipes, bashed a hole through a 2-foot-thick brick wall, squirmed through pipes and emerged from a manhole outside the Clinton Correctional Facility.
A civilian worker at the prison, Joyce Mitchell, has been charged with helping the killers flee by giving them hacksaw blades, chisels and other tools. She has pleaded not guilty.
On June 24, authorities charged Clinton correction officer Gene Palmer with promoting prison contraband, tampering with physical evidence and official misconduct. Officials said he gave the two prisoners the frozen hamburger meat Joyce Mitchell had used to hide the tools she smuggled to Sweat and Matt. Palmer's attorney said he had no knowledge that the meat contained hacksaw blades, a bit and a screwdriver.

Sunday, June 28, 2015

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Christie goes live with presidential campaign site


Republican Chris Christie's political team has gone live with a presidential campaign website days before he jumps into the 2016 race.
The new website -- www.chrischristie.com -- shows the New Jersey governor's name along with the slogan, "Telling it like it is."
Christie also is promoting the site with a short animated video posted on his Twitter feed. The site says it's paid for Chris Christie for President, Inc.
Christie has a "special announcement event" set for Tuesday in the gym of Livingston High School, from which he graduated in 1980. Donors and friends have gotten invitations, and Christie's team has invited reporters to attend.
After his announcement, Christie plans to go to New Hampshire for a town hall meeting.
The crowded GOP field already has 13 candidates.

Newspaper faces firestorm after attempted crack-down on anti-gay marriage op-eds


A Pennsylvania newspaper is facing a firestorm of criticism after the editorial board said it would "very strictly limit" op-eds and letters against same-sex marriage on the heels of Friday's historic Supreme Court ruling.
PennLive/The Patriot-News in Harrisburg has issued a string of statements on its opinion page policies since the ruling -- which legalized gay marriage nationwide -- and by Saturday morning, appeared to have softened its op-ed restrictions on the subject.
But the newspaper initially took a hard-line stance. Editorial Page Editor John Micek tweeted shortly after the ruling that the newspaper would "no longer accept" or print op-eds and letters to the editor in opposition to same-sex marriage.
He then tweeted:
The editorial board then began to dial back, in the face of apparent criticism from readers.
A newspaper editorial published online was updated Friday afternoon to clarify the board's op-ed policy. In the editorial, which cheered the decision and said majority opinion author Justice Anthony Kennedy "nailed it," the board issued the following statement:
"As a result of Friday's ruling, PennLive/The Patriot-News will very strictly limit op-Eds and letters to the editor in opposition to same-sex marriage.
"These unions are now the law of the land. And we will not publish such letters and op-Eds any more than we would publish those that are racist, sexist or anti-Semitic.
"We will, however, for a limited time, accept letters and op-Eds on the high court's decision and its legal merits."
Micek also tweeted:
This apparently did not satisfy readers, who posted a cascade of critical comments online. One read: "Clearly, PennLive's policy is not to limit criticism of settled law, but rather to limit criticism of settled law that its editors like."
Saying he had been inundated with critical emails and phone calls, Micek then apologized in a column on Saturday morning -- saying they had made a "very genuine attempt at fostering a civil discussion" but recognize that "there are people of good conscience and of goodwill who will disagree with Friday's high court ruling."
He wrote: "They are, and always will be, welcome in these pages, along with all others of goodwill, who seek to have an intelligent and reasoned debate on the issues of the day. These pages, I remind myself finally, belong to the people of Central Pennsylvania. I'm a conduit, I recognize, for them to share their views and to have the arguments that make us better as a people. And all views are -- and always will be -- welcome."
Micek stressed that nobody at the newspaper is an opponent of the First Amendment. But he stressed that a civil debate is important, and the opinion page would draw the line when it comes to offensive speech.
"More than once yesterday I was referred to as 'f****t-lover,' among other slurs," he wrote. "And that's the point that I was trying to make with our statement: We will not publish such slurs any more than we would publish racist, sexist or anti-Semitic speech. There are ways to intelligently discuss an issue. The use of playground insults is not among them. And they are not welcome at PennLive/The Patriot-News."

