Obama Nominates Kerry for Secretary of State

WASHINGTON — With a patrician bearing, nearly three decades of service on the Senate Foreign Relations Committee, a highly decorated combat career in the Vietnam War, even a father who was a diplomat, John Kerry is the very picture of a secretary of state.

“In a sense, John’s entire life has prepared him for this role,” President Obama said on Friday at the White House, as he nominated Mr. Kerry to replace Hillary Rodham Clinton, the first step in filling out a national security team for his second term.

Mr. Obama praised Mr. Kerry, 69, a Massachusetts Democrat, for having been immersed in “every major foreign-policy debate for nearly 30 years.”

But though Mr. Kerry would bring even deeper experience to the job than Mrs. Clinton did, his appointment is likely to further centralize policy decisions in the White House, where for the past four years the president and a small circle of advisers have kept a tight grip on issues like Iran’s nuclear program, China, Pakistan, and the winding down of the war in Afghanistan.

“There’s every reason to believe that we’re going to have a very White House-centric foreign policy,” said David J. Rothkopf, the chief executive of the Foreign Policy Group. “Kerry is going to have to show his loyalty and willingness to work within the Obama system.”

In contrast to Mrs. Clinton, whom Mr. Obama named to his cabinet after they competed against each other in the 2008 presidential primaries, Mr. Kerry has been a loyal supporter of the Obama administration, guiding an arms-reduction treaty with Russia to ratification in the Senate and playing diplomatic troubleshooter for the White House in Afghanistan, Pakistan and Sudan.

He has also figured at critical moments in Mr. Obama’s career. At the 2004 Democratic National Convention that nominated him for president, Mr. Kerry gave the keynote speaking slot to Mr. Obama, then a little-known Illinois state senator, catapulting him to national prominence. In early 2008, Mr. Kerry endorsed him over Mrs. Clinton, and this fall he played the role of Mitt Romney in mock debates — sessions that by some accounts put the president’s teeth on edge.

“Nothing brings two people closer together than weeks of debate prep,” said Mr. Obama on Friday, looking at a grinning Mr. Kerry. “John, I’m looking forward to working with you instead of debating you.”

However lavish Mr. Obama’s praise, his instinctive choice for secretary of state was Susan E. Rice, the ambassador to the United Nations, who withdrew her name from consideration after Republicans threatened to block her nomination because of statements she made after the lethal attack on the American Mission in Benghazi, Libya.

Mr. Obama, his aides said, likes Ms. Rice’s blunt style and is in sync with her view of foreign policy, which places a premium on aggressively defending human rights.

As a result, Ms. Rice, who is staying in her post, remains a candidate for a major foreign-policy post in the second term, according to administration officials. Thomas E. Donilon, the national security adviser, is expected to stay on for a year or so, but Ms. Rice could be named to his job.

If she were to move into the White House, analysts said, that would pose a test for Mr. Kerry, given her access to Mr. Obama and their shared views on many foreign policy issues.

“The easiest model to see developing is one in which Kerry is on the road a lot, interfacing with foreign leaders, but the decision-making is done at the White House,” said Elliott Abrams, who held foreign-policy posts in the administrations of Ronald Reagan and George W. Bush.

Mr. Obama expressed confidence that Mr. Kerry would be confirmed by his Senate colleagues, a prediction that seemed safe, given that at a recent news conference, Senator John McCain, Republican of Arizona, one of Ms. Rice’s fiercest critics, jokingly referred to Mr. Kerry as “Mr. Secretary.”

Mrs. Clinton has not announced her resignation, but she has made it clear she would not stay beyond a single term. Because she is recovering from a concussion, she did not appear at the midday announcement. Mr. Obama said that he spoke to her on Friday morning, and reported that she was “in good spirits.”

In a statement, Mrs. Clinton said Mr. Kerry was a leader of the “highest caliber,” who had advocated on behalf of diplomacy and development in Congress.

Mr. Kerry is working with her to adopt the recommendations of a recent report that harshly criticized the State Department for lapses in security in Benghazi, she said. The Benghazi attack, analysts said, underscored the management challenge for a longtime senator like Mr. Kerry in taking over a sprawling worldwide bureaucracy. Former aides to Mr. Kerry point out that he did oversee a huge, if temporary, campaign operation in 2004, which, though criticized for tactical missteps, was not viewed as poorly managed.

Although Mr. Kerry is not a global celebrity like Mrs. Clinton, his background as a presidential nominee and his chairmanship of the Foreign Relations Committee have made him well known abroad, accustomed to meeting monarchs and presidents.

In October 2009, he was viewed as instrumental in persuading President Hamid Karzai of Afghanistan to accept the need for a runoff election. Mr. Kerry spent 20 hours over five days with Mr. Karzai, telling him over dinner and in long walks in the garden of the presidential palace in Kabul of his own frustrations at the ballot box in 2004.

“I told him, ‘Sometimes there are tough things,’ ” Mr. Kerry said in an interview at the time.

Before Syria exploded in violence, Mr. Kerry met several times with its president, Bashar al-Assad, hoping to draw him into a more constructive role in the Middle East. His failed effort at engagement may elicit some tough questions from Mr. McCain and other Senate hawks.

As a senator, Mr. Kerry compiled a strong record on climate change, and environmental groups issued enthusiastic responses to his nomination. But Mr. Obama, pressed at a recent news conference, said climate change would take a back seat to the economy, at least for now.

For Mr. Kerry, exerting influence internally is likely to be the greatest challenge of the job he has long coveted. Friends and former aides predicted he would carve out a role, just as Mrs. Clinton did.

“John was someone who from an early age dreamed of being president,” said Jim Gomes, a former chief of staff to Mr. Kerry. “As someone who grew up in a Foreign Service family, who testified before Senate Foreign Relations after coming home from Vietnam and who wanted to serve on Foreign Relations, this is a pretty terrific Plan B.”

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See If You Can Spot the One Color That Popped on the Carpet This Week

Stylewatch
Style News Now

12/21/2012 at 12:00 PM ET

Getty; Splash News Online; WireImage

Even though we didn’t see as many stars on the red carpet this week as last — it’s quiet in Hollywood this holiday season! — we still saw some strong trends emerge at various events. What were they? Let’s get to it!

Up: Pops of red. You can thank the holidays for this festive mini-trend, which we spotted on Hailee Steinfeld’s purse, Bella Heathcote’s dress and Rose Byrne’s jacket. Adding just a hint of the bold hue to your outfit is an easy way to look all holiday-y without going overboard.

Up: Head-to-toe black. What, are stars sick of sequined dresses already? This week we saw nearly one dozen leading ladies wear all black: Britney Spears, Demi Lovato, LeAnn Rimes, Alexa Chung, Jessica Chastain, Miley Cyrus, Krysten Ritter and Kerry Washington … to name a few. As New Yorkers, we’re always happy to see all-black ensembles en force, and it is a look that’s usually pretty failsafe — and slimming.

