Dan Ariely Talks Creativity And Dishonesty

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Fiscal cliff deal would pale against expectations

WASHINGTON (AP) — Whether negotiated in a rush before the new year or left for early January, the fiscal deal President Barack Obama and Congress cobble together will be far smaller than what they initially envisioned as an alternative to purposefully distasteful tax increases and spending cuts.

Instead, their compromise, if they do indeed cut a deal, will put off some big decisions about tax and entitlement changes and leave other deadlines in place that will likely lead to similar moments of brinkmanship, some in just a matter of weeks.

Republican and Democratic negotiators in the Senate were hoping for an accord as early as Sunday on what threshold to set for increased tax rates, whether to keep current inheritance tax rates and exemptions and how to pay for jobless benefits and avoid cuts in Medicare payments to doctors.

An agreement would halt automatic across-the-board tax increases for virtually every American and perhaps temporarily put off some steep spending cuts in defense and domestic programs.

Gone, however, is the talk of a grand bargain that would tackle broad spending and revenue demands and set the nation on a course to lower deficits. Obama and Republican House Speaker John Boehner were once a couple hundred billion dollars apart from a deal that would have reduced the deficit by more than $2 trillion over 10 years.

The trimmed ambitions of today are a far cry from the upbeat bipartisan rhetoric of just six weeks ago, when the leadership of Congress went to the White House to set the stage for negotiations to come.

"I outlined a framework that deals with reforming our tax code and reforming our spending," Boehner said as the leaders gathered on the White House driveway on Nov. 16.

"We understand that it has to be about cuts, it has to be about revenue, it has to be about growth, it has to be about the future," House Democratic leader Nancy Pelosi said at the time. "I feel confident that a solution may be in sight."

And Senate Majority Leader Harry Reid, D-Nev., offered a bold prediction: "There is no more let's do it some other time. We are going to do it now."

That big talk is gone for now.

Senate negotiators were haggling over what threshold of income to set as the demarcation between current tax rates and higher tax rates. They were negotiating over estate limits and tax levels, how to extend unemployment benefits, how to prevent cuts in Medicare payments to doctors and how to keep a minimum income tax payment designed for the rich from hitting about 28 million middle class taxpayers.

But the deal was not meant to settle other outstanding issues, including more than $1 trillion in cuts over 10 years, divided equally between the Pentagon and other government spending. The deal also would not address an extension of the nation's borrowing limit, which the government is on track to reach any day but which the Treasury can put off through accounting measures for about two months.

That means Obama and the Congress are already on a new collision path.

Republicans say they intend to use the debt ceiling as leverage to extract more spending cuts from the president. Obama has been adamant that unlike 2011, when the country came close to defaulting on its debts, he will not yield to those Republican demands.

As the day ended Saturday, there were few signs of success on a scaled-back deal, but no one was declaring a stalemate either.

Lawmakers have until the new Congress convenes to pass any compromise, and even the calendar mattered. Democrats said they had been told House Republicans might reject a deal until after Jan. 1, to avoid a vote to raise taxes before they had technically gone up, and then vote to cut taxes after they had risen.

Republicans said they were willing to bow to Obama's call for higher taxes on the wealthy as part of an agreement to prevent them from rising on those less well-off.

Democrats said Obama was sticking to his campaign call for tax increases above $250,000 in annual income, even though in recent negotiations he said he could accept $400,000. There was no evidence of agreement even at the higher level.

Obama, who once proposed nearly $1.6 trillion in tax revenue over 10 years, would get about half of that if he succeeded in getting a $250,000 threshold over 10 years. At a $400,000 level, the revenue figure drops to about $600 billion over a decade.

Republicans want to leave the estate tax at 35 percent after exempting the first $5 million in estate value. Officials said the White House wants a 45 percent tax after a $3.5 million exemption. Without any action by Congress, it would climb to a 55 percent tax after a $1 million exemption on Jan. 1. Obama's proposal would generate more than $100 billion in additional revenue over 10 years.

Democrats stressed their unwillingness to make concessions on both income taxes and the estate tax, and hoped Republicans would choose which mattered more to them.

___

Associated Press writer David Espo contributed to this article.

