Obama: Get short-term fix to fiscal cliff, then broader deal

STORY HIGHLIGHTS

• NEW: President Obama spoke with congressional leaders about a possible deal


• A Democratic source lays out possible scenarios


• House Republicans reject Speaker Boehner's tax alternative


• Everyone's taxes go up in 11 days without an agreement

Washington (CNN) -- President Barack Obama spoke separately Friday with Speaker John Boehner and the top Senate Democrat to try to salvage a fiscal cliff deal by the end of year, after Republican disarray in the U.S. House put the negotiations in limbo.

In a previously unscheduled statement to reporters, Obama outlined a possible agreement that he said would include protecting middle-class Americans from a tax hike, extending unemployment benefits and setting a framework for future deficit reduction steps.

He called on Congress to pass the agreement after a Christmas break so he can sign it before the end of the year, when the fiscal cliff arrives in the form of automatic tax increases and deep spending cuts.

"Laws can only pass with support from Democrats and Republicans," Obama said in urging both sides to compromise.

The president planned to fly with his family to Hawaii on Friday night for the holiday and return to Washington after Christmas, while House and Senate members also headed home with plans to return on December 27 if needed.

Boehner's spokesman said the speaker will be "ready to find a solution that can pass both houses of Congress" when he returns to Washington.

While congressional leaders continued to bicker Friday over the next step, the president's phone discussion with Boehner and a White House meeting with Senate Majority Leader Harry Reid signaled an attempt to provide the nation and investors with hope that an agreement can be reached.

An aide to Reid said the short-term proposal to avoid the fiscal cliff should include extending tax cuts for middle-class families and unemployment insurance while delaying the automatic spending cuts set to take effect in the new year.

Obama acknowledged what had become obvious: the broader deficit reduction deal he seeks will likely come in stages, rather than in the so-called grand bargain he and Boehner have been negotiating.

The main issue of disagreement continued to be taxes, specifically whether rates should go up on top income brackets for the wealthiest Americans as part of an agreement to reduce the nation's chronic federal deficits and debt.

Without a deal, the fiscal cliff could trigger a recession, economists warn. Stocks closed down sharply on Friday over the latest impasse in the deficit talks, a sign of investor fears of a slowdown as the nation slowly continued to emerge from recession.

Earlier Friday, Reid called for House Republicans to quickly approve a Senate plan championed by Obama that would extend tax cuts for family income up to $250,000 while allowing rates to return to higher levels of the 1990s above that threshold.

His Republican counterpart, Sen. Mitch McConnell of Kentucky, responded that the Senate should instead take up a House Republican measure extending the tax cuts for everyone as a temporary move before negotiations next year on broader tax reform.

The GOP revulsion over any kind of tax rate increase has stymied deficit negotiations for two years and led to unusual political drama, such as McConnell recently filibustering his own proposal and Thursday night's rebuff by House Republicans of an alternative tax plan pushed by Boehner, their leader.

Boehner said at a news conference Friday that his Republican colleagues refused to back his plan, which would have extended all tax cuts except for income over $1 million, because of fears of being blamed for a tax increase.

"They weren't taking it out on me," he said. "They were dealing with the perception that somebody might accuse them of raising taxes."

The lack of backing by his own caucus was a political blow to Boehner and raised more questions than answers about what happens next in the tough negotiations with Obama on either a broad deficit reduction agreement or a smaller step to avoid the fiscal cliff.

A breakdown of Boehner's miscalculation on Plan B

A senior Democratic Senate source said scenarios under consideration by the party include trying to work out short-term or comprehensive agreements now, or going into next year -- and over the fiscal cliff -- without a deal to quickly pass a compromise plan in the new Congress that convenes on January 3.

Waiting until next year would make the vote a tax cut from the automatic higher rates that will take effect under the fiscal cliff, instead of the current situation of extending some cuts and having top rates go up, the source noted.

In addition, Democrats will have two more seats in the new Senate and a stronger House minority, as well as increased pressure on Republicans to keep taxes low on middle class Americans, according to the source.

Trying to hammer out a deal now means working with limited time and stronger Republican contingents in both chambers, the source said.

Boehner made clear Friday that the negotiations with Obama on a broad deficit reduction agreement hit an impasse this week when both sides offered their "bottom line" positions that included major concessions -- but remained a few hundred billion dollars apart.

With his alternative plan torpedoed by his own party, Boehner said it now is time for Obama and Senate Democrats to come up with a solution.

Boehner also denied a reporter's suggestion that he is walking away from further talks, but he offered no timetable or mechanism for resuming discussions.

In the Senate, Reid said all House measures on the fiscal cliff so far have failed to meet the minimum demands of Obama, such as wealthy Americans paying more to prevent an increased burden on middle-class families.