Webb close to 2016 decision, insiders say Clinton camp helped delay launch


Jim Webb was supposed to declare he was running for president Friday night. At least that's what the prevailing belief was inside his campaign.
Webb was scheduled to be the keynote speaker at the Clinton County Democratic Hall Of Fame dinner in Clinton, Iowa. While the timing was bad (Friday night, where news goes to die), insiders said Webb thought it would be a good place to drop the hammer on a presidential run.
Enter the Clinton campaign, which Webb confidantes grumble has been sandbagging them at every turn. They convinced the Clinton County Democratic Party to add Minnesota Sen. Amy Klobuchar to the speakers roster. The intention was for her to give a spirited sales pitch for Hillary at the very same place and time Webb would launch his campaign.
For Webb, insiders say, that, plus the fact that a Friday night launch could have gotten lost in the news cycle, was enough to convince him to delay the announcement.
Until when, only Webb knows.
Fox News caught up with Webb before the dinner, after a three-hour drive from Chicago which he described as "long." He wasn't giving up anything on the Clinton campaign stealing his thunder. To do so would be to admit there was thunder in the first place, which candidates are loath to do until the words "I'm running for president" actually come out of their mouth. But he did allow that he is getting close to pulling the trigger.
"We're pretty close to being done ... that's the best thing I can say, really," Webb said.
It was typical understatement from a guy who plays his cards so close to the vest that even his closest advisers are left to do a lot of tea-leaf reading. But Webb himself has said he would make a decision sometime around the end of June, so "close to being done" could be read as "imminent."
And it became clear Friday night that Webb's campaign will be one of 'themes' and not specific policy proposals. Go to the "issues" section of his website and one can find his positions on the complex problems facing the nation summed up in a single paragraph.
Ask him about specifics on, for example, what he would do to grow the economy and he begins to bristle.
"I don't think that the issue right now for me is to bring in some sort of a specific set of numbers that I would pull out of the air," Webb told Fox News. "The issue is to lay down the themes that we would govern on and then to bring good people in."
That's the Webb formula -- one he employed successfully as a senator from Virginia. Take a problem, gather together the brightest minds you can find, examine it from every angle, then chart a course to fix it. It doesn't fit into a convenient sound bite, nor does it give the level of detail that politically savvy voters in Iowa and New Hampshire want to chew over. But it is classic Webb style.
"The most important thing a leader can do is to reach out and get good people -- the best minds in the country to come together and figure out solutions -- to give a vision of where you want the country to go," Webb told Fox News.
Webb has a reputation for meticulously thinking through every issue with the perseverance of an academic before rendering an opinion -- as he did earlier this week with a Facebook posting about the Confederate flag. Webb decreed that the issue was "complicated" and that any discussion about the flag needed to recognize that the majority of soldiers who fought for the South did not own slaves and that the nation needs "to respect good people who fought on both sides."
Many of Webb's most ardent fans saw it as a defense of a flag that has come to symbolize racism and vigorously disagreed with him.
"The Confederate battle flag was a battle flag," Webb told Fox News. "It was misused particularly during the civil rights era as a racist and political symbol.  And I am fine with it coming down from public fora. At the same time, let's remember our history and let's not turn the acts of people who fought on either side in the Civil War into something they were not."
The nuance Webb expresses is a departure for most presidential candidates who speak in short, declarative sentences. Between his thought processes and his background in the military, politics and private sector, he has been described as a person who has the potential to be 'the most interesting candidate in the race.' Certainly, voters who spend time with him come away with a favorable opinion. But the big question -- can Webb take on the juggernaut that is the Hillary Clinton campaign?
Webb is confident.
"If I didn't think it was possible, I would not do it," Webb told Fox News.
Webb points to his Senate race, when he beat incumbent George Allen in Virginia. Webb was 33 points behind nine months before the race and managed to win. Of course, it helped that Allen imploded over his now-infamous "macaca" comments.
Can lightning strike twice? Could Hillary falter? Talk to Democratic voters in Iowa and many will tell you they are open to an alternative.
"We don't do coronations here, we do discussions," said Dr. Andy McGuire, chairwoman of the Iowa Democratic Party.
Even if Webb has no chance to become the nominee, his entry into the race would certainly add new energy to the debate, though voters may be hungry for a little more detail than Webb is presently willing to provide.