___

Follow Jim Kuhnhenn on Twitter: http://twitter.com/jkuhnhenn

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C. African Republic neighbors to send help

BANGUI, Central African Republic (AP) — Central African Republic’s neighbors agreed on Friday to dispatch a contingent of soldiers to intervene in the troubled country, where a coalition of rebel groups is seeking to overthrow the president of nearly a decade.

Representatives from the 10-nation Economic Community of Central African States meeting in Gabon, though, did not specify how many troops they could contribute nor did they outline how quickly the military assistance would arrive.

President Francois Bozize had pleaded for international help Thursday as fears grew that the rebels would attack the capital of 600,000 next. Former colonial power France already has said that its forces in the country are there to protect French interests and not Bozize’s government.

“We are now thinking about the arrangements to make so that this mission can be deployed as quickly as possible, said Gabon’s Foreign Affairs Minister Emmanuel Issoze-Ngondet.

The announcement came as military officials in Central African Republic reported renewed fighting in the third largest city of Bambari, which fell under rebel control five days ago.

The military said it had taken country of the town, located about 385 kilometers (240 miles) from the capital, a claim that could not be immediately corroborated.

The ongoing instability prompted the United States to evacuate about 40 people, including the U.S. ambassador, on an U.S. Air Force plane bound for Kenya, said U.S. officials who insisted on anonymity because they weren’t authorized to discuss the operation.

The United States has special forces troops in the country who are assisting in the hunt for Joseph Kony, the fugitive rebel leader of another rebel group known as the Lord’s Resistance Army. The U.S. special forces remain in the country, the U.S. military’s Africa Command said from its headquarters in Stuttgart, Germany.

The evacuation of the U.S. diplomats came in the wake of criticism of how the U.S. handled diplomatic security before and during the attack on its consulate in Benghazi, Libya, on Sept. 11. The ambassador and three other Americans were killed in that attack.

French diplomats are staying despite a violent demonstration outside its embassy earlier this week. Dozens of protesters, angry about a lack of help against rebel forces, threw rocks at the French Embassy in Bangui and stole a French flag. French Foreign Minister Laurent Fabius spoke via phone with Bozize, asking him to take responsibility for the safety of French nationals and diplomatic missions in Central African Republic.

Bozize on Thursday urgently called on former colonial ruler France and other foreign powers to help his government fend off rebels who are quickly seizing territory and approaching the capital. But French President Francois Hollande said France wants to protect its interests in Central African Republic and not Bozize’s government.

This landlocked nation of some 4.4 million people has suffered decades of army revolts, coups and rebellions since gaining independence in 1960 and remains one of the poorest countries in the world. The current president himself came to power nearly a decade ago in the wake of a rebellion in this resource-rich yet deeply poor country.

Speaking to crowds in Bangui, a city of some 600,000, Bozize pleaded with foreign powers to do what they could. He pointed in particular to France. About 200 French soldiers are already in the country, providing technical support and helping to train the local army, according to the French defense ministry.

“France has the means to stop (the rebels) but unfortunately they have done nothing for us until now,” Bozize said.

Bozize’s government earlier reached out to longtime ally Chad, which pledged to send 2,000 troops to bolster Central African Republic’s own forces.

The rebels behind the most recent instability signed a 2007 peace accord allowing them to join the regular army, but insurgent leaders say the deal wasn’t fully implemented. The rebel forces have seized at least 10 towns across the sparsely populated north of the country, and residents in the capital now fear the insurgents could attack at any time, despite assurances by rebel leaders that they are willing to engage in dialogue instead of attacking Bangui.

The rebels have claimed that their actions are justified in light of the “thirst for justice, for peace, for security and for economic development of the people of Central African Republic.”

Despite Central African Republic’s wealth of gold, diamonds, timber and uranium, the government remains perpetually cash-strapped.

The rebels also are demanding that the government make payments to ex-combatants, suggesting that their motives may also be for personal financial gain.

Paris is encouraging peace talks between the government and the rebels, with the French Foreign Ministry noting in a statement that negotiations are due to “begin shortly in Libreville (Gabon).” But it was not immediately clear if any dates have been set for those talks.