"I like John Boehner, but gee whiz, this is a pretty big political battering that he has taken," Reid said, calling on the speaker to allow a vote on the Senate-passed Obama plan. "It will pass. Democrats will vote for it. Some Republicans will vote for it. That is what we are supposed to do."

On Thursday night, the House passed a measure that would reduce the impact of the fiscal cliff's automatic spending cuts on the military.

However, the chamber then went into recess when it was clear Boehner lacked the votes for his separate tax plan that maintained cut rates on income up to $1 million.

Conservatives opposed to any kind of increase in tax rates refused to sign on, and with Democrats unified in their opposition, the measure had no chance of passing.

Fallout from fiscal cliff inaction

"There was a perception created that that vote last night was going to increase taxes. I disagree with that characterization," Boehner said Friday by way of explanation, adding that "the perception was out there, and a lot of our members did not want to have to deal with it."

Reid had said the Senate would spurn the Boehner plan if it passed the House, and Obama promised to veto it if it reached his desk. According to Republican sources, the zero chance for Boehner's Plan B to actually become law influenced some wavering House members to reject it.

Obama campaigned for re-election on extending the tax cuts that date back to his predecessor's administration on income up to $250,000 for families, but returning to higher rates on amounts above that threshold.

Some House Republicans have said they would join Democrats in supporting the president's proposal in hopes of moving past the volatile issue to focus on the spending cuts and entitlement reforms they seek.

The Plan B was significant because Republican leaders previously insisted they wouldn't raise rates on anyone.

Boehner had complained Thursday that in making that concession, he expected but never got significant concessions from Obama.

He elaborated on the negotiations Friday, saying he told Obama that his latest proposal made over the weekend was his bottom line. Boehner said Obama told him the White House counterproposal Monday was the president's bottom line.

Boehner also repeated his complaint that Obama and Democrats were unwilling to address the spending cuts and entitlement reforms that he considers necessary to properly address the nation's chronic federal deficits and debt.

"What the president has proposed so far simply won't do anything to solve our spending problems," Boehner said, noting that "because of the political divide in the country, because of the divide here in Washington, trying to bridge these differences has been difficult."

CNN Poll: Are GOP policies too extreme?

In his statement Friday, Obama said he had compromised at least halfway on major issues, and that both sides have to accept they will not get all they want.

The possibility of a fiscal cliff was set in motion over the past two years as a way to force action on mounting government debt.

Now legislators risk looking politically cynical by seeking to weaken the measures enacted to try to force them to confront tough questions regarding deficit reduction, such as reforms to popular entitlement programs such as Social Security, Medicare and Medicaid.

Polling has consistently shown most Americans back the president, who insists wealthy Americans must pay more, rather than Boehner and his Republican colleagues, who have balked at tax rate hikes and demanded spending cuts and entitlement program reforms.

A new CNN/ORC International survey released Thursday showed that just over half of respondents believe Republicans should give up more in any solution and consider the party's policies too extreme.

Opinion: Boehner leading GOP to the apocalypse

The two sides seemingly had made progress earlier this week on forging a $2 trillion deficit reduction deal that included new revenue sought by Obama and spending cuts and entitlement changes desired by Boehner.

The president's latest offer set $400,000 as the income threshold for a tax rate increase, up from his original plan of $250,000. It also included a new formula for the consumer price index applied to some entitlement benefits, much to the chagrin of liberals.

Called chained CPI, the new formula includes assumptions on consumer habits in response to rising prices, such as seeking cheaper alternatives, and would result in smaller benefit increases in future years.

Statistics supplied by opponents say the change would mean Social Security recipients would get $6,000 less in benefits over the first 15 years of chained CPI.

Liberal groups sought to mount a pressure campaign against including the chained CPI after news emerged this week that Obama was willing to include it, calling the plan a betrayal of senior citizens who had contributed throughout their lives for their benefits.

Poll: Americans view economy as poor, split on future

CNN's Greg Botelho, Jessica Yellin and Ted Barrett contributed to this report.

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Obama Still an 'Optimist' on Cliff Deal

Mandel Ngan/AFP/Getty Images

WASHINGTON D.C. – Ten days remain before the mandatory spending cuts and tax increases known as the “fiscal cliff” take effect, but President Obama said he is still a “hopeless optimist” that a federal budget deal can be reached before the year-end deadline that economists agree might plunge the country back into recession.

“Even though Democrats and Republicans are arguing about whether those rates should go up for the wealthiest individuals, all of us – every single one of us -agrees that tax rates shouldn’t go up for the other 98 percent of Americans, which includes 97 percent of small businesses,” he said.

