As Gold Is Spirited Out of Afghanistan, Officials Wonder Why


Zalmai for The New York Times


A Kabul jewelry shop. Officials are concerned about gold being flown out of Afghanistan.







KABUL, Afghanistan — Packed into hand luggage and tucked into jacket pockets, roughly hewed bars of gold are being flown out of Kabul with increasing regularity, confounding Afghan and American officials who fear money launderers have found a new way to spirit funds from the country.




Most of the gold is being carried on commercial flights destined for Dubai, according to airport security reports and officials. The amounts carried by single couriers are often heavy enough that passengers flying from Kabul to the Persian Gulf emirate would be well advised to heed warnings about the danger of bags falling from overhead compartments. One courier, for instance, carried nearly 60 pounds of gold bars, each about the size of an iPhone, aboard an early morning flight in mid-October, according to an airport security report. The load was worth more than $1.5 million.


The gold is fully declared and legal to fly. Some, if not most, is legitimately being sent by gold dealers seeking to have old and damaged jewelry refashioned into new pieces by skilled craftsmen in the Persian Gulf, said Afghan officials and gold dealers.


But gold dealers in Kabul and current and former Kabul airport officials say there has been a surge in shipments since early summer. The talk of a growing exodus of gold from Afghanistan has been spreading among the business community here, and in recent weeks has caught the attention of Afghan and American officials. The officials are now puzzling over the origin of the gold — very little is mined in Afghanistan, although larger mines are planned — and why so much appears to be heading for Dubai.


“We are investigating it, and if we find this is a way of laundering money, we will intervene,” said Noorullah Delawari, the governor of Afghanistan’s central bank. Yet he acknowledged that there were more questions than answers at this point. “I don’t know where so much gold would come from, unless you can tell me something about it,” he said in an interview. Or, as a European official who tracks the Afghan economy put it, “new mysteries abound” as the war appears to be drawing to a close.


Figuring out what precisely is happening in the Afghan economy remains as confounding as ever. Nearly 90 percent of the financial activity takes place outside formal banks. Written contracts are the exception, receipts are rare and statistics are often unreliable. Money laundering is commonplace, say Western and Afghan officials.


As a result, with the gold, “right now you’re stuck in that situation we usually are: is there something bad going on here or is this just the Afghan way of commerce?” said a senior American official who tracks illicit financial networks.


There is reason to be suspicious: the gold shipments track with the far larger problem of cash smuggling. For years, flights have left Kabul almost every day carrying thick wads of bank notes — dollars, euros, Norwegian kroner, Saudi Arabian riyals and other currencies — stuffed into suitcases, packed into boxes and shrink-wrapped onto pallets. At one point, cash was even being hidden in food trays aboard now-defunct Pamir Airways flights to Dubai.


Last year alone, Afghanistan’s central bank says, roughly $4.5 billion in cash was spirited out through the airport. Efforts to stanch the flow have had limited impact, and concerns about money laundering persist, according to a report released last week by the United States Special Inspector General for Afghanistan Reconstruction.


The unimpeded “bulk cash flows raise the risk of money laundering and bulk cash smuggling — tools often used to finance terrorist, narcotics and other illicit operations,” the report said. The cash, and now the gold, is most often taken to Dubai, where officials are known for asking few questions. Many wealthy Afghans park their money and families in the emirate, and gold dealers say more middle-class Afghans are sending money and gold — seen as a safeguard against economic ruin — to Dubai as talk of a postwar economic collapse grows louder.


But given Dubai’s reputation as a haven for laundered money, an Afghan official said that the “obvious suspicion” is that at least some of the apparent growth in gold shipments to Dubai is tied to the myriad illicit activities — opium smuggling, corruption, Taliban taxation schemes — that have come to define Afghanistan’s economy.


There are also indications that Iran could be dipping into the Afghan gold trade. It is already buying up dollars and euros here to circumvent American and European sanctions, and it may be using gold for the same purpose.


Yahya, a dealer in Kabul, said other gold traders were helping Iran buy the precious metal here. Payment was being made in oil or with Iranian rials, which readily circulate in western Afghanistan. The Afghan dealers are then taking it to Dubai, where the gold is sold for dollars. The money is then moved to China, where it was used to buy needed goods or simply funneled back to Iran, said Yahya, who like many Afghans uses a single name.


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Using Facebook to Announce Bad News


Fabrizio Costantini for The New York Times


When his father died, Doug Anter of Royal Oak, Mich., called key family members, then put the news on Facebook.







LIKE many women these days, Aran Hissam, 35, of Melbourne, Fla., posted the news that she was pregnant on Facebook. On the morning of an ultrasound last year, she debated on the site whether to learn the baby’s sex, musing “to peek or not to peek?”




When she failed to post an update later that day, friends started to contact her. Ms. Hissam decided to return to Facebook to share the news that her unborn baby, a girl, had been found to have fetal hydrops and given no chance of survival.


“I wanted to communicate the news to get people off my back,” Ms. Hissam said in a telephone interview recently. Although her husband was at first surprised that she would share such emotional news publicly, she said, Facebook seemed like one of the least difficult ways to get the word out.