The U.N.’s most powerful body condemned the recent violence and expressed concern about the developments.

“The members of the Security Council reiterate their demand that the armed groups immediately cease hostilities, withdraw from captured cities and cease any further advance towards the city of Bangui,” the statement said.

___

Goma reported from Libreville, Gabon. Associated Press writers Krista Larson in Dakar, Senegal; and Jason Straziuso in Nairobi, Kenya contributed to this report.

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iPad mini met with ‘insatiable’ demand in China

Despite a “soft” launch with few lines and seemingly abundant availability, China is going crazy for the iPad mini according Topeka Capital Markets analyst Brian White. His checks in China and Hong Kong reveal consumers are snapping up iPad minis at rapid rates, causing short supply, even with Apple (AAPL) opening two new retail stores in Hong Kong and three in China. White wrote in a research note on Friday that the iPad mini was sold-out at virtually all Apple Stores in both regions this week and is already more popular than the fourth-generation iPad thanks to the tablet’s smaller size and lower price.

[More from BGR: The Boy Genius Report: The Wii U is Nintendo’s last console]

[More from BGR: Samsung could face $ 15 billion fine for trying to ban iPhone, other Apple devices]

Additionally, White’s research shows iPhone 5 supply has improved to the point where anyone can walk into an Apple Store and buy one on the spot.

“After the Galaxy S III and Galaxy Note I/II became more popular than the iPhone 4S in recent months, our discussions now indicate that the iPhone 5 has recently become the most popular high-end smartphone at the resellers that we spoke with,” White in his note.

This article was originally published by BGR

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Stahl arrested for investigation of lewd conduct

LOS ANGELES (AP) — Los Angeles police say actor Nick Stahl has been arrested for investigation of lewd conduct.

The 33-year-old “Terminator 3″ star was arrested about 8 p.m. Thursday on Hollywood Boulevard. He was booked on a misdemeanor count of lewd conduct and released from custody.

The Los Angeles Times reports (http://lat.ms/YU6uBO) that Stahl was arrested at an adult movie shop during a routine undercover police operation.

In May, Stahl had been reported missing by his wife, but he later turned up.

Stahl was a child star who performed in the 1993 film “The Man Without a Face.” He also has appeared in the 2003-2005 HBO series “Carnivale’” and starred in “Mirrors 2″ in 2010. An email seeking comment from his publicist was not immediately returned Friday.

___

Information from: Los Angeles Times, http://www.latimes.com

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Novel takes on the tumult of bipolar disorder

NEW YORK (Reuters) – “Too Bright to Hear Too Loud to See” is a work of fiction, but author Juliann Garey said the protagonist’s struggles with bipolar disorder are based on her own reality.

The debut novel from journalist and screenwriter Garey, which was published this week, centers on Hollywood executive Greyson Todd‘s struggle to navigate life with bipolar disorder.

The story is told as a collection of memories that include Greyson‘s childhood with his mentally ill father, the discord that his symptoms cause in his marriage and professional life, and his travels around the world that precede his stay in a New York psychiatric hospital.

Garey herself is bipolar and the illness runs in her family.

“There are components that are conceived from my life, but it’s certainly not autobiographical,” she said in an interview. “It’s definitely fiction in terms of the plot. In terms of the psychic rollercoaster that he (Greyson) goes through in the book, that is actually very much from my own life.”

Garey said the steep crests and drops of Greyson’s moods closely paralleled her own. Beginning at age 39, she experienced a seven-year, treatment-resistant bipolar episode during which she wrote the book.

“When Greyson was having a manic episode, it was because I was having a manic episode and I wrote it during that period,” she said. “During his very depressed periods, I was probably very depressed and I wrote it at that time, so I was feeling what he was feeling.”

Garey’s book coincides with the recent release of a critically acclaimed film, “Silver Linings Playbook,” which centers on a character who is bipolar. It also comes as a rash of mass shootings has prompted questions about the accessibility of mental healthcare in the United States.

Though Garey said there is still a “huge stigma” attached to mental illnesses like bipolar disorder, she considers open discussion a step in the right direction.

