Terror group fills Syria rebels' space

STORY HIGHLIGHTS

• U.S. declared a key opposition group in Syria a terrorist organization


• New report says it is the most effective group in the opposition, with 5,000 fighters


• Nada Bakos: The group has ties to al Qaeda but also seeks to provide social services


• She says the chances are slim that it could be persuaded to give up radical goals

Editor's note: Nada Bakos is a former Central Intelligence Agency analyst.

(CNN) -- In the midst of the struggle against Bashar al-Assad's government stands Jabhat al-Nusra, recently designated by the U.S. State Department as a foreign terrorist organization.

A new report by the Quilliam Foundation in London says the organization is the most effective arm of the Syrian insurgency and now fields about 5,000 fighters against the Assad regime.

Practically speaking, the terrorist designation means little that is new for the immediate struggle in Syria. Shortly after al-Nusra claimed credit for one of its early suicide bombings in January 2012, the Obama administration made known al-Nusra's connection to al Qaeda in Iraq, a group with which I was intimately familiar in my capacity as an analyst and targeting officer at the Central Intelligence Agency.

Nada Bakos

The administration's position was reinforced when Director of National Intelligence James Clapper one month later testified in front of the Senate Armed Services Committee that "...we believe al-Qaeda in Iraq is extending its reach into Syria."

Analysis: Study shows rise of al Qaeda affiliate in Syria

Al-Nusra is filling a power vacuum through charitable efforts to galvanize local support and generating influence among Syrians. In light of al-Nusra's influence in Syria, the real question is not so much about the scope and scale of al-Nusra currently, but rather how should the United States respond to its rise, particularly after al-Assad's eventual exit?

Historically, the U.S. government seemed to believe that as soon as people are given the chance, they will choose and then create a Jeffersonian democracy. Then we are surprised, if not outraged, that people turn to organizations such as Hamas, Hezbollah or the Muslim Brotherhood in electoral contests. These organizations often provide the basic necessities that people need to survive: food, water, medical care, education and security.

As ideologically distasteful as we might find them, they are often doing things corrupt, weak or failing governments do not: providing the basic necessities that people need to survive (let alone create the conditions that enable people to aspire to thrive).

Why does al-Nusra keep quiet about its ties to al Qaeda in Iraq? The documents pulled from the Abottabad raid that killed Osama bin Laden shed light on his awareness that the al Qaeda brand had been deteriorating.

Bin Laden urged regional groups, "If asked, it would be better to say there is a relationship with al Qaeda, which is simply a brotherly Islamic connection, and nothing more," according to CNN. Bin Laden and Ayman al-Zawahiri had criticized the Jordanian-born founder and leader of al Qaeda in Iraq, Abu Musab al-Zarqawi, for his killing of civilians and lack of political acumen to win public support.

Talk about al Qaeda seems distant. It was a bogeyman made real in 1993 when it unsuccessfully attacked the World Trade Center and terrifyingly tangible in 2001 when its operatives succeeded in destroying the twin towers and expanded their attacks to the Pentagon and the air over Pennsylvania. Its looming shadow has since faded from the public eye, particularly with the death of bin Laden. Its vision and ideology, however, continue to have a strong appeal.

Now that al Qaeda central has a less visible role, what makes players like al-Nusra and al Qaeda in Iraq threats? Even today, after Zarqawi's death, al Qaeda in Iraq has managed to continue to wreak havoc in Iraq and in the region through an autonomous, adaptable structure.

Al-Nusra has declared itself a player in the fight for a global jihad, a bold statement for what is today a localized group . Even small groups, however, have the potential to disrupt regional stability and complicate America's pursuit of its national security objectives—a fact I learned firsthand tracking and trying to stem the rise, influence and efficacy of al Qaeda in Iraq in the aftermath of the U.S. invasion of Iraq.

Zarqawi, until his death in 2006, was able to confound U.S. forces and attack Jordan by attracting recruits from North Africa (including Libya), Central Europe, Jordan and Syria.

Some of Zarqawi's earliest recruits were veterans of the Syrian Muslim Brotherhood, an organization that lashed out against the Syrian government during the 1980s. Captured records from a raid near the city of Sinjar, Iraq, indicated that during the 2006-2007 time frame, 8% of al Qaeda in Iraq operatives were Syrians. The percentage likely ebbed and flowed as the group formed, became influential and waned, but it suggests that there was no shortage of recruits amenable to engage in religious conflict in Syria as recently as 5-10 years ago.

The most striking thing about the captured records, however, is that it appears almost every foreign fighter entering Iraq to join al Qaeda in Iraq came through Syria. As a targeter, I can tell you that facilitation networks are key: they are the means by which groups such as al Qaeda in Iraq are funded, supplied and sustained. During the Iraq war, Zarqawi's top aides in Syria played a critical role in recruiting, funding and operational planning outside Iraq.

