Economic Scene: Health Care and Pursuit of Profit Make a Poor Mix





Thirty years ago, Bonnie Svarstad and Chester Bond of the School of Pharmacy at the University of Wisconsin-Madison discovered an interesting pattern in the use of sedatives at nursing homes in the south of the state.




Patients entering church-affiliated nonprofit homes were prescribed drugs roughly as often as those entering profit-making “proprietary” institutions. But patients in proprietary homes received, on average, more than four times the dose of patients at nonprofits.


Writing about his colleagues’ research in his 1988 book “The Nonprofit Economy,” the economist Burton Weisbrod provided a straightforward explanation: “differences in the pursuit of profit.” Sedatives are cheap, Mr. Weisbrod noted. “Less expensive than, say, giving special attention to more active patients who need to be kept busy.”


This behavior was hardly surprising. Hospitals run for profit are also less likely than nonprofit and government-run institutions to offer services like home health care and psychiatric emergency care, which are not as profitable as open-heart surgery.


A shareholder might even applaud the creativity with which profit-seeking institutions go about seeking profit. But the consequences of this pursuit might not be so great for other stakeholders in the system — patients, for instance. One study found that patients’ mortality rates spiked when nonprofit hospitals switched to become profit-making, and their staff levels declined.


These profit-maximizing tactics point to a troubling conflict of interest that goes beyond the private delivery of health care. They raise a broader, more important question: How much should we rely on the private sector to satisfy broad social needs?


From health to pensions to education, the United States relies on private enterprise more than pretty much every other advanced, industrial nation to provide essential social services. The government pays Medicare Advantage plans to deliver health care to aging Americans. It provides a tax break to encourage employers to cover workers under 65.


Businesses devote almost 6 percent of the nation’s economic output to pay for health insurance for their employees. This amounts to nine times similar private spending on health benefits across the Organization for Economic Cooperation and Development, on average. Private plans cover more than a third of pension benefits. The average for 30 countries in the O.E.C.D. is just over one-fifth.


We let the private sector handle tasks other countries would never dream of moving outside the government’s purview. Consider bail bondsmen and their rugged sidekicks, the bounty hunters.


American TV audiences may reminisce fondly about Lee Majors in “The Fall Guy” chasing bad guys in a souped-up GMC truck — a cheap way to get felons to court. People in most other nations see them as an undue commercial intrusion into the criminal justice system that discriminates against the poor.


Our reliance on private enterprise to provide the most essential services stems, in part, from a more narrow understanding of our collective responsibility to provide social goods. Private American health care has stood out for decades among industrial nations, where public universal coverage has long been considered a right of citizenship. But our faith in private solutions also draws on an ingrained belief that big government serves too many disparate objectives and must cater to too many conflicting interests to deliver services fairly and effectively.


Our trust appears undeserved, however. Our track record suggests that handing over responsibility for social goals to private enterprise is providing us with social goods of lower quality, distributed more inequitably and at a higher cost than if government delivered or paid for them directly.


The government’s most expensive housing support program — it will cost about $140 billion this year — is a tax break for individuals to buy homes on the private market.


According to the Tax Policy Center, this break will benefit only 20 percent of mostly well-to-do taxpayers, and most economists agree that it does nothing to further its purported goal of increasing homeownership. Tax breaks for private pensions also mostly benefit the wealthy. And 401(k) plans are riskier and costlier to administer than Social Security.


From the high administrative costs incurred by health insurers to screen out sick patients to the array of expensive treatments prescribed by doctors who earn more money for every treatment they provide, our private health care industry provides perhaps the clearest illustration of how the profit motive can send incentives astray.


By many objective measures, the mostly private American system delivers worse value for money than every other in the developed world. We spend nearly 18 percent of the nation’s economic output on health care and still manage to leave tens of millions of Americans without adequate access to care.


