FDA Bows To Pressure From Fans Of Raw Oysters — A Picture Can Lie — Maradona in the spotlight — The nuns who broke the mould — To pee or not to pee — She’s Mine/God’s Hand Bra Video — The beyond the test of science — Clint Eastwood awarded the Legion of Honor — Various Music Video by Cactus Cuties


 

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Photograph: W Eugene Smith 1951, Deleitosa, Spain W. Eugene Smith/Magnum


 


 

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Photograph: MURRAY BECKER/1937/AP


 


 

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FDA Bows To Pressure From Fans Of Raw Oysters

NPR – by Debbie Elliott

Legend has it that raw oysters are good for love — but they’re also worth fighting over, as the Food and Drug Administration has learned.

Facing political pressure from the Gulf Coast oyster industry, the FDA has backed off a plan to require raw oysters from the Gulf of Mexico to be treated to rid them of Vibrio vulnificus, a potentially deadly bacteria found in warm-water oysters. Harvesters and politicians had warned that the plan could devastate the industry.

The outcry was especially loud in Louisiana, the nation’s top oyster producer.

A Debate Over Flavor, Safety

At Casamento’s Restaurant, a New Orleans fixture since 1919, customers were outraged when the FDA announced that it would require Gulf oysters to undergo a post-harvest treatment from April to October if they’re intended to be eaten raw.

“It’s ridiculous,” said customer Nancy Chacere. “People are sick and dying of E. coli [from] eating beef. Why are they worried about oysters?”

“It’s part of our culture,” said Chacere, who had just eaten a dozen raw, with a little hot sauce.

“I remember as a child going fishing and eating oysters right out of the boat, out of the water. The idea of having to radiate them or whatever they want to do is ridiculous.”

The agency had sought to require warm-weather raw oysters to go through one of several approved treatments: pasteurization, high pressure, quick freezing or irradiation.

C.J. Gerdes, who owns Casamento’s, says he wouldn’t serve processed oysters. “No taste to ‘em. They taste like rubber. So I wouldn’t use them. I would just go without,” he said.

Gerdes says the FDA is overreaching. But regulators say that more than a decade of trying to educate at-risk consumers has not worked. About 30 people get sick each year from oyster-borne Vibrio vulnificus, and half of them die.

The agency is simply doing its duty, according to Michael Taylor, senior adviser to FDA Commissioner Margaret Hamburg.

“We have a public health duty to act when there’s a means to really prevent very serious illnesses and deaths with the technology that’s available — and that’s what we’ve done here,” Taylor said.

About two-thirds of the oysters eaten in the United States come from the Gulf of Mexico. Taylor says that less than a quarter of the harvest would have be affected by the new policy, which has now been put on hold for more study.

Weighing Costs, Benefits Of Regulation

Mike Voisin, owner of Motivatit Seafood in Houma, La., and a member of the Gulf Oyster Industry Council, says that his company already pressurizes oysters — but Voisin says that most smaller oyster shops can’t afford the processing equipment, and shouldn’t be forced to purchase it.

“We don’t live in a nanny state,” he said.

“We don’t have to be protected from everything. It makes no sense,” Voisin said.

“The FDA has not banned sugar because it hurts diabetics. They’ve educated diabetics. We should educate that at-risk consumer.”

But the industry’s argument doesn’t make sense to Jenny Bourgois of Baton Rouge, La. Her father, James Sartwell, died from the flesh-eating bacteria two years ago, after eating raw oysters at his 60th birthday dinner.

“I can’t imagine that they would actually put an economic value on what the lives of 15 individuals, or more, are worth,” Bourgois said.

Fourth-generation Louisiana oysterman John Tesvich agrees.

“It’s very popular to say it’s not our issue, it’s only a few people,” he said. “That’s the wrong position to take. You’re in the food business!”

Giving Oysters A Hot Bath

When the public health debate over Vibrio was getting national attention in the mid-1990s, Tesvich started AmeriPure — an oyster pasteurization company.

At AmeriPure’s Franklin, La., plant, sacks of oysters are unloaded, cleaned and secured with a rubber band before being dunked into a giant hot water tank.

“The secret is controlling the temperature accurately to kill the bacteria without cooking the oyster,” Tesvich said. “It remains juicy and succulent.”

The oyster remains raw, but it’s no longer alive. The pasteurized oyster has a stronger flavor and firmer texture than unprocessed oysters.

AmeriPure sells up to 20 million pounds of pasteurized Gulf oysters a year to customers all over the country, including some of the nation’s top seafood chains.

Tesvich says the industry should stop fighting health officials.

“Illnesses and deaths being associated with your product keep us down. It hurts our marketability,” he said.

But the industry appears to be winning the current fight, thanks to the help of Gulf Coast lawmakers, who met with FDA officials last week.

“We made it extremely clear that we thought this announced proposed rule was completely unjustified and really out of left field,” said Sen. David Vitter, a Republican from Louisiana.

Vitter, along with Democrats Mary Landrieu of Louisiana and Bill Nelson of Florida, sponsored a bill to block funding for FDA.

“If this administration is taking a position than we cannot have any deaths or illnesses of any food consumed, we’re in for a long, long fight,” Landrieu said.


 

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One of the key images to have remained in people’s consciousness since the 7/7 bombings on London Underground Photograph: Alexander Chadwick/AP


 


 

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A Picture Can Lie

Townhall – by George Will

The 20th century was 100 years of amplitude. It overflowed with barbarous fighting faiths, wars enveloping continents, and graphic journalism assaulting global audiences with scenes of shocking immediacy. The Spanish Civil War, although small in terms of the number of combatants, was perhaps the century’s emblematic conflict.

As a rehearsal for the Second World War, Spain’s agony became a proxy struggle between fascism and communism, with democracy crushed in the middle. And for perhaps the first time, pictures supplemented and sometimes supplanted words as primary shapers of opinion about a conflict. Arguing with Idiots By Glenn Beck

According to Robert Hughes, author of “The Shock of the New” (1980), during World War I’s nation-shattering and culture-shredding carnage, no photograph of a dead soldier appeared in a German, French or British newspaper. But the Sept. 23, 1936, issue of the French magazine Vu published (as did Life magazine 10 months later) what became perhaps the century’s iconic photograph — “Falling Soldier.”

It was taken by, and launched the remarkable career of, a 22-year-old Hungarian refugee from fascism, photographer Robert Capa.It supposedly shows a single figure, a loyalist — that is, anti-fascist — soldier, at the instant of death from a bullet fired by one of Franco’s soldiers.

The soldier is falling backward on a hillside, arms outstretched, his rifle being flung from his right hand. This was, surely, stunning testimony to photography’s consciousness-raising and history-shaping truth-telling, the camera’s indisputable accuracy, its irreducibly factual rendering of reality, its refutation of epistemological pessimism about achieving certainty based on what our eyes tell us.

Probably not. A dispute that has flared intermittently for more than 30 years has been fueled afresh, and perhaps settled, by a Spanish professor who has established that the photo could not have been taken when and where it reportedly was — Sept. 5, 1936, near Cerro Muriano.

The photo was taken about 35 miles from there. The precise place has been determined by identifying the mountain range in the photo’s background. The professor says there was no fighting near there at that time, and concludes that Capa staged the photo.

Could an alternative explanation be that a single fascist sniper fired the fatal shot while some loyalists were at rest? No. What was once thought to be blood spurting from the falling soldier’s skull is actually a tassel on his cap. And Capa several times said the soldier was felled by machine-gun fire. In a slightly less dramatic photo of another falling soldier, taken by Capa at the same time — the cloud configuration is the same as in “Falling Soldier” — the soldier falls on the same spot.

In 1995, the controversy seemed to have been settled in Capa’s favor when the fallen soldier supposedly was identified as Federico Borrell Garcia, an anarchist militiaman. But a 2007 Spanish documentary included a written eyewitness account of Borrell dying many miles away, behind a tree. There are no trees in the many pictures Capa took when he took “Falling Soldier.”

The coolly analytic professionals at the International Center of Photography in midtown Manhattan, which has the Capa archives, are commendably dispassionate about the “Falling Soldier” controversy. They also avoid postmodern mush, such as: All photographs are manipulative fabrications because the photographer chooses to point the camera here and not there, and, anyway, “Falling Soldier” is “basically” truthful because it illustrates the “essential truth” about war.

Capa was a man of the left and “Falling Soldier” helped to alarm the world about fascism rampant. But noble purposes do not validate misrepresentations. Richard Whelan, Capa’s biographer, calls it “trivializing” to insist on knowing whether this photo actually shows a soldier mortally wounded. Whelan says “the picture’s greatness actually lies in its symbolic implications, not in its literal accuracy.”