One of the things U.S. officials and the international media should watch for is how al-Nusra uses its terrorist designation: If it seeks to use the declaration to burnish its jihadist credentials, it might be able to bolster the image of the organization in the eyes of the extremist community and parlay that recognition into larger, or steadier, streams of funding—a development that will make the group more viable over the long-term or allow it to expand its operations or influence in the short- to mid-term.

An important differentiator between al Qaeda in Iraq and al-Nusra is one of its tactics: Zarqawi made a practice of indiscriminately killing Iraqi civilians, effectively terrorizing the Iraqi population, especially the Shiite minority. Zarqawi, despite identifying with al Qaeda, had a much thinner theological basis than al Qaeda central.

Key figures at al Qaeda central such as bin Laden and Zawahiri argued with Zarqawi over his tactics, complaining that alienating mainstream Muslims would not help achieve the over-arching goal of instilling Sharia law.

Al-Nusra is using some of the same tactics as al Qaeda in Iraq (e.g., suicide bombings, kidnappings and car bombs), but it appears to be trying to strike a balance Zarqawi was unwilling to make: Not only does it seem to be avoiding alienating—if not antagonizing—the larger population, but it also is providing the people of Syria with a range of goods and services such as food, water and medical care—basic necessities that people need to survive in the best of times, let alone when their country is in the throes of a civil war.

If this becomes a trend, it might signal that al-Nusra aspires to be more like Hezbollah or Hamas, organizations that defy neat categorization based on the range of social, political and military activities they engage in and the resultant legitimacy they have in the eyes of their constituencies.

In the Syrian uprising, the opportunity for meaningful U.S. intervention might have passed: Exhaustion from operations in Iraq and Afghanistan have taken their toll on the U.S. military, have taxed the national treasury, and sapped political will, especially as the state of the economy remains at the center of the debate in Washington.

Our absence from the fight is going to cost us if the al-Assad regime fails, leaving rebel groups like al-Nusra dictating the direction, pace and scope of a new Syria.

Given that managing affairs in the Middle East has never been one of our strong suits, the question at this point should be how can the United States, particularly the Department of State, best engage groups that might be inimical to U.S. values but necessary to our interests in the Middle East? For that, I am not sure there is a clear or simple answer.

One opportunity would be if the United States uses its designation of al-Nusra as both a stick and carrot, cajoling and encouraging it to enter into mainstream politics when (or if) the Assad regime falls.

My read of al-Nusra, however, is that, like Zarqawi, it does not aspire to be a political player and is unlikely to settle for a political role in the new government. Instead, it may aim to play the spoiler for any transitional government and use its resources and political violence to empower and encourage other like-minded extremists. With time and opportunity, al-Nusra could not only add to regional instability in the Middle East, but also rekindle global jihad.

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The opinions expressed in this commentary are solely those of Nada Bakos.

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Google's Schmidt urges North Korea Internet freedom

BEIJING: Google chairman Eric Schmidt told North Korean officials their country would never develop unless it embraced Internet freedom, he said on Thursday as he returned from a visit to Pyongyang.

Former US ambassador to the United Nations Bill Richardson, who led the trip, urged North Korea to adopt a moratorium on ballistic missiles and nuclear tests following the communist state's widely criticised rocket launch last month.

Schmidt said he told North Korean officials they should open up the country's Internet "or they will remain behind".

"As the world becomes increasingly connected, their decision to be virtually isolated is very much going to affect their physical world, their economic growth and so forth, and it will make it harder for them to catch up economically," he said.

"Once the Internet starts, citizens in a country can certainly build on top of it. The government has to do something. It has to make it possible for people to use the Internet which the government in North Korea has not yet done."

Richardson, also a former governor of New Mexico, said: "We strongly urged the North Koreans to proceed with a moratorium on ballistic missiles and possible nuclear test."

The pair told reporters at Beijing airport that they did not meet North Korean leader Kim Jong-Un on the trip, or US citizen Kenneth Bae.

Bae was arrested in November after entering the country as a tourist, according to the North's official news agency, which said he had admitted committing a crime against the state.

- AFP/al

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Latino should have played lead in 'Argo'

Ben Affleck plays the lead role of Tony Mendez in "Argo," which he also directed.

STORY HIGHLIGHTS

• Oscar nominations on Thursday, and Ben Affleck expected to get one for "Argo"


• Affleck plays real-life Latino who helped diplomats escape in Iran hostage crisis


• Ruben Navarrette: Affleck should have used a Latino actor to play role


• He says it cheats actor out of a job, and the Latino community out of a hero's story

San Diego, California (CNN) -- The upcoming Oscars are no stranger to causes or controversy. And this year, there is a strong dose of both surrounding the film "Argo" -- and its star and director, Ben Affleck.

This controversy bubbled up when the buzz started that Affleck could get an Academy Award nomination for best director when the announcements are made Thursday.

"Argo" tells how an ingenious and daring CIA agent helped orchestrate the rescue of six U.S. diplomats from Tehran during the Iran hostage crisis of 1979-1980. In November 1979, about 300 Islamic students stormed the U.S. Embassy and 66 Americans were taken hostage. But six U.S. diplomats escaped and were hidden at the Canadian Embassy by the Canadian ambassador and his wife.

