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  • UBS: A Stronger Yuan Will Supercharge Chinese Buying Demand For Gold

    china gold bar

    The vast majority of analysts these days expect some sort of yuan revaluation this year, with many thinking it could come by the end fo June.

    UBS points out two reasons why a yuan revaluation would be great news for Chinese gold-buying demand:

    Bloomberg:

    “First and foremost gold will become cheaper in yuan terms and this should stoke additional interest in the yellow metal,” Edel Tully, London-based analyst of the bank, wrote in a report. “And if the yuan revaluation is interpreted as a signal of government confirmation that inflation is indeed a problem, this would likely boost gold’s appeal.”

    Chinese gold demand doubled over the last ten years. Bulls will say that reasons such as the above are why it can double again over the next ten.

    Join the conversation about this story »

  • NWEN “First Look” Forum Tells Story of Software Vs. Medical Startups: Online Travel Is the Winner

    NWEN
    Gregory T. Huang wrote:

    Variety was the theme of the Northwest Entrepreneur Network’s First Look Forum yesterday at the Arctic Club Hotel, a venerable establishment in downtown Seattle. There were 11 startup companies with a wide array of ideas, each giving a five-minute pitch to an eclectic audience that included investors, entrepreneurship coaches, media, and sponsors. The startups were there to compete for a chance to win some cool prizes, and of course, score new investments. The “first look” aspect means none had presented previously to investors or venture capital groups—this is the brainchild of NWEN executive director Rebecca Lovell.

    One interesting point: the initial group of companies represented much more than just software and tech. The bunch covered medical devices, techniques for combating everything from obesity to tooth decay to slow and messy colonoscopies, and applications over industries ranging from online travel to trucking to pet care. Only three of the 11 startups in the backyard of Microsoft were software companies.

    But in the end, the five finalists—selected by audience voting—consisted of those three software startups plus two hardware/materials tech companies (though one of those has a biomedical application). Any of these certainly could make a promising business, but it’s also possible that the investors and other voters in the room were just more comfortable with tech than life sciences or medical companies. Or maybe it’s just that tech startups tend to require smaller amounts of startup capital that can lead to higher potential returns.

    Here are my initial impressions and super-short summaries of what each of the 11 Northwest companies presented (plus more details on the finalists and winner below):

    Biomoles
    Developer of higher quality and purity techniques for doing DNA purification for automated DNA processing and life sciences applications.

    Crux Medical Innovations
    Producer of a special biopsy device that makes procedures like colonoscopies (done 20 million times a year in the U.S. to detect colon cancer) faster and more efficient.

    Darwin’s Natural Pet Products
    A six-year-old company that makes and delivers fresh, healthy frozen meals for cats and dogs; it has more than 1,500 customers, mostly in the Seattle area, and wants to go national.

    DragGone Aerodynamics
    Maker of add-ons to trucks that reduce fuel consumption by improving aerodynamics.

    Empowering Engineering Technologies
    Three-year-old company developing an elastic tendon-like medical device that helps people with gait disabilities walk; the orthopedic technology comes Cleveland Clinic and is currently being tested in patients. (This company is also presenting Wednesday at the inaugural meeting of Wings, the Northwest’s new medical device angel network, as Luke reported yesterday.)

    HealthyLogics
    A startup developing “biofeedback” utensils, like a special fork that measures how fast …Next Page »

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  • Nokia Acquires Metacarta, Massachusetts Taps EnerNOC and FloDesign, MedVentive Gets Backing from Clarian Health, & More Boston-Area Deals News

    Erin Kutz wrote:

    After a slower flow of high-tech transactions last week, dealmaking was back with a bang this week. Companies in industries from energy to e-commerce to life sciences scored early venture rounds, partnership deals, and state contracts.

    —Gemvara, an e-commerce site for jewelry customizations, announced it raised $5.2 million in Series B money, bringing the Lexington, MA-based company’s total financing to $11 million since its founding. Return investors Highland Capital Partners and Canaan Partners led the round, which comes as the company searches for a new CEO.

    FloDesign Wind Turbine, of Wilbraham, MA, will get $3 million from the Massachusetts Clean Energy Center, as it plans to expand with a new headquarters and product development center in Waltham, MA, which should add about 150 jobs in the state over three years. FloDesign, which is developing wind turbines with jet engine-like technology, will keep its Wilbraham location as an aerodynamics research center.

    —MedVentive, a Waltham-based electronic medical data software firm, revealed the investors behind its $10 million Series C round. Boston’s HLM Venture Partners and Excel Venture Management led the financing, which included Long River Ventures, as well as new investors Core Capital Partners and Clarian Health Ventures, the venture arm of one of MedVentive’s big customers. Clarian Quality Partners, the physician network of the Indianapolis-based healthcare provider, uses MedVentive’s technology to analyze the quality of doctor care.

    —Cambridge, MA-based Metacarta, a maker of software for searching digital text on places, names, and addresses, was acquired by Finland’s mobile hardware giant Nokia. Financial terms weren’t disclosed. Nokia plans to use Metacarta’s technology for in-location local searches and other services, according to a statement.

    Newton, MA’s MedMinder Systems, a company that makes Internet-connected pillboxes for tracking patients’ prescription adherence, raised $1.3 million from 11 individual investors. MedMinder is part of a crop of Boston-area companies using IT to get patients to take their meds, including Cambridge-based Vitality, a maker of smart pillcaps.

    —The state of Massachusetts was active in this week’s deals list. It announced it had awarded a contract to Boston-based EnerNOC (NASDAQ: ENOC) as part of a $10 million project to target energy inefficiencies in state facilities. The program will …Next Page »










  • Twitter’s One Real Problem. No Not Developers!

    Photo of Twitter co-founder & CEO Ev Williams by Randy Stewart via Flickr.

    A few days back, I stopped by at the brand-new Palo Alto, Calif. offices of Facebook. It is a gigantic open space, with desks lined up next to each other as far as the eye could see. Interiors can provide an apt backdrop for an IKEA catalog. Big screens, Macs and PCs and engineers with headphones tap-tapping on their keyboards. To a Silicon Valley long-timer like myself, in the words of The New York Yankees legend Yogi Berra, it was like déjà vu all-over again.

    You walk around their office and as an outsider you suddenly feel less smart as you feel brain waves bouncing off you. A quick chat about engagement advertising, conversation about super-sized data centers and 30-minute gab minute gab session about the future of activity streams – all this at arms length. Add suits to this mix and you are looking at a fearsome combination of brains and business. So, when I walked into a meeting with Facebook COO Sheryl Sandberg. “This feels like an old-fashioned technology company,” I said. “Congratulations!” It is old fashioned in its invention of the future.

    By now you must be wondering — what has this got to do with Twitter and its problems?  How about — everything!

    Why? Because the future of these two companies are intertwined! They are the Kane & Abel of our new pulsating two-way, near real-time Internet. Together, they dominate the zeitgeist. They are the future of communications and interactions. They already have a large portion of our Internet attention. To put it simply, they are competing for essentially what is the next evolution of the Internet: The People Web.

    If Facebook’s vision of the Internet is about an Internet connected to Facebook’s brain via hooks, then San Francisco-based Twitter is the anti-Facebook. Mark Zuckerberg and his troops are marching like an all-conquering Roman Army that will soon enough cross the billion-dollar (in revenues) threshold. And they control their own destiny.

    In comparison, Twitter at present feels like a benign United Nations Force. Forget the obvious metrics such as subscribers (where Facebook has a big lead over Twitter), what I am talking about are the two companies and where they are in their corporate lifecycles. Twitter, despite its recent growth spurt, is still a pre-pubescent. The introduction of a somewhat ambiguous and tenuous business model based on an ideal called “resonance” shows how much work is ahead of Twitter.

    Back to the Future

    In order to understand the steep road ahead, one has to go back to the earliest days of Twitter and see how it has transformed since its launch on a fateful night in 2006. Over the past three years or so, I’ve watched it go through three phases:

    Phase One: Twitter was initially a messaging service with its primary role being connecting distributed group of friends via SMS and the Web. It used the SMS clients of the cellphone and that was it. It later launched a web version of the service.

    Phase Two: Twitter, when it released an API, became a platform that in turn spawned hundreds of applications that used the API, which led to several millions of dollars being invested in Twitter ecosystem, betting that Twitter would eventually become the platform of the new social web. (Read: Social Atoms and the Twitter Ecosystem)

    Phase Three: Twitter is trying to be a product and then a platform. In the process of doing so, the company is “filling holes” in its current offering, as described by one of Twitter’s early backers, VC Fred Wilson. The acquisition of Tweetie was merely the start of phase three. (For a common sense explanation, check out this comment by a GigaOM reader.)

    While Twitter’s actions might have raised the ire of third party developers, leading to furious handwringing, the company is doing what it needs to do: justify its $1 billion valuation and figure out a way to become a business that can be sold — either to a corporate buyer or someday to public market investors. That is why I don’t really fault Twitter trying to be a product in addition to being a platform. Now here is where things get interesting.

    So far, by not focusing on being a product and instead being a platform of the People Web, Twitter was viewed as a company that would help weave a social fabric across the web by providing a social graph and an identity system. The developers then could dream up fancy products that would attract more people to the Twitter fabric. However, reality often comes in the way of utopia.

    Twitter needs to build a “product” in order to make money. Sure one way to make some quick dollars is to sell its data stream to Microsoft and Google, but to me that’s like selling the mining rights to a gold mine instead of panning for gold yourself. Instead, the company has to fill-the-holes.

    Herein lies the rub – the company will need time to build (or cobble together) this product, figure out a way to generate revenues and at the same time build and scale a massive infrastructure that would support Twitter and its ecosystem. And that is precisely Twitter’s weakness.

    Fear of a Facebook Planet

    On the flipside, Facebook is moving in the exact opposite direction. It already has a product: Facebook.com. It is making hundreds of millions of dollars from it. It has a platform, but that wasn’t good enough, so it is going to introduce a new, vastly improved one at its upcoming F8 conference in San Francisco, later this month.  In a conversation earlier this year, Facebook’s platform engineering chief, Mike Vernal told us that Facebook.com was nothing more than “info aggregation with a great photos app.”

    Using the open graph API, Facebook wants to turn any plain website say, CNN, into a Facebook page, giving it the ability to collect fans, publish stories to their Facebook stream, and appear in the social networking site’s search results. (Read: Why Facebook Connect Matters and Why it Will Win.)

    Liz put it best when she summed up our visit to Facebook,  “Though Facebook fan pages on the surface seem like a response to Twitter — allowing celebrities to collect fans who are not actually their real-world friends — they’re bigger than that. Facebook has trained 350 million users to publicly post-personal endorsements. In other words, it has an army of volunteers ready to organize the web on its behalf.” Now you can also understand why Facebook is building its data centers, buying thousands of servers, spending millions of dollars on developing a massive software library.

    Facebook.com (or Facebook Mobile) allows the company to make money. Facebook Connect is the platform (read tentacles) that makes it possible for Facebook to collect data from across the web, organize it for the people web and in the process make more money.

    What is to Chirp About?

    Tomorrow, Twitter is going to host its first developer conference, Chirp. I am going to be very interested in knowing how they are thinking about the future and how quickly they are going to rev-up their machine. The good news is that they have some great people who have built awesome products in the past — Dick Costolo (COO) and UX expert Doug Bowman are amongst the most well known apart from the co-founders Ev Williams and Biz Stone — especially on their engineering team.

    Nevertheless, what Twitter says or doesn’t say will in many ways define the outcome of this great (web) game. Zuck’s Army is on the move. Twitter is still assembling its troops. Whichever way you look at it — that is truly Twitter’s real big problem!

    Photo of Twitter co-founder & CEO Ev Williams by Randy Stewart via Flickr. (CC)

  • Alice on the iPad: Is This the Future of Books?