He added that there was “no reason” not to move forward on that aspect, and that it was “within our capacity” to resolve.

The question of whether to raise taxes on incomes over $250,000 remains at an impasse, but is only one element of nuanced legislative wrangling that has left the parties at odds.

For ABC News’ breakdown of the rhetoric versus the reality, click here.

At the White House news conference this evening, the president confirmed he had spoken today to Senate Majority Leader Harry Reid, D-Nev., and House Speaker John Boehner, R-Ohio, although no details of the conversations were disclosed.

The talks came the same day Speaker Boehner admitted “God only knows” the solution to the gridlock, and a day after mounting pressure from within his own Republican Party forced him to pull his alternative proposal from a prospective House vote. That proposal, ”Plan B,” called for extending current tax rates for Americans making up to $1 million a year, a far wealthier threshold than Democrats have advocated.

Boehner acknowledged that even the conservative-leaning “Plan B” did not have the support necessary to pass in the Republican-dominated House, leaving a resolution to the fiscal cliff in doubt.

“In the next few days, I’ve asked leaders of Congress to work towards a package that prevents a tax hike on middle-class Americans, protects unemployment insurance for 2 million Americans, and lays the groundwork for further work on both growth and deficit reduction,” Obama said. ”That’s an achievable goal.  That can get done in 10 days.”

Complicating matters: The halls of Congress are silent tonight. The House of Representatives began its holiday recess Thursday and Senate followed this evening.

Meanwhile, the president has his own vacation to contend with. Tonight, he was embarking for Hawaii and what is typically several weeks of Christmas vacation.

However, during the press conference the president said he would see his congressional colleagues “next week” to continue negotiations, leaving uncertain how long Obama plans to remain in the Aloha State.

The president said he hoped the time off would give leaders “some perspective.”

“Everybody can cool off; everybody can drink some eggnog, have some Christmas cookies, sing some Christmas carols, enjoy the company of loved ones,” he said. “And then I’d ask every member of Congress, while they’re back home, to think about that.  Think about the obligations we have to the people who sent us here.

“This is not simply a contest between parties in terms of who looks good and who doesn’t,” he added later. “There are real-world consequences to what we do here.”

Obama concluded by reiterating that neither side could walk away with “100 percent” of its demands, and that it negotiations couldn’t remain “a contest between parties in terms of who looks good and who doesn’t.”

Boehner’s office reacted quickly to the remarks, continuing recent Republican statements that presidential leadership was at fault for the ongoing gridlock.

“Though the president has failed to offer any solution that passes the test of balance, we remain hopeful he is finally ready to get serious about averting the fiscal cliff,” Boehner said. “The House has already acted to stop all of the looming tax hikes and replace the automatic defense cuts. It is time for the Democratic-run Senate to act, and that is what the speaker told the president tonight.”

The speaker’s office said Boehner “will return to Washington following the holiday, ready to find a solution that can pass both houses of Congress.”

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Goodbye, U.S. Postal Service?

This Christmas could be the Post Office's last, says John Avlon.

STORY HIGHLIGHTS

• The U.S. Postal Service is bleeding money and heading toward insolvency


• John Avlon: Congress can save the postal service in deal on the fiscal cliff


• He says the urgency is clear, let's hope for a Christmas miracle


• Avlon: But be prepared that Washington dysfunction can doom the postal service

Editor's note: John Avlon is a CNN contributor and senior political columnist for Newsweek and The Daily Beast. He is co-editor of the book "Deadline Artists: America's Greatest Newspaper Columns." He is a regular contributor to "Erin Burnett OutFront" and is a member of the OutFront Political Strike Team. For more political analysis, tune in to "Erin Burnett OutFront" at 7 ET weeknights.

(CNN) -- It's the time of year for dashing through the snow to the crowded post office, with arms full of holiday gifts for family and friends.

Not to break the atmosphere of holiday cheer, but this Christmas could be the last for the U.S. Postal Service. It is losing $25 million dollars a day and staring down insolvency -- unless Congress steps in to pass a reform package that reduces its costs.

With just a few days left in the congressional calendar, there is still some small hope for a Christmas miracle -- maybe the Postal Service can be saved as part of a deal on the fiscal cliff. But with even Hurricane Sandy relief stalled, skepticism is growing.

John Avlon

The real question is, what's taken them so long? After all, back in April the Senate passed an imperfect but bipartisan bill by 62-37. It would have saved some $20 billion, cut some 100 distribution centers, and reduced head count by an additional 100,000 through incentives for early retirement, while reducing red tape to encourage entrepreneurialism and keeping Saturday delivery in place for at least another two years. At the time, Sen. Tom Carper of Delaware said, "The situation is not hopeless; the situation is dire. My hope is that our friends over in the U.S. House, given the bipartisan steps we took this week, will feel a sense of urgency."