“People have to know that it’s a brain disorder, a matter of circuitry,” she said. “It’s an illness like diabetes or multiple sclerosis or any other medical illness, and it needs to be treated in the same way.”

Greyson’s difficulties with his illness might make for a compelling novel, but Garey believes that a few key changes could prevent many mentally ill people from similar suffering. She advocates integrating mental healthcare more closely with existing care.

“Kids get screened when they go to the pediatrician for their sight, their hearing, and they should get screened for mental health as well. It should be part of a regular annual physical,” she said.

She praised President Barack Obama for increasing research funding to the National Institute of Mental Health, and for backing mental healthcare parity. She also criticized politicians for their silence on mental health issues, particularly during the 2012 presidential election.

“There are 11 million Americans with a serious mental illness who were voting in that election, and mental illness never came up once during the campaign,” she said of the 2012 presidential election. “We have a long way to go.”

(Editing by Patricia Reaney and Doina Chiacu)

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For Senate leaders, is a 'cliff' deal a mission impossible?

WASHINGTON (Reuters) - Following a Friday meeting with congressional leaders, an impatient and annoyed President Barack Obama said it was "mind boggling" that Congress has been unable to fix a "fiscal cliff" mess that everyone has known about for more than a year.

He then dispatched Senate Majority Leader Harry Reid, a Democrat, and Minority Leader Mitch McConnell, a Republican, on a mind-boggling mission: coming up with a bipartisan bill to break the "fiscal cliff" stalemate in the most partisan and gridlocked U.S. Congress of modern times - in about 48 hours.

Reid and McConnell, veteran tacticians known for their own long-running feud, have been down this road before.

Their last joint venture didn't turn out so well. It was the deal in August 2011 to avoid a U.S. default that set the stage for the current mess. That effort, like this one, stemmed from a grand deficit-reduction scheme that turned into a bust.

But they have never had the odds so stacked against them as they try to avert the "fiscal cliff" - sweeping tax increases set to begin on Tuesday and deep, automatic government spending cuts set to start on Wednesday, combined worth $600 billion.

The substantive differences are only part of the challenge. Other obstacles include concerns about who gets blamed for what and the legacy of distrust among members of Congress.

Any successful deal will require face-saving measures for Republicans and Democrats alike.

"Ordinary folks, they do their jobs, they meet deadlines, they sit down and they discuss things, and then things happen," Obama told reporters. "If there are disagreements, they sort though the disagreements. The notion that our elected leadership can't do the same thing is mind-boggling to them."

CORE DISAGREEMENT

The core disagreement between Republicans and Democrats is tough enough. It revolves around the low tax rates first put in place under Republican former President George W. Bush that expire at year's end. Republicans would extend them for everyone. Democrats would extend them for everyone except the wealthiest taxpayers.

The first step for Reid and McConnell may be to find a formula acceptable to their own parties in the Senate.

While members of the Senate, more than members of the House of Representatives, have expressed flexibility on taxes, it's far from a sure thing in a body that ordinarily requires not just a majority of the 100-member Senate to pass a bill, but a super-majority of 60 members.

With 51 Democrats, two independents who vote with the Democrats and 47 Republicans, McConnell and Reid may have to agree to suspend the 60-vote rule.

Getting a bill through the Republican-controlled House may be much tougher. The conservative wing of the House, composed of many lawmakers aligned with the Tea Party movement who fear being targeted by anti-tax activists in primary elections in 2014, has shown it will not vote for a bill that raises taxes on anyone, even if it means defying Republican House Speaker John Boehner.

Many Democrats are wedded to the opposite view - and have vowed not to support continuing the Bush-era tax rates for people earning more than $250,000 a year.

Some senators are wary of the procedural conditions House Republicans are demanding. Boehner is insisting the Senate start its work with a bill already passed by the House months ago that would continue all Bush-era tax cuts for another year. The Democratic-controlled Senate may amend the Republican bill, he says, but it must be the House bill.

For Boehner, it's the regular order when considering revenue measures, which the U.S. Constitution says must originate in the House.