    I don’t have an iPad, but watching this amazing video (embedded below) demonstrating the Alice in Wonderland app made me want to run out and get one — and if I had a young child, it would make me want to get one even faster. I know that many people believe reading should be a quiet and relaxing activity, and that there’s nothing quite like communing with the pages of a well-read classic, but this video makes reading “Alice in Wonderland” look like…well, it looks like a lot of fun. And I have a feeling if Charles Lutwidge Dodson (i.e., Lewis Carroll) could see his story represented like this, he would probably think it was kind of fun as well.

    The app comes from Atomic Antelope, which makes iPhone apps, including one called Bauble that lets you turn your iPhone into the world’s most expensive Christmas card. The Alice app brings an interactive element to the pages of this children’s classic, with features that are based on the original illustrations and allow readers to stretch Alice’s body when she comes to the table with the “Drink Me” bottle, to throw tarts at the Queen of Hearts and watch them bounce off her, and to rock the baby that turns into a pig. The app costs $8.99, although there’s also a free “lite” version. Chris Stevens, one half of Atomic Antelope, wrote about creating the app here.

    So is this the future of e-books — every book its own app? It’s certainly a great example of the kind of full-color and interactivity and motion (using the accelerometer) that isn’t possible on other e-readers. These kinds of apps could certainly help the tablet app market hit the $8 billion-mark that GigaOM Pro analyst Mike Wolf forecast it would in a recent report on the sector (sub req’d). It’s also a sign of the creativity that traditional publishers seem to lack, as they try to maintain their traditional stranglehold on book prices in the online world, as Paul Sweeting detailed in this recent GigaOM Pro analysis. Now I’m trying to imagine what a Dr. Seuss book would look like as an iPad app.

  • Mow Safe, Keep Kids Safe

    Bloomington Hospital urges lawn mower safety

    Bloomington, Ind. (April 14, 2010) – It’s springtime in Indiana and that means Hoosiers are eager to get outside, enjoy the warmer weather and work in their yards. The change in seasons however poses an inevitable risk to children working or playing outside.

    “Every year, we see children admitted to the hospital due to carelessness when operating lawn equipment,” says Dana Watters, RN, executive director of Bloomington Hospital’s Regional Center for Women & Children. “Many of these injuries are crippling and yet, preventable.”

    Indiana children are not alone. According to the American Academy of Pediatrics, each year approximately 9,000 children under the age of 18 are injured by power lawn mowers nationwide.

    Bloomington Hospital wants the public to be aware. Common lawn mower injuries can include:

    • Amputation of body parts (fingers, toes, arms or legs)
    • Deep cuts, damaging skin, muscle and bone
    • Fractures of hand, feet, arms or legs
    • Head, facial and eye injuries
    • Burns from hot mower parts

    “Adults and children need to exercise caution and common sense when operating any type of machinery, especially lawn mowers. Good advice is to expect the unexpected and keep children under the age of 12 away from lawn mowers and the mowing area,” adds Watters.

    To help prevent injury or even death, Bloomington Hospital recommends the following:

    • Never allow a child under the age of 12 to operate a push or riding lawn mower, or a tractor pulling a brush mower.
    • Never allow a child to ride on the lap of the driver, on the seat, on the fender or on the housing of a riding mower or a tractor pulling a brush mower.
    • Read the operator’s manual for the mower – particularly any safety precautions.
    • Never leave a power mower unattended while the engine is running.
    • Protect against flying objects by keeping children more than 50 feet (15 meters) away from the operating mower.
    • NEVER allow a child in the yard of a riding lawn mower. Too often, a mower can inadvertently back-over and maim a child in the yard.

    ###

    About Bloomington Hospital
    Bloomington Hospital, a Clarian Health Partner, has been innovative in providing quality care to south central Indiana communities for more than a century. Offering a comprehensive continuum of care, Bloomington Hospital is a not-for-profit organization and has a patient base of 413,000 in 10 counties (Brown, Daviess, Greene, Jackson, Lawrence, Martin, Monroe, Orange, Owen and Washington). Bloomington Hospital currently operates two hospital campuses (Bloomington and Orange County) with regional specialty offerings for Heart and Vascular, Behavioral Health, Cancer, Women and Children, Neurology and Orthopedic services.  As a leading hospital in Indiana, Bloomington Hospital enhances health by advancing the art and science of medicine through the use of new technologies, procedures and care.

  • Exalead keeps tabs on Sarkozy

    Politics aside, I’ve always enjoyed watching the occasional French president’s speech on television. Where U.S. presidents act, well, presidential, and the Queen will be regal, a French head of state is much more expansive. And nowadays, we can also compare another style: on-line presence

  • Top 10 YouTube Videos About Twitter

    youtube_logo.jpgOur choices for the 10 best Twitter Videos focus on not just number of views, but on videos that help explain how Twitter has changed our culture. From the most popular video about why a group of Teenage girls quit Twitter, to an instructional video about how to you use Twitter, to cartoons, to downright Twitterholics, the culture that is Twitter has been explained in many ways.

    Another common theme in these videos is introducing non-Twitters users to the Twittosphere. David Lettermen makes great fun of the all too common question, “What is Twitter?” Twitter in HD, featuring Marina Orlova from HotForWords, covers the early days, as well as the creators of Twitter. If you’d like to know more about ReadWriteWeb follow us on Twitter @rww.

    Sponsor

    1. Good-bye Twitter

    2. 9,557,497 views

    3. SuperNews!: Twouble with Twitters

    4. 2,154,303 views

    5. Twitter Tease

    6. 2,058,469 views

    7. Twitter in Plain English

    8. 1,705,701 views

    9. Twitter in HD

    10. 501,227 views

    11. Twitter Ruined My Life!

    12. 487,139 views

    13. Let Me Twitter Dat

    14. 477,318 views

    15. Letterman – Kevin Spacey Tweets with Dave

    16. 369,862 views

    17. The Twitter Song (Do the Twitter Dance) by Chris Thompson

    18. 364,709 views

    19. SuperNews!: Celebrity Twitter Overkill

    20. 198,692 views

    Discuss


  • Art: the Pleistocene made us do it

    Komar and Melamid, Most Wanted Painting, United States

    Mr. Scatter apologizes for his recent silence. He’s been a little scattered.

    One of the things he’s been doing is reading The Art Instinct: Beauty, Pleasure, and Human Evolution, by Denis Dutton, the philosopher of art who is also founder and editor of the invaluable Web site Arts & Letters Daily.

    Denis Dutton, The Art InstinctThe Art Instinct talks a lot about the evolutionary bases of the urge to make art: the biological hard-wiring, if you will. Dutton likes to take his readers back to the Pleistocene era, when the combination of natural selection and the more “designed” selection of socialization, or “human self-domestication,” was creating the ways we still think and feel. To oversimplify grossly, he takes us to that place where short-term survival (the ability to hunt; a prudent fear of snakes) meets long-term survival (the choosing of sexual mates on the basis of desirable personal traits including “intelligence, industriousness, courage, imagination, eloquence”). Somewhere in there, peacock plumage enters into the equation.

    There’s a lot to like and a little to argue about in this book, which comes down squarely on the biologically determined as opposed to the culturally determined side of the art-theory fence. Mr. Scatter is an agnostic on this subject, although he leans slightly toward the Darwinian explanation, if for no better reason than that he finds Barthes, Derrida, Foucault and their academic acolytes a bit fatiguing, and he sees no reason why we should consider the analysts of art more important than the artists themselves. Mr. Scatter says this despite his own penchant for analyzing stuff. Besides, The Art Instinct uses a lot of anthropological evidence in support of its argument, and long ago Mr. Scatter was actually awarded (he hesitates to say “earned”) a university degree in sociology and anthropology, although he usually just says “anthro” because that’s the part that seems to have stuck with him in his later adventures in life.

    One of Mr. Dutton’s most entertaining passages comes in his first chapter, when he examines the infamous America’s Most Wanted, the 1993 painting by Vitaly Komar and Alexander Melamid. You probably recall it. It’s a sort of “paint-by-survey” artwork, created after polling lots of people on what subject matter they liked most and least in their art. (The Russian expatriates created versions for several nationalities.)

    As it turns out, most people want comforting pictures of natural surroundings, and Komar and Melamid’s project, which seems to have purposely wired its survey questions to get specific sorts of answers, makes great sport of that. It was seized upon by experimentalists and academics alike as proof of the cultural cretinism of the common person, who lacks creative imagination and is no doubt a dullard in most other ways, to boot. The most prominent feature of America’s Most Wanted, it could be argued, is the long nose down which it looks.

    Dutton proposes another, far more fascinating, way to look at the Most Wanted series of paintings. Never mind how George Washington got at the center of the action: The key is the terrain, which seems like something vaguely out of the Hudson River School. More precisely (or ancestrally), Dutton argues, the ideal human landscape, “what human beings would find intrinsically pleasurable,” is from our common genetic recollection of East Africa. Quoting Gordon H. Orians from his 1992 essay with Judith H. Heerwagen, Evolved Responses to Landscapes, published in the book The Adapted Mind: Evolutionary Psychology and the Generation of Culture, Dutton describes an emotional “home base” landscape of open spaces with low grasses, water either directly in view or nearby, an opening that offers a view of the horizon, animal and bird life, and a lushness of flowers, fruit plants and greenery. In other words: precisely the sort of place that our forebears found fortifiable and capable of providing a good life. A garden, if not precisely Eden.

    Is this lowbrow, or unsophisticated, or sentimental? Or is it simply the way we’re wired? Is it, in fact, an extremely sophisticated emotional connection to the defining physical factors of our beginnings as a social species? When Dutton calls it the art “instinct,” he isn’t kidding, although he takes pains to stress that there is no single source, no “art gene,” that can be isolated: It’s a combination of many evolutionary factors, some more direct than others. We are all out of Africa, we are all out of the Pleistocene, and we all have an inbred stake in this thing called art.

    Maybe we don’t know much about it, and maybe even our lords of culture know far less about it than they think. But if we can believe Komar and Melamid, at least we all know what we like. It’s in our blood.

    *

    ILLUSTRATION: “America’s Most Wanted,” by Komar and Melamid.

  • Still Worried About the Great Correction?

    When will the de-leveraging bust resume?

    When we stop worrying about it.

    This afternoon, we realized that deep down, our feelings had changed: we had stopped worrying about a resumption of the bear market.

    Not that we’ve stopped thinking about it. We think about it every day. And we’re sure it’s coming. But we have stopped worrying. No matter what we think, we feel that somehow this will work out okay…we’ll be all right. We’ll stumble along…

    Thinking and worrying are two very different things.

    Thinking is purely superficial. It’s the worrying that counts. When you’re worried about a financial crisis, you sell out your risky positions and hunker down with cash. When you’re not worried, you’re happy to float along… You’ll change course when the danger becomes more imminent, you tell yourself.

    But don’t forget:

    This is a Great Correction. It began almost exactly three years ago, when New Century Financial – the second largest subprime mortgage company in the US – filed for bankruptcy. It will continue until debt levels in the private sector have worked themselves down to more reasonable levels.

    How long will that take? Maybe 5 years. Maybe 20.

    Meanwhile, you can’t expect much from this economy. Businesses are not going to add jobs. Consumers are not going to shop.

    Is that all there is to it? No, there’s a lot more. That’s why it’s a Great Correction and not just an ordinary run-of-the-mill correction.

    ..there’s the correction of the huge the expansion of credit

    ..there’s also the correction of the stock market

    ..and the correction of the real estate bubble

    ..and the correction of the world economy and its dollar-based monetary system

    Here’s what to expect:

    ..US stocks will begin falling again

    ..foreclosures, already running at twice their normal level, will increase

    ..bankruptcies, now at record levels, will go up too

    ..bonds will eventually collapse (but may turn out to be decent investments for a while longer…as the de-leveraging continues)

    ..the dollar too could go up when the crisis feeling returns; over the longer run it will be dangerous to hold it

    ..China will go through a financial crisis (potentially ‘Dubai times 1,000.’ As Jim Chanos puts it)

    ..states, cities, and entire countries will declare bankruptcy…

    Those things don’t seem like threats to you? Well, they don’t feel like threats to us either. But that’s what makes them so dangerous…

    ..we’ve stopped worrying about them.

