Petraeus testifies on Benghazi attack

WASHINGTON (AP) — Ex-CIA Director David Petraeus told lawmakers during private hearings Friday that he believed all along that the deadly attack on the U.S. consulate in Libya was a terrorist strike, even though that wasn't how the Obama administration initially described it publicly.

The retired four-star general addressed the House and Senate intelligence committees as questions continue to persist over what the Obama administration knew in the immediate aftermath of the Sept. 11 attacks and why their public description did not match intelligence agencies' assessments.

Lawmakers said Petraeus testified that the CIA's draft talking points written in response to the assault on the diplomat post in Benghazi that killed four Americans referred to it as a terrorist attack. But Petraeus told the lawmakers that reference was removed from the final version, although he wasn't sure which federal agency took out the reference.

Democrats said Petraeus made it clear the change was not made for political reasons during President Barack Obama's re-election campaign.

"The general was adamant there was no politicization of the process, no White House interference or political agenda," said Rep. Adam Schiff, D-Calif. "He completely debunked that idea."

But Republicans are still critical of the administration's handling of the case. Sen. Marco Rubio, R-Fla., said Petraeus' testimony showed that "clearly the security measures were inadequate despite an overwhelming and growing amount of information that showed the area in Benghazi was dangerous, particularly on the night of September 11."

Petraeus, who had a long and distinguished military career, was making his first Capitol Hill testimony since resigning last week in disgrace over an extramarital affair with his biographer Paula Broadwell. Lawmakers said he did not discuss that scandal except to express regret about the circumstances of his departure and say that Benghazi had nothing to do with his decision to resign.

Petraeus testified that the CIA draft written in response to the raid referred to militant groups Ansar al-Shariah and al-Qaida in the Islamic Maghreb but those names were replaced with the word "extremist" in the final draft, according to a congressional staffer. The staffer said Petraeus testified that he allowed other agencies to alter the talking points as they saw fit without asking for final review, to get them out quickly.

The staffer wasn't authorized to discuss the hearing publicly and described Petraeus' testimony to The Associated Press on a condition of anonymity.

Sen. Mark Udall, D-Colo., said Petraeus explained that the CIA's draft points were sent to other intelligence agencies and to some federal agencies for review. Udall said Petraeus told them the final document was put in front of all the senior agency leaders, including Petraeus, and everyone signed off on it.

"The assessment that was publicly shared in unclassified talking points went through a process of editing," Udall said. "The extremist description was put in because in an unclassified document you want to be careful who you identify as being involved."

Rep. Peter King, R-N.Y., said it's still not clear how the final talking points emerged used by U.N. Ambassador Susan Rice five days after the attack when the White House sent her to appear in a series of television interviews. Rice said it appeared the attack was sparked by a spontaneous protest over an anti-Muslim video.

"The fact is, the reference to al-Qaida was taken out somewhere along the line by someone outside the intelligence community," King said. "We need to find out who did it and why."

King said Petraeus had briefed the House committee on Sept. 14 and he does not recall Petraeus being so positive at that time that it was a terrorist attack. "He thought all along that he made it clear there was terrorist involvement," King said. "That was not my recollection."

Schiff said Petraeus said Rice's comments in the television interviews "reflected the best intelligence at the time that could be released publicly."

"There was an interagency process to draft it, not a political process," Schiff said. "They came up with the best assessment without compromising classified information or source or methods. So changes were made to protect classified information.

Sen. Kent Conrad, D-N.D., said it's clear that Rice "used the unclassified talking points that the entire intelligence community signed off on, so she did completely the appropriate thing." He said the changes made to the draft accounts for the discrepancies with some of the reports that were made public showing that the intelligence community knew it was a terrorist attack all along.

Lawmakers spent hours Thursday interviewing top intelligence and national security officials, trying to determine what intelligence agencies knew before, during and after the attack. They viewed security video from the consulate and surveillance footage by an unarmed CIA Predator drone that showed events in real time.

The congressional staffer told the AP that they also watched the cellphone video that has been on YouTube showing U.S. Ambassador Chris Stevens being carried out by people who looked like they were trying to rescue him.

___

Associated Press writers Nedra Pickler, Larry Margasak and Andrew Miga contributed to this report.

Read More..

How Obama’s Tech Team Helped Win the Election
















The Obama campaign‘s technologists were tense and tired. It was game day and everything was going wrong.


Josh Thayer, the lead engineer of Narwhal, had just been informed that they’d lost another one of the services powering their software. That was bad: Narwhal was the code name for the data platform that underpinned the campaign and let it track voters and volunteers. If it broke, so would everything else.













They were talking with people at Amazon Web Services, but all they knew was that they had packet loss. Earlier that day, they lost their databases, their East Coast servers, and their memcache clusters. Thayer was ready to kill Nick Hatch, a DevOps engineer who was the official bearer of bad news. Another of their vendors, StallionDB, was fixing databases but needed to rebuild the replicas. It was going to take time, Hatch said. They didn’t have time.


They had been working 14-hour days, six or seven days a week, trying to reelect the president, and now everything had been broken at just the wrong time. It was like someone had written a Murphy’s Law algorithm and deployed it at scale.


Latest Politics Posts:
Loading feed…


And that was the point. “Game day” was Oct. 21. The election was still 17 days away, and this was a live action role playing (LARPing!) exercise that the campaign’s chief technology officer, Harper Reed, was inflicting on his team. “We worked through every possible disaster situation,” Reed said. “We did three actual all-day sessions of destroying everything we had built.”


Hatch was playing the role of dungeon master, calling out devilishly complex scenarios that were designed to test each and every piece of their system as they entered the exponential traffic-growth phase of the election. Mark Trammell, an engineer who Reed hired after he left Twitter, saw a couple of game days. He said they reminded him of his time in the Navy. “You ran firefighting drills over and over and over, to make sure that you not just know what you’re doing,” he said, “but you’re calm because you know you can handle your sh–.”


The team had elite and, for tech, senior talent–by which I mean that most of them were in their 30s–from Twitter, Google, Facebook, Craigslist, Quora, and some of Chicago’s own software companies such as Orbitz and Threadless, where Reed had been CTO. But even these people, maybe especially these people, knew enough about technology not to trust it. “I think the Republicans f—– up in the hubris department,” Reed told me. “I know we had the best technology team I’ve ever worked with, but we didn’t know if it would work. I was incredibly confident it would work. I was betting a lot on it. We had time. We had resources. We had done what we thought would work, and it still could have broken. Something could have happened.”


In fact, the day after the Oct. 21 game day, Amazon services–on which the whole campaign’s tech presence was built–went down. “We didn’t have any downtime because we had done that scenario already,” Reed said. Hurricane Sandy hit on another game day, Oct. 29, threatening the campaign’s whole East Coast infrastructure. “We created a hot backup of all our applications to U.S.-west in preparation for U.S.-east to go down hard,” Reed said.


“We knew what to do,” Reed maintained, no matter what the scenario was. “We had a runbook that said if this happens, you do this, this, and this. They did not do that with Orca.”