Down: Stick-straight hair. Rita Ora was the only woman we saw with pin-straight locks this week; everyone else went for bouncy curls and elegant updos (and cropped cuts, if you count Miley Cyrus!). With Christmas and New Year’s Even upon us, we predict we’ll be seeing a lot more exciting hairdos and less of the minimalist straight looks.

Tell us: Which color are you more likely to wear at the holidays: red or black?

Want more Trend Report? Click to hear our thoughts on mini dresses, cut-outs and collars.

FIND ALL THE LATEST RED CARPET NEWS AND PHOTOS HERE!

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AP IMPACT: Big Pharma cashes in on HGH abuse

A federal crackdown on illicit foreign supplies of human growth hormone has failed to stop rampant misuse, and instead has driven record sales of the drug by some of the world's biggest pharmaceutical companies, an Associated Press investigation shows.

The crackdown, which began in 2006, reduced the illegal flow of unregulated supplies from China, India and Mexico.

But since then, Big Pharma has been satisfying the steady desires of U.S. users and abusers, including many who take the drug in the false hope of delaying the effects of aging.

From 2005 to 2011, inflation-adjusted sales of HGH were up 69 percent, according to an AP analysis of pharmaceutical company data collected by the research firm IMS Health. Sales of the average prescription drug rose just 12 percent in that same period.

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EDITOR'S NOTE — Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the second of a two-part series.

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Unlike other prescription drugs, HGH may be prescribed only for specific uses. U.S. sales are limited by law to treat a rare growth defect in children and a handful of uncommon conditions like short bowel syndrome or Prader-Willi syndrome, a congenital disease that causes reduced muscle tone and a lack of hormones in sex glands.

The AP analysis, supplemented by interviews with experts, shows too many sales and too many prescriptions for the number of people known to be suffering from those ailments. At least half of last year's sales likely went to patients not legally allowed to get the drug. And U.S. pharmacies processed nearly double the expected number of prescriptions.

Peddled as an elixir of life capable of turning middle-aged bodies into lean machines, HGH — a synthesized form of the growth hormone made naturally by the human pituitary gland — winds up in the eager hands of affluent, aging users who hope to slow or even reverse the aging process.

Experts say these folks don't need the drug, and may be harmed by it. The supposed fountain-of-youth medicine can cause enlargement of breast tissue, carpal tunnel syndrome and swelling of hands and feet. Ironically, it also can contribute to aging ailments like heart disease and Type 2 diabetes.

Others in the medical establishment also are taking a fat piece of the profits — doctors who fudge prescriptions, as well as pharmacists and distributors who are content to look the other way. HGH also is sold directly without prescriptions, as new-age snake oil, to patients at anti-aging clinics that operate more like automated drug mills.

Years of raids, sports scandals and media attention haven't stopped major drugmakers from selling a whopping $1.4 billion worth of HGH in the U.S. last year. That's more than industry-wide annual gross sales for penicillin or prescription allergy medicine. Anti-aging HGH regimens vary greatly, with a yearly cost typically ranging from $6,000 to $12,000 for three to six self-injections per week.

Across the U.S., the medication is often dispensed through prescriptions based on improper diagnoses, carefully crafted to exploit wiggle room in the law restricting use of HGH, the AP found.

HGH is often promoted on the Internet with the same kind of before-and-after photos found in miracle diet ads, along with wildly hyped claims of rapid muscle growth, loss of fat, greater vigor, and other exaggerated benefits to adults far beyond their physical prime. Sales also are driven by the personal endorsement of celebrities such as actress Suzanne Somers.

Pharmacies that once risked prosecution for using unauthorized, foreign HGH — improperly labeled as raw pharmaceutical ingredients and smuggled across the border — now simply dispense name brands, often for the same banned uses. And usually with impunity.

Eight companies have been granted permission to market HGH by the U.S. Food and Drug Administration, which reviews the benefits and risks of new drug products. By contrast, three companies are approved for the diabetes drug insulin.

The No. 1 maker, Roche subsidiary Genentech, had nearly $400 million in HGH sales in the U.S. last year, up an inflation-adjusted two-thirds from 2005. Pfizer and Eli Lilly were second and third with $300 million and $220 million in sales, respectively, according to IMS Health. Pfizer now gets more revenue from its HGH brand, Genotropin, than from Zoloft, its well-known depression medicine that lost patent protection.

On their face, the numbers make no sense to the recognized hormone doctors known as endocrinologists who provide legitimate HGH treatment to a small number of patients.

Endocrinologists estimate there are fewer than 45,000 U.S. patients who might legitimately take HGH. They would be expected to use roughly 180,000 prescriptions or refills each year, given that typical patients get three months' worth of HGH at a time, according to doctors and distributors.

Yet U.S. pharmacies last year supplied almost twice that much HGH — 340,000 orders — according to AP's analysis of IMS Health data.

While doctors say more than 90 percent of legitimate patients are children with stunted growth, 40 percent of 442 U.S. side-effect cases tied to HGH over the last year involved people age 18 or older, according to an AP analysis of FDA data. The average adult's age in those cases was 53, far beyond the prime age for sports. The oldest patients were in their 80s.

Some of these medical records even give explicit hints of use to combat aging, justifying treatment with reasons like fatigue, bone thinning and "off-label," which means treatment of an unapproved condition

Even Medicare, the government health program for older Americans, allowed 22,169 HGH prescriptions in 2010, a five-year increase of 78 percent, according to data released by the Centers for Medicare and Medicaid Services in response to an AP public records request.

"There's no question: a lot gets out," said hormone specialist Dr. Mark Molitch of Northwestern University, who helped write medical standards meant to limit HGH treatment to legitimate patients.

And those figures don't include HGH sold directly by doctors without prescriptions at scores of anti-aging medical practices and clinics around the country. Those numbers could only be tallied by drug makers, who have declined to say how many patients they supply and for what conditions.

First marketed in 1985 for children with stunted growth, HGH was soon misappropriated by adults intent on exploiting its modest muscle- and bone-building qualities. Congress limited HGH distribution to the handful of rare conditions in an extraordinary 1990 law, overriding the generally unrestricted right of doctors to prescribe medicines as they see fit.

Despite the law, illicit HGH spread around the sports world in the 1990s, making deep inroads into bodybuilding, college athletics, and professional leagues from baseball to cycling. The even larger banned market among older adults has flourished more recently.

FDA regulations ban the sale of HGH as an anti-aging drug. In fact, since 1990, prescribing it for things like weight loss and strength conditioning has been punishable by 5 to 10 years in prison.