Ruben Navarrette Jr.

The CIA agent -- Antonio "Tony" Mendez, played by Affleck -- successfully led the mission to evacuate the Americans, which involved Mendez and his associates posing as a Canadian film crew that was eager to make a movie in Iran.

The real Tony Mendez was awarded the Intelligence Star for Valor, and other honors, for leading the rescue. He later wrote a memoir, detailing the events in Tehran.

"Argo" is loosely based on Mendez's book. Better make that, very loosely based. As movie critics and others have pointed out since the movie opened a few months ago, the filmmakers took lots of dramatic license with the story. Mendez's role is played up, while that of the Canadians who helped hide and protect the Americans is played down. Some scenes depicted in the film never happened. Some characters are composites of several real people.

In other words, it's what you would expect from a Hollywood feature film based on a historical event. It's not a documentary. It's meant to be taken with a grain of salt, and to be entertaining.

Still, there are some Latinos -- in and out of Hollywood -- who think that, in this case, the filmmakers, and especially Affleck, pushed the concept of creativity too far. They say Affleck missed an opportunity to put more Latinos on screen. Moreover, they say, Affleck improperly claimed, for himself, the choice role of Mendez when he should have cast a Latino actor instead. They insist that the director didn't just cheat a Latino out of an acting job but the Latino community out of a feel-good story about one of their own who won acclaim for a heroic deed.

The critics are right, and their cause is just. Affleck should have tried to cast a Latino to play Mendez. That's common sense, and it would have made "Argo" a better movie. Affleck also didn't do himself any favors by trying to dismiss the criticism with a glib remark that essentially said that it really doesn't matter that the actor playing Mendez isn't Latino since Mendez himself isn't, shall we say, overtly Latino.

At a recent forum intended to publicize the film, Affleck responded to a question from the audience about the controversy by noting that "Tony does not have, I don't know what you would say, a Latin/Spanish accent" and that "You wouldn't necessarily select him out of a line of 10 people and go 'This guy's Latino.' "

Ouch. At least Affleck didn't slip and say "line up."

"So I didn't feel as though I was violating something," he said, "where, here's this guy who's clearly ethnic in some way and it's sort of being whitewashed by Ben Affleck the actor."

Johnny Depp set a better example. Several months ago, Depp turned down the role of Mexican revolutionary Francisco "Pancho" Villa in another film. He said that the role should go to a Latino. I praised Depp at the time for showing that, besides being a great actor, he is also a person of character.

The exclusion of Latinos from Hollywood is an old story. This is still a black and white world, where Latinos rarely get cast in the leading role. We're the gardeners and housekeepers, the gang leader and drug dealers, the nannies and farm workers. That's it. There has been some progress, of course. But not enough -- not when you have a Latina in the Supreme Court, three Latinos in the U.S. Senate, and Latinos heading Fortune 500 companies.

I could blame the environment of Southern California, in which most Hollywood writers, producers and directors live and spend most of their time. When they get up in the morning and drive to work, most Latinos they encounter are subservient. We clean their homes, cook their breakfast, trim their hedges, park their cars and otherwise help them get through the day.

Still, you can push this argument too far, and wind up going down a dangerous path -- one that ultimately sets back the greater cause of trying to get television networks and film studios to create a broader range of meatier roles for Latino actors and actresses.

After all, it's a short walk from saying that a director should have cast a Latino to play a Latino to arguing that only Latinos can play Latinos. And, if that's the argument, then on what moral high ground do Latinos stand to also push -- as we should -- for Latino actors and actresses to be considered for generic and mainstream roles that could have gone to white actors? We can't have it both ways.

Even if Latinos succeed in making their point about this one director and this one movie, it could backfire. We could win this battle, and still lose the war.

But before Latinos can be fully integrated into America and not considered outsiders, we have to take every opportunity to push for inclusion and fairness. And acknowledging that Latinos have the skills to play themselves is a good start.

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The opinions in this commentary are solely those of Ruben Navarrette.

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Mom who shot intruder inspires gun control foes

LOGANVILLE, Ga.A Georgia mother who shot an intruder at her home has become a small part of the roaring gun control debate, with some firearms enthusiasts touting her as a textbook example of responsible gun ownership.

Melinda Herman grabbed a handgun and hid in a crawl space with her two children when a man broke in last week and approached the family at their home northeast of Atlanta, police said. Herman called her husband on the phone, and with him reminding her of the lessons she recently learned at a shooting range, Herman opened fire, seriously wounding the burglary suspect.

The National Rifle Association tweeted a link to a news story about the shooting, and support poured in from others online, hailing Herman as a hero. The local sheriff said he was proud of the way she handled the situation.

"This lady decided that she wasn't going to be a victim, and I think everyone else looks at this and hopes they have the courage to do what she done," Walton County Sheriff Joe Chapman said Wednesday.