The New Chicago Machine vs. the Grand Old Party


Orca was supposed to be the Republican answer to Obama’s perceived tech advantage. In the days leading up to the election, the Romney campaign pushed its (not-so) secret weapon as the answer to the Democrats’ vaunted ground game. Orca was going to allow volunteers at polling places to update the Romney camp’s database of voters in real time as people cast their ballots. That would supposedly allow them to deploy resources more efficiently and wring every last vote out of Florida, Ohio, and the other battleground states. The product got its name, a Romney spokesperson told NPR, because orcas are the only known predator of the one-tusked narwhal.


The billing the Republicans gave the tool confused almost everyone inside the Obama campaign. Narwhal wasn’t an app for a smartphone. It was the architecture of the company’s sophisticated data operation. Narwhal unified what Obama for America knew about voters, canvassers, event-goers, and phone-bankers, and it did it in real time. From the descriptions of the Romney camp’s software that were available then and now, Orca was not even in the same category as Narwhal. It was like touting the iPad as a Facebook killer, or comparing a GPS device to an engine. And besides, in the scheme of a campaign, a digitized strike list is cool, but it’s not, like, a game changer. It’s just a nice thing to have.


So, it was with more than a hint of schadenfreude that Reed’s team hears that Orca crashed early on Election Day. Later reports posted by rank-and-file volunteers describe chaos descending on the polling locations as only a fraction of the tens of thousands of volunteers organized for the effort were able to use it properly to turn out the vote.


Of course, they couldn’t snicker too loudly. Obama’s campaign had created a similar app in 2008 called Houdini. As detailed in Sacha Issenberg’s groundbreaking book, Victory Lab, Houdini’s rollout went great until about 9:30 a.m. on the day of the election. Then it crashed in much the same way that Orca did.


In 2012, Democrats had a new version, built by the vendor NGP VAN. It was called Gordon, after the man who killed Houdini. But the 2008 failure, among other needs, drove the 2012 Obama team to bring technologists in-house.


With Election Day bearing down on them, they knew they could not go down. And yet they had to accommodate much more strain on the systems as interest in the election picked up toward the end, as it always does. Mark Trammell, who worked for Twitter during its period of exponential growth, thought it would have been easy for the Obama team to fall into many of the pitfalls that the social network did back then. But while the problems of scaling both technology and culture quickly might have been similar, the stakes were much higher. A fail whale (cough) in the days leading up to or on Nov. 6 would have been neither charming nor funny. In a race that at least some people thought might be very close, it could have cost the president the election.


And, of course, the team’s only real goal was to elect the president. “We have to elect the president. We don’t need to sell our software to Oracle,” Reed told his team. But the secondary impact of their success or failure would be to prove that campaigns could effectively hire and deploy top-level programming talent. If they failed, it would be evidence that this stuff might be best left to outside political technology consultants, by whom the arena had long been handled. If Reed’s team succeeded, engineers might become as enshrined in the mechanics of campaigns as social-media teams already are.


We now know what happened. The grand technology experiment worked. So little went wrong that Trammell and Reed even had time to cook up a little pin to celebrate. It said, “YOLO,” short for “You Only Live Once,” with the Obama Os. 


When Obama campaign chief Jim Messina signed off on hiring Reed, he told him, “Welcome to the team. Don’t f— it up.” As Election Day ended and the dust settled, it was clear: Reed had not f—– it up.


The campaign had turned out more volunteers and gotten more donors than in 2008. Sure, the field organization was more entrenched and experienced, but the difference stemmed in large part from better technology. The tech team’s key products–Dashboard, the Call Tool, the Facebook Blaster, the PeopleMatcher, and Narwhal–made it simpler and easier for anyone to engage with the president’s reelection effort.


But it wasn’t easy. Reed’s team came in as outsiders to the campaign and, by most accounts, remained that way. The divisions among the tech, digital, and analytics team never quite got resolved, even if the end product has salved the sore spots that developed over the stressful months. At their worst, in early 2012, the cultural differences between tech and everybody else threatened to derail the whole grand experiment.


By the end, the campaign produced exactly what it should have: a hybrid of the desires of everyone on Obama’s team. They raised hundreds of millions of dollars online, made unprecedented progress in voter targeting, and built everything atop the most stable technical infrastructure of any presidential campaign. To go a step further, I’d even say that this clash of cultures was a good thing: The nerds shook up an ossifying Democratic tech structure, and the politicos taught the nerds a thing or two about stress, small-p politics, and the significance of elections.


YOLO: Meet the Obama Campaign’s Chief Technology Officer


If you’re a nerd, Harper Reed is an easy guy to like. He’s brash and funny and smart. He gets you and where you came from. He, too, played with computers when they weren’t cool, and learned to code because he just could not help himself. You could call out nouns, phenomena, and he’d be right there with you: BBS, warez, self-organizing systems, Rails, the quantified self, Singularity. He wrote his first programs at age 7, games that his mom typed into their Apple IIC. He, too, has a memory that all nerds share: Late at night, light from a chunky monitor illuminating his face, fingers flying across a keyboard, he figured something out. 


TV news segments about cybersecurity might look lifted straight from his memories, but the b-roll they shot of darkened rooms and typing hands could not convey the sense of exhilaration he felt when he built something that works. Harper Reed got the city of Chicago to create an open and real-time feed of its transit data by reverse engineering how they served bus location information. Why? Because it made his wife Hiromi’s commute a little easier. Because it was fun to extract the data from the bureaucracy and make it available to anyone who wanted it. Because he is a nerd.


Yet Reed has friends, such as the manager of the hip-hop club Empire who, when we walk into the place early on the Friday after the election, says, “Let me grab you a shot.” Surprisingly, Harper Reed is a chilled vodka kind of guy. Unsurprisingly, Harper Reed read Steven Levy’s Hackers as a kid. Surprisingly, the manager, who is tall and handsome with rock ‘n’-roll hair flowing from beneath a red beanie, returns to show Harper photographs of his kids. They’ve known each other for a long while. They are really growing up.


As the night rolls on, and the club starts to fill up, another friend approached us: DJ Hiroki, who was spinning that night. Harper Reed knows the DJ. Of course. And Hiroki grabs us another shot. (At this point I’m thinking, “By the end of the night, either I pass out or Reed tells me something good.”) Hiroki’s been DJing at Empire for years, since Harper Reed was the crazy guy you can see on his public Facebook photos. In one shot from 2006, a skinny Reed sits in a bathtub with a beer in his hand, two thick band tattoos running across his chest and shoulders. He is not wearing any clothes. The caption reads, “Stop staring, it’s not there i swear!” What makes Harper Reed different isn’t just that the photo exists, but that he kept it public during the election.


Yet if you’ve spent a lot of time around tech people, around Burning Man devotees, around startups, around San Francisco, around BBSs, around Reddit, Harper Reed probably makes sense to you. He’s a cool hacker. He gets profiled by Mother Jones even though he couldn’t talk with Tim Murphy, their reporter. He supports open source. He likes Japan. He says fuck a lot.  He goes to hipster bars that serve vegan Mexican food, and where a quarter of the staff and clientele have mustaches.


He may be like you, but he also juggles better than you, and is wilder than you, more fun than you, cooler than you. He’s what a king of the nerds really looks like. Sure, he might grow a beard and put on a little potbelly, but he wouldn’t tuck in his T-shirt. He is not that kind of nerd. Instead, he’s got plugs in his ears and a shock of gloriously product-mussed hair and hipster glasses and he doesn’t own a long-sleeve dress shirt, in case you were wondering.