Rubbish. The picture’s greatness evaporates if its veracity is fictitious. To argue otherwise is to endorse high-minded duplicity — and to trivialize Capa, who saw a surfeit of 20th-century war and neither flinched from its horrors nor retreated into an “I am a camera” detachment. As a warning about well-meaning falsifications of history, “Falling Soldier” matters because Capa probably fabricated reality to serve what he called “concerned photography.” But this, too, matters:

There was the integrity of constant bravery in Capa’s life, which was a headlong rush toward danger. He arrived on Omaha Beach with the first soldiers early on June 6, 1944, and was only 40 in 1954 when, on the move with French troops in Vietnam, he stepped on a land mine.

Related Articles:

Faking Soldier: The photographic evidence that Capa’s camera DOES lie… and that his iconic ‘Falling Soldier’ was staged

Proving that Robert Capa’s “Falling Soldier” is Genuine: A Detective Story


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Photograph: Dorothea Lange/Nipomo, CA/1936/Hulton Archive/Getty

 


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Maradona in the spotlight

EL PAÍS – KELLY RAMUNDO
Argentina coach needs a win in Saturday’s friendly with Spain to return to grace

On the face of it, Saturday’s friendly between Spain and Argentina is not much more than a sideshow before the summer’s South African World Cup. But underneath the surface, deeper motivations will make Madrid’s Vicente Calderón the world stage, where at least one of two giants is likely to fall.

The first is Spain, which will use the night to stake its dominance outside Europe over a side that has two World Cups in its trophy closet — two more than Spain.

“We respect Argentina to the maximum, despite its difficulties in qualifying for the World Cup. We are respectful and they deserve it because they have been world champions and have great players,” said Spain keeper Iker Casillas on Friday.

Victory for Spain is especially urgent after the side squandered its last opportunity to face South American powerhouse Brazil, in last summer’s Confederation Cup finals, where it lost in the semifinals to a determined US side.

But the night is perhaps even more pressing for the struggling visitors, who last month were on the brink of early elimination from soccer’s most important event.

In the eye of the storm has been Diego Maradona, Argentina’s soccer supernatural, or “D10s” according to the Argentinean press, a play on his jersey number and the Spanish word díos, meaning god. Maradona has not lacked obstacles since he took over the side last October. The most recent was last month’s bare-minimum win over Uruguay to stave off early elimination — a win that led directly to his next obstacle.

The Spain match comes just a day before Maradona will travel to Zurich where a FIFA disciplinary committee will decide if he should face a World Cup stadium ban for inviting the national press to “blow me” in a foul-mouthed post-game interview.

Maradona’s goal on Saturday will be to prove that the tattered side he now coaches is still made from the same fiber of the great team he played for when Argentina last won the World Cup in 1986, a performance for which Maradona was awarded the tournament’s Golden Ball. The coach, who arrived in Madrid looking melancholic last week, told Spanish journalists on Thursday that although Spain was the favorite, his side would not go down without a fight.

“Of course I accept that [Spain is favorite] but I am going to fight with my players until the last moment,” he said. Maradona also had words about two of the players with the capacity to redirect the spotlight off the coach on Saturday.

He defended Leo Messi, who has taken heat in Argentina’s press for his lopsided play with the national side as compared with Barcelona. “We are putting a lot of responsibility

on him. He did the work I asked of him and I am very happy. Now that we have gotten past the qualification round, he has to lead the team, and he knows it. We have the best in the world, and we have to play him,” he said.

Of another Argentinean star forward with a day job in Spain, Kun Agüero, Maradona assured Atlético Madrid coach Quique Sánchez Flores that the ailing player would be returned in good health.

“Kun is hurting. Today, he didn’t practice. So Quique should be calm. If Kun is not alright to play on Saturday, he won’t play,” he said, adding: “Whenever we take a player

from any team, we return him in good condition — never broken.”

After Saturday, most of Argentina will be hoping they can say the same about Maradona.

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Photograph: HG Ponting/1911/Popperfoto/Getty



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Photograph: Mario Giacomelli/Little Priests/c1962-3/AP

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The nuns who broke the mould

A convent in Lerma has managed to reverse a trend and attract an army of new recruits

EL PAÍS – JESÚS RODRÍGUEZ

On January 22, 1984, 18-year-old Marijose Berzosa abandoned the world. She left her medicine degree behind, as well as a string of boyfriends, nightclubs full of cannabis smoke, basketball, guitar and theater.

That Sunday, she entered the cloistered convent of La Ascensión in Lerma, where Poor Clare nuns have been living since 1604, to become Sister Verónica: a commitment for all eternity.  Few people believed in her calling.  “There were bets that I wouldn’t last long. But they didn’t feel the force of the hurricane pulling me in,” she would later confess.

Marijose was a young girl at the time: cheerful, open-minded, and — as she herself puts it — quite attractive, known for her lovely green eyes. The only daughter in a middle class family of five children — her father owned a shoe store — all of her brothers went to college.

One of them became a priest and is now the auxiliary bishop of Oviedo: her mirror and guide. Marijose was brilliant and bossy; not sanctimonious or prudish. As a girl she

had attended Catholic school, but her relationship with the Church was erratic. She was your typical adolescent looking for a way out, and in 1984 she found it. It took her just two weeks to make up her mind.

Simplicity, humility and poverty: the contemplative life. Ora et labora. When Marijose entered the convent, around 20 nuns were living there, the youngest of whom had just turned 40. They hadn’t seen a new novice in 23 years.

There, she was given a coarse brown habit, cinched at the waist by the white cord traditionally worn by the Franciscans (the Poor Clares are the feminine branch of this order) and winter and summer sandals. They made her cut her hair almost to the scalp and assigned her to a cold cell.

Then came prayer starting at dawn, penitence, silence, fasting and work in the bakery and the garden. Walls and bars kept her isolated from the world. During all these years, Verónica has seen the same view of the fertile lowland of Arlanza from her cell. It still moves her. “Here I feel free,” she says.

Her guide during those early years, Sister Pureza de María Lubián, the current abbess of the convent in Belorado, Burgos, remembers her as “a charming girl, very noble and good. She was 18 years old and had prospects.

She left behind everything to follow God’s call. Her personality was very rich; she was always a leader.  And spiritually, she had a great calling. She had her struggles and difficulties, and made a big effort. But the grace of the spirit acted, and she let it work in her.”

The spirit did its job well. Sister Verónica has become the biggest phenomenon the Catholic Church has seen since Teresa of Calcutta. Her admirers call her a “saint on Earth,” and her work a “miracle.” Supported by the Vatican, pampered by the monsignors, financed by the powerful and encouraged by neo-conservative movements, she has made the Lerma convent an attractive lure for women with a calling.

Today it is home to 135 university-educated nuns with an average age of 35, and a hundred more on the waiting list. They have already opened a branch in the town of La Aguilera, 40 kilometers from Lerma, in a huge monastery ceded to them by their Franciscan brothers.

It’s an unexpected surge in callings at a time when the Jesuits have only 20 novices in the entire country and the Franciscans, five; when nuns are imported from countries such as India, Kenya and Paraguay to avoid closing down convents inhabited by old women, and most priests in Spain are over the age of 60…

Sister Verónica’s bucolic community, however, is full. Each weekend they receive hundreds of young pilgrims who come in buses chartered by parishes and religious schools, escorted by priests and large, pious families eager to share the joy of these nuns who pray, sing and dance without losing their smiles for an instant.

Its doors are always open to good Christians, especially if they are seminarians, “Kikos” (followers of the Neocatechumenal Way) or youth ministry groups.

Sister Verónica greets them with a personal style that is a blend of the Church’s most conservative rites, the mystic appeal of cloistered orders and a cheerful, somewhat childish staging —the product of her brilliant choreographer’s mind.

Microphone in hand, Verónica dominates the scene. She seems shy, but she’s not. She emerges from a corner of the auditorium, among the stands where around 100 nuns raise their arms and chant a hymn of love of Christ accompanied by bongos and guitars.

Verónica caresses her sisters’ hair and hugs the children. She is simple and affectionate, deep and direct. Her soft, firm voice has the power of conviction: she believes what she says. She loves Christ, and says so over and over. She’s a good preacher, as well as an energetic musical director, as she will show during the Eucharist in front of the choir.

There, in the chapel, there are no smiles. The sisters pray, prostrate on the floor like faithful Muslims. Sister Verónica’s daughters are the exact opposite of nuns from other cloistered convents.  They’re not unrefined country girls looking for a means of survival; the typical nuns who sell sweets from behind a revolving window.

Most of them have had boyfriends and jobs. Many come from neo-conservative groups: the Neocatechumenal Way, Opus Dei, the Legion of Christ, and so on. They are educated city women, and there is not a single immigrant.

Most are from middleclass families and hold university degrees: there are lawyers, economists and physicists; engineers, architects, doctors, librarians and teachers. One clergyman familiar with the community defines it as “a pot of hard-to-govern intellectual crickets.” Another priest from Burgos has his doubts about the project’s uniformity, considering all the different neoconservative movements that feed it:

“Each woman has her own way of being, of praying, of cultivating piety, and has to make an extra effort to shed her original spiritualities and come together under the rule of St. Clara.”