Herman was working from home Friday when she saw a man walk up to the front door. She told police he rang the doorbell twice and then over and over again. He went back to his SUV, got something out and walked back toward the house, a police report said.

Herman took her 9-year-old son and daughter into an upstairs bedroom and locked the door. They went into bathroom and she locked that door, too. She got her handgun from a safe, the report said, and hid with her children. At some point, she called her husband, who kept her on the line and called 911 on another line.

In a 10-minute 911 recording released by the Walton County Sheriff's Office, Donnie Herman calmly explained what was happening to a dispatcher. His part of the conversation with his wife was also recorded.

"Is he in the house, Melinda? Are you sure? How do you know? You can hear him in the house?" Donnie Herman said.

His wife told him the intruder was coming closer.

"He's in the bedroom? Shh, shh, relax. Just remember everything that I showed you, everything that I taught you, all right?" Donnie Herman told his wife, explaining later to the dispatcher that he had recently taken her to a gun range.

It wasn't clear from the recording exactly when they went to range and Donnie Herman told The Associated Press on Wednesday the family didn't want to talk about the shooting.

After Donnie Herman told his wife police were on the way, he started shouting: "She shot him. She's shootin' him. She's shootin' him. She's shootin' him. She's shootin' him."

"OK," the dispatcher responded.

"Shoot him again! Shoot him!" Donnie Herman yelled. He told the dispatcher he heard a lot of screaming, but he seems to get increasingly worried when he doesn't hear anything from his wife.

Melinda Herman told police she started shooting the man when he opened the door to the crawl space. The man pleaded with her to stop, but she kept firing until she had emptied her rounds, she told police. She then fled to a neighbor's house with her children.

The man drove away in his SUV. Police found the SUV on another subdivision street and discovered a man bleeding from his face and body in a nearby wooded area. Police identified the suspect as 32-year-old Paul Slater of Atlanta.

Chapman said the hospital asked him not to comment on Slater's condition, but he said he is not certain Slater will survive.

CBS Atlanta affiliate WGCL-TV reports Slater is on a ventilator.

Authorities have a warrant but haven't formally arrested Slater yet. They plan to charge him with burglary, possession of tools for the commission of a crime and aggravated assault, Walton County sheriff's Capt. Greg Hall said.

A phone number for Slater was not listed and it was not clear whether he has an attorney.

Authorities believe Slater targeted a home in another local subdivision but left when confronted by the homeowner, Chapman said.

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Holmes 'Delighted' by Creepy Self-Portraits: Victims

After two days of apparent indifference, accused Aurora shooter James Holmessmiled and smirked at disturbing self-portraits and images of weapons shown in court today, according to the families of victims who watched him.

"When he sees himself, he gets very excited and his eyes crinkle," Caren Teves said outside of the courthouse, after the hearing. "Your eyes are the window to the soul and you could see that he was very delighted in seeing himself in that manner."

Teves' son Alex Teves, 24, died in the shooting.

Prosecutors showed photos that Holmes took of himself hours before he allegedly carried out a massacre at a Colorado movie theater. He took a series of menacing self-portraits with his dyed orange hair curling out of from under a black skull cap and his eyes covered with black contacts. In some of the photos, guns were visible.

Those haunting photographs, found on his iPhone, were shown in court today on the last day of a preliminary testimony that will lead to a decision on whether the case will go to trial. The hearing concluded without Holmes' defense calling any witnesses.

The judge's decision on whether the case will proceed to trial is expected on Friday.

James Holmes: Suspect in Aurora Movie Theatre Shootings Back in Court Watch Video

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Couple Surprised by Rebuilt Home After Sandy Watch Video

Holmes, 25, is accused of opening fire on a crowded movie theater in Aurora, Colo., on July 20, 2012, killing 12 people and wounding dozens others during a showing of "Dark Knight Rises."

The court room's set-up kept members of the media from being able to see Holmes' face as the photos were displayed, but victims and their families could watch him.

Teves said that Holmes was "absolutely smirking" when images of his weapons and the iPhone photos he took of himself were shown in court.

"I watched him intently," Caren Teves' husband Tom Teves said. "I watched him smile every time a weapon was discussed, every time they talked about his apartment and how he had it set up (with booby traps), and he could have gave a darn about the people, to be quite frank. But he's not crazy one bit. He's very, very cold. He's very, very calculated."

Holmes' has exhibited bizarre behavior after the shooting and while in custody. His defense team has said that he is mentally ill, but have not said if he will plead insanity.

"He has a brain set that no one here can understand and we want to call him crazy because we want to make that feel better in our society, but we have to accept the fact that there are evil people in our society that enjoy killing any type of living thing," a frustrated Tom Teves said. "That doesn't make them crazy. And don't pretend he's crazy. He's not crazy."

The photos presented in court showed Holmes mugging for his iPhone camera just hours before the shooting.

Click here for full coverage of the Aurora movie theater shooting.

Half-a-dozen photos showed Holmes with his clownish red-orange hair and black contact lenses giving the photos a particularly disturbing edge.