“Harper is an easy guy to underestimate because he looks funny. That might be part of his brand,” said Chris Sacca, a well-known Silicon Valley venture capitalist and major Obama bundler who brought a team of more than a dozen technologists out for an Obama campaign hack day.


Reed, for his part, has the kind of self-awareness that faces outward. His self-announced flaws bristle like quills. “I always look like a f—— idiot,” Reed told me. “And if you look like an a——, you have to be really good.”


It was a lesson he learned early out in Greeley, Colo., where he grew up. “I had this experience where my dad hired someone to help him out because his network was messed up and he wanted me to watch. And this was at a very unfortunate time in my life where I was wearing very baggy pants and I had a Marilyn Manson shirt on and I looked like an a——. And my father took me aside and was like, ‘Why do you look like an a——?’ And I was like, ‘I don’t know. I don’t have an answer.’ But I realized I was just as good as the guys fixing it,” Reed recalled. “And they didn’t look like me and I didn’t look like them. And if I’m going to do this, and look like an idiot, I have to step up. Like if we’re all at zero, I have to be at 10 because I have this stupid mustache.”


And, in fact, he may actually be at 10. Sacca said that with technical people, it’s one thing to look at their resumes and another to see how they are viewed among their peers. “And it was amazing how many incredibly well regarded hackers that I follow on Twitter rejoiced and celebrated [when Reed was hired],” Sacca said. “Lots of guys who know how to spit out code, they really bought that.”


By the time Sacca brought his Silicon Valley contingent out to Chicago, he called the technical team “top notch.” After all, we’re talking about a group of people who had Eric Schmidt sitting in with them on Election Day. You had to be good. The tech world was watching.


Terry Howerton, the head of the Illinois Technology Association and a frank observer of Chicago’s tech scene, had only glowing things to say about Reed. “Harper Reed? I think he’s wicked smart,” Howerton said. “He knows how to pull people together. I think that was probably what attracted the rest of the people there. Harper is responsible for a huge percentage of the people who went over there.”


Reed’s own team found their coworkers particularly impressive. One testament to that is several startups might spin out of the connections people made at the OFA headquarters, such as Optimizely, a tool for website A/B testing, which spun out of Obama’s 2008 bid. (Sacca’s actually an investor in that one, too.)


“A CTO role is a weird thing,” said Carol Davidsen, who left Microsoft to become the product manager for Narwhal. “The primary responsibility is getting good engineers. And there really was no one else like him that could have assembled these people that quickly and get them to take a pay cut and move to Chicago.”


And yet, the very things that make Reed an interesting and beloved person are the same things that make him an unlikely pick to become the chief technology officer of the reelection campaign of the president of the United States. Political people wear khakis. They only own long-sleeve dress shirts. Their old photos on Facebook show them canvassing for local politicians and winning cross-country meets.


I asked Michael Slaby, Obama’s 2008 chief technology officer and the guy who hired Harper Reed this time around, if it wasn’t risky to hire this wild guy into a presidential campaign. “It’s funny to hear you call it risky, it seems obvious to me,” Slaby said. “It seems crazy to hire someone like me as CTO when you could have someone like Harper as CTO.”


The Nerds Are Inside the Building


The strange truth is that campaigns have long been low-technologist, if not low-technology, affairs. Think of them as a weird kind of niche start-up and you can see why. You have very little time, maybe a year, really. You can’t afford to pay very much. The job security, by design, is nonexistent. And even though you need to build a massive “customer” base and develop the infrastructure to get money and votes from them, no one gets to exit and make a bunch of money. So, campaign tech has been dominated by people who care about the politics of the thing, not the technology of the thing. The websites might have looked like solid consumer Web applications, but they were not under the hood.


For all the hoopla surrounding the digital savvy of President Obama‘s 2008 campaign, and as much as everyone I spoke with loved it, it was not as heavily digital or technological as it is now remembered. “Facebook was about one-tenth of the size that it is now. Twitter was a nothing burger for the campaign. It wasn’t a core or even peripheral part of our strategy,” said Teddy Goff, digital director of Obama for America and a veteran of both campaigns. Think about the killer tool of that campaign, my.barackobama.com; It borrowed the “my” from MySpace


Sure, the ’08 campaign had Facebook cofounder Chris Hughes, but Hughes was the spokesman for the company, not its technical guy. The ’08 campaigners, Slaby told me, had been “opportunistic users of technology” who “brute forced and bailing wired” different pieces of software together. Things worked (most of the time), but everyone, Slaby especially, knew that they needed a more stable platform for 2012.


Campaigns, however, even Howard Dean’s famous 2004 Internet-enabled run at the Democratic nomination, did not hire a bunch of technologists. Though they hired a couple, like Clay Johnson, they bought technology from outside consultants. For 2012, Slaby wanted to change all that. He wanted dozens of engineers in-house, and he got them.


“The real innovation in 2012 is that we had world-class technologists inside a campaign,” Slaby told me. “The traditional technology stuff inside campaigns had not been at the same level.” And yet the technologists, no matter how good they were, brought a different worldview, set of personalities, and expectations.


Campaigns are not just another Fortune 500 company or top 50 website. They have their own culture and demands, strange rigors and schedules. The deadlines are hard and the pressure would be enough to press the T-shirt of even the most battle-tested start-up veteran.


To really understand what happened behind the scenes at the Obama campaign, you need to know a little bit about its organizational structure. Tech was Harper Reed‘s domain. “Digital” was Joe Rospars’s kingdom; his team was composed of the people who sent you all those e-mails, designed some of the consumer-facing pieces of BarackObama.com, and ran the campaigns’ most-excellent accounts on Facebook, Twitter, Tumblr, video, and the like. Analytics was run by Dan Wagner, and those guys were responsible for coming up with ways of finding and targeting voters they could persuade or turn out. Jeremy Bird ran Field, the on-the-ground operations of organizing voters at the community level that many consider Obama’s secret sauce . The tech for the campaign was supposed to help the Field, Analytics, and Digital teams do their jobs better. Tech, in a campaign or at least this campaign or perhaps any successful campaign, has to play a supporting role. The goal was not to build a product. The goal was to reelect the president. As Reed put it, if the campaign were Moneyball, he wouldn’t be Billy Beane, he’d be “Google Boy.”


There’s one other interesting component to the campaign’s structure. And that’s the presence of two big tech vendors interfacing with the various teams–Blue State Digital and NGP Van. The most obvious is the firm that Rospars, Jascha Franklin-Hodge, and Clay Johnson cofounded, Blue State Digital. They’re the preeminent progressive digital agency, and a decent chunk–maybe 30 percent–of their business comes from providing technology to campaigns. Of course, BSD’s biggest client was the Obama campaign and has been for some time. BSD and Obama for America were and are so deeply enmeshed, it would be difficult to say where one ended and the other began. After all, both Goff and Rospars, the company’s principals, were paid staffers of the Obama campaign. And yet between 2008 and 2012, BSD was purchased by WPP, one of the largest ad agencies in the world. What had been an obviously progressive organization was now owned by a huge conglomerate and had clients that weren’t other Democratic politicians. 


One other thing to know about Rospars, specifically: “He’s the Karl Rove of the Internet,” someone who knows him very well told me. What Rove was to direct mail–the undisputed king of the medium–Rospars is to e-mail. He and Goff are the brains behind Obama’s unprecedented online fundraising efforts. They know what they were doing and had proven that time and again.