“It was too draining to actually call everybody, because I couldn’t emotionally speak about the same thing over and over,” Ms. Hissam said, adding that she continued to post updates about her daughter, who was born at 35 weeks and lived for 15 hours, and it became a form of therapy for her. (She also later wrote a book about her loss.)


Facebook, that repository of the mundane (mealtime updates, party reminders and job changes) that people have long used to show the positive sides of their lives, is increasingly also a place they go to break difficult news.


It was where the racecar driver Danica Patrick, 30, announced that she and her husband of seven years, Paul Hospenthal, 47, were “amicably” divorcing. And it is where a portrait photographer and mother of two named Alicia, 35 (who did not want her last name published because of continuing custody issues), posted a few succinct sentences about the breakup of her own marriage recently. People in her social circle were starting to hear rumors about her personal life, she said, and she wanted to address that.


“I didn’t want to start a pity party, but I did want to be honest about what was going on,” Alicia said, adding that making the announcement this way allowed her to control the message as well as avoid putting people on the spot. “One of the beautiful things about Facebook is that it’s passive communication, and it gives people freedom to respond — or not — in whichever way they are most comfortable.”


Posting bad news on a social media site eases the pain for the bearer of bad news and the recipient, because knowing what to say to someone who has just told you bad news can be one of the most socially fraught situations. “If you put the news on Facebook, you’re also maximizing the recipient’s comfort, so they can process the information on their own time,” said Dr. Janet Sternberg, assistant professor of communication and media studies at Fordham University. “It’s really hard to break bad news without crying or falling apart. But we can share painful news in less painful ways.”


Dr. Louis Manza, a professor and chairman of the psychology department at Lebanon Valley College in Pennsylvania, said: “From a cognitive perspective, it’s easier to deal with it this way. You post it, come back in eight hours and read all the comments that you get, and don’t have to worry about having a difficult conversation.”


Still, intimates might react poorly to finding out about delicate or tragic situations via pixels.


“Really significant news is best delivered face to face, but sometimes speed is the concern,” said Daniel Post Senning, an etiquette author and a spokesman for the Emily Post Institute. “We’ve definitely crossed a threshold in how we use social media.”


The hand hovering ready to click the “Like” button can also create tremendously awkward situations.


“Ah, yes, the Facebook vocab challenge,” said Mr. Senning, who said it’s O.K. to “Like” negative news. “The ‘Like’ indicates an emotional connection, and indicates that you have read it.”


Doug Anter, 46, a public relations executive in Royal Oak, Mich., was hardly concerned about an excess of “Likes” when thinking about how to spread the word that his father had died in August.


At the time he was also expecting his first child, so he was feeling highly emotional, and phoned key family members before ultimately putting the news about his father on Facebook.


“I could have made countless phone calls, but it was incredibly inefficient, and I would be getting very emotional each time,” he said. After he posted about his father, Mr. Anter said he felt “blessed and fortunate for the outpouring of support” that followed.


But some experts think that putting bad news on Facebook almost inevitably trivializes it, to the sufferer’s further detriment.“If you post about someone’s death or your divorce, it’s not that different from typing, ‘I’m going to Starbucks,’ ” said Dr. Carole Lieberman, a psychiatrist in Beverly Hills, Calif. When someone puts bad news on social media, she said, “it’s trying to show bravado, and pretending that you’re not devastated by the news. It isn’t good because if you don’t feel the feelings, it interferes with your grief.”


Dr. Lieberman said that it is far preferable to tell people in person, as “it is very human, very real and you have to deal with your feelings.” In pre-Facebook days, she pointed out, we all had to make 50 difficult phone calls or ask friends and family to help — and we all managed to do it.


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School Yoga Class Draws Religious Protest From Christians


T. Lynne Pixley for The New York Times


Miriam Ruiz during a yoga class last week at Paul Ecke Central Elementary School in Encinitas, Calif. A few dozen parents are protesting that the program amounts to religious indoctrination. More Photos »







ENCINITAS, Calif. — By 9:30 a.m. at Paul Ecke Central Elementary School, tiny feet were shifting from downward dog pose to chair pose to warrior pose in surprisingly swift, accurate movements. A circle of 6- and 7-year-olds contorted their frames, making monkey noises and repeating confidence-boosting mantras.




Jackie Bergeron’s first-grade yoga class was in full swing.


“Inhale. Exhale. Peekaboo!” Ms. Bergeron said from the front of the class. “Now, warrior pose. I am strong! I am brave!”


Though the yoga class had a notably calming effect on the children, things were far from placid outside the gymnasium.


A small but vocal group of parents, spurred on by the head of a local conservative advocacy group, has likened these 30-minute yoga classes to religious indoctrination. They say the classes — part of a comprehensive program offered to all public school students in this affluent suburb north of San Diego — represent a violation of the First Amendment.


After the classes prompted discussion in local evangelical churches, parents said they were concerned that the exercises might nudge their children closer to ancient Hindu beliefs.


Mary Eady, the parent of a first grader, said the classes were rooted in the deeply religious practice of Ashtanga yoga, in which physical actions are inextricable from the spiritual beliefs underlying them.