To which the House might as well have replied, "Not so much."

In August, the Postal Service defaulted for the first time, unable to make a $5.5 billion payment to fund future retirees' health benefits. The headline in Government Executive magazine said it all: "Postal Service defaults, Congress does nothing."

The usual suspects were at fault -- hyperpartisan politics and the ideological arrogance that always makes the perfect the enemy of the good.

House Oversight Committee Chairman Darrell Issa greeted the news of the Senate bill by calling it a "taxpayer-funded bailout." His primary complaint was that the Senate bill did not go far enough. He was not alone -- Postmaster General Patrick Donahoe also expressed disappointment at the scope of the Senate bill, saying that it fell "far short of the Postal Service's plan."

But Issa's alternative couldn't even get to a vote in the Republican-controlled House. And so nothing happened. Even after the USPS defaulted on a second $5.5 billion payment, the response was crickets.

Washington insiders said that action would be taken after the election, when lawmakers would be free to make potentially unpopular decisions. But despite a series of closed-door meetings, nothing has been done.

It's possible that the nearly $20 billion in savings could be part of a fiscal cliff deal. Sen. Joseph Lieberman has suggested that ending Saturday delivery, except for packages, could be part of a compromise that could save big bucks down the road. Another aspect of a savings plan could be suspending the USPS' onerous obligation to fully fund its pension costs upfront, a requirement that would push many businesses into bankruptcy. And last fiscal year, the post office posted a record $15.9 billion loss.

"As the nation creeps toward the 'fiscal cliff,' the U.S. Postal Service is clearly marching toward a financial collapse of its own," says Carper. "The Postal Service's financial crisis is growing worse, not better. It is imperative that Congress get to work on this issue and find a solution immediately. ... Recently key House and Senate leaders on postal reform have had productive discussions on a path forward, and while there may be some differences of opinion in some of the policy approaches needed to save the Postal Service, there is broad agreement that reform needs to happen -- the sooner the better."

The urgency couldn't be clearer -- but even at this yuletide 11th hour, signs of progress are slim to none. If Congress fails to pass a bill, we'll be back to square one in the new year, with the Senate needing to pass a new bill which will then have to be ratified by the House. There is just no rational reason to think that lift will be any easier in the next Congress than in the current lame duck Congress, where our elected officials are supposedly more free to do the right thing, freed from electoral consequences.

So as you crowd your local post office this holiday season, look around and realize that the clock is ticking. The Postal Service is fighting for its life. And Congress seems determined to ignore its cries for help.

"Neither rain nor snow nor sleet nor gloom of night" can stop the U.S. Postal Service from making its appointed rounds -- but congressional division and dysfunction apparently can.

Follow us on Twitter @CNNOpinion.

Join us on Facebook/CNNOpinion.

The opinions expressed in this commentary are solely those of John Avlon.

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Britain's Akram Khan's dance of creative destruction

PARIS: A year ago, Akram Khan was told his dance career was over. Now, with the Olympics ceremony under his belt, two films on the boil and three shows on tour, Britain's best-known choreographer could hardly be busier if he tried.

The 38-year-old ball of energy is in Paris this month with his most personal work to date, DESH, a full-length solo exploring his family roots in Bangladesh, through his signature fusion of contemporary dance with north Indian Kathak.

Khan's schedule for the coming months sounds like a plate-spinning act, but when he ripped his Achilles tendon during a rehearsal last January, doctors feared he would never dance again.

"It was very traumatic," he told AFP, "Ballet dancers don't come back after an Achilles tendon rupture. It's very rarely possible."

Shows were cancelled, plans cut short as Khan -- unable to walk for two months -- headed into a "humiliating" round of surgery and physiotherapy.

"I'm a dancer, so it's ego you know, somebody's telling you how to do a simple walk. I wanted to shoot them!"

"But from that it went into running, jogging, then jumping, then a little bit of confidence comes back.

"And then suddenly you're in the Olympics!" joked Khan, who choreographed and performed in a segment of the August opening ceremony.

In his solo DESH, a chameleonic Khan gives life to a dense cast of characters as the action shifts, dreamlike, from his south London birthplace to the grimy, noisy streets of Bangladesh over 80 visually-sumptuous minutes.

While he has recovered mobility, Khan has yet to get his full strength back, and had to make changes to perform the show, on world tour after premiering in London to rapturous reviews last year.

"You find other ways, and that was very valuable," he said, "I'm stronger in other ways."