The complex relationship between BSD and the Obama campaign adds another dimension to the introduction of an inside team of technologists. If all campaigns started bringing their technology in house, perhaps BSD’s tech business would begin to seem less attractive, particularly if many of the tools that such an inside team created were developed as open source products.


So, perhaps the tech team was bound to butt heads with Rospars’s digital squad. Slaby would note, too, that the organizational styles of the two operations were very different. “Campaigns aren’t traditionally that collaborative,” he said. “Departments tend to be freestanding. They are organized kind of like disaster response–siloed and super hierarchical so that things can move very quickly.”


Looking at it all from the outside, both the digital and tech teams had really good, mission-oriented reasons for wanting their way to carry the day. The tech team could say, “Hey, we’ve done this kind of tech before at larger scale and with more stability than you’ve ever had. Let us do this.” And the digital team could say, “Yeah, well, we elected the president and we know how to win, regardless of the technology stack. Just make what we ask for.”


The way that the conflict played out was over things like the user experience on the website. Jason Kunesh was the director of UX for the tech team. He had many years of consulting under his belt for big and small companies like Microsoft and LeapFrog. He, too, from an industry perspective knew what he was doing. So, he ran some user interrupt tests on the website to determine how people were experiencing www.barackobama.com. What he found was that the website wasn’t even trying to make a go at persuading voters. Rather, everyone got funneled into the fundraising “trap.” When he raised that issue with Goff and Rospars, he got a response that I imagine was something like, “Duh. Now STFU,” but perhaps in more words. And from the Goff/Rospars perspective, think about it: the system they’d developed could raise $ 3 million *from a single email.* The sorts of moves they had learned how to make had made a difference of tens, if not hundreds of millions of dollars. Why was this Kunesh guy coming around trying to tell them how to run a campaign?


From Kunesh’s perspective, though, there was no reason to think that you had to run this campaign the same as you did the last one. The outsider status that the team both adopted and had applied to them gave them the right to question previous practices.


Tech sometimes had difficulty building what the Field team, a hallowed group within the campaign’s world, wanted. Most of that related to the way that they launched Dashboard, the online outreach tool. If you look at Dashboard at the end of the campaign, you see a beautifully polished product that let you volunteer any way you wanted. It’s secure and intuitive and had tremendously good uptime as the campaign drew to a close.


But that wasn’t how the first version of Dashboard looked.


The tech team’s plan was to roll out version 1 with a limited feature set, iterate, roll out version 2, iterate, and so on and so forth until the software was complete and bulletproof. Per Kunesh’s telling, the Field people were used to software that looked complete but that was unreliable under the hood. It looked as if you could the things you needed to do, but the software would keep falling down and getting patched, falling down and getting patched, all the way through a campaign. The tech team did not want that. They might be slower, but they were going to build solid products.


Reed’s team began to trickle into Chicago beginning in May 2011. They promised, over-optimistically, that they would release a version of Dashboard just a few months after the team arrived. The first version was not impressive. “Aug. 29, 2011, my birthday, we were supposed to have a prototype out of Dashboard, that was going to be the public launch,” Kunesh told me. “It was freaking horrible, you couldn’t show it to anyone. But I’d only been there 13 weeks and most of the team had been there half that time.”


As the tech team struggled to translate what people wanted into usable software, trust in the tech team–already shaky–kept eroding. By Februrary 2012, Kunesh started to get word that people on both the digital and field teams had agitated to pull the plug on Dashboard and replace the tech team with somebody, anybody, else.


“A lot of the software is kind of late. It’s looking ugly and I go out on this field call,” Kunesh remembered. “And people are like, ‘Man, we should fire your bosses man…. We gotta get the guys from the DNC. They don’t know what the hell you’re doing.’ I’m sitting there going, ‘I’m gonna get another margarita.’ “


While the responsibility for their early struggles certainly falls to the tech team, there were mitigating factors. For one, no one had ever done what they were attempting to do. Narwhal had to connect to a bunch of different vendors’ software, some of which turned out to be surprisingly arcane and difficult. Not only that, but there were differences in the way field offices in some states did things and how campaign HQ thought they did things. Tech wasted time building things that it turned out people didn’t need or want.


“In the movie version of the campaign, there’s probably a meeting where I’m about to get fired and I throw myself on the table,” Slaby told me. But in reality, what actually happened was Obama campaign chief Jim Messina would come by Slaby’s desk and tell him, “Dude, this has to work.” And Slaby would respond, “I know. It will,” and then go back to work.


In fact, some shake-ups were necessary. Reed and Slaby sent some product managers packing and brought in more traditional ones like former Microsoft PM Carol Davidsen. “You very much have to understand the campaign’s hiring strategy: ‘We’ll hire these product managers who have campaign experience, then hire engineers who have technical experience–and these two worlds will magically come together.’ That failed,” Davidsen said. “Those two groups of people couldn’t talk to each other.”


Then, in the late spring, all the products that the tech team had been promising started to show up. Dashboard got solid. You didn’t have to log in a bunch of times if you wanted to do different things on the website. Other smaller products rolled out. “The stuff we told you about for a year is actually happening,” Kunesh recalled telling the field team. “You’re going to have one log-in and have all these tools, and it’s all just gonna work.”


Perhaps most important, Narwhal really got on track, thanks no doubt to Davidsen’s efforts as well as Josh Thayer’s, the lead engineer who arrived in April. What Narwhal fixed was a problem that’s long plagued campaigns. You have all this data coming in from all these places — the voter file, various field offices, the analytics people, the website, mobile stuff. In 2008, and all previous races, the numbers changed once a day. It wasn’t real-time. And the people looking to hit their numbers in various ways out in the field offices–number of volunteers and dollars raised and voters persuaded–were used to seeing that update happen like that.


But from an infrastructure level, how much better would it be if you could sync that data in real time across the entire campaign? That’s what Narwhal was supposed to do. Davidsen, in true product-manager form, broke down precisely how it all worked. First, she said, Narwhal wasn’t really one thing, but several. Narwhal was just an initially helpful brand for the bundle of software.


In reality, it had three components. “One is vendor integration: BSD, NGP, VAN [the latter two companies merged in 2010]. Just getting all of that data into the system and getting it in real time as soon as it goes in one system to another,” she said. “The second part is an API portion. You don’t want a million consumers getting data via SQL.” The API allowed people to access parts of the data without letting them get at the SQL database on the backend. It provided a safe way for Dashboard, the Call Tool (which helped people make calls), and the Twitter Blaster to pull data. And the last part was the presentation of the data that was in the system. While the dream had been for all applications to run through Narwhal in real time, it turned out that couldn’t work. So, they split things into real-time applications like the Call Tool or things on the web. And then they provided a separate way for the Analytics people, who had very specific needs, to get the data in a different form. Then, whatever they came up with was fed back into Narwhal.


By the end, Davidsen thought all the teams’ relationships had improved, even before Obama’s big win. She credited a weekly Wednesday drinking and hanging-out session that brought together all the various people working on the campaign’s technology. By the very end, some front-end designers who were technically on the digital team had embedded with the tech squad to get work done faster. Tech might not have been fully integrated, but it was fully operational. High fives were in the air.