“They’re not just teaching physical poses, they’re teaching children how to think and how to make decisions,” Ms. Eady said. “They’re teaching children how to meditate and how to look within for peace and for comfort. They’re using this as a tool for many things beyond just stretching.”


Ms. Eady and a few dozen other parents say a public school system should not be leading students down any particular religious path. Teaching children how to engage in spiritual exercises like meditation familiarizes young minds with certain religious viewpoints and practices, they say, and a public classroom is no place for that.


Underlying the controversy is the source of the program’s financing. The pilot project is supported by the Jois Foundation, a nonprofit organization founded in memory of Krishna Pattabhi Jois, who is considered the father of Ashtanga yoga.


Dean Broyles, the president and chief counsel of the National Center for Law and Policy, a nonprofit law firm that champions religious freedom and traditional marriage, according to its Web site, has dug up quotes from Jois Foundation leaders, who talk about the inseparability of the physical act of yoga from a broader spiritual quest. Mr. Broyles argued that such quotes betrayed the group’s broader evangelistic purpose.


“There is a transparent promotion of Hindu religious beliefs and practices in the public schools through this Ashtanga yoga program,” he said.


“The analog would be if we substituted for this program a charismatic Christian praise and worship physical education program,” he said.


The battle over yoga in schools has been raging for years across the country but has typically focused on charter schools, which receive public financing but set their own curriculums.


The move by the Encinitas Union School District to mandate yoga classes for all students who do not opt out has elevated the discussion. And it has split an already divided community.


The district serves the liberal beach neighborhoods of Encinitas, including Leucadia, where Paul Ecke Central Elementary is, as well as more conservative inland communities. On the coast, bumper stickers reading “Keep Leucadia Funky” are borne proudly. Farther inland, cars are more likely to feature the Christian fish symbol, and large evangelical congregations play an important role in shaping local philosophy.


Opponents of the yoga classes have started an online petition to remove the course from the district’s curriculum. They have shown up at school board meetings to denounce the program, and Mr. Broyles has threatened to sue if the board does not address their concerns.


The district has stood firm. Tim Baird, the schools superintendent, has defended the yoga classes as merely another element of a broader program designed to promote children’s physical and mental well-being. The notion that yoga teachers have designs on converting tender young minds to Hinduism is incorrect, he said.


“That’s why we have an opt-out clause,” Mr. Baird said. “If your faith is such that you believe that simply by doing the gorilla pose, you’re invoking the Hindu gods, then by all means your child can be doing something else.”


Ms. Eady is not convinced.


“Yoga poses are representative of Hindu deities and Hindu stories about the actions and interactions of those deities with humans,” she said. “There’s content even in the movement, just as with baptism there’s content in the movement.”


Russell Case, a representative of the Jois Foundation, said the parents’ fears were misguided.


“They’re concerned that we’re putting our God before their God,” Mr. Case said. “They’re worried about competition. But we’re much closer to them than they think. We’re good Christians that just like to do yoga because it helps us to be better people.”


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School Yoga Class Draws Religious Protest From Christians


T. Lynne Pixley for The New York Times


Miriam Ruiz during a yoga class last week at Paul Ecke Central Elementary School in Encinitas, Calif. A few dozen parents are protesting that the program amounts to religious indoctrination. More Photos »







ENCINITAS, Calif. — By 9:30 a.m. at Paul Ecke Central Elementary School, tiny feet were shifting from downward dog pose to chair pose to warrior pose in surprisingly swift, accurate movements. A circle of 6- and 7-year-olds contorted their frames, making monkey noises and repeating confidence-boosting mantras.




Jackie Bergeron’s first-grade yoga class was in full swing.


“Inhale. Exhale. Peekaboo!” Ms. Bergeron said from the front of the class. “Now, warrior pose. I am strong! I am brave!”


Though the yoga class had a notably calming effect on the children, things were far from placid outside the gymnasium.


A small but vocal group of parents, spurred on by the head of a local conservative advocacy group, has likened these 30-minute yoga classes to religious indoctrination. They say the classes — part of a comprehensive program offered to all public school students in this affluent suburb north of San Diego — represent a violation of the First Amendment.


After the classes prompted discussion in local evangelical churches, parents said they were concerned that the exercises might nudge their children closer to ancient Hindu beliefs.


Mary Eady, the parent of a first grader, said the classes were rooted in the deeply religious practice of Ashtanga yoga, in which physical actions are inextricable from the spiritual beliefs underlying them.


“They’re not just teaching physical poses, they’re teaching children how to think and how to make decisions,” Ms. Eady said. “They’re teaching children how to meditate and how to look within for peace and for comfort. They’re using this as a tool for many things beyond just stretching.”


Ms. Eady and a few dozen other parents say a public school system should not be leading students down any particular religious path. Teaching children how to engage in spiritual exercises like meditation familiarizes young minds with certain religious viewpoints and practices, they say, and a public classroom is no place for that.


Underlying the controversy is the source of the program’s financing. The pilot project is supported by the Jois Foundation, a nonprofit organization founded in memory of Krishna Pattabhi Jois, who is considered the father of Ashtanga yoga.