Right now Khan is preparing a duet with the Flamenco dancer Izrael Galvan, in between touring with two more of his shows -- Gnosis and Sacred Monsters.

Come May he will premiere a creation called iTMOi inspired by Igor Stravinsky's "Rite of Spring" in the French city of Grenoble, before taking that show on the road as well.

Recent sideline projects have included teaming up with the artist Anish Kapoor to shoot a spoof "Gangnam Style" video in support of Chinese dissident artist Ai Wei Wei.

As if that wasn't enough, he is choreographing a film called "Desert Dancer", based on the true story of a young Iranian man persecuted for his love of dance, and is hoping to direct a film based on DESH.

In terms of juggling projects, Khan says he is busier than ever before. And in March he will become a father for the first time, when his Japanese dancer wife gives birth to a baby girl.

The story of Khan's injury and recovery loops back to an earlier one of how, as a little boy, he liked to break things to see what was inside.

"I was destructive as a child, I was fascinated to see things broken and put back together again," he told AFP, "I was very physical, I couldn't keep my hands still."

That was how Khan's mother started teaching her three-year-old son the folk dance Kathak, today the backbone of his art. To tire him out, like others might send a child to kick a ball around the yard.

Formal lessons followed aged seven, but it was long a battle of wills with a mother determined to share -- "impose", he jokes -- her culture with him.

"It was traumatic," said Khan, who talks with disarming candour, and wry humour, of his upbringing, "My mother used to bribe me, with toys, each performance I would get a little matchbox car."

While he jokes about his strong-willed mother, Khan is clear the "challenging relationship" in his life is with his father, bent on rooting out the Westerner in his son and making a true Bengali of him.

"DESH is very much about my father," he says of the piece, which opens with a scene showing him burying his father before pounding violently at the earth, as if to root out the story of their shared past.

Like a grown-up version of the creative destruction he displayed as a child.

Co-created with the poet Karthika Nair, the visual designer Tim Yip and the composer Jocelyn Pook, the work has a political dimension too, reflecting his sense that "everything is political" in Bangladesh, starting with the drinking water polluted by Western waste dumping.

"This is my story. It's part true, part lie," he says, "It needed to be epic, because it was very personal."

But for now, Khan jokes, he is done digging for his family roots: "I think I need to move on -- I need to get a life!"

-AFP/fl

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Newtown 'an assembly line of wakes and funerals'

STORY HIGHLIGHTS

• "We have to take action," Vice President Joe Biden says


• Nancy Lanza is buried at an undisclosed location, a family friend says


• Adam Lanza will be buried "if anything ... in the spring," he adds


• Three 6-year-old victims are buried; bells will ring Friday in observance of one-week mark

(CNN) -- Much of the nation was set to mark the passage of a week since last Friday, when a young Connecticut man fatally shot 27 people -- 20 of them children -- and then turned a gun on himself in a rampage that has breathed new life into the gun-control movement.

Church bells are to toll across the region at 9:30 a.m. and some websites plan to go dark in honor of the victims at the urging of Silicon Valley venture capitalist Ron Conway, who came up with the idea at a Christmas party attended by Gabby Giffords, the former Arizona congresswoman who was wounded in a 2011 shooting that killed six.

Kansas Gov. Sam Brownback and Texas Gov. Rick Perry have called for residents of their states to pause to reflect one week after the shooting rampage. Perry also asked that churches ring their bells 26 times in honor of the victims at the school.

The observances are to come a day after President Barack Obama's administration put into motion an effort to change U.S. gun laws, less than a week after the Newtown, Connecticut, school shootings.

Vice President Joe Biden met with Cabinet members and law enforcement leaders at the White House to start formulating what Obama called "real reforms right now" in the wake of the shootings that killed 27 people -- including 20 children -- and the shooter himself.

"We have to take action, and there are a number of things ... we can immediately do," Biden said moments before the meeting began. "For anything to get done, we're going to need your advocacy."

Also Thursday, burials were held for three children and two teachers killed when Adam Lanza opened fire inside Sandy Hook Elementary School.

"It's an assembly line of wakes and funerals," said Lillian Bittman, former chairwoman of the Newtown School Board. "We can't even figure out which ones to go to. There are so many."

The assembly line stretched more than 2,200 miles west to Ogden, Utah, the hometown of shooting victim Emilie Parker. The town was festooned with pink ribbons as her parents brought her body back for burial.

"This sucks -- there's no reason for us to be here tonight," her father, Robbie Parker, told friends and well-wishers at a memorial service Thursday night. "And I'm so thankful for everybody that's here."

His voice trailed off as he struggled for composure. Seeing the pink -- his slain daughter's favorite color -- made him and his wife, Alissa, "feel like we were getting a big hug from everybody."