Slaby, with typical pragmatism, put it like this. “Our supporters don’t give a shit about our org chart. They just want to have a meaningful experience. We promise them they can play a meaningful role in politics and they don’t care about the departments in the campaign. So we have to do the work on our side to look integrated and have our shit together,” he said. “That took some time. You have to develop new trust with people. It’s just change management. It’s not complicated; it’s just hard.”


What They Actually Built


Of course, the tech didn’t exist for its own sake. It was meant to be used by the organizers in the field and the analysts in the lab. Let’s just run through some of the things that actually got accomplished by the tech, digital, and analytics teams beyond of Narwhal and Dashboard.


They created the most sophisticated e-mail fundraising program ever. The digital team, under Rospars leadership, took their data-driven strategy to a new level. Any time you received an e-mail from the Obama campaign, it had been tested on 18 smaller groups and the response rates had been gauged. The campaign thought all the letters had a good chance of succeeding, but the worst-performing letters did only 15 to 20 percent of what the best-performing e-mails could deliver. So, if a good performer could do $ 2.5 million, a poor performer might only net $ 500,000. The genius of the campaign was that it learned to stop sending poor performers.


Obama became the first presidential candidate to appear on Reddit, the massive popular social networking site. And yes, he really did type in his own answers with Goff at his side. One fascinating outcome of the AMA is that 30,000 Redditors registered to vote after president dropped in a link to the Obama voter registration page. Oh, and the campaign also officially has the most tweeted tweet and the most popular Facebook post. Not bad. I would also note that Laura Olin, a former strategist at Blue State Digital who moved to the Obama campaign, ran the best campaign Tumblr the world will probably ever see.


With Davidsen’s help, the Analytics team built a tool they called The Optimizer, which allowed the campaign to buy eyeballs on television more cheaply. They took set-top box (that is to say, your cable or satellite box or DVR) data from Davidsen’s old startup, Navik Networks, and correlated it with the campaign’s own data. This occurred through a third party called Epsilon: the campaign sent its voter file and the television provider sent their billing file and boom, a list came back of people who had done certain things like, for example, watched the first presidential debate. Having that data allowed the campaign to buy ads that they knew would get in front of the most of their people at the last cost. They didn’t have to buy the traditional stuff like the local news, either. Instead, they could run ads targeted to specific types of voters during reruns or off-peak hours. 


According to CMAG/Kantar, the Obama’s campaign’s cost per ad was lower ($ 594) than the Romney campaign ($ 666) or any other major buyer in the campaign cycle. That difference may not sound impressive, but the Obama campaign itself aired more than 550,000 ads. And it wasn’t just about cost, either. They could see that some households were only watching a couple hours of TV a day and might be willing to spend more to get in front of those harder-to-reach people.


The digital and tech teams worked to build Twitter and Facebook Blasters, a project that had the code name Täärgus for some reason. With Twitter, one of the company’s former employees, Mark Trammell, helped build a tool that could specifically target individual users with direct messages. “We built an influence score for the people following the [Obama for America] accounts and then cross-referenced those for specific things we were trying to target, battleground states, that sort of stuff.” Meanwhile, the teams also built an opt-in Facebook outreach program that sent people messages saying, essentially, “Your friend, Dave in Ohio, hasn’t voted yet. Go tell him to vote.” Goff described the Facebook tool as “the most significant new addition to the voter contact arsenal that’s come around in years, since the phone call.”


Last but certainly not least, you have the digital team’s Quick Donate. It essentially brought the ease of Amazon’s one-click purchases to political donations. “It’s the absolute epitome of how you can make it easy for people to give money online,” Goff said. “In terms of fundraising, that’s as innovative as we needed to be.” Storing people’s payment information also let the campaign receive donations via text messages long before the Federal Elections Commission approved an official way of doing so. They could simply text people who’d opted in a simple message like, “Text back with how much money you’d like to donate.” Sometimes people texted much larger dollar amounts back than the $ 10 increments that mobile carriers allow.


It’s an impressive array of accomplishments. What you can do with data and code just keeps advancing. “After the last campaign, I got introduced as the CTO of the most technically advanced campaign ever,” Slaby said. “But that’s true of every CTO of every campaign every time.” Or, rather, it’s true of one campaign CTO every time.


Exit Music


That next most technically advanced CTO, in 2016, will not be Harper Reed. A few days after the election, sitting with his wife at Wicker Park’s Handlebar, eating fish tacos, and drinking a Daisy Cutter pale ale, Reed looks happy. He had told me earlier in the day that he’d never experienced stress until the Obama campaign, and I believe him.


He regaled us with stories about his old performance troupe, Jugglers Against Homophobia, wild clubbing, and DJs. “It was this whole world of having fun and living in the moment,” Reed said. “And there was a lot of doing that on the Internet.”


“I spent a lot of time hacking doing all this stuff, building websites, building communities, working all the time, ” Reed said, “and then a lot of time drinking, partying, and hanging out. And I had to choose when to do which.”


We left Handlebar and made a quick pit stop at the coffee shop, Wormhole, where he first met Slaby. Reed cracks that it’s like Reddit come to life. Both of them remember the meeting the same way: Slaby playing the role of square, Reed playing the role of hipster. And two minutes later, they were ready to work together. What began 18 months ago in that very spot was finally coming to an end. Reed could stop being Obama for America’s CTO and return to being “Harper Reed, probably one of the coolest guys ever,” as his personal Web page is titled.


But of course, he and his whole team of nerds were changed by the experience. They learned what it was like to have–and work with people who had– a higher purpose than building cool stuff. “Teddy [Goff] would tear up talking about the president. I would be like, ‘Yeah, that guy’s cool,’ ” Reed said. “It was only towards the end, the middle of 2012, when we realized the gravity of what we were doing.”


Part of that process was Reed, a technologist’s technolgoist, learning the limits of his own power. “I remember at one point basically breaking down during the campaign because I was losing control. The success of it was out of my hands,” he told me. “I felt like the people I hired were right, the resources we argued for were right. And because of a stupid mistake, or people were scared and they didn’t adopt the technology or whatever, something could go awry. We could lose.”


And losing, they felt more and more deeply as the campaign went on, would mean horrible things for the country. They started to worry about the next Supreme Court justices while they coded.


“There is the egoism of technologists. We do it because we can create. I can handle all of the parameters going into the machine and I know what is going to come out of it,” Reed said. “In this, the control we all enjoyed about technology was gone.”


We finished our drinks, ready for what was almost certainly going to be a long night, and headed to our first club. The last thing my recorder picked up over the bass was me saying to Harper, “I just saw someone buy Hennessy. I’ve never seen someone buy Hennessy.” Then, all I can hear is that music.


Linux/Open Source News Headlines – Yahoo! News



Read More..

AcelRx pain treatment as effective as standard care in trial
















(Reuters) – AcelRx Pharmaceuticals Inc said its drug-device combination for post-operative pain was at least as effective as the standard of care, suggesting it has the potential to replace the current treatment.


AcelRx plans to file for marketing approval for the device in the third quarter of 2013, Pamela Palmer, co-founder and chief medical officer of AcelRx said on a conference call with analysts.













The company’s stock jumped 42 percent to a year high of $ 4.55 in heavy volume trade on Thursday, making it the third biggest percentage gainer on the Nasdaq.