Dean Broyles, the president and chief counsel of the National Center for Law and Policy, a nonprofit law firm that champions religious freedom and traditional marriage, according to its Web site, has dug up quotes from Jois Foundation leaders, who talk about the inseparability of the physical act of yoga from a broader spiritual quest. Mr. Broyles argued that such quotes betrayed the group’s broader evangelistic purpose.


“There is a transparent promotion of Hindu religious beliefs and practices in the public schools through this Ashtanga yoga program,” he said.


“The analog would be if we substituted for this program a charismatic Christian praise and worship physical education program,” he said.


The battle over yoga in schools has been raging for years across the country but has typically focused on charter schools, which receive public financing but set their own curriculums.


The move by the Encinitas Union School District to mandate yoga classes for all students who do not opt out has elevated the discussion. And it has split an already divided community.


The district serves the liberal beach neighborhoods of Encinitas, including Leucadia, where Paul Ecke Central Elementary is, as well as more conservative inland communities. On the coast, bumper stickers reading “Keep Leucadia Funky” are borne proudly. Farther inland, cars are more likely to feature the Christian fish symbol, and large evangelical congregations play an important role in shaping local philosophy.


Opponents of the yoga classes have started an online petition to remove the course from the district’s curriculum. They have shown up at school board meetings to denounce the program, and Mr. Broyles has threatened to sue if the board does not address their concerns.


The district has stood firm. Tim Baird, the schools superintendent, has defended the yoga classes as merely another element of a broader program designed to promote children’s physical and mental well-being. The notion that yoga teachers have designs on converting tender young minds to Hinduism is incorrect, he said.


“That’s why we have an opt-out clause,” Mr. Baird said. “If your faith is such that you believe that simply by doing the gorilla pose, you’re invoking the Hindu gods, then by all means your child can be doing something else.”


Ms. Eady is not convinced.


“Yoga poses are representative of Hindu deities and Hindu stories about the actions and interactions of those deities with humans,” she said. “There’s content even in the movement, just as with baptism there’s content in the movement.”


Russell Case, a representative of the Jois Foundation, said the parents’ fears were misguided.


“They’re concerned that we’re putting our God before their God,” Mr. Case said. “They’re worried about competition. But we’re much closer to them than they think. We’re good Christians that just like to do yoga because it helps us to be better people.”


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Microsoft Battles Google by Hiring Political Brawler Mark Penn


SEATTLE — Mark Penn made a name for himself in Washington by bulldozing enemies of the Clintons. Now he spends his days trying to do the same to Google, on behalf of its archrival Microsoft.


Since Mr. Penn was put in charge of “strategic and special projects” at Microsoft in August, much of his job has involved efforts to trip up Google, which Microsoft has failed to dislodge from its perch atop the lucrative Internet search market.


Drawing on his background in polling, data crunching and campaigning, Mr. Penn created a holiday commercial that has been running during Monday Night Football and other shows, in which Microsoft criticizes Google for polluting the quality of its shopping search results with advertisements. “Don’t get scroogled,” it warns. His other projects include a blind taste test, Coke-versus-Pepsi style, of search results from Google and Microsoft’s Bing.


The campaigns by Mr. Penn, 58, a longtime political operative known for his brusque personality and scorched-earth tactics, are part of a broader effort at Microsoft to give its marketing the nimbleness of a political campaign, where a candidate can turn an opponent’s gaffe into a damaging commercial within hours. They are also a sign of the company’s mounting frustration with Google after losing billions of dollars a year on its search efforts, while losing ground to Google in the browser and smartphones markets and other areas.


Microsoft has long attacked Google from the shadows, whispering to regulators, journalists and anyone else who would listen that Google was a privacy-violating, anticompetitive bully. The fruits of its recent work in this area could come next week, when the Federal Trade Commission is expected to announce the results of its antitrust investigation of Google, a case that echoes Microsoft’s own antitrust suit in the 1990s. A similar investigation by the European Union is also wrapping up. A bad outcome for Google in either one would be a victory for Microsoft.


But Microsoft, based in Redmond, Wash., has realized that it cannot rely only on regulators to scrutinize Google — which is where Mr. Penn comes in. He is increasing the urgency of Microsoft’s efforts and focusing on their more public side.


In an interview, Mr. Penn said companies underestimated the importance of policy issues like privacy to consumers, as opposed to politicians and regulators. “It’s not about whether they can get them through Washington,” he said. “It’s whether they can get them through Main Street.”


Jill Hazelbaker, a Google spokeswoman, declined to comment on Microsoft’s actions specifically, but said that while Google also employed lobbyists and marketers, “our focus is on Google and the positive impact our industry has on society, not the competition.”


In Washington, Mr. Penn is a lightning rod. He developed a relationship with the Clintons as a pollster during President Bill Clinton’s 1996 re-election campaign, when he helped identify the value of “soccer moms” and other niche voter groups.