Steve Kleppe, of Scottsdale, Ariz., a restaurant entrepreneur who has taken HGH for almost 15 years to keep feeling young, said he noticed a price jump of about 25 percent after the block on imports. He now buys HGH directly from a doctor at an annual cost of about $8,000 for himself and the same amount for his wife.

Many older patients go for HGH treatment to scores of anti-aging practices and clinics heavily concentrated in retirement states like Florida, Nevada, Arizona and California.

These sites are affiliated with hundreds of doctors who are rarely endocrinologists. Instead, many tout certification by the American Board of Anti-Aging and Regenerative Medicine, though the medical establishment does not recognize the group's bona fides.

The clinics offer personalized programs of "age management" to business executives, affluent retirees, and other patients of means, sometimes coupled with the amenities of a vacation resort. The operations insist there are few, if any, side effects from HGH. Mainstream medical authorities say otherwise.

A 2007 review of 31 medical studies showed swelling in half of HGH patients, with joint pain or diabetes in more than a fifth. A French study of about 7,000 people who took HGH as children found a 30 percent higher risk of death from causes like bone tumors and stroke, stirring a health advisory from U.S. authorities.

For proof that the drug works, marketers turn to images like the memorable one of pot-bellied septuagenarian Dr. Jeffry Life, supposedly transformed into a ripped hulk of himself by his own program available at the upscale Las Vegas-based Cenegenics Elite Health. (He declined to be interviewed.)

These promoters of HGH say there is a connection between the drop-off in growth hormone levels through adulthood and the physical decline that begins in late middle age. Replace the hormone, they say, and the aging process slows.

"It's an easy ruse. People equate hormones with youth," said Dr. Tom Perls, a leading industry critic who does aging research at Boston University. "It's a marketing dream come true."

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Associated Press Writer David B. Caruso reported from New York and AP National Writer Jeff Donn reported from Plymouth, Mass. AP Writer Troy Thibodeaux provided data analysis assistance from New Orleans.

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AP's interactive on the HGH investigation: http://hosted.ap.org/interactives/2012/hgh

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The AP National Investigative Team can be reached at investigate(at)ap.org

EDITOR'S NOTE _ Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the second of a two-part series.

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Flawed data stall California's 911 upgrades

A three-year effort by California to improve 911 emergency service has been stymied by flawed data and aging computers at local fire departments and rescue agencies across the state, a Times investigation has found.

Since 2009, the state Emergency Medical Services Authority has been seeking to centralize reports on millions of emergency medical responses, a project that officials see as critical to improving life-saving practices.

State officials hoped to capture information from the moment dispatchers answer a call until the victim is transferred to a hospital. The program would for the first time give public officials, medical researchers and regulators the ability to compare response times and patient treatment across local jurisdictions.

But the project has floundered because many fire departments and ambulance operations have been unable to provide usable information.

One problem is that fire departments report basic information inconsistently, including how long it takes them to reach victims. Some begin counting the second a 911 call is answered. Others, including the Los Angeles Fire Department, have started the clock when rescue crews are alerted at fire stations.

Moreover, nearly half of the state's 32 regional emergency medical agencies have failed to contribute reports to the system, officials said. And many of those who do file reports use paper records.

The shortcomings, officials and experts said, underscore how fire agencies lag behind police departments and the private sector in using technology to better manage and evaluate their performance.

"There's been a lot of benign neglect in the fire service as far as collecting data," said Robert Upson, a Connecticut fire marshal who has analyzed data for a nationwide group that sets performance standards for fire departments.

"There's so much sloppiness in recording data. It's just built into the system."

Similar troubles have fueled a months-long controversy over faulty response time data at the Los Angeles Fire Department. In March, top commanders admitted that the department had repeatedly published reports overstating how fast rescuers reached victims in need of help. The flawed reports have been blamed on the use of unqualified firefighters to analyze data and outdated computer systems.

In an effort to improve such data, California officials launched their program to collect rich, comparable details on medical emergencies statewide. Incident reports were to be gathered by regional regulatory agencies and forwarded to the state.

But three years and about $1.6 million later, the voluntary project is plagued by lack of participation, money problems and inconsistent information. The root of the problem is that some agencies rely on outmoded, "home-brewed" computer systems, said Tom McGinnis, the state official overseeing the project.

"We can't compare apples to apples. We compare apples to oranges and peaches," McGinnis said.

The state isn't forcing cash-strapped local agencies to participate because doing so would require many to replace computer systems, McGinnis said. "Really what it comes down to is money," he said.

Some experts say the state program won't be able to deliver on its promise until reporting standards are clarified and participation is mandatory.

"It should become a requirement tomorrow," said Bruce Wagner, the top administrator for the emergency medical services agency in Sacramento County.

His agency is among those that have not provided data to the state. That's because fire departments and ambulance firms under his jurisdiction are hesitant to spend time and money gathering records if they are not required to do so, Wagner said.

"It's hard for us to tell them they are going to incur additional costs if it's not mandated," he told The Times.

Los Angeles County, where a third of the state's 911 medical rescues take place, is a year behind in processing performance information because 28 of the county's 31 fire departments submit paper reports, said Cathy Chidester, the local oversight agency's top executive. Voluminous pages of information must be individually scanned into electronic files or manually typed into a county computer system.

"It's like sweeping sand off the beach," Chidester said.

Of the county's three largest fire departments — Los Angeles city, Los Angeles County and Long Beach — only the LAFD collects medical records electronically.

The county Fire Department has not filed reports on more than 300,000 incidents over the last two years because budget cuts eliminated employees working on the records, officials said. Next year, the agency is launching a test program in which paramedics will use iPads to create electronic reports, Chief Deputy Mike Metro said.

The state data project, known as CEMSIS, short for California Emergency Medical Services Information System, has also struggled for funding. It began as a $240,000-a-year demonstration project using federal grants and philanthropic donations. But no permanent funding has been secured.

Where possible, officials are attempting to use the partial records they have compiled for research. But thus far, they haven't been able to answer fundamental questions, including how different agencies' 911 response times compare, McGinnis said.

Ideally, McGinnis said, regulators could use the database to compare "the entire spectrum" of emergency medical care in California. "I want everybody to participate and see what we're doing statewide," he said.

Detailed data could improve understanding of what works best in the field. For example, researchers could examine how often rescuers are able to restore heartbeats after arriving on the scene, a key step in increasing cardiac-arrest survival rates, said Dr. Marc Eckstein, the medical director for the Los Angeles Fire Department.

"You have to really drill down to make sure we are talking about the right things," he said.

Slipping response times at the LAFD were only documented when outside experts, the city controller and The Times dug into the department's data. A series of Times reports found breakdowns and delays in processing 911 calls, dispatching units and summoning the nearest medical rescuers from neighboring jurisdictions.