    And more thoughts…

    – We’re headed up into the mountains today to check on our high altitude beef. We’ll write when we can.

    – “I came here because I felt that my children would have a better future here than in Britain,” said a colleague at lunch yesterday.

    “It’s very hard to live well in Britain; the country is too crowded. And things are too expensive. If you want a decent house at a decent price, you have to go way out of London. Even then, they’re not easy to find. And then, you spend half your life traveling back and forth to work.

    “But there’s something else. I think Britain’s glory days are past. The economy might grow in absolute terms. I hope so. But it is unlikely to grow as fast as Argentina or Brazil or any one of dozens of overseas economies.

    “That’s true for America too. I don’t think the US is finished, by any means. But if you want to give your children the best combination of lifestyle and economic opportunity, there are better places to live.”

    Few people would bet on Argentina’s financial future. The country is a serial inflator…prone to self-inflicted financial wounds. It has shot itself in the foot so often, it hardly has any feet left!

    Most people would say that investing in Argentina is ‘too risky.’

    But that just goes to show that people don’t understand risk. They look at the past and use it to measure the future. What they don’t realize is that risk in financial markets is not like rainfall or earthquakes.

    Earthquakes are completely indifferent to what we think about them. But the financial markets are more sensitive than a poet. People who’ve lived through financial crises don’t want to see another one. Or, to put it more specifically, if you’ve just been through a bear market you’re not likely to pay too much for stocks. You’ll think it’s “too risky” to buy expensive stocks. So, stocks will not become expensive. The risk of another crash will be low.

    Germans lived through a period of hyperinflation in the ’20s. To this day, they are deathly afraid of rising consumer prices.

    People who are accustomed to stable prices…and a rising stock market…have a different attitude. Analysts look at their history and pronounce the market “safe.” But it’s actually very risky…because prices are high and investors are complacent.

    The riskiest markets are probably those judged safest by the analysts. The safest are those thought to be risky.

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  • Reader Mail on Property

    How about some reader mail on housing?

    ********************

    Having lived through the collapse of the Irish property market & returning to Australia after 14 years in Europe I am alarmed that the same blinkered approach to housing and the obsession with home ownership & the use of the asset to purchase consumer items that I saw there is being repeated here – while its highly unlikely that we will see anything like the complete collapse of housing prices that occurred in Ireland since the peak in 2007 the present price regime particularly Sydney is unsustainable – a lot of people are going to be savaged…

    ********************

    –Dear DR,

    I’ve returned to Australia recently, and what I see here is exactly what I experienced living in the US and the UK for thirteen years. The key observations are:

    (1) Excessive personal debt with loans and credit cards.

    (2) Very large mortgages due in part to the cost of housing.

    (3) The belief that housing always goes up.

    (4) Main stream media and banks hyping the process.

    On the housing front I’ve heard that Australia is different and the immigration is driving the housing, and that was the case in the UK until many found jobs hard to get, and the cost of living forced people to vote with their feet. That is another point as it’s not just Australian homes that are expensive it much more and the cost of living is a key factor. I’m not sure how many people coming now return to their countries due to cost, but it may be a factor here eventually.

    While Australia seems to have weathered the GFC better I’m not sure it has if you look at the banks foreign debt to support their lending portfolios. The RBA says that banks are safe, but what would an independent audit find? Who pays for the stimulus packages? What economic risk analysis is going on at the RBA, and can someone show it’s valid if a China pullback occurs?

    How many current mortgage holders are under stress, and I suspect that is a lot more than we know, but in true Australian tradition families work harder to pay the mortgage rather than loose the family home.

    The danger I see is that there is very little manufacturing or science/engineering companies. I’ve written to the Labour party since I’ve returned but the response showed they don’t understand. I’m not sure if they feel a service economy are all we need, but that failed in the UK. Additionally, if the resources boom slows down due to China punning back then what has the country got to fall back on?

    I have worked in Australia and overseas developing mobile phone modem software and there are no jobs for me in my profession here, and in the 90’s there were. I’m sure it’s the same for others. Furthermore, with universities producing students for say Industrial Design, how many can get jobs in Australia? I spoke to an under grad a few weeks ago, and I was told that only two of the hundred students in her year got jobs in that profession. What does that say about the health of the economy and country?

    Summary:

    Housing is just one issue that needs a resolution, however, with the Real Estate agents under quoting, and other vested interests in pushing prices up I’m not sure anything sensible will happen, and we will get a correction at some point.

    There needs to be urgent government planning/policies to get a bigger manufacturing base here (look at the carbon footprint given that almost everything is imported). Also, develop science / engineering and offer conditions where technology companies will return to Australia rather than always finding the staff outside this country.

    Manufacturing can also help balance the economy, and provide valuable jobs for our citizen’s. The tax base needs people to work. What is the real unemployment? Someone is not employed if they are only able to get two days a week outside their profession, yet the statistics don’t show you that.

    There are very severe economic conditions outside Australia (UK/US/Europe and others) that we have no control over, and it’s possible the banks will have to pay higher rates for their foreign debt, and that will be passed on plus some to consumers.

    The main stream spin says things are getting better, but are they really, and how long will it be before some countries can pay back the stimulus, the bank bail outs, and other foreign debt let alone any maturing debt obligations that we’ve not aware of?

    Regards

    Adrian

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    The true magic within these monitors are the unique ChromaTRU color matching technologies; they also support full HD (1920×1080) resolution, and is basically a killer LCD with IPS panel and a wide viewing angle. With an optional dual stream HD-SDI interface, these monitors support signals including 1080/59.94i, 1080/50i, 1080/24PsF, and 1080/23.98PsF formats. They can also be used as 2D monitors, and should be available in September.

    These professional monitors incorporate a micro-polarizer 3D filter attached to the LCD panel, and are supplied with circular polarizer 3D glasses. Wearing these lightweight 3D glasses, users can enjoy smooth, uninterrupted viewing of multiple monitors.

    Pictures courtesy of AV Watch, further specs within Sony brochure (pdf).

  • Introducing AndroidGals.com!



    We’re very proud today to be able to introduce our new endeavor, AndroidGals.  We’ve put together a fantastic new site that we think will play well for both newbies and enthusiasts and alike.

    So what is AndroidGals?

    Simply put, it’s a site written, and maintained, by female Android fans.  Designed to be as little more intimate than the other sites you may visit, AndroidGals is more blog, less news.  We’re not trying to do another AndroidGuys.  Rather, we’re aiming to provide users a great source for reviews, editorials, and opinion.

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    As is the practice with AndroidGuys, we want to hear from you!  Feel free to drop us a line and share your thoughts.  By the way, if you’re interested in joining the AndroidGals team, email us at androidgals @ gmail.com and we’ll be in touch!

    AndroidGals: Android, from her point of view.

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  • Press Briefing by Ben Rhodes, Deputy National Security Advisor for Strategic Communic

    04.13.10 04:08 PM

    5:54 P.M. EDT

    MR. RHODES: Good evening, everybody. Thanks for sticking around after a long couple days. I’ll just say a few words by way of introduction, and then I’ll pass it on to my colleagues, Gary Samore, who is the weapons of mass destruction coordinator on the National Security Council, and Laura Holgate, who is the senior director for WMD terrorism and threat reduction.

    We just completed I think what we believe is to be a very important and positive nuclear security summit. You heard the President speak to the outcome. We’d like to take this opportunity to really walk you through what’s in the communiqué, what’s in the work plan, and what’s in some of the national commitments that came out of the summit. Gary and Laura can do that, because I know there are a lot of questions.

    I’d just say, by way of introduction, that — two things. Number one, the President obviously has a comprehensive agenda as it relates to nuclear weapons, and we’ve had a very busy week on that front. We had the introduction of our new Nuclear Posture Review, which reduces the role of nuclear weapons in our national security strategy, reinforces the Non-Proliferation Treaty, invests in a reliable stockpile and modernizing stockpile without the production of new nuclear weapons.

    We saw the President sign the START treaty, the New START treaty in Prague with President Medvedev, keeping one of the core commitments coming out of the Prague speech within a year, to reduce the deployed warheads and launchers that the United States and Russia have; to reinvigorate U.S. and Russian leadership on the non-proliferation regime. And we’re very pleased with that, of course.

    But what this summit was focused on in a very specific way was nuclear security, securing nuclear materials and the threat of nuclear terrorism. You’ve heard us say that we believe that this issue demanded this level of focus because it’s the highest-consequence threat that the American people face. And we also know that there are tangible steps that could be taken to secure nuclear materials around the world.

    We know where we want to get. We want to get to a place where the high-enriched uranium, plutonium, the materials for a nuclear bomb are at an adequate level of security that we are confident that they’re not going to fall into the hands of terrorists or those who would use them to do harm.

    So the President has set an ambitious goal of securing those materials within four years. He called this unprecedented gathering of world leaders to galvanize action at the highest levels of government behind that goal.

    And I think what we’ve seen today is several layers of action. We have the communiqué, which is the statement and the commitment by all these leaders to take actions in support of the goal of securing all of these nuclear materials. We have a work plan that essentially lays out a series of steps that nations will take in pursuit of the goal.

    And I think that part of what’s important about the summit is we saw a series of national commitments that illustrated precisely the kind of actions that we’d like to see that are embedded in the work plan, which ranged from nations giving up, literally, their high-enriched uranium, eliminating high-enriched uranium and plutonium from within their borders; to nations supporting international organizations and efforts, such as the IAEA, which are fundamental to the nuclear security; to nations investing in regional centers of excellence that can enhance nuclear security standards, an exchange of best practices.

    So with that, I think I’ll call Gary up here, and what he can really do is walk you through the communiqué, what we believe is important — and Laura can walk you through that as well — and also what these specific national commitments are and how they are indicative of the kind of action that we expect to see going forward.

    And the only other thing I’d say is that we believe that this is of course the beginning of a very robust effort. We feel like we have a lot of momentum coming out of this summit. We’re going to continue to work at this at the working level, with Gary and his colleagues carrying out on these — carrying through these commitments that have been made and pursuing new ones, and implementing this work plan. And we’re very confident that we’ll make substantial progress between now and the next Nuclear Security Summit, which is slated to be in the Republic of Korea in 2012.

    So with that I’ll turn it over to Gary.

    MR. SAMORE: Thanks, Ben.

    What I’d like to do is focus on the broad atmospherics in the room, as well as the overall outcome. And then Laura is going to go through with you in much more detail the elements of the summit communiqué, the work plan, and the specific actions that countries have taken.

    There are really four points I want to make — first, what I’m calling the spirit of Washington. This was a really remarkable show of unity of purpose of commitment to deal with the nuclear terrorism threat. I’ve been working in this field since 1984, and I’ve never seen anything like this, where so many countries represented by their leaders reached an agreement that nuclear terrorism is a serious threat, the consequences of which would be catastrophic, and, therefore, in order to deal with that threat, the steps necessary and the resources necessary are something that governments are prepared to commit.

    In the past in this area there’s been a lot of skepticism whether nuclear terrorism is really serious. Could terrorists really build nuclear weapons? Could they really get their hands on fissile material? I think this summit really removed that doubt.

    And keep in mind, this is from countries and all regions of the world representing Europe, Asia, Latin America, Africa, the Middle East. When Laura and I started this process after the President’s speech in Prague, I think we encountered some of that skepticism. But after a series of meetings at the expert level and now this summit, I really do think that we’ve achieved very strong international agreement that the threat is serious enough to justify the kind of resources needed to solve the problem.