Surviving escaped prisoner likely fatigued and prone to mistakes, police say


Police searching for the second of two escaped prisoners who pulled off an elaborate breakout from a maximum-security New York prison three weeks ago say that the remaining escapee is fatigued and likely to make a mistake after law enforcement officers shot and killed his accomplice Friday.
Hundreds of law enforcement officers have converged on a wooded area 30 miles from the Clinton Correctional Facility with helicopters and search dogs, where David Sweat is believed to be hiding. Sweat and fellow escapee Richard Matt escaped from the maximum-security prison in Dannemora about three weeks ago.
Matt was shot Friday afternoon after an encounter with border patrol agents.
About 1,200 searchers focused intensely on 22 square miles Saturday encompassing thick forests and heavy brush around where Matt was killed.
Franklin County Sheriff Kevin Mulverhill told Fox News that police are very motivated after Friday's events, while Sweat is likely fatigued, increasing the chances he will slip up.
"He's been out of prison for three weeks. He's been on the run for three weeks," Mulverhill said. "He's in this area, he's now lost his cellmate, his escapemate is gone, he's alone."
"If he's in this perimeter, we're pushing him we're moving him around," Mulverhill said.  He's tired, he's going to make a mistake."
Sweat also could have an even tougher time now without someone to take turns resting with and watch his back, said Clinton County Sheriff David Favro.
"Now it's a one-man show and it makes it more difficult for him," Favro said. "And I'm sure fatigue is setting in for him as well, knowing the guy he was with has already been shot."
Authorities said Matt was shot by a border patrol agent when he failed to comply with orders in the woods near a cabin where a shot had been fired earlier in the day at a camping trailer. A 20-gauge shotgun was found on Matt, though he didn’t fire it at officers, authorities said.
"They verbally challenged him, told him to put up his hands. And at that time, he was shot when he didn't comply," New York State Police Superintendent Joseph D'Amico said at a news conference late Friday.
The breakthrough came Friday shortly before 2 p.m., when a person towing a camper head a loud sound and thought a tire had blown out. Finding the tire intact, the driver drove another eight miles before discovering a bullet hole.
Authorities converged on the location where the sound was heard and discovered the smell of gunfire inside a cabin. D’Amico said there was also evidence someone had fled out the back door.
A noise -- perhaps a cough -- ultimately did Matt in. A border patrol team discovered Matt, who was shot after failing to heed a command to raise his hands.
"As we were doing the ground search in the area, there was movement detected by officers on the ground, what they believed to be coughs. So they knew that they were dealing with humans as opposed to wildlife," he said.
"We have a lot of people in the area. We have canines and we have a decent perimeter set up and we're searching for Sweat at this time," he said.
The pair escaped the prison together on June 6. Gov. Andrew Cuomo called them “dangerous, dangerous men.”
Police blocked off all roads as officers hunted for Sweat in an area around Titusville Mountain State Forest in Malone, spanning 22 square miles.
Mitch Johnson said one of his best friends checked on his hunting cabin in Malone Friday afternoon and called police after noticing the scent of grape flavored gin as soon as he stepped into his cabin and spotting the bottle that had gone untouched for years resting on a kitchen table.
Johnson said his friend, correction officer Bob Willett, told him he summoned police about an hour before Matt was fatally shot and then heard a flurry of gun blasts.
Matt and Sweat used power tools to saw through a steel cell wall and several steel steam pipes, bashed a hole through a 2-foot-thick brick wall, and squirmed through pipes to escape.
Sweat was serving a sentence of life without parole in the killing of a sheriff's deputy in Broome County in 2002. Matt was serving 25 years to life for the killing and dismembering of his former boss.
A civilian worker at the prison has been charged with helping the killers flee by giving them hacksaw blades, chisels and other tools.
Prosecutors said Joyce Mitchell, a prison tailoring shop instructor who got close to the men while working with them, had agreed to be their getaway driver but backed out because she felt guilty for participating. Mitchell pleaded not guilty June 15 to charges including felony promoting prison contraband.
Authorities said the men had filled their beds in their adjacent cells with clothes to make it appear they were sleeping when guards made overnight rounds. On a cut steam pipe, the prisoners left a taunting note containing a crude caricature of an Asian face and the words "Have a nice day."
Clinton County District Attorney Andrew Wylie said they apparently used tools stored by prison contractors, taking care to return them to their toolboxes after each night's work.
On June 24, authorities charged Clinton correction officer Gene Palmer with promoting prison contraband, tampering with physical evidence and official misconduct. Officials said he gave the two prisoners the frozen hamburger meat Joyce Mitchell had used to hide the tools she smuggled to Sweat and Matt. Palmer's attorney said he had no knowledge that the meat contained hacksaw blades, a bit and a screwdriver.
Dannemora, built in 1845, occupies just over 1 square mile within the northern reaches of the Adirondack Forest Preserve and is surrounded by forest and farmland. The stark white perimeter wall of the prison, topped with guard towers, borders a main street in the village's business district.
The escape was the first in history from Clinton Correctional's maximum-security portion. In July 2003, two convicted murderers used tools from a carpentry shop at Elmira Correctional Facility to dig a hole in the roof of their cell and a rope of bedsheets to go over the wall. They were captured within three days, and a subsequent state investigation cited lax inmate supervision, poor tool control and incomplete cell searches.

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