In one particularly odd image, he was making a scowling face with his tongue out. He was whistling in another photo. Holmes is smiling in his black contacts and flaming hair in yet another with the muzzle of one of his Glock pistols in the forefront.

Yet another photo showed him dressed in black tactical gear, posing with an AR-15 rifle.

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Case of Wall Street greed gone too far

Goldman Sachs CEO Lloyd Blankfein was one of the executives whose stock award was accelerated to beat higher tax rate.

STORY HIGHLIGHTS

• Goldman Sachs granted $65 million in stock to execs before new tax rates began


• Susan Antilla says the firm's CEO had endorsed higher rates, called for entitlement cuts


• She says Goldman benefits from the implicit promise that U.S. will bail it out


• Antilla: It was unseemly for Goldman to rush the payments to shield execs from new rates

Editor's note: Susan Antilla is a columnist at Bloomberg View and a contributor to TheStreet.com. She has written about finance for more than 30 years. She is author of "Tales From the Boom-Boom Room: The Landmark Legal Battles That Exposed Wall Street's Shocking Culture of Sexual Harassment." Follow her on Twitter @antillaview.

(CNN) -- Nobody likes to pay taxes, so can you blame the good folks at Goldman Sachs & Co. for doing what they could to avoid the higher rates that kicked in on January 1?

While the rest of us were donning our party clothes on New Year's Eve, the legal worker bees at Goldman were pushing the send button on 10 regulatory filings to the Securities and Exchange Commission.

By the time the ball dropped in Times Square, regulators had been notified that $65 million in Goldman stock had been granted a month early, helping a cluster of powerful multimillionaire executives trim their tax tab.

Among the 10 who shared that $65 million, Chief Executive Officer Lloyd Blankfein, Chief Operating Officer Gary Cohn and Chief Financial Officer David Viniar wound up with $8.4 million apiece in Goldman stock.

Susan Antilla

Blankfein's compensation in 2011 was $16.2 million. Cohn and Viniar that year made $15.8 million. Even Gordon Gekko would be impressed to see that bosses making that much money were able to catch a tax break for a couple hundred thousand.

The 10 executives who skirted 2013's higher rates were not the only Goldmanites who benefited from the "accelerated" vesting. Michael DuVally, a Goldman spokesman, acknowledged there was "a group larger than" the 10 but declined to say how many. DuVally would not comment on who made the decision to grant the shares early.

The shrewd Goldman move is hardly unique among rich business executives or even 99 percenters of more modest means. It was no secret that higher taxes were coming this year, and taxpayers of all shapes and sizes did what they could to ensure that "tax events" would occur in 2012.

Even environmental activist and Nobel Prize winner Al Gore tried, albeit without success, to unload his Current TV to Al Jazeera before the new year dawned.

What makes the Goldman move distasteful is that it wasn't even two months ago that CEO Blankfein was mouthing off in a Wall Street Journal op-ed that he endorsed tax increases "especially for the wealthiest" -- along with a plug to cut entitlements to all you freeloaders out there.

If you're pushing the position that the rich should pay more to help fix the deficit, it doesn't quite follow to employ a tax dodge, says Dennis Kelleher, president of the Washington-based public interest group Better Markets Inc.

"Goldman's quickie year-end tax shenanigans deprived the government of what it otherwise would get," he says. "So they either cause the debt to go up, or cause others to pay more by the taxes they are avoiding."

DuVally, the Goldman spokesman, declined to comment when I asked whether it was inconsistent for Goldman to make a move for its executives to avoid taxes after Blankfein endorsed increases for the wealthy.

I've got to hand it to Goldman. The firm is a master of the "have-your-cake-and-eat-it-too" brand of politics and public relations. One minute, Goldman is cranking out press releases about its devotion to women entrepreneurs in its philanthropic "10,000 women" program. The next, it is announcing its annual list of new partners that includes a paltry 10 women but 60 men.

Goldman was a victim on the defensive when Greg Smith, a former employee, wrote a New York Times op-ed on March 14, blasting the firm for having "morally bankrupt people" who needed to be weeded out. You could almost feel sorry for poor Goldman, which shipped out a memo reminding employees that their estimable employer had been named one of the best places to work in the United Kingdom only weeks before the London-based Smith's "Why I Am Leaving Goldman Sachs" essay.

By the time Smith published a book seven months later, the firm had turned ruthless revenge-seeker, even sharing parts of Smith's self-evaluations with the media. A "best place to work?" Really? Careful what you say in the press -- and in your HR file -- if you get your paycheck from a Goldman-style operation.

The brouhaha over Smith's op-ed and book stirred up debate of the "What did you expect of an investment bank operating in capitalistic society?" type.

Fair enough. Banks are not in the philanthropy business -- even if they spend as much time as Goldman does talking about its good deeds and famous "business principles." ("Our clients always come first" is famously No. 1 on the list.)