    The second big consensus that came out of this summit is that the solution to the threat is actually pretty simple. In concept, it’s just making sure that terrorists don’t acquire separated plutonium or highly enriched uranium. Now, there’s a lot of that material in the world, more than 2,000 tons of it. But physical protection is something that governments know how to do, something that private companies know how to do — if they invest the resources. Just like we guard gold in banks, we can guard plutonium in storage facilities.

    And I think from that standpoint — now, the exact solution may differ from country to country. In some cases, countries may choose to eliminate the fissile material that they have, or to transform it into a form that can’t be directly used in nuclear weapons. But to the extent that countries maintain nuclear materials — whether in their civil or military sector — the solution to making sure that terrorists don’t get it is straightforward. It’s just a question of putting the resources in place — the programs in place in order to ensure that it’s well protected and accounted for.

    The third big outcome is that the President told us he doesn’t want a gauzy set of communiqués. So we got him a geeky set of communiqués and work plans. And as Laura will describe to you, the work plan and the communiqué get into the real nuts and bolts of the nuclear security system both domestically and internationally. And I think we — I hope you got — we did sort of a little primer, a glossary, so you could understand when we talk about U.N. Security Council Resolution 1540, or the G8 Partnership, or the Convention on the Suppression of Acts of Nuclear Terrorism — these are not things that people normally deal with and we wanted to try to explain to you that at the expert level, endorsed by the leaders, we’re dealing with the real nuts and bolts in terms of both firm commitments and concrete actions.

    And I want to just amplify what Ben said. Whenever you bring leaders together, there’s a lot of pressure for countries to come to meeting with not just something positive to say but some demonstration of their commitment. And we used the summit shamelessly as a forcing event to ask countries to bring house gifts. And as Laura will go over with you, almost every country came to this meeting with something new — something new that they were going to do. And I think we want to try to keep up that spirit and momentum as we proceed in the future. And that’s the fourth and last point I want to make.

    Coming out of this summit, there’s a tremendous sense of keeping this process alive. I really do think the 50 countries — or 47 countries and three international organizations — I think we really developed a good working relationship. I think everybody felt — at my level — felt really positive about the outcome and felt that it was a solid piece of work. I hope you’ll have a chance to ask some of the foreign government officials their view. I was really struck at how pleased people were with the outcome, and of course that was then endorsed by the leaders.

    And bringing leaders together forces governments to explain to their leaders what these issues are involved and it naturally elevates it within every government, and therefore I think brings it to a higher level attention and makes it more likely that you’ll get action on some projects that have been frankly — frankly, had been lingering for years. And this summit forced action and forced decisions to be made.

    As Ben mentioned, we’re going — this is just a kickoff of what we think will be an intense process. We expect to have the next round of experts meetings by the end of the year in Buenos Aires. And I would expect to have two or three more before the summit in Korea in 2012. And my prediction is that we are likely to have even more concrete results in 2012; we’ll be able to do better than we did this time because I think we’ve set a pattern — countries will want to come to the next meeting with even bigger and better house gifts.

    So I’m going to stop there and ask Laura to go through with you in more detail some of the things that we’ve achieved.

    MS. HOLGATE: Good evening. I wanted to say just a few words about the documents and then some of the national actions that we’ve been talking about in terms of concrete outcomes.

    The communiqué is a high-level political statement by all of the 47 countries who are participating that pledges to strengthen nuclear security and reduce the threat of nuclear terrorism. It endorses the President’s call to secure all vulnerable nuclear materials in four years. And it pledges to work together towards that end.

    The implementation of the communiqué will result in focused national efforts to improve security and accounting of nuclear materials and strengthen regulations at the national level. And it’s important to say that this is with a special focus on highly enriched uranium and plutonium, which is the raw ingredients of nuclear weapons.

    We would expect to see consolidation of stocks of highly enriched uranium and plutonium, and reduction in the use of highly enriched uranium. Action on the communiqué would increase the number of countries signing up to some of the key international treaties that you’ve been hearing about on nuclear security/nuclear terrorism, as well as add to those countries who are cooperating under mechanisms like the global initiatives to combat nuclear terrorism, building capacity for nuclear security among law enforcement, industry and technical personnel.

    The communiqué also calls for the International Atomic Energy Agency to receive the financial and expert support that it needs to develop nuclear security guidelines and to provide advice for its member states on how to implement them.

    Under the communiqué, bilateral and multilateral security assistance will also be applied where it can do the most good. And international cooperation would increase, including new opportunities for U.S. bilateral security programs. We’d see that nuclear industry sharing best practices for nuclear security, at the same time making sure that the security measures do not prevent countries from enjoying the benefits of peaceful nuclear energy.

    So that’s kind of what the communiqué covers in a nutshell. It launches a summit work plan, which is issued as guidance for national and international actions to carry out the communiqué. This detailed document lays out the specific steps that it will take to bring the vision of the communiqué into effect.

    These steps include ratifying and implementing treaties; cooperating through the United Nations to implement and assist others in meeting Security Council resolutions, in particular, U.N. Security Council Resolution 1540; working with the International Atomic Energy Agency to update and implement security guidance and carry out advisory services; reviewing national regulatory and legal requirements that relate to nuclear security and nuclear trafficking; converting civilian facilities that use highly enriched uranium to non-weapons-useable materials; research on new nuclear fuels, detection methods and forensic technologies; development of corporate and institutional cultures that prioritize nuclear security; education and training to ensure that countries and facilities have the people they need to protect their materials; and joint exercises among law enforcement and Customs officials to enhance nuclear detection opportunities.

    So many of these activities are already underway, but this summit is elevating, expanding and energizing a number of these very effective mechanisms and institutions that have been created over the last decade.

    This isn’t a pledging conference and it’s not a context in which we’re inventing big, new international institutions. It’s really a way to try to elevate and implement all of the good words that have been said over the last two years.

    And so building on those general commitments and, in the sense of the rising tide lifting all boats, we also have a number of boats that are moving out fast. And, Jeff, if you could put up the slide — this is just kind of a summary of the clusters of types of activities that we’ve seen national — participating countries present. I counted on my list of countries about 30 countries out of the 50 participants here who have committed to take various actions, and these can be clustered in the following ways.

    One of the most important things in the context of dealing with the threats of nuclear terrorism is actually removing and eliminating material. And we have had a number of countries who’ve committed to take those activities: Canada, Chile, Kazakhstan, Mexico, Russia, Ukraine, and the United States.

    Related to that, in many cases, is a determination to convert research reactors that often are the sources of these highly enriched uranium or weapons-usable materials. So we’ve seen those commitments be created or reiterated in Chile, Kazakhstan, Mexico, and Vietnam.

    We’ve seen Russia celebrate the end of their plutonium production reactor this week, which is a longtime project but it’s finally at the endpoint. We’ve also seen in other countries — a number of countries commit to accelerate their treaty ratification process, and so there’s a few countries here that have either just completed them or in the process of completing them. And the U.S. is among those that’s in the process. We just introduced legislation — we just provided legislation to the Congress in the last couple of weeks that will complete our ratification requirements for these key treaties that you’ve been hearing so much about.

    We’ve had new pledges to support the International Atomic Energy Agency in its activities. And we’ve seen three — four countries talk about a review service that the IAEA provides in terms of bringing in peer review of the nuclear security at certain facilities. And Finland mentioned the success that they have with their facility, and at this summit we’ve seen France, the U.K., and the U.S. commit to those kinds of reviews.

    This is significant because often these reviews are seen as part of an assistance process, and they’re requested by countries who are not necessarily thought of as the most capable in nuclear security. What we’re seeing here is countries beginning to look at this possibility as a peer review process, as a way to enhance and improve their own security.

    We’ve seen several countries committing to support capacity-building activities or centers of excellence. We’ve seen — and in that case we see China, France, Italy, India, Japan, Kazakhstan, the U.S., and the U.K.

    A number of countries have signed up anew to the global initiative to combat nuclear terrorism, or are working hard to extend and expand the G8 global partnership against weapons and materials of mass destruction. And in terms of the global initiative, we have brand-new commitments from Argentina, the Philippines, Thailand, and Vietnam to join and be part of that effort.

    Several countries have chosen this opportunity to talk about their new national regulations around nuclear security and export control, and we’ve seen progress in Armenia, Egypt, and Malaysia in that context. And we’ve also seen some movement in the context of nuclear detection. And here I have a late add — just this afternoon, Argentina signed a megaports agreement with the United States. That was after I did this slide, so it’s not on here. But Italy, the UAE, have also just recently announced megaports cooperation with the U.S. to install radiation detectors at major ports to ensure against nuclear trafficking. And the U.S. is working very hard on dealing with — on developing new detection technologies.

    We’ve seen an increase in bilateral contributions and cooperation from Canada, New Zealand, Norway, and the United States. And we’ve also seen a number of countries announcing their intent to hold regional or national conferences or meetings in support of nuclear security, and that’s Canada, Japan, Kazakhstan, Korea, and Saudi Arabia.

    So hopefully this gives you a little bit of texture, and there will be some documents that are released here shortly that have more specifics on what each country has committed. But I think this gives real life to the commitments that have been made that may sometimes sound dry or technical. And these are things that will really change the status of security on the planet.

    Thank you.

    MR. RHODES: Thanks, Laura. So we’ll take any questions you guys have about this stuff.

    Q Two questions. Gary, you said you had seen nothing like this since 1984. And if you could describe for a moment exactly how this differs — because certainly through the past 10 years we’ve seen the international conventions Laura just referred to; we’ve seen a Security Council agreement, which was obviously debated thoroughly at the Security Council — so why we should think that these are more binding.

    And a specific question on the agreement with Russia that Secretary Clinton signed today. My recollection is this also goes back to the Clinton administration when I think that President Clinton himself may have announced this in 1998.

    MR. SAMORE: I think that the 9/11 terrorist attacks galvanized the United States under the Bush administration to take the threat of nuclear terrorism much more seriously than the U.S. did in the past. And as a consequence, I think the Bush administration deserves credit for putting in place a number of important — and working with other countries to put in place — a number of important instruments that we now have
    — we are now using to pursue our own efforts. And that includes U.N. Security Council Resolution 1540, the G8 Global Partnership, the revision on the Convention of Physical Protection of Nuclear Material, the Convention on the Suppression of Acts of Nuclear Terrorism. All of these building blocks are things that began under the Bush administration.

    Where I think we have been able to build on is that I think — and this in part was a reflection of the perception of U.S. policy in that period — I think we’ve been much more global. This is not a concern just limited to the United States and its Western allies. I think we’ve been able to bring in, in this summit, the whole world, including regions of the world which up to now, I think, have not been very invested with the credibility of the threat. And I mean Asia and the Middle East, Latin America, Africa. I think this is a much more international, global effort.

    So I think that’s an important achievement. I also think that in terms of the concrete measures that this conference has stimulated countries to take, when you do these kinds of things at the leader level, you’re much more likely to get big decisions made. And I think a lot of the things the Bush administration did were very good, but there never was a summit of 47 leaders and three big international organizations. So I think that really is a difference in kind that will I think pay benefits in the future.

    On the plutonium disposition agreement, this is something I remember very well, because I helped negotiate it in the Clinton administration. But it’s been languishing for 10 years because we and the Russians couldn’t reach agreement on some implementing language.

    It was in 2000, when President Clinton went to Moscow in 2000, we announced the completion — and we did complete it, but there was some implementing details. For 10 years it’s been languishing. And when President Obama came in, we intensified our negotiations with the Russians and finally reached agreement. And now I’m very happy to say, after all this time, we’ve signed the implementing legislation so that we can begin the process of disposing of 34 metric tons of weapons-grade plutonium each.

    So I think it’s another indication that President Obama’s commitment and passion on this issue has helped to produce results.