The Lerma phenomenon has little to do with the traditional cloister model. Some Church leaders already think that this movement will lead to a refounding of the Order of St. Clare, a schism within that congregation or even the creation of a new order. A priest close to the abbess explains:

“When Marijose entered the convent, she had ideas of her own. She wasn’t stupid. She had her own interpretation of the contemplative religious life. She didn’t see why the cloister had to be untouchable and exclusive.  She wanted to share it and be an example.” According to one monsignor, who prefers to remain anonymous, “the nuns of Lerma do not renounce religious seclusion, but they want other Christians to know and value them.

They want to create a real center of spirituality.” According to the superior of a Madrid order, “cloistered nuns that don’t change with the times are going to die off. They should be an example of spiritual experience for people today; for those kids who go to India to mediate and find meaning in life.” One sister from the community defines her cloister along these lines: “This is a house open to anyone who comes knocking at our door. We want to share our faith, to let people know what is happening with us. If they see Jesus in us, so be it. Spain is so pagan that we have got to share our faith, not live it alone.”

In the Church, no one understands the phenomenon. Lerma has broken the mould. First of all, it is a movement led by women, the silent guests for centuries in the Catholic Church; always kept out of decision making, theology and priesthood, even though women with vocations outnumber men four to one.

Very few people have set foot inside Sister Verónica’s community: it is cloistered, and it enjoys total independence.  The pope is the only ecclesiastic authority who controls what goes on at Lerma and La Aguilera. He’s in Rome, and they seem to have his blessing.

All members of the clergy interviewed for this report praise the exponential growth of the community: “It’s the work of God.” But they also have their doubts: “Half of the nuns still haven’t taken their perpetual vows; it will be years before we’ll know whether or not this is for real.”

Some criticize their isolation; the distance they keep from those who suffer: immigrants, the poor and the sick. Others are downright suspicious: What’s behind all this? Who’s financing it? What’s Lerma’s secret? Nobody seems to know. Even nuns from other Clarissa communities in Spain are wary.

For one abbess: “It’s odd… We don’t understand it. But the Spirit must have its reasons…” Sister Verónica is not doing any explaining, either. Big signs on La Aguilera convent say that taking photos and video of the nuns is prohibited. The heftiest sister repeats this warning, giving an inquisitorial look to the two reporters visiting her community:

“We want nothing to do with the media!” A few minutes later, when we finally ask Verónica about the reasons for her success, she looks into our eyes with her own green orbs, welling up with tears, bows her head and takes our hand between her own gaunt ones:

“You don’t know how much we love you, but we’re creating something… we’ve got 60 or 70 sisters in training and it’s not the time to talk; they have to mature first. We’re doing something great for the love of Christ and we need time. But we still love you.” Then Sister Blanca appears.

She is the supporting actress in this scene, who plays the role of the bad cop. “The PRISA Group,” to which EL PAÍS belongs, “does tremendous damage to the Church. You attack it and ridicule it and I read everything. The Church is my mother, so we have nothing more to say to each other.”

She may not have her Sister Verónica’s charisma or good looks, but she is tough and obstinate, capable of facing up to bankers, architects and lawyers, and she never gives in.

Born almost 70 years ago in the town of La Bureba (Burgos), Sister Blanca Mateo, an admirer of Opus Dei, has been abbess here since the late 1990s. She controls everything that goes on in the convents of Lerma and La Aguilera, although this past March she officially ceded the position of mother superior to Sister Verónica.

Together, the two sisters have made a long, hard journey. When Marijose first came to Lerma, in 1984, the convent had 23 nuns and a bleak future. In 1994, when she was just 28 years old, she was named instructor of novices, a key position in a community whose mission is “to configure the novice’s hard drive to the community’s operating system,” as one Jesuit who has held this post in his order puts it.

In that decade, 27 more sisters entered the convent under Verónica’s spiritual direction. Since then, her reputation has spread by word of mouth in conservative parish circles, and the community has kept on growing. As of this past September, there were 134 nuns cloistered in a 16th-century convent designed to house 32.

Verónica and Blanca were not expecting such a tidal wave of vocations, but they weren’t willing to renounce a single candidate or send her to one of the other Clarissa convents, even though they were practically empty (there are nine in the province of Burgos and around 100 in Spain). Soon novices were living in temporary cells in the choir, the chapel, and the sacristy. Then they rented out buildings next to the convent to make room for the candidates.

Each evening at sundown, the residents of Lerma would watch the parade of young women with bowed heads make their way from the monastery to their apartments.  By early 2000, the Lerma convent was bursting at the seams.

While Verónica devoted herself to teaching the candidates, Blanca started testing out the possibilities of getting a bigger space. That’s when Antonio María Rouco Varela, archbishop of Madrid and president of the synod, entered the picture.

“Many bishops would be thrilled to take credit before the Vatican for having the convent with the most vocations in Europe in their diocese. Rouco, who knows everything that goes on in the Spanish Church, was no exception,” explains one clergyman.

“He was one of the first to court them. He started paying them frequent visits and designed a curriculum […] to train them according to his view of the Church. And he ordered the parishes of his archdiocese to aim female vocations in the same direction as Lerma. Rouco even made his right-hand man, the most brilliant of his monsignors, Eugenio Romero Pose, the sisters’ priest, which he would be until his death in 2007.

Finally, in 2002, Rouco made his move: he offered the nuns of Lerma some land on the outskirts of Madrid so they could build a new convent. The star architect Santiago Calatrava would design the building. The only problem was that the land they had needed to be reclassified, a difficult task considering the ecological nature of the location and the opposition from local councilpersons.

Calatrava’s extravagant and not-very-functional project, with an estimated cost of ¤12 million, was beyond the nuns’ budget.  But most importantly, Verónica was not willing to leave Burgos. The project fell through, and Rouco was disappointed. The Clares had gotten away from him.

Over the next two years, the nuns kept on looking around Sister Verónica’s territory. In 2004, the superiors of her Franciscan brothers offered Blanca some money. She said: “Don’t give me alms; give me La Aguilera Monastery!” The abbess was referring to an old, dilapidated Franciscan monastery 10 kilometers from Aranda, where four elderly friars were living.

A few months later, they signed a contract ceding the use of the monastery to the Clares of Lerma for 30 years. Verónica and Blanca had done it: their dream was starting to come true.  Now the new convent reflects their way of looking at the Church: everything is modern, clean, open and well lit.

The energy comes from solar panels. The revolving window has been replaced by security cameras, and the bars have disappeared: “Since we’re under construction, it’s impossible to put them in; when it’s finished… we’ll see what we’ll do,” says the abbess.

But in 2005, when Verónica and Blanca walked through the door of La Aguilera, they found a rundown old building with no heat, bathrooms or warm water.  The church was infested with termites, and the roofs were about to cave in. To remodel it, the estimate was ¤3 million. Where were they going to get the money? Sister Blanca called up one of her benefactors.

Luis Alberto Salazar-Simpson, a lawyer and businessmen who sits on the board of Banco Santander, recalls how he met the nuns of Lerma: “It was in the late 1970s. I was governor of Vizcaya and one day they called me and said they didn’t even have anything to eat, so I started helping them. I like the contemplative life. They make a product that no one remembers: they pray for others.

I asked my friends for money and we gave them a hand.” Over the following 12 years, he explained, the convent received 100 new nuns and they ran out of room. The Colmenar option came up, “which was insane,” and then the La Aguilera project. “I liked it, so we got down to work,” he says.

Salazar-Simpson invested the ¤3 million he received in compensation when he was laid off as president of the telephone operator Amena and set up a foundation called Ora et Educa, whose mission would be to “contribute to the goals of the reverend mothers of St. Clare and the restoration of San Pedro Regaladao Convent in La Aguilera, Burgos, to accommodate them.”

Construction began in 2006. The inside of the convent was torn down, and the roofs were repaired.

An old cloister was covered and kitchens, an industrial area to make pastries, classrooms and offices were outfitted. On the two upper floors, 100 cells were built, each measuring 10 square meters, with a bathroom for every two sisters. But the sisters wanted more: “You know how women are when they get hold of the plans,” jokes one benefactor.  The initial budget of ¤3 million became ¤4, and then ¤5. The nuns would cover the first extra million with their savings; the other would come from a foundation of the Banco Popular (historically tied to Opus Dei).

Three and a half years later, the place was still surrounded by bricks, scaffolding and cement trucks. Thanks to the generous financing of the Banco Popular, the Clares were also building a visiting room with a capacity for 400 people, a hospice, guest bathrooms,

a sophisticated welcome area and even a new church.

According to sources familiar with the project, phase two would raise the budget another ¤5 million.  The new convent was inaugurated on June 8, and is now home to around 100 sisters. The other 30 or so remain in Lerma.  According to Verónica, it is “one community with two headquarters and a single abbess.”