Los Angeles Fire Commissioner Alan Skobin, who is overseeing a task force charged with overhauling the LAFD's data management, said programs such as California's fledgling 911 records system could help his agency compare its performance to other departments and improve service.

"There's a benefit to looking outside," Skobin said. "That's something the LAFD has to do."

Full coverage: Life on the line, 911 breakdowns at LAFD

Map: How fast is LAFD where you live?

Download: Open-source maps of California's emergency medical agencies

ben.welsh@latimes.com

robert.lopez@latimes.com

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High & Low Finance: In Japan, a Test of Inflation Targets

“Under a paper-money system, a determined government can always generate higher spending and, hence, positive inflation.”

— Ben Bernanke, 2002

Now we may find out if Mr. Bernanke was right. Japan appears to be ready to do whatever it takes to end its long run of falling prices. The Bank of Japan took limited action on Thursday, and more is expected in the new year.

Mr. Bernanke, then a member of the Board of Governors of the Federal Reserve, and now its chairman, gave the speech quoted above at a time when the American economy was stumbling along in a slow recovery and prices, at least as measured by the Consumer Price Index, were declining.

He was arguing that the Fed would not be out of ammunition if it cut nominal interest rates to zero and the economy failed to respond. He has since proved he was right about that. In the speech, he made a passing reference to a phrase used by Milton Friedman, about using a “helicopter drop” of money to fight inflation, which eventually earned him the nickname “Helicopter Ben” from conservatives scandalized by his aggressive action after the financial crisis began.

For two decades, Japan has provided stark evidence that chronic deflation is possible in a modern economy. Prices have fallen steadily despite extraordinarily low interest rates. The economy has stagnated.

This week the Liberal Democratic Party, which had ruled Japan for nearly its entire postwar history until it was swept from power three years ago, won a landslide victory. Shinzo Abe, the prime minister from 2006 to 2007, will get another chance.

Mr. Abe devoted a decent part of his campaign to criticism of the Bank of Japan, the country’s central bank. He wants the bank to pursue inflation, and to effectively print money until it gets it. At one point during the campaign he spoke of a 3 percent inflation target, although he seems to have cut that back to 2 percent.

Either goal, if realized, would be a major change for the country. The inflation index used in calculations of gross domestic product is now 18 percent lower than it was at the end of 1994.

On Thursday, the central bank took a relatively small step in the direction favored by Mr. Abe. It decided to step up its asset purchases and seemed to leave open the possibility that it would adopt the inflation target at a later meeting. Mr. Abe praised the move.

To a significant extent, deflationary expectations are now baked into the Japanese economy. Tiny government bond yields have persisted for many years. Even though the nominal yields are small, the real (after inflation) yields have been respectable because there has been deflation, not inflation. And the competition has not been that great. The stock market has fluctuated, but it remains far below where it was when the Japanese bubble began to deflate in the early 1990s. Real estate losses from that bubble — do you remember when the gardens of the Imperial Palace in Tokyo were supposed to be worth more than the entire state of California? — still have an impact on investor psychology.

Western economists, Mr. Bernanke among them, have long called for Japan to target inflation. Lately, some Chinese economists have been offering similar lectures. But until now, little has happened. The central bank has announced a goal of positive inflation of up to 1 percent, but it is not widely believed, and it has certainly not happened.

As it is, the limited quantitative easing efforts of the Japanese central bank have been viewed as temporary, and as not really changing anything. Whether the new promises of something more significant will be credible remains to be seen.

“At this point, moving to a 2 percent target would not be such a giant step,” said Kenneth Rogoff, a Harvard economist who has suggested inflation targeting in the United States as well as in Japan. “They have to pursue it vigorously until we have inflation expectations firmly higher. No one knows how much they would have to do to accomplish that.”

The Bank of Japan has in the past been hesitant to really try to establish that credibility, for at least two reasons. One is that there is fear that the Japanese government bond market would be disrupted. Another is that it could do severe damage to the central bank’s own balance sheet. It owns a lot of Japanese government bonds whose market value would fall. Conceivably, that could cause the bank to seek a recapitalization from the government, something that would be embarrassing, to say the least.

To establish the credibility, the central bank would have to show a readiness to create credit at a rapid rate. It would probably also need to take steps to hold down the value of the yen, a move that would no doubt cause concern in the United States.

It is, however, very doable, as Switzerland has shown. When the euro zone debt crisis was at its worst, Switzerland became a safe haven for European investors worried that the euro might blow up. That drove up the value of the Swiss franc versus the euro and damaged Switzerland’s ability to compete. The Swiss government responded by announcing that the euro would not be allowed to fall below 1.2 Swiss francs. If necessary, the government would simply sell francs to meet any demand.

That has been necessary, and the Swiss have accumulated a huge portfolio of foreign currency. So, too, could the Japanese if they chose to announce that the dollar would henceforth be worth at least 100 yen, a level not seen since 2009.

Doing so would instantly restore at least some competitiveness to Japanese industry, which has experienced something that would have seemed impossible only a few years ago: Japan has a trade deficit.

Bringing inflation to Japan could make the country’s debt load — now higher than that of any other major country — appear more manageable. One unfortunate result of deflation coupled with perennial recession is that a country’s debt-to-G.D.P. ratio rises even if no more money is borrowed. Measured in yen, the Japanese economy was larger when Mr. Abe left office in 2007 — two years before his party lost power — than it is now.

A stronger recovery in the United States, not to mention avoiding a new Europe-wide downturn, would make it easier for Japan to begin to grow again. But even if that did happen, it would not solve all of Japan’s problems. The country has an aging, shrinking population. It needs more workers, but the Japanese attitude toward immigration makes Arizona look liberal by comparison.

Japan’s economy has been adrift for so long that much of the world takes for granted that it cannot, or at least will not, ever be reformed. Such cynicism has a basis, but it is possible that circumstances have changed. Japanese who seemed content with the way things were now clearly want something different, even if they are not sure what, or how to get it.

Three years ago, the Democratic Party of Japan won a landslide election, only to prove stumbling and incoherent when it tried to govern. Now the voters have turned back to the Liberal Democrats. Whether Mr. Abe will be more competent, and whether he will be able to effectively lead a party that still has competing factions, is far from clear.

Still, investors are taking heart. Japanese stocks leapt on the news of the election results, while the yen weakened. For now, at least, there is reason to hope that something important was changed by this election.

Floyd Norris comments on finance and the economy at nytimes.com/economix.

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RIM loses BlackBerry subscribers for first time

TORONTO (AP) — Research In Motion‘s stock plunged in after-hours trading Thursday after the BlackBerry maker said it plans to change the way it charges fees.

RIM also announced that it lost subscribers for the first time in the latest quarter, as the global number of BlackBerry users dipped to 79 million.