    MR. RHODES: David, I’d just add one thing. Across this agenda, there has been a sense the President had when he came in that some of our efforts in the areas of nuclear weapons, non-proliferation, nuclear security, were fraying; that the NPT was fraying; our nuclear security initiatives were not proceeding with the kind of urgency that the threat demanded and that, in general, there wasn’t a sense of momentum around nuclear security and non-proliferation.

    That was precisely the rationale that led him to make his speech in Prague as his first major foreign policy address on foreign soil and to lay out this agenda. And essentially what he did there is try to reinvigorate the U.S. government and the international community around a very broad set of goals, including nuclear security, and again, as Gary said, taking this issue, which had been of concern and where steps had been taken, and elevating it to the level of leaders and broadening the coalition to include all regions of the world is fundamental to our ability to achieve our objectives.

    You’ve heard the President say many times that this is not the kind of thing that we can do alone, nor is it the kind of thing that we can do with a small group of our allies — that it’s going to take broad collective action and global action to make progress, and it’s also going to take the intensive efforts of leaders focusing on this and, as Gary has pointed out, holding their own governments accountable to the kinds of actions that you’ve seen announced today.

    So, yes, Jonathon.

    Q This is probably for Gary or for Laura. When you look at the language, they talk about participating state parties to the convention will assist states as appropriate and upon their request to implement the convention. Participating states will consider where appropriate converting highly enriched uranium fuel to research reactors where it is technically and economically feasible. You see these “where appropriate” caveats throughout the language. And I’d like to just get an explanation of why those are in there, who insisted on them, and how much they — given out to countries that don’t want to participate.

    MR. RHODES: I’d say two things and then I’d turn it over to Gary. The first thing I’d say is we believe that this is a situation where every nation has an interest in achieving nuclear security. So the notion that a nation would not want to secure its nuclear materials is not the same obstacle to robust international collaboration that you might have on a separate issue. So we believe that, as Gary spoke to, galvanizing nations to the threat, again, is fundamental to creating that sense of urgency for moving forward.

    The second thing I’d say before turning it over to Gary is that different nations have different things that they need to do in order to achieve the President’s goal of locking down all these materials, right? So for some nations, it’s going to be the kinds of actions you’ve seen in terms of shipping HEU out of the country, disposition of plutonium. For some nations it’s going to be the adoption of new security standards.

    So it has to be an approach that is flexible enough to take into account the targeted needs of different nations. So there’s not going to be one size fits all that you can drop on somebody and say, this is what’s required out of you. It’s going to be a more focused effort into figuring out, okay, what does X nation need to do in service of this global goal? And the communiqué enables that kind of focused action so that we’re looking at nations saying, okay, what kind of actions do they need to take, what kind of assistance do they need to achieve those actions, what kind of standards do they need to put in place.

    But I’ll turn it to Gary now.

    MR. SAMORE: Jonathon, I think it’s important to realize that the structure of nuclear security is fundamentally a sovereign responsibility of nation states. And countries guard very jealously their freedom of action and their responsibility for making sure that their nuclear materials, whether in the civil or the military sector, are well secured.

    Now, as Ben said, every country has an interest in making sure that those materials are secure. So we’ve got something to work with. But in my view, trying to construct an international regime that would require countries to take certain steps and to have an enforcement mechanism to take certain steps on nuclear security is not attainable. And the effort to try to create such a regime I think would distract our efforts from the near-term need to secure these materials.

    So as the President said, it might be nice if there was a world policeman — but there isn’t. I think we’ve got to work with the structure we have. Given the interest that countries have in securing this material, I think we can do it with the fundamentally national-based structure that exists.

    Q Just to follow up, I mean, there isn’t an international policeman, but there is the IAEA, there is the U.N. Security Council — they exist to enforce international law. And we have made international law that is enforceable.

    MR. SAMORE: Well, I think the IAEA is a perfect example. The IAEA role in nuclear security is to provide advice and assistance. It’s not like safeguards. In the safeguards area, the IAEA has the authority to conduct inspections, and if they find that a country is violating their safeguards inspections and they’re carrying out nuclear activities inconsistent with peaceful uses, the IAEA has a responsibility to report that to the board of governors and then to the U.N. Security Council.

    There’s no comparable authority in the nuclear security area. And in my view, it is not attainable. It is not possible to get an international agreement to give the IAEA the same kind of authority in nuclear security that it has in nuclear safeguards. I might wish that it were, but we have to deal in a world as it exists. And given the urgency of the threat, in my view, we would just waste a lot of time and effort trying to create something that I honestly do not believe is possible. Much better to work with the system we have, build on countries’, A, self-interest in securing nuclear material and avoiding terrorism — and I think there are mechanisms available, but it requires a cooperative approach as opposed to approach that has an enforcement mechanism.

    Q While you haven’t — you’re not in favor of an enforcement mechanism or don’t believe it’s practical, you did require that countries, many of them bring a housewarming gift or some sort of commitment in connection with their appearance here. And a number of those have been announced. However, with respect to Russia, as David was mentioning earlier, aside from the plutonium issue there’s also the issue of research reactor convergence, which you have up on the list there I believe. Russia has more of those than any other country. In fact, I believe they’re about to open another such reactor soon. Can you say whether there were any discussions about that issue with the Russians in connection with this summit? And is there any hope of having that issue move in the right direction, as opposed to what the U.S. views as the wrong direction? Thank you.

    MR. RHODES: The first thing I’d say is we believe that Russia — the steps announced by Russia as relates to plutonium disposition and the closing of the plutonium reactor are precisely the kinds of actions that this summit was intended to galvanize. Because here you have tangible steps that in many cases have been languishing for years, steps that we hadn’t created a sense of urgency around implementation, that had been — the had fallen prey to a drift in the U.S.-Russia relationship. And the combination of the cooperative relationship that the President and President Medvedev have forged together and the broader international effort around the summit helped to galvanize those very important commitments to the summit.

    As it relates to the reactor, I don’t know if you want to take it.

    MS. HOLGATE: As you properly point out, Russia has a number of research reactors that continue to use highly enriched uranium. But in — I think this is precisely the kind of area where the political space that Ben referenced is going to help us; where we — this notion of how do we work with Russia to develop new fuel types to deal with the conversion issues or to help them shut down those reactors has been on the table for a number of years. It persists, it’s part of the conversations that go on all the time at all levels with our Russian counterparts.

    But the context of this kind of a global effort, the renewal and, in some ways, intensification of the commitments around conversion and moving away from HEU, blending down HEU, we think will help move our work with Russia in this particular area along. We didn’t see any particular advances on that in this meeting, but I firmly intend to take advantage of this moment to reengage and try to push — continue to try to push that issue with the Russians, because it is a key part of achieving our goals on HEU minimization.

    Q Hi, thank you. Just a couple quick questions. One, on the Russia disposition program — is there any way to ensure that they eventually won’t produce plutonium from those reactors, because they are breeder reactors after all? And my second question is just on the Times article about China receiving oil, in case they enforce sanctions on Iran. Is that true? And if so, is that a policy? Are we going to do that for other countries as well?

    MR. RHODES: Can you repeat the first question one more time? I’m sorry, I didn’t quite hear.

    Q Sure. Just on the Russia disposition program, is there any way to ensure that those reactors eventually won’t be used to produce plutonium? Because they are, after all, breeder reactors.

    MR. RHODES: I’d take the second question first and Laura can take the first one.

    The efforts that we’ve had through the P5-plus-1 with China have been focused upon our common interests in preventing, frankly, what would be very damaging to global security, which is an Iran that continues to fail to live up to its international obligations; that damages, therefore, the NPT, the credibility of the international community; that also sees potential nuclear arms races in the Middle East and a very destabilizing activity over the next several years.

    So our fundamental discussions with China have been focused on taking action on sanctions because of the common threat that we both face from Iran. I wouldn’t get into — I’m not going to — so I wouldn’t speculate around the kinds of scenarios you outlined.

    The point that the President makes President Hu is that we have a shared interest in preventing nations from violating their international obligations, from causing NPT to fray, is that foundation of preventing the spread of nuclear weapons. And that’s the basis upon which the President has engaged President Hu. But I’ll turn it over to Laura.

    MS. HOLGATE: On the plutonium management and disposition agreement, the U.S. and Russia are committed to transparency provisions that allow us to look at each other’s facilities as we proceed with the disposition efforts. And the Russian reactors that will be burning this plutonium, transforming it to a form that can’t be used as weapons, will be looked at and made sure that they are not operating in a mode that breeds new plutonium into the fuel and the Russians’ ability to reprocess that fuel — I mean, the U.S. ability for that matter as well. Neither country is allowed to reprocess the fuel until after all of the 34 tons that the agreement covers have been disposed of.

    And we fully expect that there will be additional material that will flow into that disposal pipeline as dismantlements proceed under START and New START and other future arms control agreements. So we expect that the disposition effort will continue for some time before the reprocessing of that fuel is allowed.

    MR. RHODES: We’ll take one or two more here. Yes.

    Q Thank you. President Sarkozy, during the dinner last night, suggested that the international community could think about a mechanism to — for jurisdiction, an international jurisdiction, to prosecute individuals or heads of state responsible that would be involved in some proliferation. Do you think that’s a good idea? Do you — it’s not on your slide, but is it something that —

    MR. SAMORE: Well, President Sarkozy introduced this idea of some kind of tribunal to deal with state officials that provide assistance, nuclear assistance to terrorist groups, at the dinner last night. And there was a very lively discussion among the world leaders, who had a lot of different views about the proposal.

    What President Obama said to summarize the discussion is that this was an interesting idea, a creative idea; certainly merited further discussion. And the leaders agreed that this is one of the things the experts will be discussing as we continue to meet between now and the 2012 summit.

    MR. RHODES: Separate and apart from that, the only thing I’d add as it relates to the passage of nuclear materials to terrorists, within our own Nuclear Posture Review, recognizing that this is the nature of the threat in the 21st century, we embrace the notion that those nations that do pass nuclear materials to terrorists will be held accountable for that action through our nuclear deterrent. So this is an issue that the United States has brought into its own nuclear policy, recognizing that the passage of materials from a state to a terrorist group is really a first-order threat that we face.

    We’ll take one more in the back here.

    Q The focus of your summit was on weapons-grade fissile materials. But there are vast amounts in the world of nuclear waste that can be used in dirty bombs. Now, I’m wondering whether or not that was just a road too far to deal with in this summit. To what extent does the threat posed by the nuclear waste rival the threat posed by terrorists getting their hands on weapons-grade material?

    MR. RHODES: I’ll provide an answer and then see if my colleagues want to join in.

    I think that the reason for the focus on the materials that can be used to make a weapon — plutonium, high-enriched uranium — are that that is the highest-consequence threat. When you look at the possible scenarios for a terrorist attack in an American city or any city in the world, that the nuclear yield produced by a weapon is by many, many orders of magnitude the most devastating threat. That doesn’t diminish the fact that there — that doesn’t do away with the fact that there are many other threats that we take very seriously and that we’re doing a number of things on, that my colleagues may speak to, including a potential for the release of a dirty bomb or a radiological device.

    But given the orders of magnitude by which a nuclear yield threatens our people and people around the world, we wanted to focus on this.

    And I think — the important thing — as you look at the national actions that come out of the summit, as you look at the communiqué and the work plan, as Gary said, there is a — there is material — we know precisely what this material is, and we know that there are measures that can be taken to secure it. And each step that we take in pursuit of that goal makes the United States more secure and makes the world more secure.

    So we believe just the actions that were announced today at this summit enhance our security, because as we’re securing more HEU, as nations are giving up that HEU, as nations are disposing of plutonium, as nations are adopting best practices — all of those efforts contribute towards lessening the pool that terrorists have to acquire a weapon and securing the materials so that they can be used for peaceful purposes.