SHIFT BLAME

As some Democrats see it, it's a way to shift blame if the enterprise goes down in flames. House Republicans would be able to claim that since they had already done their part by passing a bill, the Senate should take the blame for plunging the nation off the "cliff."

And that could bring public wrath, currently centered mostly on Republicans, onto the heads of Democrats.

Voters may indeed be looking for someone to blame if they see their paychecks shrink as taxes rise or their retirement savings dwindle as a result of a plunge in global markets.

If Reid and McConnell succeed, there could be political ramifications for each side. For example, a deal containing any income tax hikes could complicate McConnell's own 2014 re-election effort in which small-government, anti-tax Tea Party activists are threatening to mount a challenge.

If Obama and his fellow Democrats are perceived as giving in too much, it could embolden Republicans to mount challenge after challenge, possibly handcuffing the president before his second term even gets off the ground.

It could be a sprint to the finish. One Democratic aide expected "negotiation for a day." If the aide is correct, the world would know by late on Saturday or early on Sunday if Washington's political dysfunction is about to reach a new, possibly devastating, low.

If Reid and McConnell reach a deal, it would then be up to the full Senate and House to vote, possibly as early as Sunday.

Reid and McConnell have been through bitter fights before. The deficit reduction and debt limit deal that finally was secured last year was a brawl that ended only when the two leaders agreed to a complicated plan that secured about $1 trillion in savings, but really postponed until later a more meaningful plan to restore the country's fiscal health.

That effort led to the automatic spending cuts that form part of the "fiscal cliff."

Just months later, in December 2011, Reid and McConnell were going through a tough fight over extending a payroll tax cut.

In both instances, it was resistance from conservative House Republicans that complicated efforts, just as is the case now with the "fiscal cliff."

(Editing by Fred Barbash and Will Dunham)

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C. African Republic president seeks foreign help

BANGUI, Central African Republic (AP) — The president of Central African Republic on Thursday urgently called on France and other foreign powers to help his government fend off rebels who are quickly seizing territory and approaching the capital, but French officials declined to offer any military assistance.

The developments suggest Central African Republic could be on the brink of another violent change in government, something not new in the history of this resource-rich, yet deeply impoverished country. The current president, Francois Bozize, himself came to power nearly a decade ago in the wake of a rebellion.

Speaking to crowds in Bangui, a city of some 600,000, Bozize pleaded with foreign powers to do what they could. He pointed in particular to France, Central African Republic’s former colonial ruler.

About 200 French soldiers are already in the country, providing technical support and helping to train the local army, according to the French defense ministry.

“France has the means to stop (the rebels) but unfortunately they have done nothing for us until now,” Bozize said.

French President Francois Hollande said Thursday that France wants to protect its interests in Central African Republic and not Bozize’s government. The comments came a day after dozens of protesters, angry about a lack of help against rebel forces, threw rocks at the French Embassy in Bangui and stole a French flag.

Paris is encouraging peace talks between the government and the rebels, with the French Foreign Ministry noting in a statement that negotiations are due to “begin shortly in Libreville (Gabon).” But it was not immediately clear what, if any, dates have been set for those talks.

French Foreign Minister Laurent Fabius, meanwhile, spoke via phone with Bozize, asking the president to take responsibility for the safety of French nationals and diplomatic missions in Central African Republic.

U.S. officials said Thursday the State Department would close its embassy in the country and ordered its diplomatic team to leave. The officials spoke on condition of anonymity because they were unauthorized to discuss the evacuation publicly.

The United Nations Security Council issued a press statement late Thursday reiterating its concern about the situation in the country and condemned the attacks.

“The members of the Security Council reiterate their demand that the armed groups immediately cease hostilities, withdraw from captured cities and cease any further advance towards the city of Bangui,” the statement reads.

Bozize’s government earlier reached out to longtime ally Chad, which pledged to send 2,000 troops to bolster Central African Republic’s own forces. But it was unclear if the Chadian troops had all arrived, and even then, it is far from certain if the combined government forces could withstand rebel attacks.

At least four different rebel groups are involved, though their overall numbers could not immediately be confirmed.

Central African Republic, a landlocked nation of some 4.4 million people, is roughly the size of France. It has suffered decades of army revolts, coups and rebellions since gaining independence in 1960 and remains one of the poorest countries in the world.