At Goldman and other "too big to fail" banks, though, employees walk through the doors each morning knowing that the rest of us will be forced to bail them out again should another crisis ensue. We taxpayers provide the insurance policy that they enjoy without ever sending us premiums. In October of 2008, Goldman got $10 billion in taxpayer money from the Troubled Asset Relief Program, which it ultimately paid back.

Blankfein, like other bank CEOs, would later make the case that Goldman wasn't "relying on" that government help.

But leaf through the tomes of some of the regulators who lived through the crisis, and you start to wonder whether our tax-dodging heroes might be out of jobs today if the public hadn't fronted a bailout.

From "Bull by the Horns," by former Federal Deposit Insurance Corp. chairman Sheila Bair: Goldman and Morgan Stanley were "teetering on the edge" in the fall of 2008.

From "Bailout: An Inside Account of how Washington Abandoned Main Street While Rescuing Wall Street," by Neil Barofsky, former special inspector general to oversee the Troubled Assets Relief Program: Federal Reserve chairman Ben Bernanke "confided that he believed that Goldman Sachs would have been the next to go" after Morgan Stanley.

We need to change the conversation here.

Goldman and its too-big-to-fail brethren are banks that accepted welfare and are in debt to U.S. taxpayers for averting disaster. This hasn't been about hard-nosed capitalism since those first TARP wire transfers made their way into Goldman Sachs' coffers.

As for the bank's recent tax-reduction maneuver, it's another reminder that Goldman's management is either clueless about how bad it looks or doesn't care. Sometimes bad PR is a just a cost of doing business.

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The opinions expressed in this commentary are solely those of Susan Antilla.

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China economy to overtake US by 2019: state research

BEIJING: China will overtake the United States economically within six years, an official research institute predicts, and go on to become the world's most important country in three decades more, state media said Wednesday.

The findings came from the Nation's Health Report issued by the Chinese Academy of Sciences, the Global Times said, without giving details of the criteria used for the prediction.

China's economy would be larger than that of the US by 2019, it cited the document as saying, and China's "international status" would exceed that of the US by 2049, the 100th anniversary of the founding of the People's Republic.

"National health" was defined as a country's "overall conditions... using resource sufficiency and wealth distribution as the major criteria", the Global Times said, but did not go into specifics.

China ranked as the 11th "healthiest" country out of some 100 nations, it said, just behind Costa Rica, with Sweden in top position.

The official Xinhua news agency said China was given a national health status of "up to standard", though the US, Japan and Britain were deemed "health deficient".

The report could not immediately be independently obtained from the Chinese Academy of Sciences.

China's stunning economic growth rates, increases in military spending and overlapping security interests in the Asia-Pacific region with the US have sparked concerns the countries could find themselves increasingly at odds in coming decades as they jockey for global influence.

But the Global Times, which has close ties to China's ruling Communist Party, said the document's findings were seen by some as overly nationalistic.

"The report is indicative of an anti-US sentiment in Chinese society," Fang Zhouzi, described as a prominent whistleblower on academic fraud, told the paper.

"It casts the US as a potential threat and links the goals of China's national revival to surpassing the US," he added.

Decades of economic reform and openness to foreign investment have propelled China from a poor, overwhelmingly agricultural country to become the world's second-largest economy behind the US.

International analysts widely expect China's economy, given its high growth rates, to overtake the US in terms of gross domestic product, or total size, sometime in the first half of this century, though differ on exact timing and criteria.

But they also see the US as likely to remain wealthier on a per capita basis given China's huge population of 1.3 billion, with that of the US currently at about 315 million.

-AFP/fl

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Aurora audio: 30 shots in 27 seconds

STORY HIGHLIGHTS

• NEW: Shooter used steel-core rounds in attack, police officer says


• Detective: Holmes used paper bags for puppets as police tried to interview him


• The lead detective says he didn't need to order toxicology tests


• Police also play 911 calls from the July 20 shooting rampage

Centennial, Colorado (CNN) -- James Holmes sat in the interrogation room in his T-shirt, white socks and boxers.

Gone was the body armor that police found him wearing when they encountered him outside a movie theater where scores of people had been shot. Police had cut it off.

Craig Appel -- the lead detective in the investigation into the 12 killings at the Century Aurora 16 Multiplex Theater in Aurora, Colorado -- testified Tuesday that paper bags had been placed over Holmes' hands to potentially preserve evidence. As Holmes was being interviewed, he used the paper bags as puppets.

He played with his polystyrene drinking cup as if it were a piece in a game. Appel said

He removed a staple from the table and tried to stick it in an electrical outlet, the detective testified.

Asked by a defense attorney whether he had ordered a blood test for Holmes, Appel said he had not.

"There were no indications that he was under the influence of anything," he said.

Appel testified that investigators found 76 shell casings at the auditorium where Holmes is accused of killing 12 people and wounding 58 more on July 20, at a midnight movie showing. Most of the spent rounds -- 65 -- were .223 caliber, while six were shotgun shells and five were .40 caliber.

Aurora police Sgt. Matthew Fyles testified the .223 cartridges were steel-core rounds, which are more likely to pass through a body intact and can cause multiple wounds.