Britain gets universal coverage for 10 percent of gross domestic product. Germany and France for 12 percent. What’s more, our free market for health services produces no better health than the public health care systems in other advanced nations. On some measures — infant mortality, for instance — it does much worse.


In a way, private delivery of health care misleads Americans about the financial burdens they must bear to lead an adequate existence. If they were to consider the additional private spending on health care as a form of tax — an indispensable cost to live a healthy life — the nation’s tax bill would rise to about 31 percent from 25 percent of the nation’s G.D.P. — much closer to the 34 percent average across the O.E.C.D.


A quarter of a century ago, a belief swept across America that we could reduce the ballooning costs of the government’s health care entitlements just by handing over their management to the private sector. Private companies would have a strong incentive to identify and wipe out wasteful treatment. They could encourage healthy lifestyles among beneficiaries, lowering use of costly care. Competition for government contracts would keep the overall price down.


We now know this didn’t work as advertised. Competition wasn’t as robust as hoped. Health maintenance organizations didn’t keep costs in check, and they spent heavily on administration and screening to enroll only the healthiest, most profitable beneficiaries.


One study of Medicare spending found that the program saved no money by relying on H.M.O.’s. Another found that moving Medicaid recipients into H.M.O.’s increased the average cost per beneficiary by 12 percent with no improvement in the quality of care for the poor. Two years ago, President Obama’s health care law cut almost $150 billion from Medicare simply by reducing payments to private plans that provide similar care to plain vanilla Medicare at a higher cost.


Today, again, entitlements are at the center of the national debate. Our elected officials are consumed by slashing a budget deficit that is expected to balloon over coming decades. With both Democrats and Republicans unwilling to raise taxes on the middle class, the discussion is quickly boiling down to how deeply entitlements must be cut.


We may want to broaden the debate. The relevant question is how best we can serve our social needs at the lowest possible cost. One answer is that we have a lot of room to do better. Improving the delivery of social services like health care and pensions may be possible without increasing the burden on American families, simply by removing the profit motive from the equation.


E-mail: eporter@nytimes.com;


Twitter: @portereduardo



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News Analysis: Obama Nominees in Step on Light Footprint


Carolyn Kaster/Associated Press


President Obama named John O. Brennan, right, as his choice for C.I.A. director and chose Chuck Hagel, left, to be his next defense secretary.







WASHINGTON — With the selection of a new national security team deeply suspicious of the wisdom of American military interventions around the world, President Obama appears to have ended, at least for the moment, many of the internal administration debates that played out in the Situation Room over the past four years.




He has sided, without quite saying so, with Vice President Joseph R. Biden Jr.’s view — argued, for the most part, in the confines of the White House — that caution, covert action and a modest American military footprint around the world fit the geopolitical moment. The question is whether that approach will fit the coming challenges of stopping Iran’s nuclear program and the potential collapse of Syria.


Gone for the second term are the powerful personalities, and more hawkish voices, that pressed Mr. Obama to pursue the surge in Afghanistan in 2009, a gamble championed by Secretary of State Hillary Rodham Clinton and Robert M. Gates, the former secretary of defense. Gone from the C.I.A. is the man who urged Mr. Obama to keep troops there longer, David H. Petraeus.


The new team will include two Vietnam veterans, Senator John Kerry and Chuck Hagel, who bear the scars of a war that ended when the president was a teenager, and a counterterrorism chief, John O. Brennan, who helped devise the “light footprint” strategy of limiting American interventions, whenever possible, to drones, cyberattacks and Special Operations forces. All are advocates of those low-cost, low-American-casualty tools, and all have sounded dismissive of attempts to send thousands of troops to rewire foreign nations as wasteful and ill-conceived.


Most important to Mr. Obama and his national security adviser, Tom Donilon, all three are likely to accommodate themselves, in ways their predecessors often did not, to a White House that has insisted on running national security policy from the West Wing.