La Aguilera has become a perfect society that is scrutinized by the entire Church. Yet the future of Verónica and her sisters remains unclear. It’s impossible to know how many have deserted.

Members of the order from other convents accuse them of opacity and secrecy. But their main complaint is the detachment that they show toward their fellow sisters, their isolation from the Franciscans, their self-sufficiency and the fact that they have refused to

lend sisters to other communities that are dying out. Sister Verónica defends herself. “For now, we’re not going to other convents, because this is a family that is forming and it must be together until it comes of age. Maybe someday…”

And she disappears, mystic and passionate, her shoulders drooping as if they were bearing the weight of her 134 sisters.

They say that she lives on coffee, and that she’s overwhelmed. Not even she knows Lerma’s secret.  But she keeps on going. One monsignor describes it very ecclesiastically:

“Too many people hang from Verónica’s habit. We’ll see.”

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To pee or not to pee

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Have you heard of a “pee bale”? It’s the latest measure adopted at the National Trust property Wimpole Hall in Cambridgeshire to both save water and ensure efficient composting.

As the name suggests, a 3m-long series of straw bales has been installed alongside the compost heaps in the walled gardens so workers (well the male ones anyway) can relieve themselves. Urine has been long-established as a free compost “activator” (aka “liquid gold”), because it’s full of nitrogen, but there are other benefits too. Tamzin Phillips, the NT’s “compost doctor” is quoted in the press release as saying: “What’s so great about the pee bale is that it’s using a natural solution to help the garden while saving flushing the loo for only when it’s really necessary.”

Apparently the pee bale is only used outside visitor hours “because we don’t want to scare the public” and logistically, women are counted out of participating, but it’s still a good idea that saves several litres of water for each toilet flush avoided. Presumably the pee-soaked straw will be added in layers to the Hall’s existing compost heaps.

If you’re female, don’t find an al fresco urination an attractive option, or don’t have space for a straw bale in the garden, a plastic drinks bottle filled in the comfort of the bathroom and decanted onto the heap will serve just as well.


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Photograph: Fathil Asri/The New Straits Times Press/Reuters

She’s Mine

God’s Hand


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Crédits photo : (Oscar Burriel/Science Photo Library/Cosmos)

The beyond the test of science

M.B.-C. 13/11/2009 | Mise à jour

Les called paranormal phenomena are increasingly studied by neuroscientists around the world. Update on the research like no other, made in order to advance knowledge but also medicine.

Who has never experienced a feeling of déjà vu or déjà experiences with a new situation yet? Have you ever had a hunch, a premonition or experience of thought transference? Since the dawn of time are reported stories both disturbing similarity and consistency and incredible irrationality.

Some are surprised to recognize places they have never yet visited. Others maintain contact with their deceased relatives. Still others tell of being removed from their bodies, have approached the threshold of the beyond and back again in the world of the living. And how strange show flashes of insight .

Are these beliefs, hallucinations or any other reality still unexplained. These so-called extraordinary experiences, long denied, if not rejected by science, are now the subject of extensive studies, or teaching at universities and research centers among the most illustrious.

Thus, the Parapsychological Association, a group of scientists and scholars who study the phenomena of telepathy or psychokinesis, she was admitted to the very serious American Association for the Advancement of Science (AAAS) ; a Division of Perceptual Studies was established at the University of Virginia, United States, a center for the study of abnormal psychological processes began at the University of Northampton, Great Britain (which already has eight integrating academic disciplines psychic), without forgetting the Center for Research on consciousness and abnormal psychology at the University of Lund, Sweden, or the department of psychology and parapsychology, Andhra University, India.

In France, more recently, the Catholic University of Lyon offers its students an optional value unit entitled “Science, Society and called paranormal phenomena.Furthermore, scientists, bold enough to face the criticism of their peers, trying to understand these strange event.

Armed with the tools of brain imaging, they explore the brain, experimenting without a priori, equally ready to admit that the phenomenon is related to a simple neural dysregulation to recognizing the existence of a sixth sense, provided that the demonstration is effected Cartesian.

This is where the Canadian Mario Beauregard, a researcher in neuroscience, installing video screens in a coronary unit of a hospital in Montreal to study the phenomenon of near death experiences (EMI). It is also one of the Swiss neurologist Olaf Blanke, who dissects the feeling of disembodiment while acknowledging that many gray areas remain unclear.

Research that aims to better understand the origin and mechanisms of consciousness.And finally to answer these questions: man is he that matter? The body is there a budget independent of the carnal soul? Or the human mind obeys it, in certain circumstances to forms which we do not yet know everything?

Related:


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Clint Eastwood awarded the Legion of Honor


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County Republican Party leaders censure Sen. Graham

The Post and Courier – By Robert Behre

The Charleston County Republican Party’s executive committee took the unusual step Monday night of censuring U.S. Sen. Lindsey Graham for stepping across the GOP party line.

County Chairwoman Lin Bennett said the unanimous vote “is an effort to get his attention. They (party leaders) are just fed up, and they want him to know they’re fed up.”

The resolution mentions Graham’s cooperation with U.S. Sen. John Kerry, D-Mass., on a bipartisan energy bill, and his support for the $700 billion Troubled Asset Relief Program and the time he called some opponents of immigration reform “bigots.”

“U.S. Senator Lindsey Graham — in the name of bipartisanship — continues to weaken the Republican brand and tarnish the ideals of freedom, rule of law, and fiscal conservatism,” the resolution reads.

Bennett said the resolution passed unanimously by a voice vote among about 50 of the party’s 104 executive committee members.

She said party faithful have talked about the resolution for a while. “The feeling is if you’re not going to uphold the platform, then why bother to run as a Republican?” she said.

Graham’s spokesman Kevin Bishop said his boss has a lifetime conservative voting record of 90 percent and last year was rated the 15th most conservative senator by National Journal.

“Like former President Reagan, he strongly believes elected officials need to find common ground and work together to solve difficult problems like making our nation energy-independent and protecting our environment,” Bishop said. “Working to solve problems and being conservative are not mutually exclusive. You can do both and that’s what people in South Carolina elected him to do.”

Warren Sloan, a James Island Realtor and the county party’s third vice chairman, said he wrote the resolution because he was upset with how Graham treated the crowd during recent town hall meetings.

“We have people in office who are not living by the Republican way,” he said, “and yet nobody says anything about it. Lindsey Graham is a perfect example of that.”

Throughout Graham’s career, he has fashioned himself as a pragmatic politician willing to reach across the aisle and compromise to reach a solution. His recent willingness to support a cap-and-trade energy bill is just the latest example.

“I don’t think that it will cause Lindsey Graham to do anything differently than he has already done,” Bennett said, “but it’s a message from the voters and activists in Charleston County that they have had enough.”

But Clemson University political science professor Dave Woodard said Graham may have overreached on the cap-and-trade issue.

“I think he’s in trouble. I really do,” Woodward said. “Obviously, he doesn’t run for a while (2014, to be exact), and he’s hoping people forget, but I think that’s not going to be the case. I think if he gets a serious challenge in the primary, he’ll be in real trouble.”

Bennett said Monday’s vote was the first time in more than a decade, if ever, that the county party had censured a sitting Republican officeholder. Earlier this year, the state party censured Gov. Mark Sanford after his extramarital affair and absence from office while visiting his mistress in Argentina.

Graham not only won the GOP primary in Charleston County with 69 percent of the vote but also was one of the few Republicans to win in the county in the fall’s general election.


 


 

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Photo: Mandel Ngan / AFP / Getty

How low will he go? Obama gives Japan’s Emperor Akihito a wow bow

Los Angles Times – Andrew Malcolm

How low will the new American president go for the world’s royalty?

This photo will get Democrat President Obama a lot of approving nods in Japan this weekend, especially among the older generation of Japanese who still pay attention to the royal family living in its downtown castle. Very low bows like this are a sign of great respect and deference for a superior.

To some in the United States, however, an upright handshake might have looked better. Remember Michelle Obama casually patting Britain’s Queen Elizabeth on the back during their Buckingham Palace visit? America’s royalty tends to make movies and get bad reviews and lots of money as a sign of respect.

Obama could receive some frowns back home as he did for his not-quite-this-low-or-maybe-about-the-same-bow to the Saudi king not so long ago.

Akihito, who turns 76 next month, is the eldest son and fifth child of Emperor Showa, the name given to an emperor and his reign after his death.

Emperor Showa is better known abroad by the life name of Hirohito. He became emperor in 1925 and died in 1989, the longest historically-known rule of the nation’s 125 emperors.

Hirohito presided over his nation’s growth from an undeveloped agrarian economy into the expansionist military power and ally of Nazi Germany of the 1930’s.

And, later, Japan became a global economic giant. Hirohito, along with Prime Minister Hideki Tojo, who authorized the 1941 attack on Pearl Harbor, were much reviled abroad during World War II.

Historically, debate has simmered over how much of a political puppet Hirohito was to the country’s military before and during the war.