In a rare positive sign, the Canadian company added to its cash position during the quarter as it prepared to launch new smartphones on Jan. 30. The new devices are deemed critical to the company’s survival.

RIM’s stock initially jumped more than 8 percent in after-hours trading on that news, but then fell $ 1.48, or 10.4 percent, to $ 12.65 after RIM said on a conference call that it won’t generate as much revenue from telecommunications carriers once it releases the new BlackBerry 10 platform.

RIM is changing the way it charges service fees, putting an important source of revenue at risk. RIM CEO Thorsten Heins said only subscribers who want enhanced security will pay fees under the new system.

“Other subscribers who do not utilize such services are expected to generate less or no service revenue,” Heins said. “The mix in level of service fees revenue will change going forward and will be under pressure over the next year during this transition.”

RIM’s stock had been on a three-month rally that has seen the stock more than double from its lowest level since 2003.

But Mike Walkley, an analyst with Canaccord Genuity, said BlackBerry 10 will change RIM’s services revenue model dramatically. He said that instead of getting about $ 6 per device each month from carriers and users RIM could get as little as zero.

“That’s what turned the stock from being up 10 percent to being down 10 percent,” Walkley said. “That’s been part of our worry. How do they come back with a new platform and get carriers to continue to share the higher revenue —which sounds like they are not going to— and then subsidize the phone to make it affordable for consumers and enterprises.”

“People are seeing that the services revenue has a lot of risk to it now with the BlackBerry 10 migration.”

Three months ago, RIM had 80 million subscribers. Analysts said the loss of 1 million subscribers was expected. Once coveted symbols of an always-connected lifestyle, BlackBerry phones have lost their luster to Apple’s iPhone and phones that run on Google’s Android software.

RIM is banking its future on its much-delayed BlackBerry 10 platform, which is meant to offer the multimedia, Internet browsing and apps experience that customers now demand.

“We believe the company has stabilized and will turn the corner in the next year,” Heins said. He noted that the company’s cash holdings grew by $ 600 million in the quarter to $ 2.9 billion, even after the funding of all its restructuring costs. RIM previously announced 5,000 layoffs this year.

Heins said subscribers in North America showed the largest decline, but said there is growth overseas.

Colin Gillis, an analyst with BGC Financial, said before the conference call that the company bought itself more time.

“It doesn’t mean (BlackBerry) 10 will gain traction. A lot of people said 10 would be DOA, but I don’t think that’s going to be the case,” he said.

Jefferies analyst Peter Misek also earlier called the results better than expected, noting that RIM added a significant amount of cash. RIM will need the money to advertise the new BlackBerrys and operating system.

Misek also called it a positive development that RIM said there would not be another delay to BlackBerry 10.

“The success or failure of this company will be on BlackBerry 10,” Misek said.

RIM posted net income of $ 14 million, or 3 cents per share for its fiscal third quarter, which ended Dec. 1. That compares with a profit of $ 265 million, or 51 cents per share, in the same quarter a year ago.

The latest figure includes a favorable tax settlement. Excluding that adjustment, RIM lost 22 cents per share. Analysts polled by FactSet were expecting a wider loss of 27 cents.

RIM reported revenue of $ 2.7 billion, down 47 percent from a year ago.

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Tamera Mowry-Housley Is 'Adjusting' to Motherhood

Justin Lubin/NBC

We’ve enjoyed following along as Tamera Mowry-Housley and Tia Mowry-Hardrict have tackled work, weddings, pregnancies and babies on the last two seasons of their hit reality show, Tia & Tamera, airing Tuesdays at 9 p.m. EST on Style.

Now the actresses are bringing their talents to the digital realm with the launch of their new website, TiaAndTameraOfficial.com.

Featuring regularly posted videos and blogs, the online destination will cover everything from tips on living and healthy balanced lifestyle to giveaways to insights on love, marriage, sisterhood, motherhood, style and home décor.

“We are so thrilled about this opportunity to interact directly with our fans,” Mowry-Hardrict tells PEOPLE. “Our audience will be able to find out tips and tricks on balancing it all while still raising a healthy and happy family.”

Add Mowry-Housley, “We’ll also be giving advice on the latest fashion and beauty trends as well as a behind-the-scenes glimpse into our lives as actresses, wives, sisters and most importantly, working moms.”

PEOPLE.com recently had the opportunity to chat with the sisters and new moms — Tamera and husband Adam Housley welcomed 5-week-old son Aden in November, while Tia and husband Cory Hardrict are parents to son Cree, 17 months — about their new venture.

Congratulations on the launch of your website! When you were in the planning stages of putting this together, what items or sections did you just have to include?

Tia: I knew that I really wanted to incorporate something that had to do with fitness and health, mainly because they are both such important components of my life. Three years ago, I decided that fitness and health were things I was going to take the time to devote myself to.

It all started with my endometriosis diagnosis and being fearful that I wasn’t able to have children. I went ahead and started to be very conscious about what goes into my body. I was able to have a baby, and the endometriosis went away. That’s why it was extremely important to me to have the healthy living section on the site.

Tamera: I had to include a section about being a mommy and have a section focusing on sisterhood, because that is what my sister and I love sharing about ourselves. There is so much to be learned. I also wanted our site to be a place where we can post our personal pics — not just glam shots. I believe that’s what makes us relatable.

What is your favorite feature on the site?

Tamera: I love that we get share insights about what we love to do — cooking and crafting. Just being able to speak from our hearts to our fans was important to us.

Tia: My favorite features are the videos my sister and I will have. We really want to allow our fans to come into our personal world and we felt that having intimate videos from us, for them exclusively was very special.

For example, we both made welcome videos for the site and my video was of me on the set of my new pilot, Instant Mom. No cameras were allowed on set, but I was able to give my fans a glimpse of something they won’t be able to see anywhere else but our website.

Now that you both have sons, you have a whole new audience you can appeal to as moms. Both having had the opportunity to write directly to your fans with your blogs (Tamera for PEOPLE, Tia for iVillage), is there anything that you’ve taken away from the experience and hope to incorporate into your new website?

Tia: My whole thing is that motherhood is a learn-and-go process, and motherhood is hard. I personally feel that we as moms have to come together to learn from each other and share experiences, and that’s one thing that I absolutely loved about blogging for iVillage, and now I am going to be able to start blogging for my own website. I love that I will get to share my experiences, and have a place where other moms can share their experiences as well.

Tamera: Yes, whether you’re a first-time mom or veteran, we are always learning from each other and striving to be the best moms we can be to our children. To have that outlet and feel like we aren’t alone in being moms, which is the hardest but most rewarding job on earth, is important. We can all relate to each other.

What can we expect from the last two episodes of this season’s Tia & Tamera?

Tia: You’ll get to see what’s next in our lives, whether it’s from an acting perspective or an entrepreneurial perspective. My sister and I have been working on a product that is supposed to be released in 2013, and you’ll get to see a little of that process.