AcelRx tested its ARX-01 Sufentanil NanoTab patient-controlled analgesia (PCA) system against intravenous (IV) PCA with morphine on 359 adult patients in a late-stage study.


Initial data from the study also showed that the NanoTab System was significantly better than intravenous morphine.


In terms of the efficacy, ease-of-use and patient satisfaction, it was a great response, Guggenheim Partners analyst Louise Chen said.


“There are other pain drugs out there, but in terms of a drug-device combo like this, I am not currently aware of anything that’s out there or that is as far along as this, Chen said.


The treatment could bring in peak sales of $ 247 million in 2018. However, if the company’s ARX-01 technology replaces the standard therapy, peak sales could top $ 3 billion, Chen added.


Intravenous PCAs with morphine are commonly used on patients in hospitals to manage pain after a surgery. However, opioids such as morphine can cause side-effects such as nausea and vomiting, and also carry the risk of causing addiction.


“Given the significant shortcomings of intravenous morphine, we believe with superiority data from a sublingually administered analgesia will go a long way in creating strong demand and usage in the hospital setting,” Cowen & Co analyst Edward Nash wrote in a note.


AcelRx said its NanoTab device, which consists of a handheld system, provides a non-invasive and more mobile way of treating pain. Instead of morphine, the device administers sufentanil, another opioid that has relatively fewer side-effects and is already widely used in labor and cardiac surgeries.


The late-stage study tested ARX-01 Sufentanil NanoTab in patients who underwent major abdominal or orthopedic surgery.


AcelRx is testing the same device with different drugs in three other late-stage studies involving patients that have undergone other types of surgeries.


Analyst Nash said data released on Thursday improves the company’s chances of finding success with the other ongoing late-stage trials as well.


Analysts Chen and Nash both have a price target of $ 3.20 on AcelRx’s stock. Nash has an outperform rating on the stock, while Chen rates it a buy.


(Reporting by Zeba Siddiqui in Bangalore; Editing by Roshni Menon)


Medications/Drugs News Headlines – Yahoo! News



Read More..

Springsteen, McCartney, Kanye set for Sandy show
















NEW YORK (AP) — Paul McCartney, Bruce Springsteen & the E Street Band and Kanye West will hit the stage at a Superstorm Sandy benefit concert next month at Madison Square Garden.


MSG announced Thursday that Billy Joel, The Who, Alicia Keys and Jon Bon Jovi will also perform at the Dec. 12 show, dubbed “12-12-12.” More performers will be announced at a later date.













Proceeds from the concert will go to the Robin Hood Relief Fund to benefit those affected by Sandy in New York, New Jersey and Connecticut. Sandy’s assault more than two weeks ago created widespread damage and power outages throughout the area.


Entertainment News Headlines – Yahoo! News



Read More..

Canada’s Carney says rate hikes “less imminent”
















TORONTO (Reuters) – Interest rate hikes have become less imminent than the Bank of Canada once expected, although rates are still likely to rise, central bank Governor Mark Carney said in an interview published on Saturday.


“Over time, rates are likely to increase somewhat, but over time, so a less imminent timing relative to our expectation,” Carney said in an interview with the National Post newspaper.













Canada’s economy rebounded better than most from the global economic recession, and the Bank of Canada is the only central bank in the Group of Seven leading industrialized nations that is currently hinting at higher interest rates.


But Carney has also made clear that there will be no rate rise for a while, despite high domestic borrowing rates that he sees as a major risk to a still fragile economy.


“We’ve been very clear in terms of lines of defense in addressing financial vulnerabilities,” he said in the interview. “And the most prominent one, obviously, in Canada, is household debt.”


He said the bank was monitoring the impact of four successive government moves to tighten mortgage lending, which aimed to take the froth out of a hot housing market without causing a damaging crash in prices.


A Reuters poll published on Friday showed the majority of 20 forecasters believe the government has done enough to rein in runaway prices, preventing the type of crash that devastated the U.S. market.


The experts expect Canadian housing prices to fall 10 percent over the next several years, but they do not expect the recent property boom to end in a U.S.-style collapse.


(Reporting by Janet Guttsman; Editing by Vicki Allen)


Canada News Headlines – Yahoo! News



Read More..

A father's anguish in Gaza

Jihad Misharawi carries his son’s body at a Gaza hospital. (AP)


Jihad Misharawi, a BBC Arabic correspondent who lives in Gaza, tragically became part of the story he's been covering on Wednesday, when an Israeli airstrike killed his 11-month-old son.


A chilling photo showing Misharawi carrying his son's body through al-Shifa hospital in Gaza City was published by the Associated Press and printed on the front page of Thursday's Washington Post.


According to Paul Danahar, the BBC's Middle East bureau chief, Misharawi's sister-in-law was also killed in the the airstrike that hit his home in Gaza. Misharawi's brother was also seriously wounded, Danahar said.


"This is a particularly difficult moment for the whole bureau in Gaza," BBC World editor Jon Williams wrote in a memo to colleagues. "We're fortunate to have such a committed and courageous team there. It's a sobering reminder of the challenges facing many of our colleagues."


At least 10 Palestinians, including Hamas military chief Ahmed al-Jabari, were killed during the Israeli airstrikes on Wednesday, Palestinians officials said.


Israel launched the operation in response to successive days of rocket fire coming out of Gaza. Hamas, meanwhile, warned Jabari's assassination "had opened the gates of hell."


Read More..

‘Angry Birds Star Wars’ Is More Addictive Fun Fans Want [REVIEW]
















Last month, Rovio announced a major partnership with Lucasfilm to create Angry Birds Star Wars. The game, out this week, represents a hybrid of the two powerful brands, and provides enjoyable gameplay for fans of both franchises.


[More from Mashable: Viral Video Recap: Memes of the Week]













For those unsure about the union, “I find your lack of faith disturbing.” Rovio has shown in Angry Birds Star Wars that it can create a fun, challenging game that doesn’t besmirch our favorite characters. Instead, laugh at images of Stormtroopers as pigs and Chewbacca as a giant, furry bird.


Angry Birds Star Wars doesn’t deviate from the main concept behind the series. The slingshot is back, and you’ve got to propel birds towards their swine foe to knock them over and destroy their fortresses. This is Rovio’s bread and butter, but it seems like each iteration of the game has been more creative, and asks more from players; Angry Birds Space added depth to the gameplay by including physics challenges, such as zero-gravity and planetary orbit.


[More from Mashable: iPad 4: A Turbocharged Tablet With Nothing to Do [REVIEW]]


Likewise, Angry Birds Star Wars creates new challenges by adding Star Wars-inspired powers to all of the birds, based on which character they portray. Red Bird, a.ka. Luke Skywalker, can swing a lightsaber to destroy objects he’s about smash into, or to take out an enemy. The bird version of Obi-Wan Kenobi can use The Force to push over obstacles while flying. Unsurprisingly, both of these powers are extremely fun to use (a lightsaber will always add entertainment value to whatever you’re doing).


The entire main cast of Star Wars Episode IV: A New Hope is represented in bird form; each has their own power to master. Similarly, many of the films’ settings are portrayed in the game by beautifully drawn backgrounds. The levels that take place on Tantooine feature the planet’s two suns setting on the horizon.