As chief strategist for Hillary Clinton’s unsuccessful 2008 campaign for president, he conceived the “3 a.m.” commercial that raised doubts about whether Barack Obama, then a senator, was ready for the Oval Office. Mr. Penn argued in an essay he wrote for Time magazine in May that “negative ads are, by and large, good for our democracy.”


But his approach has ended up souring many of his professional relationships. He left Mrs. Clinton’s campaign after an uproar about his consulting work for the government of Colombia, which was seeking the passage of a trade treaty with the United States that Mrs. Clinton, then a senator, opposed.


“Google should be prepared for everything but the kitchen sink thrown at them,” said a former colleague who worked closely with Mr. Penn in politics and spoke on condition of anonymity. “Actually, they should be prepared for the kitchen sink to be thrown at them, too.”


Hiring Mr. Penn demonstrates how seriously Microsoft is taking this fight, said Michael A. Cusumano, a business professor at M.I.T. who co-wrote a book about Microsoft’s browser war.


“They’re pulling out all the stops to do whatever they can to halt Google’s advance, just as their competition did to them,” Professor Cusumano said. “I suppose that if Microsoft can actually put a doubt in people’s mind that Google isn’t unbiased and has become some kind of evil empire, they might very well get results.”


Nick Wingfield reported from Seattle and Claire Cain Miller from San Francisco.



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German Lawmakers Seek to Ban Far-Right Party








BERLIN — Nearly a decade after the German government embarrassingly failed in an attempt to ban the country’s leading extreme-right political party, the upper house of Parliament on Friday voted overwhelmingly to launch a new effort to have the National Democratic Party deemed unconstitutional.




The decision to ask the country’s highest court to open proceedings against the party, known by its German initials N.P.D., just before campaigning heats up for a parliamentary election next year raises the political stakes of a move that was already divisive.


Chancellor Angela Merkel is seeking a third term in office at a time when her center-right government has been criticized by its opposition rivals, the center-left Social Democrats, for mishandling the investigation into a murderous neo-Nazi trio that terrorized Germany’s minority population for the better part of the past decade. Ms. Merkel cannot afford to be viewed as weak in fighting against far-right extremists.


Lawmakers are still struggling to untangle how that trio, which called itself the National Socialist Underground, was able to terrorize minorities from 2000 to 2007, murdering 10 people, setting off two bombs and robbing 15 banks. A leading member of the N.P.D. has confessed to having contacts with the neo-Nazi trio — a statement seized upon by opponents as further proof of the need to ban the party.


“These murders confronted us with a new level of far-right extremism,” Christine Lieberknecht, governor of the eastern state of Thuringia, told the upper house, the Bundesrat, on Friday. “Out of far-right extremism grew far-right terror.”


Germany’s Bundesrat, which represents the 16 states, drew up a petition based on findings gleaned from a review of documents, interviews and observations from security services about the N.P.D. Fifteen of the 16 state governors backed the petition to ban the party.


Ms. Lieberknecht said the governors felt confident that there was sufficient proof of the threat the party posed to Germany’s democratic principles.


“We are convinced that the N.P.D. violates the Constitution,” Ms. Lieberknecht said. “The N.P.D.’s attitude is anti-Semitic, racist and xenophobic. Its goals, behavior and actions are similar in character to those of the Nazis.”


In a statement, the N.P.D. leadership called the latest attempt to ban the party “a foolhardy and stupid endeavor,” while insisting they viewed it with “necessary seriousness, but commensurate calmness.”


The Bundesrat’s decision is only an initial step in what could be a very long process. The greatest legal uncertainty is beyond German control, as the European Court of Justice may have a say in whether the party can be banned.


The previous attempt to outlaw the party collapsed in 2003 when it emerged that several of the government-paid informants keeping tabs on the party had simultaneously held high-ranking positions in it. The legal debacle — and the moral implications in a country with a long history of two-faced Nazi and Communist informants — proved an embarrassment for the then center-left Social Democrat government of Gerhard Schröder, which had initiated the ban.


So far, Ms. Merkel’s government has appeared reluctant to join the governors’ effort. After meeting them earlier this month, she expressed “understanding” for their position, but said her government would examine the “risks and chances” of the case before deciding on a position early next year.


Steffen Seibert, Ms. Merkel’s spokesman, said recently that there was understanding for the states’ move because the N.P.D. holds seats in some state legislatures “where they develop their politically unpleasant behavior, which should be rejected.”


The N.P.D. had 6,300 members last year, according to government figures. It is not represented at the national level, but remains a force in the east, especially Saxony and Mecklenburg-Western Pomerania, where its representatives sit in regional legislatures. It also is allowed, like all political parties in Germany, to draw public financing, which particularly galls those who consider it an extremist group.


Germans widely agree with banning the party, recent surveys show. A poll released Thursday indicated that 67 percent of Germans supported a ban, and 21 percent opposed it, Emnid pollsters said.


Not all politicians believe that the effort to ban will succeed, and if it fails again, the move may even strengthen the party. Norbert Lammert, president of the lower house of Parliament, the Bundestag, expressed concern that the motion could give the N.P.D. what he called “an instrument of propaganda” for the national campaign next year.