    So each step that we take down this road makes us safer, because each step that we take, again, diminishes that pool. And where we want to get to is a point where, through our national actions, through the kind of international conventions that are embedded in this communiqué, through the adoption of best practices and standards that will be funded through some of the kinds of efforts that we’ve already seen announced today, and through the kind of bilateral technical and financial assistance that nations like the United States can provide, we are facilitating the shrinking of that pool of materials that are vulnerable to exploitation by terrorists.

    So, again, this is — the reason for the focus is because it’s the highest-consequence threat that we face, and because we believe that we can take tangible steps down this road of lessening those materials and preventing them from falling into the wrong hands.

    I don’t know if you want to speak to the — as it relates to dirty bombs, we have separate efforts, of course, taking place that my colleagues work on and many other parts of government work on — biological weapons, chemical weapons, and dirty bombs. But the yield from, say, a conventional explosion with the release of radiological materials would not, while a weapon of mass effect, would not have the kind of mass destruction from a nuclear yield, which could kill tens if not hundreds of thousands of people. And so that’s why we have this kind of focus.

    And again, on both the nuclear side and the terrorism side, the President has — this is one piece of a comprehensive puzzle. So on the nuclear side, this is the nuclear security piece. We have the non-proliferation piece, which is focused through our efforts to strengthen the NPT, keep our own obligations, reduce our own arsenals. Then on the terrorism side, we have, again, our broader counterterrorism policy of disrupting, dismantling, and defeating terrorist networks. But what this summit was focused on in a very clear way was securing those materials that could lead to the highest-consequence attack so we’re not dealing with a 9/11 that is by many more orders of magnitude devastating to our people or to global security.

    So with that, I think we’ve got to wrap and catch a motorcade. But thanks, everybody, and be in touch with any more questions.

    END
    6:37 P.M. EDT

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  • President Obama’s Bilateral Meeting with President Cristina Fernandez de Kirchner of

    04.13.10 03:49 PM

    At the margins of the final plenary session of the Global Nuclear Security Summit, President Obama had an opportunity to meet with Argentine President Cristina Fernandez de Kirchner. The Presidents discussed a number of issues of mutual interest and common global challenge. They agreed on the importance of strengthening the international non-proliferation regime and ensuring compliance by all states, and of achieving a successful Non-Proliferation Treaty Review Conference next month. Finally, the President thanked President Fernandez for Argentina’s role in international stabilization and earthquake relief efforts in Haiti.

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  • President Obama’s discussion with President Mikheil Saakashvili of Georgia

    04.13.10 03:38 PM

    President Obama welcomed the opportunity to meet Georgian President Mikheil Saakashvili during the Nuclear Security Summit. The President reaffirmed the United States’ support for Georgia’s sovereignty and territorial integrity, and welcomed President Saakashvili’s continuing commitment to democratic reform.

    The President expressed his appreciation for Georgia’s significant contribution to Afghanistan and the two leaders discussed their shared commitment to securing nuclear materials to reduce the threat of proliferation.

    NOTE: President Barack Obama talks with President Mikheil Saakashvili of Georgia at the Nuclear Security Summit at the Washington Convention Center in Washington, D.C., April 13, 2010. (Credit: Official White House Photo by Pete Souza)

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  • Press Conference by the President at the Nuclear Security Summit

    04.13.10 03:27 PM

    4:36 P.M. EDT

    THE PRESIDENT: Good afternoon, everybody. We have just concluded an enormously productive day.

    I said this morning that today would be an opportunity for our nations, both individually and collectively, to make concrete commitments and take tangible steps to secure nuclear materials so they never fall into the hands of terrorists who would surely use them.

    This evening, I can report that we have seized this opportunity, and because of the steps we’ve taken — as individual nations and as an international community — the American people will be safer and the world will be more secure.

    I want to thank all who participated in this historic summit — 49 leaders from every region of the world. Today’s progress was possible because these leaders came not simply to talk, but to take action; not simply to make vague pledges of future action, but to commit to meaningful steps that they are prepared to implement right now.

    I also want to thank my colleagues for the candor and cooperative spirit that they brought to the discussions. This was not a day of long speeches or lectures on what other nations must do. We listened to each other, with mutual respect. We recognized that while different countries face different challenges, we have a mutual interest in securing these dangerous materials.

    So today is a testament to what is possible when nations come together in a spirit of partnership to embrace our shared responsibility and confront a shared challenge. This is how we will solve problems and advance the security of our people in the 21st century. And this is reflected in the communiqué that we have unanimously agreed to today.

    First, we agreed on the urgency and seriousness of the threat. Coming into this summit, there were a range of views on this danger. But at our dinner last night, and throughout the day, we developed a shared understanding of the risk.

    Today, we are declaring that nuclear terrorism is one of the most challenging threats to international security. We also agreed that the most effective way to prevent terrorists and criminals from acquiring nuclear materials is through strong nuclear security — protecting nuclear materials and preventing nuclear smuggling.

    Second, I am very pleased that all the nations represented here have endorsed the goal that I outlined in Prague one year ago — to secure all vulnerable nuclear materials around the world in four years’ time. This is an ambitious goal, and we are under no illusions that it will be easy. But the urgency of the threat, and the catastrophic consequences of even a single act of nuclear terrorism, demand an effort that is at once bold and pragmatic. And this is a goal that can be achieved.

    Third, we reaffirmed that it is the fundamental responsibility of nations, consistent with their international obligations, to maintain effective security of the nuclear materials and facilities under our control. This includes strengthening national laws and policies, and fully implementing the commitments we have agreed to.

    And fourth, we recognized that even as we fulfill our national responsibilities, this threat cannot be addressed by countries working in isolation. So we’ve committed ourselves to a sustained, effective program of international cooperation on national [sic] security, and we call on other nations to join us.

    It became clear in our discussions that we do not need lots of new institutions and layers of bureaucracy. We need to strengthen the institutions and partnerships that we already have -— and make them even more effective. This includes the United Nations, the International Atomic Energy Agency, the multilateral partnership that strengthens nuclear security, prevent nuclear trafficking and assist nations in building their capacity to secure their nuclear materials.

    But as I said, today was about taking tangible steps to protect our people. So we’ve also agreed to a detailed work plan to guide our efforts going forward — the specific actions we will take. I want to commend my partners for the very important commitments that they made in conjunction with this summit. Let me give some examples.

    Canada agreed to give up a significant quantity of highly enriched uranium. Chile has given up its entire stockpile. Ukraine and Mexico announced that they will do the same. Other nations — such as Argentina and Pakistan — announced new steps to strengthen port security and prevent nuclear smuggling.

    More nations — including Argentina, the Philippines, Thailand and Vietnam — agreed to join, and thus strengthen, the treaties and international partnerships that are at the core of our global efforts. A number of countries -— including Italy, Japan, India and China -— will create new centers to promote nuclear security technologies and training. Nations pledged new resources to help the IAEA meet its responsibilities.

    In a major and welcomed development, Russia announced that it will close its last weapons-grade plutonium production reactor. After many years of effort, I’m pleased that the United States and Russia agreed today to eliminate 68 tons of plutonium for our weapons programs -— plutonium that would have been enough for about 17,000 nuclear weapons. Instead, we will use this material to help generate electricity for our people.

    These are exactly the kind of commitments called for in the work plan that we adopted today, so we’ve made real progress in building a safer world.

    I would also note that the United States has made its own commitments. We are strengthening security at our own nuclear facilities, and will invite the IAEA to review the security at our neutron research center. This reflects our commitment to sharing the best practices that are needed in our global efforts. We’re seeking significant funding increases for programs to prevent nuclear proliferation and trafficking.

    And today, the United States is joining with our Canadian partners and calling on nations to commit $10 billion to extending our highly successful Global Partnership to strengthen nuclear security around the world.

    So this has been a day of great progress. But as I said this morning, this can’t be a fleeting moment. Securing nuclear materials must be a serious and sustained global effort. We agreed to have our experts meet on a regular basis —- to measure progress, to ensure that we’re meeting our commitments and to plan our next steps.

    And I again want to thank President Lee and the Republic of Korea for agreeing to host the next Nuclear Security Summit in two years.

    Finally, let me say while this summit is focused on securing nuclear materials, this is part of a larger effort -— the comprehensive agenda that I outlined in Prague last year to pursue the peace and security of a world without nuclear weapons. Indeed, in recent days we’ve made progress on every element of this agenda.

    To reduce nuclear arsenals, President Medvedev and I signed the historic new START treaty —- not only committing our two nations to significant reductions in deployed nuclear weapons, but also setting the stage for further cuts and cooperation between our countries.

    To move beyond outdated Cold War thinking and to focus on the nuclear dangers of the 21st century, our new Nuclear Posture Review reduces the role and number of nuclear weapons in our national security strategy. And for the first time, preventing nuclear proliferation and nuclear terrorism is at the top of America’s nuclear agenda, which reaffirms the central importance of the Nuclear Non-Proliferation Treaty.

    And next month in New York, we will join with nations from around the world to strengthen the NPT as the cornerstone of our global efforts to prevent the spread of nuclear weapons even as we pursue greater civil nuclear cooperation. Because for nations that uphold their responsibilities, peaceful nuclear energy can unlock new advances in medicine, in agriculture, and economic development.

    All of these efforts are connected. Leadership and progress in one area reinforces progress in another. When the United States improves our own nuclear security and transparency, it encourages others to do the same, as we’ve seen today. When the United States fulfills our responsibilities as a nuclear power committed to the NPT, we strengthen our global efforts to ensure that other nations fulfill their responsibilities.

    So again, I want to thank my colleagues for making this unprecedented gathering a day of unprecedented progress in confronting one of the greatest threats to our global security. Our work today not only advances the security of the United States, it advances the security of all mankind, and preventing nuclear proliferation and nuclear terrorism will remain one of my highest priorities as President.

    So with that, I’m going to take a few questions. I’m going to start with Bill Plante from CBS.

    Q Mr. President, thank you. The communiqué states in no uncertain terms that all of the unprecedented cooperation for which you’re calling will be done on a voluntary basis, not a binding commitment. What’s the likelihood that countries which have been at odds over these issues for a number of years are now going to cooperate? How can this be enforced?

    THE PRESIDENT: Well, let’s just take a specific example, Bill. For about 10 years, we had been encouraging Ukraine to either ship out its highly enriched uranium or transform it to a lower-grade — a lower-enriched uranium. And in part because of this conference, Ukraine took that step, announced that it would complete this step over the next couple of years.

    So all the commitments that we talked about are ones that we’ve already booked, even before the communiqué and the work plan gets put into place. And that indicates the degree to which I think that there’s actually strong unanimity about the importance of this issue as a threat to the global and international community.

    Now, keep in mind that we also have a number of international conventions that have been put in place. Not all of them have been ratified. In fact, the United States needs to work on a couple of these conventions dealing with the issues of nuclear terrorism and trafficking. But what this does is it sets out a bold plan. And what I’m encouraged about is the fact that we’ve already seen efforts that had been delayed for years, in some cases, since the end of the Cold War, actually finally coming to fruition here at this — at this summit.

    Q It all depends on goodwill, sir?

    THE PRESIDENT: Bill, the point is that we’ve got world leaders who have just announced that in fact this is a commitment that they’re making. I believe they take their commitments very seriously.

    If what you’re asking is, is do we have a international “one world” law enforcement mechanism — we don’t. We never have.

    So in all of our efforts internationally, in every treaty that we sign, we’re relying on goodwill on the part of those who are signatories to those efforts. That’s the nature of international relations.

    Jake Tapper, ABC.

    Q Thank you, Mr. President. The Chinese Foreign Ministry spokesperson said today that pressure and sanctions — speaking of Iran’s nuclear program — pressure and sanctions cannot fundamentally solve the problem. I was wondering if you could clarify exactly what you believe President Hu Jintao has agreed to, whether you think there actually will be economic sanctions with teeth that the Chinese will sign off on; and what you have told the Chinese in terms of their concern about how much fuel they get from Iran, what the U.S. can help them with in that regard. Thank you, sir.