Angry Birds also reenact classic Star Wars movie moments in cutscenes that appear between every few levels. While they may be corny, the scenes will bring a smile to any player’s face, especially when encountering the Jawas or bounty hunter Greedo rendered as birds or pigs.


There are many other touches to Angry Birds Star Wars that clearly demonstrate the game’s developers are passionate Star Wars superfans. For example, there are classic sounds that make nerd hearts flutter, such as the blaster noise that goes off whenever players hit a level’s high score. The sound editing also incorporates the film’s score with some cartoony remixes.


While Angry Birds Star Wars is playable on mobile, tablet and PC, it’s a better fit for larger screens. Players won’t be able to enjoy the tiny details of the world, not to mention the art and cinematics, as much when screen size is smaller. Targeting Angry Birds’ powers to small, specific spots also proves more difficult.


This is a must-download for fans of either franchise, and Rovio has made it available on virtually every platform at launch. Angry Birds Star Wars is out now for iOS, Android, Kindle Fire, Windows Phone, Mac, PC and Windows 8, for either $ 0.99 or $ 2.99.


Title Screen


The Angry Birds Star Wars title screen. The HD version is available for tablets, Mac, PC and Windows 8.


Click here to view this gallery.


This story originally published on Mashable here.


Gaming News Headlines – Yahoo! News



Read More..

Scientists map domestic pig’s genome
















LONDON (Reuters) – Scientists have mapped the genome of the domestic pig in a project that could enhance the animal’s use in the testing of drugs for human disease.


A study, published in science journal Nature, identified genes that could be linked with illnesses suffered by farmed pigs, providing a reference tool for selective breeding to increase their resistance to disease.













“This new analysis helps us understand the genetic mechanisms that enable high-quality pork production, feed efficiency and resistance to disease,” said Sonny Ramaswany, director of the U.S. Department of Agriculture‘s National Institute of Food and Agriculture.


“This knowledge can ultimately help producers breed high-quality swine, lower production costs and improve sustainability.”


Alan Archibald at the University of Edinburgh’s Roslin Institute in Scotland, who worked on the project with collaborators in the Netherlands and the United States, said the new genome sequence was the first good draft.


Archibald said while making sense of the analysis would take time, the benefits of genome sequencing flow through more quickly in agriculture than, for instance, human medicine, “because we can use selective breeding”.


Identifying genes responsible for diseases that are also seen in people could see pigs used more extensively for drug testing.


For instance, the inherited illness known as porcine stress syndrome, which can cause sudden death in pigs, has similarities to the human condition malignant hyperthermia which causes a fast and dangerous rise in body temperature in some people under general anesthetic.


Some of the genetic faults that pigs share with humans can be linked with conditions as varied as Alzheimer’s disease, diabetes, dyslexia, obesity and Parkinson’s disease, the researchers said.


“In total, we found 112 positions where the porcine protein has the same amino acid that is implicated in a disease in humans,” they said.


(Editing by Dan Lalor)


Seniors/Aging News Headlines – Yahoo! News



Read More..

Wakeman reworks rock epic Journey to Centre of Earth
















LONDON (Reuters) – The story behind the upcoming re-issue of Rick Wakeman‘s 1974 concept albumJourney to the Center of the Earth” sounds almost as unlikely as the Jules Verne tale that inspired it.


Progressive rock veteran Wakeman had presumed the original orchestration to his chart-topping disc was lost for good when his record company MAM, where the manuscripts had been stored in boxes, was brought to its knees in the early 1980s.













Although he could have re-orchestrated the work from the original album, recorded live at the Royal Festival Hall in London in 1974, Wakeman knew it would be far from perfect.


And the original score was 55 minutes long whereas the 1974 version had to be cut to closer to 40 due to the constraints of vinyl recordings at the time.


“In about 1983 or 1984 I had an enquiry to do Journey again in America,” Wakeman recalled in a telephone interview.


“I thought ‘great’. But MAM had gone, and nobody there had any idea what had happened to all the stuff of mine,” the former Yes keyboardist told Reuters.


“Up until recently I would get phone calls to do it and I said ‘no, I can’t', there is no music any more. You just resign yourself to disappointment.”


Everything changed about four years ago when a box of papers arrived at his doorstep – a fairly regular occurrence, he explained, for a man who had been married several times and had “stuff in storage all over the place”.


Sifting through the contents, Wakeman found a pile of music that was not his own, but “something told me to empty the entire box.” At the very bottom was the long-lost conductor’s score of Journey, albeit so damp the pages were stuck together.


To this day Wakeman does not know where the box came from, and is amazed it reappeared nearly 30 years after going missing.


ORIGINAL SONGS


Once the music had been downloaded on to a computer, Wakeman set about reintroducing the songs and other sections he removed for the 1974 recording with the help of notes he had kept.


He decided to make a studio recording of the rock opera, and sought to replicate the sound of the original instruments.


For the narrator’s voice, he could not go back to David Hemmings, who died in 2003, and so invited actor Peter Egan.


The result is a re-mastered version of Journey, complete with 20 minutes of unheard music, which hits shelves on November 20. It comes in the form of a “fanback” comprising the music, a 132-page magazine and a replica of the program to the 1974 show.


For Wakeman it was a labor of love, but one he hopes will prove profitable.


“We did have record companies come forward,” the 63-year-old said. “But I don’t want an A&R (artists and repertoire) man coming in and saying it could do with this and that.


“The only way I can get this done as I believe it should be is to finance it and do it myself which we did. It broke the bank, there’s no doubt about it.”


While the concept of a rock opera based on French author Verne’s 1864 sci-fi classic may not instantly appeal to young listeners today, Wakeman believes there is a market for his latest release.


“Music audiences today don’t put a date on anything, they either like it or they don’t,” he said, adding that the “prog-rock” genre for which he is best known has made something of a comeback in recent years.


PROKOFIEV FAN


The prolific musician who has made around 100 albums and sold millions of records started piano lessons when he was seven, and at about that time the seeds of his career were sown.


“Story telling to music is something I have loved since my father took me to see ‘Peter and the Wolf’ aged eight, and (Sergei) Prokofiev became my hero,” he recalled.


By his late teens he was an established session musician and joined the band Yes in 1971 with whom he recorded the hit album “Fragile” and, the following year, “Close to the Edge”.


In 1973 he released “The Six Wives of Henry VIII” a solo concept album, and in 1974, which his official online biography calls “probably the most significant year in Rick’s career”, he made Journey and toured the world with it.


Another concept album, “The Myths and Legends of King Arthur and the Knights of the Round Table” followed in 1975, and Wakeman returned to Yes for spells throughout the 1990s.


Next week he plays six dates in South America, including the first concert performance of the new, full Journey and a rendition of The Six Wives.


The new “holy grail” following the rediscovery of Journey is to track down the original music to King Arthur, which was also lost. Wakeman is orchestrating the existing recording for a show next June, but would love to find the full score.


“All of us involved hope very much that it (Journey) makes its money back, because it would then allow me to look for the King Arthur music. We are doing a version next June and it would be lovely to say we’ve done it from the original music.”


(Reporting by Mike Collett-White, editing by Paul Casciato)


Music News Headlines – Yahoo! News



Read More..