The details came on the second day of Holmes' preliminary hearing, which could last all week. It is meant to prove to Arapahoe County District Judge William Sylvester that prosecutors have enough evidence to proceed to trial.

Attorneys for Holmes, a 25-year-old former neuroscience graduate student at a nearby university, are expected to seek a "diminished capacity" defense that could prevent the case from getting that far. Some of their questions during cross-examination have also suggested they are trying to make it appear Holmes might have been under the influence of something the night be was arrested.

The term "diminished capacity," according to the Colorado Bar Association, relates to a person's ability or inability "to make adequately considered decisions" regarding his or her legal representation because of "mental impairment or for some other reason."

The day wrapped up with Fyles, who detailed what happened to each of the victims, including a dozen people who were injured as people tried to flee.

Fyles will testify again Wednesday morning as the last prosecution witness. The defense is allowed to call two witnesses.

Chilling 911 calls played

Also Tuesday, prosecutors played the first 911 calls from the movie theater shooting as they continued building their case at a preliminary hearing.

The recording was loud, chaotic and difficult to understand. There was too much sound to make out what the caller was saying.

Just one thing is unmistakable: the sound of gunshots. At least 30 of them. In 27 seconds.

Detective Randy Hansen testified that the first call to authorities came 18 minutes after the film started. More trickled in until the torrent was complete: 41 calls in all, he said.

Because the movie was still playing and, in at least one, the gunman was still stalking the theater, the calls are difficult to make out. In one, a 13-year-old girl called to say her cousins had been shot. A 911 operator tried to lead the sobbing girl through performing CPR on one who was still breathing.

Family members of victims attending the hearing held each other and choked back tears as the calls were played.

Police describe elaborate setup in apartment

After detailing the calls, prosecutors turned to the intricate explosive web authorities say Holmes left in his apartment, including jars of homemade napalm with bullets suspended inside and topped with thermite, a material that burns so hot it is nearly impossible to put out.

In photos displayed in court, the mixture looked like amber-colored gelatin.

Elsewhere in the sparsely decorated apartment, a container of glycerin hung connected to a tripwire, ready to tip into a frying pan that held a homemade substance that would have sent sparks flying onto carpets soaked in oil and gas, setting them aflame, FBI bomb technician Garrett Gumbinner testified. A robot sent inside discovered the tripwire.

He said Holmes also told him that he had left a boombox by a trash container outside his apartment rigged to start playing loud music 40 minutes after he turned it on.

Next to it, Holmes said, he left a remote-control toy car and a control device that would set off the explosives inside his apartment, Gumbinner testified.

Appel said someone took the boombox into an apartment where police recovered it and found Holmes' prints on it. They never located the toy car, he said.

Also, Steve Beggs, a supervisory agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives, testified that Holmes had purchased 6,295 rounds of ammunition and four firearms beginning in May. Ten weeks before the attack, on May 10, he bought two canisters of tear gas over the Internet, Beggs said.

He was still buying materials into July, Beggs said, testifying that authorities have video of Holmes buying an accessory at a Colorado gun store on July 1. In the video, he said, Holmes' hair is bright orange.

Court room packed with family, spectators

In Monday's first day of testimony, police officers recounted arriving at the movie theater to find a detached, sweaty Holmes outside and a horrific scene inside the theater, where the floor had become slippery with blood and cell phones rang unanswered.

Aurora survivors: How they're doing

Holmes was a doctoral student in Aurora, in the neuroscience program at the Anschutz Medical Campus of the University of Colorado, Denver, until he withdrew a month before being arrested outside the bullet-riddled movie theater. He had been a patient of a University of Colorado psychiatrist, according to a court document filed by his lawyers.

Holmes did not speak during Monday's hearing. His bushy hair and long beard contrasted with the bright red hair and close-cropped facial hair he sported during previous appearances.

During portions of the hearing, family members of victims held one another, sobbing.

Security was tight. Spectators had to pass through a metal detector and then were searched again before entering the courtroom. At least nine armed officers stood guard inside, some of them scanning the audience packed with reporters and victims' family members.

University releases e-mails related to Holmes

CNN's Casey Wian and Jim Spellman reported from Colorado; Michael Pearson wrote from Atlanta. CNN's Michael Cary and Greg Botelho also contributed to this report.

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AP: Gov. Richardson pressing N. Korea to open Internet

Former New Mexico Gov. Bill Richardson is interviewed by journalists after arriving at Pyongyang International Airport in Pyongyang, North Korea, Monday, Jan. 7, 2013. Richardson arrived in the North Korean capital with Executive Chairman of Google Eric Schmidt, and called the trip a private humanitarian visit. / AP Photo/Kim Kwang Hyon

PYONGYANG, North Korea Former New Mexico Gov. Bill Richardson said Wednesday that his delegation is pressing North Korea to put a moratorium on missile launches and nuclear tests and to allow more cell phones and an open Internet for its citizens.