    THE PRESIDENT: Here’s what I know. The Chinese have sent official representatives to negotiations in New York to begin the process of drafting a sanctions resolution. That is part of the P5-plus-1 effort. And the United States is not moving this process alone; we’ve got the participation of the Russians as well as the other members of the P5-plus-1, all of whom believe that it is important for us to send a strong signal to Iran that their consistent violation of United Nations Security Council resolutions as well as their obligations under the NPT have consequences, and that they’ve got a better path to take.

    Now, you’re exactly right, Jake, that the Chinese are obviously concerned about what ramifications this might have on the economy generally. Iran is an oil-producing state. I think that a lot of countries around the world have trade relationships with Iran. And we’re mindful of that. But what I said to President Hu and what I’ve said to every world leader that I talked to is that words have to mean something, there have to be some consequences. And if we are saying that the NPT is important, if we’re saying that non-proliferation is important, then when those obligations are repeatedly flouted, then it’s important for the international community to come together.

    And what I would say is that if you consider where we were, say, a year ago, with respect to the prospect of sanctions, the fact that we’ve got Russia and China, as well as the other P5-plus-1 members having a serious discussion around a sanctions regime, following up on a serious sanctions regime that was passed when North Korea flouted its obligations towards the NPT, it’s a sign of the degree to which international diplomacy is making it more possible for us to isolate those countries that are breaking their international obligations.

    And as I said I think several weeks ago, my interest is not having a long, drawn-out process for months. I want to see us move forward boldly and quickly to send the kind of message that will allow Iran to make a different calculation.

    And keep in mind, I have said repeatedly that under the NPT Iran has the right to develop peaceful civilian nuclear energy — as do all signatories to the NPT. But given the repeated violations that we’ve seen on the part of Iran, I think understandably the world community questions their commitment towards a peaceful civilian energy program.

    They have a way of restoring that trust. For example, we put before them — I’m saying the P5-plus-1, now, as well as the IAEA — put before them a very reasonable approach that would have allowed them to continue their civilian peaceful nuclear energy needs, but would have allayed many of the concerns around their nuclear weapons program. They have rejected that so far. And that’s why it’s important — and I said from the start that we’re going to move on a dual track, and part of that dual track is making sure that a sanctions regime is in place.

    Last point I’ll make about sanctions. Sometimes I hear the argument that, well, sanctions aren’t really going to necessarily work. Sanctions aren’t a magic wand. What sanctions do accomplish is hopefully to change the calculus of a country like Iran so that they see that there are more costs and fewer benefits to pursuing a nuclear weapons program. And in that process what we hope is, is that if those costs get high enough and the benefits are low enough, that in time they make the right decision not just for the security and prosperity of the world but also for their own people.

    Scott Wilson, Washington Post. Where’s Scott? There we go.

    Q Thank you, Mr. President. You have spoken often about the need to bring U.S. policy in line with its treaty obligations internationally to eliminate the perception of hypocrisy that some of the world sees toward the United States and its allies. In that spirit and in that venue, will you call on Israel to declare its nuclear program and sign the Non-Proliferation Treaty? And if not, why wouldn’t other countries see that as an incentive not to sign on to the treaty that you say is important to strengthen?

    THE PRESIDENT: Well, Scott, initially you were talking about U.S. behavior and then suddenly we’re talking about Israel. Let me talk about the United States. I do think that as part of the NPT our obligation as the largest nuclear power in the world is to take steps to reducing our nuclear stockpile. And that’s what the START treaty was about — sending a message that we are going to meet our obligations.

    And as far as Israel goes, I’m not going to comment on their program. What I’m going to point to is the fact that consistently we have urged all countries to become members of the NPT.

    So there’s no contradiction there. We think it is important that we have a international approach that is universal and that rests on three pillars: that those of us who have nuclear weapons are making serious efforts to reduce those stockpiles; that we all are working against the proliferation of nuclear weapons and those countries that don’t currently have nuclear weapons make the decision not to pursue nuclear weapons; and that all countries have access to peaceful nuclear energy.

    And so whether we’re talking about Israel or any other country, we think that becoming part of the NPT is important. And that, by the way, is not a new position. That’s been a consistent position of the United States government even prior to my administration.

    Let me call on Stephen Collinson of AFP.

    Q Thank you, Mr. President. In your meeting with President Hu, did he give you any indication he would heed your call for a more market-oriented exchange rate for the yuan? If there’s going to be a change, when would you envisage that taking place? And what happened in the last few weeks to help you move on from a period of — quite a stormy period of public disagreements with China?

    THE PRESIDENT: The fact is, actually, that the relationship between my administration and the Chinese government has been very productive during the course of the last year and a half. We started off working together at various multilateral fora — the first one in London with the G20. I then, out of the bilateral meetings that we had, worked with President Hu to set up a strategic and economic dialogue that looks at a whole range of areas in which the United States and China can cooperate. I made a visit to China that both of us considered very successful.

    Now, there are some areas where we’ve got disagreement. And those disagreements are not new, and I have to say that the amount of turbulence, as you put it, that occurred was actually relatively modest when you look at the overall trajectory of U.S.-China relations. I mean, at no point was there ever a suggestion that it’s not in the interest of both our countries to cooperate, and that we have not only important bilateral business to do but also we are two very important countries in multilateral settings that have to deal with issues like climate change and the world economy in concert.

    With respect to the currency issue, President Hu and I have had a number of frank conversations. As part of the G20 process we all signed on to the notion that a rebalancing of the world economy would be important for sustained economic growth and the prevention of future crises. And China, like the United States, agreed to that framework.

    We believe that part of that rebalancing involves making sure that currencies are tracking roughly the market and not giving any one country an advantage over the other. And I’ve been very clear of the fact that it is my estimation that the RMB is under-valued and that China’s own decision in previous years to begin to move towards a more market-oriented approach is the right one. And I communicated that once again to President Hu. I think China, rightly, sees the issue of currency as a sovereign issue. I think they are resistant to international pressure when it comes to them making decisions about their currency policy and monetary policy.

    But it is my belief that it is actually in China’s interest to achieve this rebalancing, because over time China is going to have to shift away from an economy that is solely oriented on exports and is going to have to start shifting towards an economy that is emphasizing domestic consumption and production, and is preventing bubbles from building up within the economy. And all of that will be facilitated with a more market-oriented currency approach.

    So I don’t have a timetable, but it is my hope that China will make a decision that ultimately will be in their best interest.

    Bob Burns of AP.

    Q Mr. President, a few minutes ago when you were explaining the purpose of sanctions against Iran you said the point is to change Iranian government calculations, leading to altered behavior. Why hasn’t that happened in the case of North Korea, which, unlike Iran, actually does have nuclear weapons?

    THE PRESIDENT: Well, I’m not going to give you a full dissertation on North Korean behavior. I think it’s fair to say that North Korea has chosen a path of severe isolation that has been extraordinarily damaging to its people, and that it is our hope that as pressure builds for North Korea to improve its economic performance, for example, to break out of that isolation that we’ll see a return to the six-party talks and that we will see a change in behavior.

    As I said, sanctions are not a magic wand. Unfortunately, nothing in international relations is. But I do think that the approach that we’ve taken with respect to North Korea makes it more likely for them to alter their behavior than had there been no consequences whatsoever to them testing a nuclear weapon.

    Chuck Todd.

    Q Thank you, Mr. President. Given the goals of this conference and the goals of your administration on nuclear policy, why does it appear as if Pakistan is playing by a different set of rules? I know they have not signed on to the Nuclear Non-Proliferation Treaty, but it appears they’re expanding their nuclear program and the proximity to al Qaeda. Should there be more pressure internationally on Pakistan, not just coming from the United States, but the world?

    THE PRESIDENT: I don’t think Pakistan is playing by a different set of rules. I think we’ve been very clear to Pakistan, as we have been to every country, that we think they should join the NPT. I have actually seen progress over the last several years with respect to Pakistan’s nuclear security issues.

    I want to lower tensions throughout South Asia when it comes to nuclear programs. And I think that the fact that President [sic] Gilani came here, signed on to a communiqué, and made a range of commitments that will make it more likely that we don’t see proliferation activities or trafficking occurring out of Pakistan is a positive thing.

    Do we have a lot more work to do? Absolutely. But I think that President — Prime Minister Gilani’s presence here was an important step in assuring that we do not see a nuclear crisis anywhere in South Asia.

    Okay? All right, Jeff Mason.

    Q Thank you, Mr. President. A follow-up question on two that have been asked. First, how realistic do you believe it is that countries will agree on sanctions in the coming weeks, which is the deadline that you’re looking for? And a second, a follow-up on Pakistan — is the United States confident that Pakistan’s nuclear materials are protected and will not be vulnerable to terrorists like al Qaeda?

    THE PRESIDENT: To take the second question first, just as a part of a follow-up on Chuck’s question, I feel confident about Pakistan’s security around its nuclear weapons programs. But that doesn’t mean that there isn’t improvement to make in all of our nuclear security programs. You’ll recall that we had a little incident a while back where we had nuclear-tipped missiles on a bomber flying across the United States and nobody knew about it. And Secretary Gates took exactly the right step, which was to hold those in charge accountable and to significantly alter our practices to make sure something like that didn’t happen again.

    So I think it’s important to note that every nuclear power, every country that has a civilian nuclear energy program, has to take better steps to secure these materials. And Pakistan is not exempt from that, but we aren’t, either. And that’s I think the goal of this summit, and that was the goal of the communiqué and the work plan that we put forward.

    With respect to sanctions, I think that we have a strong number of countries on the Security Council who believe this is the right thing to do. But I think these negotiations can be difficult. And I am going to push as hard as I can to make sure that we get strong sanctions that have consequences for Iran as it’s making calculations about its nuclear program and that those are done on a timely basis.

    I’m not going to speculate beyond that in terms of where we are.

    Last question, Ed Chen of Bloomberg.

    Q Thank you, Mr. President. Good afternoon. Given the progress you have cited in recent days on your foreign policy agenda, to what extent do you feel like you have gained political capital with which to take further to the international stage for the rest of this year, to perhaps rejuvenate some initiatives in trouble spots such as the Middle East and elsewhere?

    THE PRESIDENT: Well, I think the work that we’ve done in recent days around nuclear security and nuclear disarmament are intrinsically good. They’re good just in and of themselves. And so we’re very pleased with the progress that we’ve made. And we could not have done this without extraordinary cooperation first from President Medvedev when it came to the START treaty, and then from my colleagues who were here today when it came to this Nuclear Security Summit.

    What I think it signifies is the fact that so many of the challenges that we face internationally can’t be solved by one nation alone. But I do think that America’s leadership is important in order to get issues on the international agenda and to move in concert with other countries to have an effective response.

    There are a host of other issues, obviously, that have to be addressed and one of the points that was made actually during the communiqué is we’re talking here about the instruments of potential war or terrorism, but obviously there are also the reasons, the rationales, the excuses for conflict, that have to be addressed as well.

    And I remain committed to being a partner with countries around the world, and in particular hot spots around the world, to see if we can reduce those tensions and ultimately resolve those conflicts. And the Middle East would be a prime example. I think that the need for peace between Israelis and Palestinians and the Arab states remains as critical as ever.

    It is a very hard thing to do. And I know that even if we are applying all of our political capital to that issue, the Israeli people through their government, and the Palestinian people through the Palestinian Authority, as well as other Arab states, may say to themselves, we are not prepared to resolve this — these issues — no matter how much pressure the United States brings to bear.

    And the truth is, in some of these conflicts the United States can’t impose solutions unless the participants in these conflicts are willing to break out of old patterns of antagonism. I think it was former Secretary of State Jim Baker who said, in the context of Middle East peace, we can’t want it more than they do.