“One of the characteristics of this administration has been that decision-making has been centered in the White House,” said Dennis B. Ross, a Mideast expert who left the Obama administration a year ago but never wandered far from some of its key debates. “And most second-term administrations don’t change their sociology.”


But if they grab hold of the national security levers after what many predict will be, for Mr. Hagel and Mr. Brennan, bruising confirmation hearings, they will confront problems that may test whether the light footprint carries enough weight.


“Issues 1 and 2 will be cutting the defense budget and confronting Iran,” said Michael Mandelbaum, a political scientist whose 2010 book, “The Frugal Superpower,” dealt with the challenge of trying to manage the world on the cheap. “And then you will have issues like Syria, which test the question of whether you can manage to control a dangerous situation with no boots on the ground — and unless something dramatic changes, there will be no boots.”


Mr. Hagel, who was both a senator and a cellphone entrepreneur, has long been a critic of Pentagon bloat. But others with business experience, like Donald Rumsfeld, have believed they could bring market discipline to one of the country’s most sprawling enterprises, only to discover that killing off unneeded weapons systems has almost nothing to do with business decisions and everything to do with the politics of Congressional districts and campaign funds.


Mr. Obama’s bet was that by appointing a Republican, he will better his chances of overcoming those obstacles. What he discovered even before announcing Mr. Hagel’s appointment is that the former senator burned many bridges with his Republican colleagues, in part with his outspoken opposition to the Iraq war, despite voting in 2002 to authorize military action, and to the 2008 surge when President George W. Bush was still in office.


“If the president thinks Chuck Hagel can get him the Republican votes to downsize the Pentagon,” said one former senior aide to Mr. Bush, who declined to speak on the record, “I think he is in for a very rude surprise.”


Then there is Iran, which will be a test for all three men, for different reasons. Mr. Hagel has been particularly vocal about the dangers of a military confrontation with Tehran. While both Mr. Gates and his successor, Leon E. Panetta, expressed similar concerns at various points in the first term, Mr. Hagel’s view is considerably to the left of Mr. Obama’s. The president has, gradually, endorsed “coercive diplomacy,” telling the American Israel Public Affairs Committee in March, “As I’ve made clear time and again during the course of my presidency, I will not hesitate to use force when it is necessary to defend the United States and its interests.”


But Mr. Hagel has opposed unilateral sanctions and suggested that threatening Iran just closes down opportunities for dialogue.


“The key to coercive diplomacy is that the side you are trying to influence is convinced you are willing to follow through on the threat,” said Mr. Ross, who drafted some of those threats. “The president has been clear, but from others there have been mixed messages.”


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AP Exclusive: Richardson pressing NKorean test ban






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


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






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


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


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


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


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


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


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


___


Follow AP’s bureau chief for Pyongyang and Seoul at www.twitter.com/newsjean.


Wireless News Headlines – Yahoo! News





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RG3 to have surgery on torn right knee ligament


WASHINGTON (AP) — Robert Griffin III is having surgery Wednesday on a torn ligament in his right knee — and to see if there's a second ligament that also needs to be repaired.


Baylor coach Art Briles confirmed to USA Today and The Associated Press on Tuesday night that the Washington Redskins rookie has a torn lateral collateral ligament. He said the surgery also will determine whether Griffin has damaged the ACL in that knee.


A person close to Griffin, speaking on condition of anonymity because the Redskins have not made an announcement, also confirmed the details surrounding Griffin's injury to the AP.


A torn LCL requires a rehabilitation period of several months, possibly extending into training camp and the start of next season. A torn ACL is a more severe injury, typically requiring nine to 12 months of recovery, although Minnesota Vikings running back Adrian Peterson make a remarkable return this season some eight months after tearing an ACL — and nearly broke the NFL's single-season rushing record.


Griffin tore his ACL in the same knee while playing for Baylor in the third game of the 2009 season and missed the rest of the year. He was injured on the opening drive against Northwestern State but kept playing until halftime.