Even after Democrat President Harry Truman ordered the two atom bombs dropped on Hiroshima and Nagasaki in the summer of 1945, there were strong forces within Japan that wanted to continue to fight the Americans in the spirit of kamikaze suicide pilots.

But Akihito’s father went on national radio, the first time his subjects had ever heard Hirohito’s voice, and without using the inflammatory word “surrender,” pronounced that the country must “accept the unacceptable.” It did.

As the conquering Allied general and then presiding officer of the U.S. occupation, Gen. Douglas MacArthur, decided to allow Japan to keep its emperor as a ceremonial unifying institution within a nascent democracy.

Tojo, on the other hand, was hanged.

MacArthur treated Emperor Hirohito respectfully but, as his body language in this black and white postwar photo demonstrates, was not particularly deferential…]


 

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Acorn and the Housing Bubble

The liberal pressure group helped Congress write the affordable housing rules that got us into trouble.

WSJ – By EDWARD PINTO

All agree that the bursting of the housing bubble caused the financial collapse of 2008. Most agree that the housing bubble started in 1997. Less well understood is that this bubble was the result of government policies that lowered mortgage-lending standards to increase home ownership. One of the key players was the controversial liberal advocacy group, Acorn (Association of Community Organizations for Reform Now).

The watershed moment was the 1992 Federal Housing Enterprises Financial Safety and Soundness Act, also known as the GSE Act. To comply with that law’s “affordable housing” requirements, Fannie Mae and Freddie Mac would acquire more than $6 trillion of single-family loans over the next 16 years.

Congress’s goal was to force these two government-sponsored enterprises (GSEs) to purchase loans that had been originated by banks—loans that were made under the pressure of another federal law, the 1977 Community Reinvestment Act (CRA), to increase lending in low- and moderate-income communities.

From 1977 to 1991, $9 billion in local CRA lending commitments had been announced. CRA lending by large banks increased dramatically after the affordable housing mandate was in place in 1993, growing to $6 trillion today. As Ellen Seidman, director of the federal Office of Thrift Supervision, said in a speech before the Greenlining Institute on Oct. 2, 2001, “Our record home ownership rate [increasing from 64.2% in 1994 to 68% in 2001], I’m convinced, would not have been reached without CRA and its close relative, the Fannie/Freddie requirements.”

The 1992 GSE Act was the fuse, and the trillions of dollars in subsequent CRA and GSE affordable-housing loans would fuel the greatest housing bubble our nation has ever seen. But who lit the fuse?

The previous year, as Allen Fishbein, currently an adviser for consumer policy at the Federal Reserve, has noted, Acorn and other community groups were informally deputized by then House Banking Chairman Henry Gonzalez to draft statutory language setting the law’s affordable-housing mandates. Interim goals were set at 30% of the single-family mortgages purchased by Fannie and Freddie, and the Department of Housing and Urban Development has increased that percentage over time. The goal of the community groups was to force Fannie and Freddie to loosen their underwriting standards, in order to facilitate the purchase of loans made under the CRA.

Thus a provision was inserted into the law whereby Congress signaled to the GSEs that they should accept down payments of 5% or less, ignore impaired credit if the blot was over one year old, and otherwise loosen their lending guidelines.

The proposals of Acorn and other affordable-housing advocacy groups were acceptable to Fannie. Fannie had been planning to use the carrot of affordable-housing lending to maintain its hold over Congress and stave off its efforts to impose a strong safety and soundness regulator to oversee the company. (It was not until 2008 that a strong regulator was created for Fannie and Freddie. A little over a month later both GSEs were placed into conservatorship; they have requested a combined $112 billion in assistance from the federal government, and much more will be needed over the next few years.)

The result of loosened credit standards and a mandate to facilitate affordable-housing loans was a tsunami of high risk lending that sank the GSEs, overwhelmed the housing finance system, and caused an expected $1 trillion in mortgage loan losses by the GSEs, banks, and other investors and guarantors, and most tragically an expected 10 million or more home foreclosures

As a result of congressional and regulatory actions, the percentage of conventional first mortgages (not guaranteed by the Federal Housing Administration or the Veteran’s Administration) used to purchase a home with the borrower putting 5% or less down tripled from 9% in 1991 to 27% in 1995, eventually reaching 29% in 2007.

Fannie and Freddie acquired $1.2 trillion of loans from banks and other lenders from 1993 to 2007. This amounted to 62% of all such conventional home purchase loans with a down payment of 5% or less that were originated nationwide over the same period.

Fannie and Freddie also acquired $2.2 trillion in subprime loans and private securities backed by subprime loans from 1997 to 2007. Acorn and the other advocacy groups succeeded at getting Congress to mandate “innovative and flexible” lending practices such as higher debt ratios and creative definitions of income. And the serious delinquency rate on Fannie and Freddie’s $1.5 trillion in high-risk loans was 10.3% as of Sept. 30, 2009.

This is about seven times the delinquency rate on the GSEs’ traditional loans. Fifty percent of the high-risk loans are estimated to be CRA loans, with much of the remainder useful to the GSEs in meeting their affordable-housing goals.

The flood of CRA and affordable-housing loans with loosened underwriting standards, combined with declining mortgage interest rates—to 5% in 2003 from 10% in early 1991—resulted in a massive increase in borrowing capacity and fueled a house price bubble of unprecedented magnitude over the period 1997-2006.

Now this history may repeat itself as many of the same community groups are pushing Congress to expand CRA to cover all mortgage lenders, credit unions, insurance companies and others financial industry segments. Are we about to set the stage for another catastrophe?

Mr. Pinto was the chief credit officer at Fannie Mae from 1987 to 1989. He is currently a consultant to the mortgage-finance industry.


 

TERRORIST ATTACKS


 


NYT: Trying Terrorists In NYC Will Repair ‘Damage Wrought By Bush’

NewsBusters – By Noel Sheppard

The New York Times told readers Saturday that Attorney General Eric Holder’s decision to try five Guantanamo Bay terrorist detainees in New York City was “a bold and principled step…toward repairing the damage wrought by former President George W. Bush.”

Not surprisingly, while the Times editorial board cheered Friday’s decision to try Khalid Sheikh Mohammed and others with suspected ties to the 9/11 attacks near where the World Trade Center used to stand, they also took the opportunity to bash Bush:

From that entirely unnecessary policy (the United States had the tools to detain, charge and bring terrorists to justice) flowed a terrible legacy of torture and open-ended incarceration. It left President Obama with yet another mess to clean up on an urgent basis.

The editorial continued:

It was an enormous victory for the rule of law, a major milestone in Mr. Obama’s efforts to close the detention camp at Guantánamo Bay, Cuba, and an important departure from Mr. Bush’s disregard for American courts and their proven ability to competently handle high-profile terror cases. If he and Vice President Dick Cheney had shown more faith in the laws and the Constitution, the alleged mass murderers would have faced justice much earlier.

The piece concluded with one final swipe at the Bush White House:

Still, this much is clear: the Obama administration has yet to completely figure out how to rectify the disgraceful Bush detention policies, but it is getting there.

Oy vey!



OboBow


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Tag Response


 


 

Prejean Sex Tape Triggers Settlement

Posted Nov 4th 2009 5:00PM by TMZ Staff

Carrie Prejean demanded more than a million dollars during her settlement negotiations with Miss California USA Pageant officials — that is, until the lawyer for the Pageant showed Carrie an XXX home video of her handiwork.

The video the lawyer showed Carrie is extremely graphic and has never been released publicly. We know that, because TMZ obtained the video months ago but decided not to post it because it was so racy. Let’s just say, Carrie has a promising solo career.

We’re told it took about 15 seconds for Carrie to jettison her demand and essentially walk away with nothing. As we first reported, the Pageant is paying around $100,000 to her lawyers and publicist — a fraction of her bills. She pockets nothing in the settlement.

Prejean’s Ex BF: Carrie Wanted Me to Lie

EXCLUSIVE: 30 Nude Photos, 8 Sex Tapes Of Carrie Prejean Surface


 


 

Nude portrait of Bond girl Eva Green who’s ‘not confident’ with her body

By James Tapper, Mail on Sunday Showbusiness Reporter 07th November 2009

Bond girl Eva Green insists she’s ‘not confident’ about her body – but you might beg to differ, given her latest sultry photoshoot.

The 29-year-old seemed to show no inhibitions when she posed naked for the latest edition of style bible Tatler, recreating a classic Seventies portrait of British actress .

Sitting on a polished antique table in front of an ornately gilded mirror, the Casino Royale star has only a glass of wine for company as she mimics erotic photographer Helmut Newton’s 1973 memorable image.

One thing has changed through the decades, though – the pack of cigarettes behind Ms Rampling’s derriere has vanished, a nod to the fact smoking is no longer promoted as sexy.

Despite her protestations, this is not the first time Paris-born Ms Green has been naked in the line of duty.