    But what we can make sure of is, is that we are constantly present, constantly engaged, and setting out very clearly to both sides our belief that not only is it in the interests of each party to resolve these conflicts but it’s also in the interest of the United States. It is a vital national security interest of the United States to reduce these conflicts because whether we like it or not, we remain a dominant military superpower, and when conflicts break out, one way or another we get pulled into them. And that ends up costing us significantly in terms of both blood and treasure.

    So I’m going to keep on at it. But I think on all these issues — nuclear disarmament, nuclear proliferation, Middle East peace — progress is going to be measured not in days, not in weeks. It’s going to take time. And progress will be halting. And sometimes we’ll take one step forward and two steps back, and there will be frustrations. And so it’s not going to run on the typical cable news 24/7 news cycle. But if we’re persistent, and we’ve got the right approach, then over time, I think that we can make progress.

    All right? Thank you very much, everybody.

    END
    5:11 P.M. EDT

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  • President Obama and First Lady Michelle Obama to Host United States Olympic and Paral

    04.13.10 03:24 PM

    WASHINGTON – On Wednesday, April 21, 2010, President Barack Obama and First Lady Michelle Obama together with the White House Office on Olympic, Paralympic and Youth Sport will host members of the United States Olympic and Paralympic teams at the White House.

    The President and First Lady will congratulate Olympians and Paralympians on their performance and thank them for representing the United States during the Vancouver Winter Games. They will also discuss the First Lady’s Let’s Move! campaign to solve the childhood obesity epidemic within a generation.

    More details, including timing, location, coverage details and additional details about specific attendees will be released when they become available.

    White House.gov Press Office Feed

  • Executive Order concerning Somalia

    04.13.10 02:16 PM

    EXECUTIVE ORDER
    – – – – – – –
    BLOCKING PROPERTY OF CERTAIN PERSONS
    CONTRIBUTING TO THE CONFLICT IN SOMALIA

    By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.) (NEA), section 5 of the United Nations Participation Act, as amended (22 U.S.C. 287c) (UNPA), and section 301 of title 3, United States Code,

    I, BARACK OBAMA, President of the United States of America, find that the deterioration of the security situation and the persistence of violence in Somalia, and acts of piracy and armed robbery at sea off the coast of Somalia, which have repeatedly been the subject of United Nations Security Council resolutions (including Resolution 1844 of November 20, 2008; Resolution 1846 of December 2, 2008; Resolution 1851 of December 16, 2008; and Resolution 1897 of November 30, 2009), and iolations of the arms embargo imposed by the United Nations Security Council in Resolution 733 of January 23, 1992, and elaborated upon and amended by subsequent resolutions (including Resolution 1356 of June 19, 2001; Resolution 1725 of December 6, 2006; Resolution 1744 of February 20, 2007; Resolution 1772 of August 20, 2007; Resolution 1816 of June 2, 2008; and Resolution 1872 of May 26, 2009), constitute an unusual and extraordinary threat to the national security and foreign policy of the United States, and I hereby declare a national emergency to deal with that threat.

    I hereby order:

    Section 1. (a) All property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the
    possession or control of any United States person, including any overseas branch, of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in:
    (i) the persons listed in the Annex to this order;
    and
    (ii) any person determined by the Secretary of the Treasury, in consultation with the Secretary of State:

    (A) to have engaged in acts that directly or indirectly threaten the peace, security, or stability of Somalia, including but not limited to:

    (1) acts that threaten the Djibouti Agreement of August 18, 2008, or the political process; or
    (2) acts that threaten the Transitional Federal Institutions, the African Union Mission in Somalia (AMISOM), or other international peacekeeping operations related to
    Somalia;

    (B) to have obstructed the delivery of humanitarian assistance to Somalia, or access to, or distribution of, humanitarian assistance in Somalia;

    (C) to have directly or indirectly supplied, sold, or transferred to Somalia, or to have been the recipient in the territory of Somalia of, arms or any related materiel, or any technical advice, training, or assistance, including financing and financial assistance, related to military activities;

    (D) to have materially assisted, sponsored, or provided financial, material, logistical, or technical support for, or goods or services in support of, the activities
    described in subsections (a)(ii)(A), (a)(ii)(B), or (a)(ii)(C) of this section or any person whose property and interests in property are blocked pursuant to this order;
    or

    (E) to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this order.

    (b) I hereby determine that, among other threats to the peace, security, or stability of Somalia, acts of piracy or armed robbery at sea off the coast of Somalia threaten the peace, security, or stability of Somalia. (c) I hereby determine that, to the extent section 203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)) may apply, the making of donations of the type of articles specified in such section by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to subsection (a) of this section would seriously impair my ability to deal with the national emergency declared in this order, and I hereby prohibit such donations as provided by subsection (a) of this section.

    (d) The prohibitions in subsection (a) of this section include but are not limited to:

    (i) the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to this order; and

    (ii) the receipt of any contribution or provision of funds, goods, or services from any such person.

    (e) The prohibitions in subsection (a) of this section apply except to the extent provided by statutes, or in regulations, orders, directives, or licenses that may be issued
    pursuant to this order, and notwithstanding any contract entered into or any license or permit granted prior to the effective date of this order.

    Sec. 2. (a) Any transaction by a United States person or within the United States that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate any of the prohibitions set forth in this order is prohibited.

    (b) Any conspiracy formed to violate any of the prohibitions set forth in this order is prohibited.

    Sec. 3. For the purposes of this order:

    (a) the term "person" means an individual or entity;

    (b) the term "entity" means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization;

    (c) the term "United States person" means any United States citizen, permanent resident alien, entity organized under the laws of the United States or any
    jurisdiction within the United States (including foreign branches), or any person in the United States;

    (d) the term "Transitional Federal Institutions" means the Transitional Federal Charter of the Somali Republic adopted in February 2004 and the Somali federal institutions established pursuant to such charter, and includes their agencies, instrumentalities, and controlled entities; and

    (e) the term "African Union Mission in Somalia" means the mission authorized by the United Nations Security Council in Resolution 1744 of February 20, 2007, and reauthorized in subsequent resolutions, and includes its agencies, instrumentalities, and controlled entities.

    Sec. 4. For those persons whose property and interests in property are blocked pursuant to this order who might have a constitutional presence in the United States, I find that because of the ability to transfer funds or other assets instantaneously, prior notice to such persons of measures to be taken pursuant to this order would render those measures ineffectual. I therefore determine that for these measures to be effective in addressing the national emergency declared in this order, there need be no prior notice of a listing or determination made pursuant to section 1(a) of this order.

    Sec. 5. The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to the President by IEEPA and the UNPA, as may be necessary to carry out the purposes of this order. The Secretary of the Treasury may redelegate any of these functions to other officers and agencies of the United States Government consistent with applicable law. All agencies of the United States Government are hereby directed to take all appropriate measures within their authority to carry out the provisions of this order.

    Sec. 6. The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to submit the recurring and final reports to the Congress on the national emergency declared in this order, consistent with section 401(c) of the NEA (50 U.S.C. 1641(c)) and section 204(c) of IEEPA (50 U.S.C. 1703(c)).

    Sec. 7. The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to determine that circumstances no longer warrant the blocking of the property and interests in property of a person listed in the Annex to this order, and to take necessary action to give effect to that determination.

    Sec. 8. This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the
    United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

    Sec. 9. This order is effective at 12:01 a.m. eastern daylight time on April 13, 2010.

    BARACK OBAMA

    THE WHITE HOUSE,
    April 12, 2010.

    White House.gov Press Office Feed

  • Message to Congress concerning Somalia

    04.13.10 02:16 PM

    TO THE CONGRESS OF THE UNITED STATES:

    Consistent with subsection 204(b) of the International Emergency Economic Powers Act, 50 U.S.C. 1703(b) (IEEPA), and section 301 of the National Emergencies Act, 50 U.S.C. 1631 (NEA), I hereby report that I have issued an Executive Order (the "order") blocking the property of certain persons contributing to the conflict in Somalia. In that order, I declared a national emergency to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States posed by that conflict, as described below.

    The United Nations Security Council, in Resolution 1844 of November 20, 2008, reaffirmed its condemnation of all acts of violence in Somalia and incitement to violence inside Somalia, and expressed its concern at all acts intended to prevent or block a peaceful political process. United Nations Security Council Resolution (UNSCR) 1844 also expressed grave concern over the recent increase in acts of piracy and armed robbery at sea against vessels off the coast of Somalia, and noted the role piracy may play in financing violations of the arms embargo on Somalia imposed by UNSCR 733 of January 23, 1992. In UNSCR 1844, the United Nations Security Council determined that the situation in Somalia poses a threat to international peace and security in the region and called on member States to apply certain measures against persons responsible for the continuing conflict. The United Nations Security Council has continued to express grave concern about the crisis in Somalia in UNSCR 1846 of December 2, 2008, UNSCR 1851 of December 16, 2008, and UNSCR 1872 of May 26, 2009.

    Pursuant to the IEEPA and the NEA, I have determined that the deterioration of the security situation and the persistence of violence in Somalia, and acts of piracy and armed robbery at sea off the coast of Somalia, constitute an unusual and extraordinary threat to the national security and foreign policy of the United States. The order declares a national emergency to deal with this threat.

    The order is not targeted at the entire country of Somalia, but rather is intended to target those who threaten peace and stability in Somalia, who inhibit the delivery of humanitarian assistance to Somalia or the distribution of such assistance in Somalia, or who supply arms or related materiel in violation of the arms embargo. The order blocks the property and interests in property in the United States, or in the possession or control of United States persons, of the persons listed in the Annex to the order, as well as of any person determined by the Secretary of the Treasury, in consultation with the Secretary of State:

    ? to have engaged in acts that directly or indirectly threaten the peace, security, or stability of Somalia, including but not limited to (1) acts that threaten the Djibouti Agreement of August 18, 2008, or the political process, or (2) acts that threaten the Transitional Federal Institutions, the African Union Mission in Somalia (AMISOM), or other international peacekeeping operations related to Somalia;

    ? to have obstructed the delivery of humanitarian assistance to Somalia, or access to, or distribution of, humanitarian assistance in Somalia; or

    ? to have directly or indirectly supplied, sold, or transferred to Somalia, or to have been the recipient in the territory of Somalia of, arms or any related materiel, or any technical advice, training, or assistance, including financing and financial assistance, related to military activities.

    The designation criteria will be applied in accordance with applicable Federal law including, where appropriate, the First Amendment to the United States Constitution. The designation criteria will also be applied taking into consideration the arms embargo on Somalia imposed by UNSCR 733 of January 23, 1992, as elaborated upon and amended by subsequent resolutions.

    The order also authorizes the Secretary of the Treasury, in consultation with the Secretary of State, to designate for blocking any person determined to have materially assisted, sponsored, or provided financial, material, logistical, or technical support for, or goods or services in support of, the activities described above or any person whose property and interests in property are blocked pursuant to the order. I determined that, among other threats to the peace, security, or stability of Somalia, acts of piracy or armed robbery at sea off the coast of Somalia threaten the peace, security, or stability of Somalia. I further authorized the Secretary of the Treasury, in onsultation with the Secretary of State, to designate for blocking any person (defined as an individual or entity) determined to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to the order.

    I delegated to the Secretary of the Treasury, in consultation with the Secretary of State, the authority to take such actions, including the promulgation of rules and
    regulations, and to employ all powers granted to the President by IEEPA and the United Nations Participation Act, as may be necessary to carry out the purposes of the order. All executive agencies are directed to take all appropriate measures within their authority to carry out the provisions of the order.

    The order, a copy of which is enclosed, became effective at 12:01 a.m. eastern daylight time on April 13, 2010.

    BARACK OBAMA

    THE WHITE HOUSE,
    April 13, 2010.

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