"A lot of you don't even know who she is. A lot of you never even met her," he said. "And to see your love be expressed in that way for us was so meaningful, and we were so comforted."

Parker drew laughter when he said, "A lot of people have been asking how we're doing. My opinion is, we need to come with an alternate way to greet somebody in this country." He said the first days after the shooting felt like "we were mourning inside of a glass house, because there was so much attention on the whole situation, and it was really hard to deal with.

"But then, as we come here and we start to see and feel all your love, we just know that everybody's just deeply concerned and we can feel that love and it's from a pure place and your intentions are so pure, we don't feel like people are prying," he continued. "We understand that you guys are there with us and that your pain and your sorrow is real and it's deep."

Also buried Thursday, at an undisclosed location, was Nancy Lanza, the shooter's mother, said Donald Briggs, a friend of the family who grew up with her in Kingston, New Hampshire.

Plans had not been finalized for the burial of her son, Adam, who fatally shot her Friday at their home before targeting the Newtown school and eventually taking his own life. "That's still under discussion," Briggs said. "If anything, it would be in the spring."

Three 6-year-olds were among those buried Thursday: Allison Wyatt, who loved to draw and wanted to be an artist; Benjamin Wheeler, who loved the Beatles; and red-haired Catherine Hubbard, who loved animals.

Teachers Lauren Gabrielle Rousseau and Anne Marie Murphy were also to be buried.

Victims of the slaying

The deaths have prompted a national outpouring of sympathy that continued Thursday. Carloads of teenagers from a Minnesota school that suffered a mass shooting in 2005 headed toward Newtown to offer their support.

The bloodshed has prompted an outcry among many to address gun laws and violence.

A slight majority of Americans favor major restrictions on guns: 52%, up 5 points from a survey taken in August after the July shooting inside a movie theater in Aurora, Colorado, where 12 people died, according to a CNN/ORC International poll released Wednesday.

And 46% say they believe the government must play a role in solving the issue, up 13 points from January 2011, after the Tucson, Arizona, shooting that killed six and wounded Gabby Giffords, who was then a member of Congress.

Task force begins work

Joining Biden at Thursday's task force meeting on gun violence were Attorney General Eric Holder, Secretary of Education Arne Duncan, Homeland Security Secretary Janet Napolitano and Health and Human Services Secretary Kathleen Sebelius. Law enforcement officials also attended.

On Wednesday, Obama ordered the group to provide proposals by the end of January.

"The fact that this problem is complex can no longer be an excuse for doing nothing," he said. "The fact that we can't prevent every act of violence doesn't mean we can't steadily reduce the violence and prevent the very worst violence."

Obama highlighted suggestions to restrict gun sales to criminals and the mentally ill and to improve access to mental health care.

Holder was to travel later in the day to Connecticut to meet with law enforcement officials and first responders, a Justice Department official said.

Since the shootings, a number of conservative Democrats and some Republicans who have supported gun rights have said they are open to discussing the issue.

Sen. Dianne Feinstein, D-California, said she will introduce legislation to reinstate the assault weapons ban that expired in 2004. The White House has said that the president supports that effort.

More than 195,000 people have signed an online White House petition supporting new gun-control legislation.

The gun industry itself has been largely silent on the issue; the National Rifle Association said Tuesday it would offer "meaningful contributions to help make sure this never happens again." The group has scheduled a news conference for Friday morning.

Gun control advocates say they believe the killings have so shocked the nation's conscience that change may be possible.

"I think that we are at a historic moment," said Sen. Richard Blumenthal, D-Connecticut.

Strengthening security

In Ontario, Premier Dalton McGuinty made $10 million available to pay for security upgrades to establish a locked-door policy at 4,000 of the province's elementary schools.

"We're not going to brick up these windows; that would be unreasonable. But I believe there is a reasonable expectation by parents that when their kids go to elementary school in Ontario that we will have a locked-door policy in place," he said.

HLN journalist Rita Cosby and CNN's Matt Smith, Deborah Feyerick, Ben Brumfield, Jessica Yellin, Dave Alsup, Susan Candiotti, Sandra Endo, Faith Karimi and Daphne Sashin contributed to this report.

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Obama to hold moment of silence for Conn. victims

President Obama speaks at a memorial service for the victims of the Sandy Hook Elementary School shooting on December 16, 2012 in Newtown, Conn. / MANDEL NGAN/AFP/Getty Images

WASHINGTON President Barack Obama plans to observe a moment of silence at the White House on Friday morning in honor of the victims of the Connecticut elementary school massacre.

The White House says the president will observe the moment of silence at 9:30 a.m. EST, about one week after the shooting at Sandy Hook Elementary School in Newtown, Conn., in which 20 children and six adults were killed at the school.