Beating tax cheats key to Italy’s recovery plan
















ROME (AP) — Good plumbers may be worth their weight in gold, but when one was spotted zipping around in a bright red Ferrari, Italian tax police were fast on his trail.


Stamping out entrenched tax evasion is crucial to Premier Mario Monti‘s quest to keep Italy from succumbing to the European debt crisis, and it is critical to fellow eurozone members in more dire straits, such as Greece and Spain — which are also notorious for making cheating the taxman a way of life.













Indeed, Greece’s international rescue creditors have been pressing Greece for two years to reform its ailing tax system, citing poor collection as a key factor keeping the country mired in crisis. In Spain, where tax fraud is rampant, as much as €90 billion ($ 150 billion) is lost each year to tax fraud — the equivalent of the country’s national debt, according to Spain’s main tax inspectors union.


To succeed in Italy, authorities will have to catch the legions of self-employed and small business owners who brazenly lie about their earnings, like the plumber in the eastern town of Pescara, who socked away undeclared income in 30 bank accounts, or a successful pastry shop owner in Calabria, who on his tax return claimed he was earning next to crumbs.


And those are the less sophisticated schemers.


Tax police officials say that wealthy Italians, their companies and foreigners who make their money in Italy are increasingly trying to avoid taxes by using such strategies as falsely declaring that their base of operations or residence is abroad.


Another daunting challenge is the so-called “submerged” economy, a term embracing Italians who declare only a fraction or nothing at all of their earnings — and dentists, lawyers, doctors and other big-earning professionals are frequently among the worst offenders.


Tax evasion of all types in Italy totals about euros 240 billion ($ 300 billion), or 15 percent of the country’s gross domestic product of €1.6 trillion ($ 2 trillion), tax police estimate. Winning the war on tax cheats could therefore more than wipe out the country’s budget deficit, which is expected to increase to euros 42 billion ($ 53 billion), or 2.6 percent of GDP this year. That would start knocking away at the nation’s colossal public debt of €2 trillion ($ 2.5 trillion), or 125 percent of GDP.


But “big international frauds are up,” lamented Lt. Col. Gianluca Campana, in charge of the income tax unit revenue protection office at the Guardia di Finanza, Italy’s financial police corps which reports to the Economy Ministry.


The entrenched practice by many cafes, eateries, hair dressers and similar small business of neglecting to give customers mandatory cash register receipts commonly grabs the attention in crackdowns on tax evasion in Italy.


But, cautioned Campana, “one false (big business) invoice can equal no cash register receipts for coffees for two months.”


Over all of 2011, the total of non-declared income discovered by tax police amounted to some €50 billion ($ 65 billion), of which some 20 percent was due to international tax evasion, he said. By comparison, in the first nine months of this year, tax police discovered some €40 billion in undeclared income, with 30 percent of that blamed on international tax evasion, Campana said.


With the economic crisis shrinking bottom lines, and Italy increasingly on the hunt for big-time evasion, especially by big businesses, “there is a tendency to move capital abroad, using maneuvers apparently legal but which really are not,” Campana said. A classic technique consists of declaring one’s formal residence abroad in tax havens like Monte Carlo. Also common are companies that clearly have their business base in Italy but claim it is abroad in countries with far lower tax brackets.


Campana is armed with three degrees, including a masters in tax law from Milan’s Bocconi University, the prestigious economics institute formerly headed by Monti. He brings skills to this specialized police corps that are as finely tuned as sharp-shooting.


“We are going after the big cases (of evasion) in order to rake in more money,” Campana said.


The Ferrari-driving plumber hid some €2 million ($ 2.6 million) of his income over several years by giving his customers invoices — for jobs ranging from fixing leaks to installing new bathrooms — for the actual cost of his work, but kept a second, false registry of much lower figures for tax purposes, said Pescara tax police Col. Mauro Odorisio.


Armed with a 2008 law, authorities confiscated assets belonging to the plumber equivalent to the approximately €1 million ($ 1.3 million) they contend he owed in taxes, Odorisio said.


With Ferraris in red or yellow, and snazzy Porsches parked inside, Guardia di Finanza garages practically resemble luxury car dealerships.


The cars get sold to help recoup unpaid taxes and interest.


Overall, tax revenues in Italy were up by 4.1 percent, says the Economy Ministry, when comparing figures from the first eight months of 2012 with the same period in 2011, but much of that was due to new taxes, and not necessarily a revolution in citizens’ consciences about tax obligations.


Monti’s recipe relies heavily on taxes that are nearly impossible to avoid, such as sales tax. He also revived a property tax that his populist predecessor, Premier Silvio Berlusconi, had abolished in a promise to voters.


The ministry’s report last month noted that the property tax figured prominently in the “tendency toward growth” in tax revenues. But sales tax revenue dropped slightly despite higher sales tax rates, indicating that consumers were feeling the pinch of the stagnant economy.


The heavier fiscal burden seems to have driven some honest citizens to rebel against the engrained culture of tax evasion.


The number of phone calls from the public to the tax police’s hotline to report stores, restaurants and other businesses that didn’t give customers sales receipts has almost doubled in the first nine months of this year, compared with the same period in 2011.


It’s apparently dawning on Italians that shirking taxes in the end only costs them, in terms of ever-higher levies and cutbacks in public services.


Citizens now increasingly understand that “the lack of revenue over time caused by tax evaders forced the government to stiffen the tax burden on categories where you can’t evade taxes,” Campana said, referring to workers whose taxes are deducted from paychecks. Another area where evasion is close to impossible is real estate ownership.


Odorisio noted the crackdown included extending the statute of limitations on tax evasion from six to eight years and establishing prison as a penalty for big-time evasion.


Other weapons include a measure promoted by the Monti government that limits cash payments to no more than €1,000. Paying by credit card or personal check is a relatively new habit for Italians, who are used to carrying wads of cash in their pockets, even for big-ticket items like home renovations or vacations.


Past governments in Italy sometimes resorted to tax amnesties to try to boost revenues. But critics, contending some Italians counted on such a possibility, described that strategy as only perpetuating the tax cheat culture.


Spain hasn’t had much success with its own tax amnesty introduced by the conservative government in March. That measure, expiring soon, allows undeclared assets or those hidden in tax havens to be repatriated by paying a 10 percent tax without criminal penalty. The amnesty is estimated to recuperate far less than the expected €2.5 billion ($ 3.25 billion).


Greece saw demands for tax system reform from international rescue creditors added on to conditions for future rescue loan payments, as Greek authorities acknowledged that a high-profile campaign to crack down on major tax cheats has produced disappointing results.


The cash-strapped government over the last 10 months recovered just €19 million ($ 25 million) of the €13 billion ($ 17 billion) of arrears on the list. A prominent Greek magazine publisher recently tapped anger over rich tax evaders by publishing a list of people allegedly holding Swiss bank accounts. He was acquitted this month of breaching privacy laws.


Meanwhile, Italian tax police are chasing after cheats who have shown some of the most chutzpah about not paying their fair share of taxes, like the Padua woman who advertised on the Internet that she had a couple of “cash-only” bed and breakfast rooms to let.


Tax police discovered the lodgings are part of an apartment in public housing she was given after falsely declaring she was indigent on her annual tax forms.


____


AP reporters Derek Gatopoulos in Athens and Ciaran Giles in Madrid contributed to this report.


Europe News Headlines – Yahoo! News



Read More..