Before starring as Vesper Lynd opposite ’s 007, she took a lead role in The Dreamers, a film by Last Tango In director Bernardo Bertolucci that featured several explicit bedroom scenes.

Even though the role was her big-screen debut, Ms Green’s father and twin sister Joy refused to watch it.

The actress said: ‘They’re not in the business. They get confused.’

And she admitted: ‘I felt a bit ill when I saw it. I’m not confident with my body.’

But she seems to have conquered her coyness for Tatler. Another image shows her wearing only a mink coat – again echoing a familiar theme from the work of German-born Newton, who died in 2004.

His 1973 photograph of Ms Rampling for Vogue magazine – taken at the Hotel Nord Pinus II in Arles, near Marseilles, and titled The Sexiest Woman In The World – firmly sealed her reputation as a sex symbol.

Ms Green thinks she is unlikely to earn the same plaudits.

‘I opened a magazine the other day and they called me the worst-dressed person in the world,’ she said.

‘And I was like, “I like that dress.”’

Well, at least no one can criticise what she’s wearing in this latest picture …


 


 

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Taylor Swift Sweeps CMA Awards

NASHVILLE, Tenn., Nov. 12 /PRNewswire/ – Taylor Swift walked away from last night’s 43rd Annual CMA Awards ceremony as the history-making winner of FOUR CMA Awards, including the industry’s biggest honor – Entertainer of the Year.

A month shy of her twentieth birthday, Taylor became the youngest artist in history, and the first female artist in a decade, to win the Entertainer of the Year trophy. In the 43-year history of the CMA Awards, only six other female acts have won the coveted top prize: Loretta Lynn (1972), Dolly Parton (1978), Barbara Mandrell (1980,’81), Reba McEntire (1986), Shania Twain (1999), and the Dixie Chicks (2000).

Taylor also won CMA Awards last night for Female Vocalist of the Year, Album of the Year (for the critically-acclaimed and quadruple-platinum-plus Fearless – Taylor was honored as both artist and producer), and Video of the Year (for “Love Story”). Earlier in the day she was honored with the CMA’s International Artist Achievement Award. Taylor shared last night’s Album of the Year producer honors with her co-producer Nathan Chapman, and the Video of the Year Award with director Trey Fanjoy.

Accepting her Entertainer of the year award, a tearful Taylor invited her band to the stage to share the honors. “I’ll never forget this moment,” Taylor said during her acceptance speech, “Because in this moment, everything that I have ever wanted has happened to me.”


 


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Photo by Rick Diamond/Getty Images North America


 


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NASHVILLE, TN - LeAnn Rimes attends the 43rd Annual CMA Awards at the Sommet Center on November 11, 2009 in Nashville, Tennessee. (Photo by Frederick Breedon/Getty Images)


 

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Companies using offshore tax havens look to bill for windfall — FAC 2005-34, FAR Case 2008–009, Prohibition on Contracting with Inverted Domestic Corporations, 74 Fed. Reg. 31561 (July 1, 2009)


 

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The Hill – By Walter Alarkon - 11/10/09

Multinational corporations are fighting to preserve language in a spending bill that would weaken a ban on federal contracts.

Only a handful of companies could benefit from the language, but they could receive a windfall if the Senate legislation is approved.

The language covers “inverted” corporations that operate mostly in the United States but incorporate overseas to ease their U.S. tax bills.

The provision, inserted in the Senate version of the bill at the request of the Obama administration, would weaken a ban on federal contracts for inverted companies by saying the ban will not apply if it is inconsistent with U.S. obligations under an international agreement.

Before the ban began in 2002, four of the 100 largest federal contractors were inverted, according to a Government Accountability Office (GAO) report.

In 2001, those four companies received $2.7 billion in federal contracts, but they have unable to win the contracts since the ban was put into place.

The largest of those four companies is McDermott International, an engineering and construction company incorporated in Panama that focuses on oil and energy projects.

McDermott, which is lobbying lawmakers on the ban, according to federal lobbying disclosure reports, received nearly $1.9 billion in federal contracts in 2001. Lobbyists for the company did not respond to a request for comment.

Sen. Byron Dorgan (D-N.D.) said last week in a floor speech that the proposed limit to the ban would allow an inverted company in Panama to get federal contracts it can’t acquire now. Dorgan was specifically referring to McDermott, his office said.

Accenture, a consulting, technology-services and outsourcing firm incorporated in Bermuda, has also lobbied on contracting provisions in the Senate financial services spending bill, according to the disclosure reports. It had the third-largest haul in federal contracts in 2001.

John Jaskot, a partner at Jones Walker lobbying for Accenture, said that the firm is monitoring the ban.

Dorgan and a bipartisan group of other lawmakers are looking to protect the ban and keep inverted companies from getting U.S. government contracts.

The Senate bill has yet to hit the floor, while a bill approved by the House does not include the language weakening the ban.

“The only reason you want to invert and get rid of your American citizenship is to avoid paying U.S. taxes,” Dorgan said. “We say: ‘You don’t want to pay U.S. taxes, you know what? You ought not get to do business with the federal government.’ ”

…]


 

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August 31, 2009

General Services Administration
Regulatory Secretariat (VPR)
1800 F Street, NW, Room 4041
ATTN: Ms. Hada Flowers
Washington, D.C. 20405

Re: FAC 2005-34, FAR Case 2008–009, Prohibition on Contracting with Inverted Domestic Corporations, 74 Fed. Reg. 31561 (July 1, 2009)

Dear Ms. Flowers:

The U.S. Chamber of Commerce, TechAmerica, Associated General Contractors of America and the Professional Services Council appreciate the opportunity to submit comments on the above-referenced FAR Case. We believe that the Interim Rule contains serious substantive flaws stemming from the FAR Council’s adoption of an incorrect definition of an inverted domestic corporation.

Additionally, we reiterate the position mentioned in the July 23, 2009 letter5 that a rule of this substance should not have been rushed to be implemented as an Interim Rule. We urge the FAR Councils to withdraw this interim rule and ensure that the public comments submitted in response to this rule making be taken into account to improve the rule and limit the potential for unintended consequences.

Background on the Inverted Domestic Corporation Contracting Ban

The first Federal government restriction on doing business with inverted domestic corporations was enacted by Congress in 2002 through the Homeland Security Act and only applied to the Department of Homeland Security (“DHS”). In Fiscal Year 2006 and 2007, Congress applied the DHS restriction to several other agencies, including the Departments of Transportation, Treasury, and Housing and Urban Development.

This inverted domestic corporation restriction continued to apply only to selected agencies until Congress applied the restriction government-wide for the first time in appropriations act language for FY 2008 and then again for FY 2009.

In the FY 2006-2009 Appropriations Acts, Congress defined an inverted domestic corporation by reference to the Homeland Security Act of 2002. That is also the definition used by DHS when it issued the Homeland Security Acquisition Regulation to implement the DHS restriction. 48 C.F.R. § 3009.104.

Congress has therefore always used the same definition for inverted domestic corporation for purposes of contracting bans – whether the ban applied to DHS, other limited agencies, or government-wide. The definition used for the contracting ban has never incorporated the Tax Code definition.

The Interim Rule Inappropriately Broadens the Prohibition by Referring to the Tax Code

Any rulemaking on the domestic inverted corporation ban should be based on the appropriations acts from FY 2006-2009 which define inverted domestic corporations by reference to the Homeland Security Act of 2002. The Tax Code also includes a definition of inverted corporations but Congress never incorporated that definition in any restriction on eligibility to receive federal contracts. Inexplicably, the FAR Council chose to incorporate the Tax Code definition, speculating that Congress did not “intend to set up two different statutory schemes for handling inverted domestic corporations.” 74 Fed. Reg. 31562.

There was no need, however, for the FAR Council to engage in such speculation – the appropriations acts are explicit.

The Interim Rule indicates that a corporation that is treated as an inverted corporation for purposes of the Tax Code is also an inverted domestic corporation for purposes of the DHS statute and the FAR. 74 Fed. Reg. 31564.

The FAR Council’s interpretation has no basis in the DHS statute, the relevant appropriations acts, or the relevant legislative histories – none of which incorporate the Tax Code definition. 6 U.S.C § 395(b); Pub. L. 109-115, 110-161, 111-8.

Since the inverted domestic corporation restriction acts essentially as a constructive debarment statute, amendments to the Tax Code could change with each revision to the applicable definition in the Tax Code. The FAR Council simply does not have the authority to interpret or implement the Tax Code for tax purposes. See 43 U.S. Op. Atty. Gen. 150 (1979) (Office of Federal Procurement Policy (OFPP)

Administrator’s power does not extend to construction of the substantive provisions of the labor statutes at issue because OFPP’s responsibility is to set government-wide procurement policy while other agencies interpret their own substantive regulations.)

Accordingly, we recommend that the FAR Council adopt an approach that will not require updating the FAR definition and instead directly incorporates the DHS definition.