You will also see me move forward with my endeavors as an actress since I am no longer doing The Game. And there will also be some special, intimate moments about my sister’s birth and then you’ll get to see Aden!

Tamera: You’ll see the journey of my son’s birth and a really cool new business venture my sister and I are proud to be a part of. It’s a product called Milky; a supplement that helps breastfeeding moms produce more milk. And believe me — it works!

Tia, how are you enjoying being an aunt? What does Cree think of his new cousin? Any new milestones for him now that he’s almost 18 months? Can you tell us a little about Instant Mom?

Tia: I am having so much fun being a new aunt! It is just amazing, and now I understand the love that my sister has for Cree; the love is so strong and so deep. It’s so beautiful. Aden is so precious and so sweet, and to see Cree interact with him is just so special.

Cree absolutely loves books! He just loves to read and discover new things, and he loves to dance! He’s also learning new words and he can say ball, nose, eyes and toes.

Instant Mom is a pilot that I am co-producing with Aaron Kaplan. I’m so excited about this project, and to be an executive producer on this series is so rewarding.

It’s about a woman named Stephanie, who has married a cardiologist who is 10 years her senior. Before getting married, her life was very much Sex and the City. She loved to drink and hang out with her girlfriends, and then all of a sudden she gets married and is taking care of her husband’s kids when their mother has to go take care of the grandmother.

It’s so adorable and the cast is so talented. Michael Boatman plays my husband, and these are some of the most talented kids I have seen on television. I shot the pilot and it was a really great experience!

Tamera, how are you adjusting to life as a new mom? Has anything surprised you yet? How is Adam as a dad? Can you share one of your favorite moments with Aden so far?

Tamera: I am … adjusting. Ha! It’s probably the hardest adjustment I’ve experienced. Parenting is hard work. And anyone who doesn’t say that isn’t being honest. I give them the side-eye or they must not be human! Each day is different — some are easier than others, but it’s all rewarding. I never knew how much I’d worry.

Adam is an amazing father. He always steps in when I need it the most. He loves being a dad. I don’t think I’ve ever seen him happier. The love he has for his son is just so beautiful. Additionally, he constantly tells me how beautiful I am when I seriously walk around in the house looking like a hot mess. He’s a good husband!

My favorite moment with Aden so far is when I saw him smile for the first time. He was so milk drunk. It was the cutest thing ever. It made me feel like, “Yeah, Mommy has some good-tasting milk.” Like a boss!

– Sarah Michaud

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AP IMPACT: Steroids loom in major-college football

WASHINGTON (AP) — With steroids easy to buy, testing weak and punishments inconsistent, college football players are packing on significant weight — 30 pounds or more in a single year, sometimes — without drawing much attention from their schools or the NCAA in a sport that earns tens of billions of dollars for teams.

Rules vary so widely that, on any given game day, a team with a strict no-steroid policy can face a team whose players have repeatedly tested positive.

An investigation by The Associated Press — based on interviews with players, testers, dealers and experts and an analysis of weight records for more than 61,000 players — revealed that while those running the multibillion-dollar sport say they believe the problem is under control, that control is hardly evident.

The sport's near-zero rate of positive steroids tests isn't an accurate gauge among college athletes. Random tests provide weak deterrence and, by design, fail to catch every player using steroids. Colleges also are reluctant to spend money on expensive steroid testing when cheaper ones for drugs like marijuana allow them to say they're doing everything they can to keep drugs out of football.

"It's nothing like what's going on in reality," said Don Catlin, an anti-doping pioneer who spent years conducting the NCAA's laboratory tests at UCLA. He became so frustrated with the college system that it was part of the reason he left the testing industry to focus on anti-doping research.

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EDITOR'S NOTE — Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the first of a two-part series.

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While other major sports have been beset by revelations of steroid use, college football has operated with barely a whiff of scandal. Between 1996 and 2010 — the era of Barry Bonds, Mark McGwire, Marion Jones and Lance Armstrong — the failure rate for NCAA steroid tests fell even closer to zero from an already low rate of less than 1 percent.

The AP's investigation, drawing upon more than a decade of official rosters from all 120 Football Bowl Subdivision teams, found thousands of players quickly putting on significant weight, even more than their fellow players. The information compiled by the AP included players who appeared for multiple years on the same teams.

For decades, scientific studies have shown that anabolic steroid use leads to an increase in body weight. Weight gain alone doesn't prove steroid use, but very rapid weight gain is one factor that would be deemed suspicious, said Kathy Turpin, senior director of sport drug testing for the National Center for Drug Free Sport, which conducts tests for the NCAA and more than 300 schools.

Yet the NCAA has never studied weight gain or considered it in regard to its steroid testing policies, said Mary Wilfert, the NCAA's associate director of health and safety.

The NCAA attributes the decline in positive tests to its year-round drug testing program, combined with anti-drug education and testing conducted by schools.

The AP's analysis found that, regardless of school, conference and won-loss record, many players gained weight at exceptional rates compared with their fellow athletes and while accounting for their heights.

Adding more than 20 or 25 pounds of lean muscle in a year is nearly impossible through diet and exercise alone, said Dan Benardot, director of the Laboratory for Elite Athlete Performance at Georgia State University.

In nearly all the rarest cases of weight gain in the AP study, players were offensive or defensive linemen, hulking giants who tower above 6-foot-3 and weigh 300 pounds or more. Four of those players interviewed by the AP said that they never used steroids and gained weight through dramatic increases in eating, up to six meals a day. Two said they were aware of other players using steroids.

"I ate 5-6 times a day," said Clint Oldenburg, who played for Colorado State starting in 2002 and for five years in the NFL. Oldenburg's weight increased over four years from 212 to 290.

Oldenburg told the AP he was surprised at the scope of steroid use in college football, even in Colorado State's locker room. "There were a lot of guys even on my team that were using." He declined to identify any of them.

The AP found more than 4,700 players — or about 7 percent of all players — who gained more than 20 pounds overall in a single year. It was common for the athletes to gain 10, 15 and up to 20 pounds in their first year under a rigorous regimen of weightlifting and diet. Others gained 25, 35 and 40 pounds in a season. In roughly 100 cases, players packed on as much 80 pounds in a single year.

In at least 11 instances, players that AP identified as packing on significant weight in college went on to fail NFL drug tests. But pro football's confidentiality rules make it impossible to know for certain which drugs were used and how many others failed tests that never became public.

Even though testers consider rapid weight gain suspicious, in practice it doesn't result in testing. Ben Lamaak, who arrived at Iowa State in 2006, said he weighed 225 pounds in high school. He graduated as a 320-pound offensive lineman and said he did it all naturally.