“I consider the political risks that could result from such a motion far greater than the hoped-for advantages,” Mr. Lammert said in an interview Friday with German public radio Westdeutscher Rundfunk.


Even without support from the government and the lower house, the constitutional court must still act on the Bundesrat petition. The country’s Constitution sets high hurdles for censuring political parties and only two have been banned in postwar Germany: the successor to the Nazi Party, in 1952, and the Communist Party, in 1956.


Stanislaw Tillich, the governor of Saxony, has had to grapple with N.P.D. representatives seeking to disrupt the regional legislature by calling Israel a “Jewish terror state,” or showing up in clothing by a well known neo-Nazi designer. He acknowledged the challenges the petition may face.


“Yes, we are taking a risk,” Mr. Tillich said. “But this is a risk worth taking.”


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Microsoft Battles Google by Hiring Political Brawler Mark Penn


SEATTLE — Mark Penn made a name for himself in Washington by bulldozing enemies of the Clintons. Now he spends his days trying to do the same to Google, on behalf of its archrival Microsoft.


Since Mr. Penn was put in charge of “strategic and special projects” at Microsoft in August, much of his job has involved efforts to trip up Google, which Microsoft has failed to dislodge from its perch atop the lucrative Internet search market.


Drawing on his background in polling, data crunching and campaigning, Mr. Penn created a holiday commercial that has been running during Monday Night Football and other shows, in which Microsoft criticizes Google for polluting the quality of its shopping search results with advertisements. “Don’t get scroogled,” it warns. His other projects include a blind taste test, Coke-versus-Pepsi style, of search results from Google and Microsoft’s Bing.


The campaigns by Mr. Penn, 58, a longtime political operative known for his brusque personality and scorched-earth tactics, are part of a broader effort at Microsoft to give its marketing the nimbleness of a political campaign, where a candidate can turn an opponent’s gaffe into a damaging commercial within hours. They are also a sign of the company’s mounting frustration with Google after losing billions of dollars a year on its search efforts, while losing ground to Google in the browser and smartphones markets and other areas.


Microsoft has long attacked Google from the shadows, whispering to regulators, journalists and anyone else who would listen that Google was a privacy-violating, anticompetitive bully. The fruits of its recent work in this area could come next week, when the Federal Trade Commission is expected to announce the results of its antitrust investigation of Google, a case that echoes Microsoft’s own antitrust suit in the 1990s. A similar investigation by the European Union is also wrapping up. A bad outcome for Google in either one would be a victory for Microsoft.


But Microsoft, based in Redmond, Wash., has realized that it cannot rely only on regulators to scrutinize Google — which is where Mr. Penn comes in. He is increasing the urgency of Microsoft’s efforts and focusing on their more public side.


In an interview, Mr. Penn said companies underestimated the importance of policy issues like privacy to consumers, as opposed to politicians and regulators. “It’s not about whether they can get them through Washington,” he said. “It’s whether they can get them through Main Street.”


Jill Hazelbaker, a Google spokeswoman, declined to comment on Microsoft’s actions specifically, but said that while Google also employed lobbyists and marketers, “our focus is on Google and the positive impact our industry has on society, not the competition.”


In Washington, Mr. Penn is a lightning rod. He developed a relationship with the Clintons as a pollster during President Bill Clinton’s 1996 re-election campaign, when he helped identify the value of “soccer moms” and other niche voter groups.


As chief strategist for Hillary Clinton’s unsuccessful 2008 campaign for president, he conceived the “3 a.m.” commercial that raised doubts about whether Barack Obama, then a senator, was ready for the Oval Office. Mr. Penn argued in an essay he wrote for Time magazine in May that “negative ads are, by and large, good for our democracy.”


But his approach has ended up souring many of his professional relationships. He left Mrs. Clinton’s campaign after an uproar about his consulting work for the government of Colombia, which was seeking the passage of a trade treaty with the United States that Mrs. Clinton, then a senator, opposed.


“Google should be prepared for everything but the kitchen sink thrown at them,” said a former colleague who worked closely with Mr. Penn in politics and spoke on condition of anonymity. “Actually, they should be prepared for the kitchen sink to be thrown at them, too.”


Hiring Mr. Penn demonstrates how seriously Microsoft is taking this fight, said Michael A. Cusumano, a business professor at M.I.T. who co-wrote a book about Microsoft’s browser war.


“They’re pulling out all the stops to do whatever they can to halt Google’s advance, just as their competition did to them,” Professor Cusumano said. “I suppose that if Microsoft can actually put a doubt in people’s mind that Google isn’t unbiased and has become some kind of evil empire, they might very well get results.”


Nick Wingfield reported from Seattle and Claire Cain Miller from San Francisco.



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F.D.A. Gives Early Approval to Leukemia Drug Iclusig


First there was Gleevec, the wonder cancer drug. Then came the sons of Gleevec. Now there is the grandson of Gleevec.


The Food and Drug Administration on Friday approved another Gleevec-like drug for the treatment of chronic myeloid leukemia, or C.M.L., adding to a crowded field vying to treat this rare cancer of white blood cells.