Griffin came back to win the Heisman Trophy two years later, and Briles predicted a similar recovery this time.


"RG3 will be good as new, though. I know that!" Briles said in a text message to the AP.


Griffin sprained the LCL last month against the Baltimore Ravens and missed one game. He returned wearing a bulky black brace for subsequent games and reinjured the knee at least twice in Sunday's playoff loss to the Seattle Seahawks, prompting a national debate over whether coach Mike Shanahan endangered his franchise player's career by not taking him out sooner.


The Redskins said an MRI taken after the game was inconclusive, so Griffin flew to Florida on Tuesday for a more detailed examination conducted by orthopedist James Andrews. Andrews will perform the surgery Wednesday.


Griffin, the No. 2 overall pick, was one of several rookie quarterbacks to make an instant impact on the league this season. He set the NFL record for best season passer rating by a rookie QB and led the Redskins to their first NFC East title in 13 years.


But Griffin also had to leave three games early due to injuries — two because of his knee and one because of a concussion — and missed a fourth altogether because of the knee. Shanahan repeatedly said Griffin had clearance from doctors to return to play, but the coach also said he trusted Griffin's own word when deciding that the rookie should continue during Sunday's game — even though Griffin was clearly struggling after reinjuring the knee in the first quarter.


Griffin remained in the game until the fourth quarter, when he hurt the knee again while fielding a bad shotgun snap.


___


AP Sports Writer Stephen Hawkins in Dallas contributed to this report.


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Online Banking Attacks Were Work of Iran, U.S. Officials Say





SAN FRANCISCO — The attackers hit one American bank after the next. As in so many previous attacks, dozens of online banking sites slowed, hiccupped or ground to a halt before recovering several minutes later.







Daniel Rosenbaum for The New York Times

James A. Lewis of the Center for Strategic and International Studies in Washington believes that recent online attacks on American banks have been the work of Iran.







But there was something disturbingly different about the wave of online attacks on American banks in recent weeks. Security researchers say that instead of exploiting individual computers, the attackers engineered networks of computers in data centers, transforming the online equivalent of a few yapping Chihuahuas into a pack of fire-breathing Godzillas.


The skill required to carry out attacks on this scale has convinced United States government officials and security researchers that they are the work of Iran, most likely in retaliation for economic sanctions and online attacks by the United States.


“There is no doubt within the U.S. government that Iran is behind these attacks,” said James A. Lewis, a former official in the State and Commerce Departments and a computer security expert at the Center for Strategic and International Studies in Washington.


Mr. Lewis said the amount of traffic flooding American banking sites was “multiple times” the amount that Russia directed at Estonia in a monthlong online assault in 2007 that nearly crippled the Baltic nation.


American officials have not offered any technical evidence to back up their claims, but computer security experts say the recent attacks showed a level of sophistication far beyond that of amateur hackers. Also, the hackers chose to pursue disruption, not money: another earmark of state-sponsored attacks, the experts said.


“The scale, the scope and the effectiveness of these attacks have been unprecedented,” said Carl Herberger, vice president of security solutions at Radware, a security firm that has been investigating the attacks on behalf of banks and cloud service providers. “There have never been this many financial institutions under this much duress.”


Since September, intruders have caused major disruptions to the online banking sites of Bank of America, Citigroup, Wells Fargo, U.S. Bancorp, PNC, Capital One, Fifth Third Bank, BB&T and HSBC.


They employed DDoS attacks, or distributed denial of service attacks, named because hackers deny customers service by directing large volumes of traffic to a site until it collapses. No bank accounts were breached and no customers’ money was taken.


By using data centers, the attackers are simply keeping up with the times. Companies and consumers are increasingly conducting their business over large-scale “clouds” of hundreds, even thousands, of networked computer servers.


These clouds are run by Amazon and Google, but also by many smaller players who commonly rent them to other companies. It appears the hackers remotely hijacked some of these clouds and used the computing power to take down American banking sites.