The rebels behind the most recent instability signed a 2007 peace accord allowing them to join the regular army, but insurgent leaders say the deal wasn’t fully implemented.

Already, the rebel forces have seized at least 10 towns across the sparsely populated north of the country, and residents in the capital now fear the insurgents could attack at any time, despite assurances by rebel leaders that they are willing to engage in dialogue instead of attacking Bangui.

The rebels have claimed that their actions are justified in light of the “thirst for justice, for peace, for security and for economic development of the people of Central African Republic.”

Despite Central African Republic’s wealth of gold, diamonds, timber and uranium, the government remains perpetually cash-strapped. Filip Hilgert, a researcher with Belgium-based International Peace Information Service, said rebel groups are unhappy because they feel the government doesn’t invest in their areas.

“The main thing they say is that the north of the country, and especially in their case the northeast, has always been neglected by the central government in all ways,” he said.

But the rebels also are demanding that the government make payments to ex-combatants, suggesting that their motives may also be for personal financial gain.

Bozize, a former military commander, came to power in a 2003 rebel war that ousted his predecessor, Ange-Felix Patasse. In his address Thursday, Bozize said he remained open to dialogue with the rebels, but he also accused them and their allies of financial greed.

Those allies, he implied, are outside Central African Republic.

“For me, there are individuals who are being manipulated by an outside hand, dreaming of exploiting the rich Central African Republic soil,” he said. “They want only to stop us from benefiting from our oil, our diamonds, our uranium and our gold.”

___

Larson reported from Dakar, Senegal. Associated Press writer Sarah DiLorenzo in Paris contributed to this report.

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Apple loses another copyright lawsuit in China: Xinhua

SHANGHAI (Reuters) – A Chinese court has fined Apple Inc 1 million yuan ($ 160,400) for hosting third-party applications on its App Store that were selling pirated electronic books, the official Xinhua news agency reported on Friday.

Apple is to pay compensation to eight Chinese writers and two companies for violating their copyrights, the Beijing No.2 Intermediate People’s Court ruled on Thursday, Xinhua said.

Earlier in the year, a group of Chinese authors filed the suit against Apple, saying an unidentified number of apps on its App Store sold unlicensed copies of their books. The group of eight authors was seeking 10 million yuan in damages.

“We are disappointed at the judgment. Some of our best-selling authors only got 7,000 yuan. The judgment is a signal of encouraging piracy,” Bei Zhicheng, a spokesman for the group, told Reuters.

Apple said in a statement that it takes copyright infringement complaints “very seriously”.

“We’re always updating our service to better assist content owners in protecting their rights,” Apple spokeswoman Carolyn Wu said.

China has the world’s largest Internet and mobile market by number of users, but piracy costs software companies billions of dollars each year.

Apple, whose products enjoy great popularity in China, has faced a string of legal headaches this year. In July, Apple paid 60 million yuan to a Chinese firm, Proview Technology, to settle a long-running lawsuit over the iPad trademark in China.

($ 1 = 6.2360 Chinese yuan)

(Reporting by Shanghai Newsroom and Melanie Lee; Editing by Kazunori Takada and Matt Driskill)

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R&B singer Brandy engaged to music executive

LOS ANGELES (Reuters) – R&B singer and actress Brandy Norwood is engaged to music executive Ryan Press, a spokeswoman for the singer said on Thursday.

This will be the first marriage for the singer, who goes by the moniker Brandy. Press is an executive with music publisher Warner/Chappell Music. A date for the wedding has not been announced publicly.

Norwood, 33, has a 10-year-old daughter with her former boyfriend, music producer Robert Smith.

Norwood has starred in numerous television and films since the 1990s and is best known as the lead character in the popular television series “Moesha” from 1996-2001 on the now-defunct channel UPN.

She also scored a hit song in 1998 with “The Boy is Mine,” a collaboration with the singer Monica, which garnered the pair a Grammy award. Brandy released her sixth studio album “Two Eleven” in October this year.

(Reporting by Eric Kelsey; Editing by Piya Sinha-Roy and David Brunnstrom)

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