"I was just a young kid at that time, and I was still growing into my body," he said. "It really wasn't that hard for me to gain the weight. I love to eat."

In addition to random drug testing, Iowa State is one of many schools that have "reasonable suspicion" testing. That means players can be tested when their behavior or physical symptoms suggest drug use. Despite gaining 81 pounds in a year, Lamaak said he was never singled out for testing.

The associate athletics director for athletic training at Iowa State, Mark Coberley, said coaches and trainers use body composition, strength data and other factors to spot suspected cheaters. Lamaak, he said, was not suspicious because he gained a lot of "non-lean" weight.

But looking solely at the most significant weight gainers also ignores players like Bryan Maneafaiga.

In the summer of 2004, Bryan Maneafaiga was an undersized 180-pound running back trying to make the University of Hawaii football team. Twice — once in pre-season and once in the fall — he failed school drug tests, showing up positive for marijuana use but not steroids.

He'd started injecting stanozolol, a steroid, in the summer to help bulk up to a roster weight of 200 pounds. Once on the team, he'd occasionally inject the milky liquid into his buttocks the day before games.

"Food and good training will only get you so far," he told the AP recently.

Maneafaiga's former coach, June Jones, said it was news to him that one of his players had used steroids. Jones, who now coaches at Southern Methodist University, believes the NCAA does a good job rooting out steroid use.

On paper, college football has a strong drug policy. The NCAA conducts random, unannounced drug testing and the penalties for failure are severe. Players lose an entire year of eligibility after a first positive test. A second offense means permanent ineligibility for sports.

In practice, though, the NCAA's roughly 11,000 annual tests amount to a fraction of all athletes in Division I and II schools. Exactly how many tests are conducted each year on football players is unclear because the NCAA hasn't published its data for two years. And when it did, it periodically changed the formats, making it impossible to compare one year of football to the next.

Even when players are tested by the NCAA, experts like Catlin say it's easy enough to anticipate the test and develop a doping routine that results in a clean test by the time it occurs. NCAA rules say players can be notified up to two days in advance of a test, which Catlin says is plenty of time to beat a test if players have designed the right doping regimen. By comparison, Olympic athletes are given no notice.

Most schools that use Drug Free Sport do not test for anabolic steroids, Turpin said. Some are worried about the cost. Others don't think they have a problem. And others believe that since the NCAA tests for steroids their money is best spent testing for street drugs, she said.

Doping is a bigger deal at some schools than others.

At Notre Dame and Alabama, the teams that will soon compete for the national championship, players don't automatically miss games for testing positive for steroids. At Alabama, coaches have wide discretion. Notre Dame's student-athlete handbook says a player who fails a test can return to the field once the steroids are out of his system.

The University of North Carolina kicks players off the team after a single positive test for steroids. Auburn's student-athlete handbook calls for a half-season suspension for any athlete caught using performance-enhancing drugs.

At UCLA, home of the laboratory that for years set the standard for cutting-edge steroid testing, athletes can fail three drug tests before being suspended. At Bowling Green, testing is voluntary.

At the University of Maryland, students must get counseling after testing positive, but school officials are prohibited from disciplining first-time steroid users.

Only about half the student athletes in a 2009 NCAA survey said they believed school testing deterred drug use. As an association of colleges and universities, the NCAA could not unilaterally force schools to institute uniform testing policies and sanctions, Wilfert said.

"We can't tell them what to do, but if went through a membership process where they determined that this is what should be done, then it could happen," she said.

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Associated Press writers Ryan Foley in Cedar Rapids, Iowa; David Brandt in Jackson, Miss.; David Skretta in Lawrence, Kan.; Don Thompson in Sacramento, Calif., and Alexa Olesen in Shanghai, China, and researchers Susan James in New York and Monika Mathur in Washington contributed to this report.

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Contact the Washington investigative team at DCinvestigations (at) ap.org.

Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the first of a two-part series.

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A tortilla flap over whether Henry's Tacos folds

The first time Matthew Schwartz ditched junior high in the early 1980s, some upperclassmen smuggled him in the back seat of a car and drove to Henry's Tacos.

"We could have gone anywhere, but we went to Henry's," said Schwartz, 42, a Pasadena lawyer. "It was the place to go."

Schwartz has been coming to the taco stand in Studio City since he was a second-grader. Other than price inflation, the bare-bones menu has stayed the same for 51 years: ground beef tacos, refried bean and orange-cheese burritos, and "taco burgers."

"Is it authentic Mexican food? No. But it is a classic example of what I call gringo-Mex, in the most loving sense I could possibly mean that," he said.

To its fans, there is something quintessentially L.A. about Henry's Tacos, which was opened in 1961 by a white guy from Nebraska, had bit parts in movies and TV shows like "Adam 12" and boasted loyal customers ranging from working Joes to Hollywood celebrities.

So when the owner announced earlier this month that Henry's Tacos would close at the end of year, fans rose up in protest.

Suddenly, long lines started forming around the modest midcentury stand at the corner of Moorpark Street and Tujunga Avenue. Celebrities such as Aaron Paul and Elijah Wood showed up to buy tacos and lend their support. And a Web campaign has taken off, including Facebook groups like "Occupy Tujunga" and hundreds of Twitter posts with the hashtag #SaveHenrysTacos.

The battle focuses in part on whether Henry's is more than a taco stand — whether it's actually a piece of history worthy of official preservation. In a city that boomed after World War II, L.A. has debated giving historic status to a car wash and space-age Googie buildings. But for devotees of Henry's, it's less about the architecture than the lifestyle it conjures.

"Every place has different landmarks that help define it, and for the Valley its history is mid-20th century," said Adrian Scott Fine, director of advocacy for the Los Angeles Conservancy. "A place that was built in 1961 and is still there today says a lot because so much has changed in the Valley over the years and you have so few places that have stood the test of time."

Henry's Tacos is the latest food stand involved in a fight to win some level of historical status. In 2005, West Hollywood made national headlines when it named the Irv's Burger stand on Santa Monica Boulevard an official "cultural resource." Two years ago, preservationists in Hollywood lost a fight to keep the historic Molly's Burger stand on Vine Street going. For years, fans have hoped that the Tail O' the Pup, the famed hot-dog-shaped stand that used to be near the Beverly Center, would reopen (the stand is now in storage).

Henry's Tacos' impending closure is the result of year-long dispute that started when owner Janis Hood applied for a historical monument designation for the stand last year. Hood said her landlord increased her rent 50% and has refused to renew her lease since last December.

Hood believes the landlord, Beverly Hills businessman Mehran Ebrahimpour, was irked because a historical designation would put land-use restrictions on the property. Ebrahimpour could not be reached for comment through his lawyer.

L.A.'s Cultural Heritage Commission unanimously approved Henry's as a historical landmark last year, but the city's Planning and Land Use Management Committee postponed a vote on it earlier this year until Hood's lease was renewed.