The Interim Rule Fails to Properly Implement Appropriations Language

The Interim Rule erroneously applies the prohibition to all contracts funded with FY 2006 and FY 2007 appropriations acts. Specifically, in FY 2006 and 2007, the restriction did not apply government-wide, yet the Interim Rule explicitly applies the restriction to all agencies using FY 2006-09 funds. See 74 Fed. Reg. 31564.

Therefore, there is no statutory basis for extending the prohibition to agencies not covered by the prohibition and the FAR Council does not have authority to retroactively impose this government-wide rule for these years.

Additionally, the restrictions at issue have been imposed through annual appropriations acts and do not constitute a permanent government-wide restriction against doing business with inverted domestic corporations.

Even the FAR Council recognized that the Interim Rule only applies to FY 2006-2009 appropriations yet there is now a permanent FAR clause with the unusual caveat that it only applies to contracts funded with FY 2006-2009 appropriations.

Given that the prohibition applies only to certain contracts funded with current or prior appropriations, the FAR will need to be updated every year. The scope of the restriction has also changed from time to time and may change again.

For example, if the current FY 2010 Senate Financial Services Appropriations bill is enacted in its current form, the FAR prohibition would need to be revised to include an exception to the restriction if it would violate any international treaties. See S. 1432, 111th Cong. § 740 (2009).

The Interim Rule Uses an Inefficient Procedure to Determine Inverted Domestic Corporation Status

If the FAR Council does not significantly revise the procedure detailed in the Interim Rule, we anticipate significant confusion and inconsistent results. Each time a company contracts with the government, it will have to certify it is not an inverted domestic corporation.

The Contracting Officer (“CO”) must then “rigorously examine circumstances known to them that would lead a reasonable business person to question the contractor self-certification, and after consultation with legal counsel, take appropriate action where questionable self-certification cannot be verified.” FAR 9.108-3(b).

The FAR Council takes the unusual step of identifying potential criminal penalties for COs who fail to adequately review contractor’s certifications. The procedure in the Interim Rule may thus result in inconsistent determinations because multiple contracting officers could reach different conclusions regarding the same contractor.

The FAR Council Did Not Follow Proper Rulemaking Procedures.

The FAR Council issued the Interim Rule on July 1, 2009 without giving the public an opportunity in advance to provide comments. The only explanation offered was that “urgent and compelling reasons exist to promulgate this interim rule without prior public comment.” 74 Fed. Reg. 31563.

The Interim Rule also cited FAR 1.501-3(b), which provides that “urgent and compelling circumstances” may exist “when a statute must be implemented in a relatively short period of time.” However, as noted above, the restrictions have been in place for several years and have been applicable government-wide starting in FY 2008.

Issuance of the interim rule in these circumstances is contrary to the Office of Federal Procurement Policy Act, 41 U.S.C. § 418b(a)(2) which provides that “no procurement policy, regulation, procedure, or form . . . may take effect until 60 days after [it] is published for comment in the Federal Register.”

The 60 day advance notice requirement may only be waived “if urgent and compelling circumstances make compliance with such requirements impracticable.” 41 U.S.C. § 418(d).

The FAR Council apparently justifies the unusual action on the grounds that the FY 2009 appropriations language is “currently in effect.” The prohibition, however, has been in effect for quite some time – it is essentially the same provision that Congress has applied to some or all agencies for several years.

Even the first government-wide restriction was put in place in December 2007, nearly two years ago. This raises the question as to why it was necessary to forego the normal rulemaking processes.

If the FAR Council wishes to depart from past practice, some meaningful explanation must be provided; otherwise, the rulemaking is arbitrary and capricious. See Atchison, Topeka & Santa Fe Ry. Co. v. Wichita Bd. of Trade, 412 U.S. 800, 808 (1973).

In that case, the Supreme Court stated that any grounds for departure from prior norms “must be clearly set forth so that the reviewing court may understand the basis of the agency’s action and so may judge the consistency of that action with the agency’s mandate.” Here, there is no reasonable explanation for why the FAR Council did not initiate a rulemaking for identical or substantially similar statutory restrictions dating back several years.

Recommendation

We recommend the FAR Council rescind the Interim Rule and issue a new proposed rule for public comment after taking into account these comments and recommendations.

The definition of an inverted domestic corporation found in the Appropriations Act is clear and complete. The FAR Council should employ that definition in the new Proposed Rule. Referencing anything other than the DHS definition is both inappropriate and unnecessary.

We appreciate the opportunity to comment on these issues. Please do not hesitate to contact us if we can provide any further information or assistance. Chris Braddock of the U.S. Chamber of Commerce serves as our point of contact. He can be reached at (202) 463-5891 or at CBraddock@USChamber.com.

Sincerely,

U.S. Chamber of Commerce
TechAmerica
Associated General Contractors of America
Professional Services Council

 

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DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 4, 9, and 52 [FAC 2005–34; FAR Case 2008–009; Item II; Docket 2009–0020, Sequence 1] RIN 9000–AL28

Federal Acquisition Regulation; FAR Case 2008–009, Prohibition on Contracting with Inverted Domestic Corporations

AGENCIES: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule with request for comments.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) have agreed on an interim rule amending the Federal Acquisition Regulation (FAR) to implement Section 743 of Division D of the Omnibus Appropriations Act, 2009 (Public Law 111–8). Section 743 of Division D of this Act prohibits the award of contracts using appropriated funds to any foreign incorporated entity that is treated as an inverted domestic corporation or to any subsidiary of one.

The Department of Homeland Security (DHS) has had its own rule prohibiting contracting with inverted domestic corporations since December 2003 (see 48 CFR Subpart 3009.1). The DHS rule implements section 835 of the Homeland Security Act of 2002 (P.L.107–296, 6 U.S.C. 395).

DATES: Effective Date: July 1, 2009.

SUPPLEMENTARY INFORMATION:

A. Background

This rule implements section 743 of Division D of the Omnibus Appropriations Act, 2009 (Public Law 111–8). Although this is effective for Fiscal Year 2009 funds, the Councils have included the clause requirement when using Fiscal Year 2006, 2007, and 2008 funds, when similar prohibitions were included in appropriations acts.

Section 743 of Division D of this Act prohibits the use of Federal appropriated funds for Fiscal Year 2009 to contract with any inverted domestic corporation, as defined at section 835(b) of the Homeland Security Act of 2002 (Pub. L. 107–296, 6 U.S.C. 395(b)) or any subsidiary of such an entity.

What is an inverted domestic corporation. An inverted domestic corporation is one that used to be incorporated in the United States, or used to be a partnership in the United States, but now is incorporated in a foreign country, or is a subsidiary whose parent corporation is incorporated in a foreign country.

The reason a corporation would do this is to avoid United States taxes on business income generated in foreign countries. Bermuda, Barbados, and the Cayman Islands are well known tax havens; the statute is not restricted to these countries however. A term in wide use for these corporations is ‘‘corporate expatriate’’.

Congress has enacted both contract statutes and tax statutes to try to discourage corporations from expatriating themselves.

Tax statute. Congress enacted 26 U.S.C. 7874 to remove the tax benefits from the most egregious of these transactions, where at least 80 percent (80%) of the stock is now held by former shareholders or partners and where the foreign entity plus companies connected to it by 50 percent (50%) or more ownership do not have substantial business activities in the foreign country.

The tax consequence is that the parent foreign corporation must then file a United States income tax return as a domestic corporation, not a foreign corporation.

Contracting and appropriations statutes.

The contracting statutes are similar to the tax statute, but not identical. Congress, in 6 U.S.C. 395, restricted the Department of Homeland Security (DHS) from awarding contracts to inverted domestic corporations, either parent or subsidiary. Congress further restricted all executive branch agencies in Public Law 111–8, from using Fiscal Year 2009 monies ‘‘for any Federal Government contract with any…inverted domestic corporation…’’.

This statute borrowed the definition of inverted domestic corporation from the DHS statute, which in turn is related to the tax statute. The FAR is implementing Public Law 111–8 by further reliance on the tax statute and Internal Revenue Service regulations, as the Councils do not believe that Congress intended to set up two different statutory schemes for handling inverted domestic corporations.

A foreign corporation that has to file a tax return as a domestic corporation is automatically going to be an inverted domestic corporation for contracting purposes as well. The Councils note that there is an important difference between the tax statute and the other statutory definitions: the tax statute only applies to incorporations completed after March 4, 2003. An incorporation that took place on or before March 4, 2003, will not escape the contracting and fiscal ban.

Statutory definition of inverted domestic corporation. Section 835(b) defines an inverted domestic corporation to mean a foreign incorporated entity that, pursuant to a plan (or a series of related transactions) (1) directly or indirectly acquires substantially all of the properties held directly or indirectly by a domestic corporation or substantially all of the properties constituting a trade or business of a domestic partnership; (2) acquires at least eighty percent (80%) of the stock (by vote or value) of the entity held (a) in the case of an acquisition with respect to a domestic corporation, by former shareholders of the domestic corporation by reason of holding stock in the domestic corporation; or (b) in the

case of an acquisition with respect to a domestic partnership, by former partners of the domestic partnership by reason of holding a capital or profits interest in the domestic partnership; and (3) after the acquisition, the expanded affiliated group that includes the entity does not have substantial business activities in the foreign country in which or under the law of which the entity is created or organized when compared to the total business activities of such expanded affiliated group.