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Google exec. visits North Korea

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Bill Richardson, Eric Schmidt arrive in North Korea

Richardson told The Associated Press in an exclusive interview in Pyongyang that the group is also asking for fair and humane treatment for an American citizen detained in North Korea.

"The citizens of the DPRK (North Korea) will be better off with more cell phones and an active Internet. Those are the three messages we've given to a variety of foreign policy officials, scientists" and government officials, Richardson said.

He is accompanied by Google Executive Chairman Eric Schmidt and Google Ideas think tank Director Jared Cohen on what Richardson has called a private, humanitarian trip. Schmidt, who is the highest-profile U.S. business executive to visit North Korea since leader Kim Jong Un took power a year ago, has not spoken publicly about the reasons behind the journey to North Korea.

The high-profile visit comes just weeks after North Korea launched a long-range rocket to send a satellite into space. Washington has condemned the launch as a banned test of missile technology.

Schmidt, who oversaw Google's expansion into a global Internet giant, speaks frequently about the importance of providing people around the world with Internet access and technology. Google now has offices in more than 40 countries, including all three of North Korea's neighbors: Russia, South Korea and China, another country criticized for systematic Internet censorship.

He and Cohen have collaborated on a book about the Internet's role in shaping society called "The New Digital Age" that comes out in April.

Using science and technology to build North Korea's beleaguered economy was the highlight of a New Year's Day speech by leader Kim Jong Un.

New red banners promoting slogans drawn from Kim's speech line Pyongyang's snowy streets, and North Koreans are still cramming to study the lengthy speech. It was the first time in 19 years for North Koreans to hear their leader give a New Year's Day speech. During the rule of late leader Kim Jong Il, state policy was distributed through North Korea's three main newspapers.

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Dead Lotto Winner's Wife Seeks 'Truth'

The wife of a $1 million Chicago lottery winner who died of cyanide poisoning told ABC News that she was shocked to learn the true cause of his death and is cooperating with an ongoing homicide investigation.

"I want the truth to come out in the investigation, the sooner the better," said Shabana Ansari, 32, the wife of Urooj Khan, 46. "Who could be that person who hurt him?

"It has been incredibly hard time," she added. "We went from being the happiest the day we got the check. It was the best sleep I've had. And then the next day, everything was gone."

Ansari, Khan's second wife, told the Chicago Sun-Times that she prepared what would be her husband's last meal the night before Khan died unexpectedly on July 20. It was a traditional beef-curry dinner attended by the married couple and their family, including Khan's 17-year-old daughter from a prior marriage, Jasmeen, and Ansari's father. Not feeling well, Khan retired early, Ansari told the paper, falling asleep in a chair, waking up in agony, then collapsing in the middle of the night. She called 911.

Khan, an immigrant from India who owned three dry-cleaning businesses in Chicago, won $1 million in a scratch-off Illinois Lottery game in June and said he planned to use the money to pay off his bills and mortgage, and make a contribution to St. Jude Children's Research Center.

"Him winning the lottery was just his luck," Ansari told ABC News. "He had already worked hard to be a millionaire before it."

Illinois Lottery/AP Photo

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Jimmy Goreel, who worked at the 7-Eleven store where Khan bought the winning ticket, described him to The Associated Press as a "regular customer ... very friendly, good sense of humor, working type of guy."

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Khan's unexpected death the month after his lottery win raised the suspicions of the Cook County medical examiner. There were no signs of foul play or trauma so the death initially was attributed to arteriosclerotic cardiovascular disease, which covers heart attacks, stroke or ruptured aneurysms. The medical examiner based the conclusion on an external exam -- not an autopsy -- and toxicology reports that indicated no presence of drugs or carbon monoxide.

Khan was buried at Rosehill Cemetery in Chicago.

However, several days after a death certificate was issued, a family member requested that the medical examiner's office look further into Khan's death, Cook County Medical Examiner Stephen Cina said. The office did so by retesting fluid samples that had been taken from Khan's body, including tests for cyanide and strychnine.

When the final toxicology results came back in late November, they showed a lethal level of cyanide, which led to the homicide investigation, Cina said. His office planned to exhume Khan's body within the next two weeks as part of the investigation.

Melissa Stratton, a spokeswoman for the Chicago Police Department, confirmed it has been working closely with the medical examiner's office. The police have not said whether or not they believe Khan's lottery winnings played a part in the homicide.

Khan had elected to receive the lump sum payout of $425,000, but had not yet received it when he died, Ansari told the AP, adding that the winnings now are tied up as a probate matter.

"I am cooperating with the investigation," Ansari told ABC News. "I want the truth to come out."

Authorities also have not revealed the identity of the relative who suggested the deeper look into Khan's death. Ansari said it was not her, though she told the AP she has subsequently spoken with investigators.

"This is been a shock for me," she told ABC News. "This has been an utter shock for me, and my husband was such a goodhearted person who would do anything for anyone. Who would do something like this to him?

"We were married 12 years [and] he treated me like a princess," she said. "He showered his love on me and now it's gone."

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