Hood has lined up several prospective buyers, but all have been turned down by the landlord, she said.

The restaurant has always been a family business. Hood's grandfather, Henry Comstock — the stand's namesake — moved from Nebraska in the late 1950s and became interested in the concept of a roadside taco stand. He opened less than a year before Taco Bell was founded in Downey in 1962. Hood's mother later owned the restaurant for 47 years before she died in 2009. Hood then took over.

The support for Henry's has been overwhelming, she said. More than 5,600 people have signed an online petition to save the restaurant, and loyal patrons have posted video testimonials online.

"I knew I wasn't the only one who grew up with Henry's and loved it," said Hood, of Sherman Oaks. "Henry's is one of the very few places that is still around and hasn't changed. Someone said it's like eating a memory."

Last Sunday, the stars came out in support.

Wood and Paul were among hundreds of hungry customers who braved the rain and stood in a line that snaked around the block. Wood told paparazzi that the soft-shell beef tacos are his favorite, and he later posed with Hood in front of the restaurant.

Comedian George Lopez paid for everyone's food for an hour — ringing up a $945 tab, Hood said.

Food stands like Henry's Tacos began popping up around Los Angeles in the 1940s and became popular quick-lunch destinations in a city with a mild climate. Many have closed in this era of the drive-through, but Fine said it's no surprise residents cherish those that remain.

"Communities care about their locally owned Main Street businesses. People have a connection to it because it's local," he said.

Schwartz made his pilgrimage back to Henry's on Tuesday and waited in line with more than 20 people doing the same.

The stream of memories kept coming. In fifth grade, his friends would eat at Henry's and dare one another to drink hot sauce straight out of the cup — a childhood rite of passage.

"After you drank one, it would be how many can you do?" he said. "Henry's is an icon of the community, and it would really be a shame for it to go."

ben.poston@latimes.com

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Four State Department Officials Resign After Benghazi Report

WASHINGTON — Four State Department officials were removed from their posts on Wednesday after an independent panel criticized the “grossly inadequate” security  at a diplomatic compound in Benghazi that was attacked on Sept. 11, leading to the deaths of Ambassador J. Christopher Stevens and three other Americans.

Eric Boswell, the assistant secretary of state for diplomatic security, resigned. Charlene Lamb, the deputy assistant secretary responsible for embassy security, and another official in the diplomatic security office whom officials would not identify were relieved of their duties. So was Raymond Maxwell, a deputy assistant secretary who had responsibility for the North Africa region. The four officials, a State Department spokeswoman said, "have been placed on administrative leave pending further action." 

The report by the independent panel has criticized officials in State’s bureau for Diplomatic Security displaying a "lack of proactive leadership." It also said that some in the Bureau of Near Eastern Affairs "showed a lack of ownership of Benghazi’s security issues." 

The report did not criticize more senior officials, including Patrick F. Kennedy, the under secretary for management, who has vigorously defended the State Department’s decision-making on Benghazi to the Congress and Secretary of State Hillary Rodham Clinton.

At a news conference at the State Department on Wednesday, Thomas R. Pickering, a former ambassador who led the independent review, said that most of the blame should fall on officials in the two bureaus.

“We fixed it at the assistant secretary level, which is, in our view, the appropriate place to look, where the decision-making in fact takes place, where, if you like, the rubber hits the road,” said Mr. Pickering, who did not identify the officials.

At the same time, the report that Mr. Pickering oversaw suggested that there was a culture of “husbanding resources” at senior levels of the State Department that contributed to the security deficiencies in Benghazi. Without identifying Mr. Kennedy or other senior officials, the report said that attitude “had the effect of conditioning a few State Department managers to favor restricting the use of resources as a general orientation.”

Two deputy secretaries of state, William J. Burns and Thomas R. Nides, are scheduled to testify to Congressional committees on Thursday. The question of whether senior officials at the State Department should be held accountable is likely to be raised by lawmakers at the hearing.

“The board severely critiques a handful of individuals, and they have been held accountable,” said Representative Ed Royce, Republican of California, who is the incoming chairman of the House Foreign Affairs Committee. “The degree that others bear responsibility warrants Congressional review, given the report’s rather sweeping indictment. And the Foreign Affairs Committee must hear from Secretary Clinton concerning her role, which this report didn’t address.”

Mrs. Clinton, in a letter to Congress, outlined a number of steps the department is taking to improve security, including hiring hundreds of additional Marine guards for high-risk embassies and consulates around the world.

In an apparent gesture of support for the American diplomatic corps, President Obama praised the State Department’s personnel, whom he said often worked "at great risk," at a diplomatic reception at the State Department tonight.

Another issue, which might be raised and which was largely skirted by the independent panel, concerns what role the American military should play in protecting diplomats abroad.

The Pentagon had no forces that could be readily sent to Benghazi when the crisis unfolded. The closest AC-130 gunship was in Afghanistan. There are no armed drones thought to be within range of Libya. There was no Marine expeditionary unit — a large seaborne force with its own helicopters — in the Mediterranean Sea. The Africa Command, whose area of operation includes North Africa, also did not have on hand its own force able to respond rapidly to emergencies — a Commanders’ In-Extremis Force, or C.I.F. Every other regional combatant command had one at the time.

The Defense Department has repeatedly declined to say whether the Africa Command requested that any of these forces be on hand during the anniversary of the Sept. 11, 2001, terrorist attacks. Nor has it said whether Defense Secretary Leon E. Panetta or Gen. Martin E. Dempsey, the chairman of the Joint Chiefs of Staff, gave any thought to moving forces in the region as a precaution.

The unclassified version of the Benghazi report concluded that “there simply was not enough time given the speed of the attacks for armed U.S. military assets to have made a difference.” But the report did not address whether it would have been prudent to station quick-reaction forces in the region or whether the United States would have been in a position to quickly respond militarily had Ambassador Stevens been kidnapped and the crisis dragged on, as was initially feared.

The United States military’s best-trained team to extract diplomats under fire — Delta Force commandos — was half a world away, in Fort Bragg, N.C. “What this report shows is that we need a fundamental rethink of the problem,” said one senior Pentagon official who has spent considerable time examining the issue of protecting American diplomats since the attack in September. “It’s not the military’s job to protect diplomats; it’s the host government’s. But in the absence of a real government, we never asked the question, ‘So how do we do this?’ ”

But as the military budget declines, some ranking officers are wary about taking on new commitments, even ones that involve protecting Americans.

“It is not reasonable nor feasible to tether U.S. forces at the ready to respond to protect every high-risk post in the world,” Mike Mullen, the retired admiral and former chairman of the Joint Chiefs of Staff, who served as vice chairman of the independent review, said Wednesday.

David E. Sanger contributed reporting.

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