Which contractors are inverted domestic corporations. The Councils do not have this information. The Councils and Government contracting officers by law do not have access to tax return information. We cannot determine whether a contractor’s status and history mean it falls under the statutory requirements. Each contractor will have to analyze its own history and current status.

This should be very easy to determine for sole proprietorships, partnerships, and domestic corporations without a foreign parent, as none of these could be inverted domestic corporations. It will also be easy for a foreign corporation which filed last year’s income tax return as a domestic corporation and its subsidiaries, which automatically fall under the contracting ban.

The harder case will be for foreign corporations that were domestic corporations or partnerships before 2004, and their subsidiaries. A list of high profile inversions occurring before February 2002 can be found in an article (Mihir A. Desai and James R. Hines, Jr., ‘‘Expectations and Expatriations:

Tracing the Causes and Consequences of Corporate Inversions,’’ 55 National Tax

Journal 409, 418–20 (2002)): Triton Energy, Tyco, Fruit of the Loom, Transocean, Everest Reinsurance, Foster Wheeler, Cooper Industries, Global Marine, Ingersoll Rand, Nabors Industries, and Noble Drilling. The Councils do not know whether these corporations would fall under the contracting ban (because of the 80percent (80%) rule and the substantial business test).

Funds covered. Section 743 of Public Law 111–8 contains the words ‘‘None of the funds appropriated or otherwise made available by this or any other Act may be used for any Federal Government contract…’’.

The Government Accountability Office (GAO) has stated that ‘‘The words ‘or any other Act’ in a provision addressing funds appropriated in or made available by ‘this or any other act’ are not words of futurity. They merely refer to any other appropriations act for the same fiscal year.’’ Volume One of the GAO Red Book at page 2–36. This means Section 743 does not apply to future fiscal years, unless Congress extends it in future legislation.

However, it does apply to all Fiscal Year 2009 monies, whether the agency appropriations are directly covered by Public Law 111–8 or by a different 2009 appropriations act. FAR coverage.

The Councils are considering the prohibition as a prohibited business practice and have chosen to place coverage in the FAR Subpart entitled Responsible Prospective Contractors, 9.1. In addition to the definition of inverted domestic corporation and the prohibition on contracting with one, newly added FAR section 9.108 includes the limited

Secretarial waiver authority granted by the statute and a representation requirement to be included in solicitations for goods and services.

The new solicitation provision at 52.209–2, Prohibition on Contracting with Inverted Domestic Corporations—Representation, provides the relevant definition and the condition that, by submission of its offer, the offeror represents that it is not an inverted

domestic corporation or a subsidiary of an inverted domestic corporation. If the offeror cannot affirmatively make the representation, then it is not allowed to submit an offer absent a Secretarial waiver that contracting with the inverted domestic corporation or its subsidiary is in the interest of national security.

Contracting officers should rigorously examine circumstances known to them that would lead a reasonable business person to question the contractor self certification, as the appropriation restriction applies to accountable Government officers, and if willfully and knowingly violated, may result in criminal penalties.

The Act does not require flow down of the representation provision. Section 743 addresses only contracts entered into by Executive agencies. However, the Councils are taking public comments on this issue.

Applicability to commercial item contracts. Section 8003 of Public Law 103–355 (41 U.S.C. 430) is intended to limit the applicability of procurement laws to commercial items. Section 430 only permits exemption from a covered law, which is ‘‘any provision of law that…sets forth policies, procedures, requirements, or restrictions for the procurement of property or services bythe Federal Government.’’

Also, exemption under section 430 is not permitted if the provision of law contains criminal or civil penalties. In any event, the law may be applied if the Federal Acquisition Regulatory Council makes a written determination that it is not in the best interest of the Federal Government to exempt commercial item contracts from the covered law.

Therefore, given that Section 743 of Division D of the Omnibus Appropriations Act, 2009 (Public Law 111–8) prohibits the use of funds for any Federal Government contract with an inverted domestic corporation or to any subsidiary of one, the FAR Council has determined that the rule applies to contracts for commercial items.

Applicability to Commercially Available Off-The-Shelf (COTS) item contracts. Section 4203 of Public Law 104–106, the Clinger-Cohen Act of 1996 (41 U.S.C. 431), governs the applicability of laws to the procurement of commercially available off-the-shelf (COTS) items, and is intended to limit the applicability of laws to them.

Clinger-Cohen provides that if a provision of law contains criminal or civil penalties, or if the Administrator for Federal Procurement Policy makes a written determination that it is not in the best interest of the Federal Government to exempt COTS item contracts, the provision of law will apply. The same applies for subcontracts for COTS items.

Therefore, given the requirements of Section 743 of Division D of the Omnibus Appropriations Act of 2009 (Public Law 111–8) which prohibits the use of funds for any Federal Government contract with an inverted domestic corporation or to any subsidiary of one, and the intent of the law, the Administrator of the Office of the Federal Procurement Policy, has determined that it is in the best interest of the Federal Government to apply this law to Commercially Available Off-The- Shelf (COTS) item contracts and subcontracts, as defined at FAR 2.101.

This is a significant regulatory action and, therefore, was subject to review under Section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.

PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES

■ 5. Add section 52.209–2 to read as follows:

52.209–2 Prohibition on Contracting with Inverted Domestic Corporations—Representation. As prescribed in 9.108–5, insert the following provision:

PROHIBITION ON CONTRACTING WITH INVERTED DOMESTIC CORPORATIONS—REPRESENTATION (JUL 2009)

(a) Definition. Inverted domestic corporation means a foreign incorporated entity which is treated as an inverted domestic corporation under 6 U.S.C. 395(b), i.e., a corporation that used to be incorporated in the United States, or used to be a partnership in the United States, but now is incorporated in a foreign country, or is a subsidiary whose parent corporation is incorporated in a foreign country, that meets the criteria specified in 6 U.S.C. 395(b), applied in accordance with the rules and definitions of 6 U.S.C. 395©.

(b) Relation to Internal Revenue Code. A foreign entity that is treated as an inverted domestic corporation for purposes of the Internal Revenue Code at 26 U.S.C. 7874 (or would be except that the inversion transactions were completed on or before March 4, 2003), is also an inverted domestic corporation for purposes of 6 U.S.C. 395 and for this solicitation provision (see FAR 9.108). © Representation. By submission of its offer, the offeror represents that it is not an inverted domestic corporation and is not a subsidiary of one.

(End of provision)

■ 6. Amend section 52.212–3 by—

■ a. Revising the date of the provision;

■ b. In paragraph (a), adding, in alphabetical order, the definition

‘‘Inverted domestic corporation’’;

■ c. Removing from paragraph (b)(2) ‘‘(c)

through (m)’’ and adding ‘‘© through (n)’’ in its place;

■ d. Adding paragraph (n).

The revised and added text reads as follows: 52.212–3 Offeror Representations and Certifications—Commercial Items.

OFFEROR REPRESENTATIONS AND CERTIFICATIONS—COMMERCIAL ITEMS (JUL 2009)

(a) Inverted domestic corporation means a foreign incorporated entity which is treated as an inverted domestic corporation under 6 U.S.C. 395(b), i.e., a corporation that used to be incorporated in the United States, or used to be a partnership in the United States, but now is incorporated in a foreign country, or is a subsidiary whose parent corporation is incorporated in a foreign country, that meets the criteria specified in 6 U.S.C. 395(b), applied in accordance with the rules and definitions of 6 U.S.C. 395©.

(n) Prohibition on Contracting with Inverted Domestic Corporations. (1) Relation to Internal Revenue Code. A foreign entity that is treated as an inverted domestic corporation for purposes of the Internal Revenue Code at 26 U.S.C. 7874 (or would be except that the inversion transactions were completed on or before March 4, 2003), is also an inverted domestic corporation for purposes of 6 U.S.C. 395 and for this solicitation provision (see FAR 9.108). (2) Representation. By submission of its offer, the offeror represents that it is not an inverted domestic corporation and is not a subsidiary of one.

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Related Links:

Remarks by Treasury Secretary John W. Snow at the Signing Ceremony for the U.S.-Barbados Income Tax Protocol

TESTIMONY OF THE STAFF OF THE JOINT COMMITTEE ON TAXATION BEFORE THE SENATE COMMITTEE ON FOREIGN RELATIONS HEARING ON THE PROPOSED TAX PROTOCOLS WITH BARBADOS AND THE NETHERLANDS1 SEPTEMBER 24, 2004

Tax Foundation:  Corporate Inversions: An Introduction to the Issue and FAQ


 

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