The new drug, Iclusig from Ariad Pharmaceuticals, works in some patients not helped by Gleevec or some of its imitators.


“The approval of Iclusig is important because it provides a treatment option to patients with C.M.L. who are not responding to other drugs,” Dr. Richard Pazdur, director of the agency’s office of cancer drugs, said in a statement.


Iclusig, known generically as ponatinib, is the first product to reach the market for Ariad, a biotechnology company in Cambridge, Mass., that was founded in 1991.


A tablet taken once a day, Iclusig (pronounced eye-CLUE-sig) will have a wholesale price of about $115,000 a year, the latest cancer drug to pierce the $100,000-a-year level. Ariad said the price was about 15 percent higher than the drug’s competitors’.


While the approval was expected, it came three months before the federal agency’s deadline of March 27, and the drug’s label allows broader use of the drug than some analysts expected. However, the label also contains a boxed warning about the side effects of blood clots and liver toxicity, something analysts did not expect.


Ariad’s shares, which have roughly doubled in the last year, sank 21 percent to $18.93 on Friday.


Chronic myeloid leukemia would seem at first glance to be an unattractive target for pharmaceutical companies. Not only is it rare — with about 5,000 new cases a year in the United States and 600 deaths — it is also one of the more effectively treated of cancers.


But it is also a well-understood cancer. Drug companies know how to attack it, so they do — something akin to looking for lost keys under the lamppost because that is where the light is. Iclusig is the third drug for chronic myeloid leukemia approved by the agency this year, after Pfizer’s Bosulif and Teva’s Synribo.


The disease occurs when pieces of two separate chromosomes come together to form what is known as the Philadelphia chromosome. A fusion of genes creates an aberrant protein, known as BCR-ABL, which fuels uncontrolled cell growth.


Gleevec, developed by Novartis and approved in 2001, inhibits the action of that errant protein. It turned chronic myeloid leukemia from a death sentence into a chronic disease for many patients and is still considered the paragon of molecularly targeted drugs. Global sales were $4.7 billion in 2011.


But about 20 to 30 percent of patients have cancers that do not respond to Gleevec or that develop resistance to it.


So companies developed other drugs — Tasigna from Novartis and Sprycel from Bristol-Myers Squibb — that also inhibit the aberrant protein but work in many of the cases that are resistant to Gleevec. But some cases do not respond to those drugs, either.


Iclusig was designed by chemists and computers at Ariad to work against cancer cells with a mutation — known as T315I — that makes them resistant to Gleevec, Tasigna and Sprycel.


However, Iclusig was approved not only for patients with that mutation but for any patient who has tried one of the other three drugs without success. Ariad estimates that each year about 2,500 patients with the disease switch therapies, making them candidates for Iclusig.


That can still be a lucrative market, given the high price of the drugs and the fact that patients must take them for the rest of their lives, which is usually many years. Dr. Harvey J. Berger, chief executive of Ariad since the company’s inception, said he expected annual sales to reach $600 million to $800 million in a few years.


The F.D.A. approved the drug based on a trial with 449 patients, all of whom received Iclusig. The patients had already tried treatment with one, two or three of the other drugs.


About 54 percent of patients in the early stage of the disease had a major cytogenic response, meaning a reduction in cells with the Philadelphia chromosome.


Iclusig was also approved Friday as a treatment for an even rarer cancer, acute lymphoblastic leukemia characterized by presence of the Philadelphia chromosome.


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In Cairo Crisis, Unheard Voice From the Poor


Tara Todras-Whitehill for The New York Times


In Boulaq, so long neglected that houses regularly collapse, there had been little expectation that leaders would provide. But the disregard of the new president has been harder to take. More Photos »







CAIRO — A faded poster of Hosni Mubarak hangs on a wall in a crumbling neighborhood here, reminding residents of an empty pledge to find jobs for young people. Down the street, a campaign banner for his successor, Mohamed Morsi, hangs across the road, a reminder of more recent promises unkept.




In the neighborhood, called Boulaq, so long neglected that houses regularly collapse, there was little expectation that Mr. Mubarak would provide. But Mr. Morsi’s disregard has been much harder to take.


“We had high hopes in God, that things would improve,” Fathi Hussein said as he built a desk of dark wood for one of his clients, who are dwindling. “I elected a president to be good for the country. I did not elect him to impose his opinions on me.”


Away from the protests and violence that have marked the painful struggle over Egypt’s identity in the run-up to a referendum on Saturday on a constitution, residents of Boulaq have their own reasons to be consumed with the crisis. The chants of the protesters, for bread and freedom, resonate in Boulaq’s alleyways. In many of its industrial workshops, passed from struggling fathers to penniless sons, disappointment with the president, his Muslim Brotherhood supporters as well as the leaders of the opposition grows daily.


There is a sense in Boulaq that the raging arguments would be better resolved in places like this, where most Egyptians live, carrying the burdens of poverty with no help from an indifferent state, and where the revolution’s promise of dignity is long overdue.


When he took office five months ago, Mr. Morsi seemed to understand. “He talked about the conditions of the poor, the people in the slums,” said Amr Abdul Hafiz, a barber. “He talked about the street vendors and the tuk-tuk drivers. We thought he felt for us.”