Obama has asked Vice President Joe Biden to produce recommendations on new gun laws by next month and pledged to push new legislation without delay.

The White House said the president's observance of the shootings would take place in private without press coverage.

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Fiscal Cliff 'Plan B' Is Dead: Now What?

Dec 20, 2012 11:00pm

The defeat of his Plan B — Republicans pulled it when it became clear it would be voted down — is a big defeat for Speaker of the House John Boehner.  It demonstrates definitively that there is no fiscal cliff deal that can pass the House on Republican votes alone.

Boehner could not even muster the votes to pass something that would only allow tax rates on those making more than $1 million to go up.

Boehner’s Plan B ran into opposition from conservative and tea party groups -including Heritage Action, Freedom Works and the Club for Growth – but it became impossible to pass it after Senate Democrats vowed not to take up the bill and the president threatened to veto it.  Conservative Republicans saw no reason to vote for a bill conservative activists opposed – especially if it had no hopes of going anywhere anyway.

Plan B is dead.

Now what?

House Republicans say it is now up to the Senate to act.  Senate Democrats say it is now up to Boehner to reach an agreement with President Obama.

Each side is saying the other must move.

The bottom line:  The only plausible solution is for President Obama and Speaker Boehner to do what they have failed repeatedly to do:  come up with a truly bi-partisan deal.

The prospects look grimmer than ever. It will be interesting to see if the markets react.

SHOWS: This Week

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Big-spender ex-PM to be Japan's finance chief: report

TOKYO: A former Japanese prime minister known as a big spender in his political and personal life, will likely become the country's next finance minister and deputy premier, a report said on Thursday.

The leading Nikkei business daily said incoming Prime Minister Shinzo Abe will tap 72-year-old Taro Aso as finance chief and his own deputy, in a new government set to be formed next week.

Aso's past spending habits are in line with those of Abe, whose conservative Liberal Democratic Party (LDP) swept to victory in national elections on Sunday, pledging to boost the nation's ailing economy.

Aso, a fourth-generation politician who became Japan's prime minister in 2008, served as foreign minister during Abe's 2006-2007 stint in Japan's top political job.

As prime minister, Aso launched a series of economic stimulus packages worth hundreds of billions of dollars to prop up Japan's long-struggling economy.

But his time as premier ended in less than a year as the long-ruling LDP lost a historic election to the Democratic Party of Japan (DPJ) in 2009, while Aso's own missteps dented his popularity.

The scion of a wealthy family, he faced criticism for regular outings to luxurious hotel bars and mispronouncing commonly-used Chinese characters that make up part of the Japanese writing system.

Just a week before before his party lost to the DPJ, and as the economy sputtered, Aso was quoted as saying that "if you don't have money, you'd better not get married", dealing another blow to his profile.

In 2006, while he was foreign minister, a New York Times editorial branded Aso "Japan's offensive minister" for praising aspects of his country's colonial history in Asia, a particularly sore point in China and on the Korean peninsula.

His previous spending policies, however, were similar to those pledged by Abe -- to turn on the fiscal taps.

Abe has said he will pressure the Bank of Japan into more aggressive easing to power the world's third-largest economy, which may have slipped into recession in the third quarter.

A senior LDP official said on Wednesday that the incoming government would launch a spending package worth about 10 trillion yen ($118 billion) aimed at injecting life into the nation's limp economy.

- AFP/al

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Blizzard warning issued for large swath of Midwest

Drivers in Colorado contend with heavy snow Wednesday.

STORY HIGHLIGHTS

• NEW: 156-mile stretch of freeway closed in Colorado


• 23-car pileup in Texas dust storm kills one, injures 17


• Heavy snow, high winds stretch from Colorado to Wisconsin in season's first blizzard


• Storm to crawl from Midwest to New England by Friday

(CNN) -- People traveling early for Christmas in the center of the country will be dashing through the snow and the rain and the wind.

The first major storm of the season has prompted the National Weather Service to issue a blizzard warning for a huge swath of the Midwest stretching from eastern Colorado to Wisconsin's Lake Michigan shoreline, including virtually all of Iowa. The declaration warns of snow accumulations of up to 12 inches, complemented by 25- to 35-mph winds that will occasionally gust to 45 to 50 mph.

A 156-mile stretch of Interstate Highway 70 between Denver and the Kansas state line was closed in both directions for a time Wednesday. The westbound side reopened about 7 p.m. MT, but the eastbound lanes remained closed.

Cheyenne Wells, in east-central Colorado, reported a 67-mph wind gust with zero visibility just after 2 p.m. MT, CNN meteorologist Sean Morris said. U.S. Highway 385 was closed for 65 miles in the Cheyenne Wells region, Colorado's Department of Transportation reported.