The barber and many of his neighbors were convinced that Mr. Morsi and the Brotherhood had earned their chance to rule. People remembered the Brotherhood’s charity after the earthquake in 1992, and its decades of struggle as an outlaw movement. In stages, though, doubts grew as the Brotherhood broke its promises and Mr. Morsi seized power, culminating in his decision to ram through his constitution. Boulaq’s residents, including the president’s supporters, bristled at the thought of being treated as subjects again.


“He became occupied with other issues,” Mr. Abdul Hafiz said. “They want power, to make up for all the injustice they suffered, as if we were the ones who inflicted the injustice on them.”


At night, the arguments rage at a storied cafe on Abu Talib Street, with an intensity that no one here recalls seeing before. By day, the arguments simmer, in a neighborhood whose former grandeur still peeks out from underneath the rot.


Everywhere, people tell stories about the government’s failures, suggesting that the new leaders had turned out no better than the old ones.


In the shadow of a fallen dwelling, one of many that make Boulaq look as if it suffered a war, a widow stood over workmen she had hired to fix a ruptured sewer pipe. The ministry assigned to handle such matters had ignored her calls for three months, so she and her neighbors collected the money to pay for the repairs themselves.


On Abu Talib Street, Mr. Abdul Hafiz fretted over the dangers facing his pregnant wife, whose belly was swelling with excessive amniotic fluid. An appointment to see a doctor at a private hospital, which would cost $80, was too expensive. The administrators at a public hospital told her she could see a doctor a month after she was supposed to give birth.


Security guards threw Mr. Abdul Hafiz out of the hospital when he pointed out how ridiculous that was.


He wanted a change from Mr. Mubarak, who had coverings placed over the houses in Boulaq during the public opening of a nearby building “to hide insects like us.” It was part of a pattern of neglect that stretched back for decades, when the land under the residents was sold to investors in shady deals that no one has untangled.


Mai Ayyad contributed reporting.



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Companies See High-Tech Factories as Fonts of Ideas


Heather Ainsworth for The New York Times


Workers at a G.E. battery plant in upstate New York. G.E. has researchers nearby, which allows for more collaboration.







SCHENECTADY, N.Y. — The Obama administration has long heralded the potential of American factories to offer good, stable middle-class jobs in an economy that desperately needs them. But experts say there might be another advantage to expanding manufacturing in the United States: a more innovative economy.




A growing chorus of economists, engineers and business leaders are warning that the evisceration of the manufacturing work force over the last 30 years might not have scarred just Detroit and the Rust Belt. It might have dimmed the country’s capacity to innovate and stunted the prospects for long-term growth.


“In sector after sector, we’ve lost our innovation edge because we don’t produce goods here anymore,” said Mitzi Montoya, dean of the college of technology and innovation at Arizona State University.


These experts say that in industries that produce complex, high-technology products — things like bioengineered tissues, not light bulbs — companies that keep their research and manufacturing employees close together might be more innovative than businesses that develop a schematic and send it overseas for low-wage workers to make. Moreover, clusters of manufacturers, where workers and ideas can naturally flow between companies, might prove more productive and innovative than the same businesses if they were spread across the country.


A General Electric facility in upstate New York provides a test case. In a custom-built facility the size of four football fields, workers are casting into thin tubes a kind of ceramic that G.E. invented. Those tubes get filled with a secret chemical “brownie mix,” packaged into batteries and shipped across the world.


The plant sits just a few miles down the road from the research campus where G.E. scientists developed the technology. That allows them to work out kinks on the assembly line, and test prototypes of and uses for the battery, the company’s scientists said.


“We’re not thinking about just one generation,” said Glen Merfeld of G.E.’s chemical energy systems laboratory, showing off a test battery his employees had run into exhaustion. “We’re working on the second, the third, the fourth, the fifth.”


The idea is to knit together manufacturing, design, prototyping and production, said Michael Idelchik, vice president for advanced technologies, who holds a dozen patents himself. “We believe that rather than a sequential process where you look at product design and then how to manufacture it, there is a simultaneous process,” Mr. Idelchik said. “We think it is key for sustaining our long-term competitive advantage.”


Economists and policy experts are now researching whether such strategies offer the same benefits for other businesses — and examining how those benefits might show up in national data on innovation, productivity and growth.


At the Massachusetts Institute of Technology, Suzanne Berger has helped to start the Production in the Innovation Economy project to study the subject. “It is something that’s very difficult to establish systematically,” said Professor Berger. “You really have to be willing to look at case-by-case evidence, qualitative evidence. That’s what we’re trying to do.”


Thus far, she said, the anecdotal evidence from about 200 companies has proved striking, with company after company detailing the advantages of keeping makers and thinkers together. That does not mean every business, she stressed. Companies with products early in their life cycle seemed to benefit more than ones with products on the market for years. So did companies making especially complicated or advanced goods, from new medicines to new machines.


“It’s the companies where the challenge of producing on a commercial scale requires levels of scientific activity that are just as complex as the original challenge of developing the technology,” Professor Berger said.


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