"Most of the storm is on its way out across the state, except for the Eastern Plains, where there are still high winds, blizzard conditions, and highway closures," the department's Facebook page said.

"Whiteout conditions are likely and travel could become impossible" Wednesday night and into Thursday, the service's Omaha, Nebraska, office warned.

Is the storm hitting you? Send images to iReport

"Far southeast Nebraska and extreme southwest Iowa could see rain or a wintry mix for several hours yet this evening, so blizzard conditions may not develop over that area until mid-evening or later," the service said.

Airlines were reporting relatively few cancellations or delays in areas affected by the storm Wednesday night, but that could change overnight.

The storm will race into western Illinois, the weather service said. Rain will quickly change over to snow as the storm advances northeast, with the heaviest snow occurring overnight.

"Snow drifts several feet deep will be possible given the strong winds," the blizzard warning states.

At least 17 people were sent to hospitals near Lubbock, Texas, after a 23-vehicle chain-reaction crash on Interstate Highway 27 north of New Deal, Texas, state safety officials told CNN. There was at least one fatality, said Clinton Thetford, emergency management coordinator of Lubbock County. A stretch of the freeway in Lubbock County remains closed indefinitely.

Wrapping around the blizzard warning on the north, south and east is a winter storm warning, which will be no picnic either. The winds won't be quite as strong, but residents should expect a strong dose of rain, sleet and snow, with a few hail-packing thunderstorms thrown in for good measure.

A winter weather advisory is in effect for the Indiana-Ohio-Michigan tri-state area, as well as central Missouri and Kansas.

The "intense cyclone" will crawl across the Great Lakes region Thursday and slog into northern New England by Friday evening, the National Weather Service predicted.

Dodging the heavy precipitation but not the high winds is an area from western Texas and eastern New Mexico through the Oklahoma Panhandle and into southwest Kansas.

Much of the Southwest and Mississippi Valley is extremely dry, and the high winds have kicked up blinding dust near Lubbock, Texas.

CNN's Carma Hassan and Joe Sutton contributed to this report.

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Senate GOP proposes much smaller Sandy aid package

WASHINGTONSenate Republicans on Wednesday proposed a $24 billion emergency aid package for Superstorm Sandy victims, less than half of what Democrats hope to pass by Christmas.

The GOP alternative bill would provide more than enough money to pay for immediate recovery efforts through the spring.

Republicans complain that the $60.4 billion Democratic bill being debated in the Senate is larded with money for projects unrelated to damage from the late October storm, which battered the Atlantic coastline from North Carolina to Maine.

The Republican version does not include $13 billion Democrats want for projects to protect against future storms, including fortification of mass transit systems in the Northeast and protecting vulnerable seaside areas by building jetties against storm surges.

49 Photos

Sandy's devastation on Staten Island

Republicans said however worthy such projects may be, they are not urgently needed and should be considered by Congress in the usual appropriations process next year, not through emergency spending.

"We want to take care of urgent needs now," said Indiana Sen. Dan Coats, ranking Republican on the Senate Appropriations homeland security subcommittee, who put forward the bill. "We can look at other needs down the road when we have more time to look at them."

The GOP bill also scraps spending from the Democratic bill that is not directly related to Sandy damages, such as the $150 million for the National Oceanic and Atmospheric Administration for declared fisheries disasters in 2012 that could go to New England states, Alaska, New York and Mississippi.

The aid will help states rebuild public infrastructure like roads and tunnels and help thousands of people displaced from their homes. Sandy was the most costly natural disaster since Hurricane Katrina in 2005 and one of the worst storms ever in the Northeast.

More than $2 billion in federal funds has been spent on relief efforts so far for 11 states and the District of Columbia. The Federal Emergency Management Agency's disaster relief fund still has about $4.8 billion, and officials have said that is enough to pay for recovery efforts into early spring.

Earlier this month, Govs. Chris Christie, R-N.J., Andrew Cuomo, D-N.Y., and Dannel Malloy, D-Conn., argued in an op-ed that "in times of crisis no region, state or single American should have to stand alone or be left to fend for themselves," pointing to the "hundreds of thousands of homes and businesses damaged or destroyed, thousands still left homeless or displaced, tens of billions of dollars in economic loss" as evidence that "It's time for Congress to stand with us."

The governors, while recognizing that "our nation faces significant fiscal challenges," strive to separate the disaster-relief needs of their region from the ongoing "fiscal cliff" negotiations consuming Capitol Hill, arguing that Congress must "not allow this much-needed aid to fall in to the ideological divide."

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