“There’s a sense now that attackers are crafting their own private clouds,” either by creating networks of individual machines or by stealing resources wholesale from poorly maintained corporate clouds, said John Kindervag, an analyst at Forrester Research.


How, exactly, attackers are hijacking data centers is still a mystery. Making matters more complex, they have simultaneously introduced another weapon: encrypted DDoS attacks.


Banks encrypt customers’ online transactions for security, but the encryption process consumes system resources. By flooding banking sites with encryption requests, attackers can further slow or cripple sites with fewer requests.


A hacker group calling itself Izz ad-Din al-Qassam Cyber Fighters has claimed in online posts that it was responsible for the attacks.


The group said it attacked the banks in retaliation for an anti-Islam video that mocked the Prophet Muhammad, and pledged to continue its campaign until the video was scrubbed from the Internet. It called the campaign Operation Ababil, a reference to a story in the Koran in which Allah sends swallows to defeat an army of elephants dispatched by the king of Yemen to attack Mecca in A.D. 571.


But American intelligence officials say the group is actually a cover for Iran. They claim Iran is waging the attacks in retaliation for Western economic sanctions and for a series of cyberattacks on its own systems. In the last three years, three sophisticated computer viruses — called Flame, Duqu and Stuxnet — have hit computers in Iran. The New York Times reported last year that the United States, together with Israel, was responsible for Stuxnet, the virus used to destroy centrifuges in an Iranian nuclear facility in 2010.


“It’s a bit of a grudge match,” said Mr. Lewis of the Center for Strategic and International Studies.


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Global Update: China Moves to Prevent Spread of Yellow Fever From Africa





In a move that underlines how many Chinese citizens now work in Africa, China’s quarantine officials recently urged greater efforts to make sure that a yellow fever epidemic now raging in Sudan does not come back to China.




Local health authorities were asked to scan all travelers arriving from Sudan for fevers. Chinese citizens planning travel to Sudan were advised to get yellow fever shots. Customs officers were told that containers arriving from Sudan might have stray infected mosquitoes inside.


Sudan’s epidemic is considered the world’s worst in 20 years. Sweden, Britain and other donors have paid for vaccinations. The United States Navy’s laboratory in Egypt has helped with diagnoses.


Estimates of the number of Chinese working in Africa, many in the oil and mining industries or on major construction projects, range from 500,000 to 1 million. Experts on AIDS have previously warned that the workers could become a new means of bringing that disease to China, which has a low H.I.V.-infection rate.


ProMED-mail, a Web site that follows emerging diseases, has tracked reports about the Sudan outbreak, with its moderators adding valuable context. China’s mosquito-killing winters make a large yellow fever outbreak there unlikely, moderators said. But Sudan’s containment efforts are troubled. For example, vaccinated people cannot get cards proving they have had shots, but the cards are reported to be for sale at police checkpoints.


Australia’s now-endemic dengue fever, according to ProMED moderators, may have come from mosquitoes arriving in containers from East Timor.


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Supporters Back Strike at Newspaper in China


James Pomfret/Reuters


Protesters gathered on Monday outside the headquarters of the relatively liberal newspaper Southern Weekend in Guangzhou, China.







BEIJING — Hundreds of people gathered outside the headquarters of a newspaper company in southern China on Monday, intensifying a battle over media censorship that poses a test of the willingness of China’s new leadership to tolerate calls for change.




The demonstration was an outpouring of support for journalists at the relatively liberal newspaper Southern Weekend, who erupted in fury late last week over what they called overbearing interference by local propaganda officials.


At the same time, the embattled newsroom received backing on the Internet from celebrities and other prominent commentators that turned what began as a local censorship dispute into a national display of solidarity.


“Hoping for a spring in this harsh winter,” Li Bingbing, an actress, said to her 19 million followers on a microblog account. Yao Chen, an actress with more than 31 million followers, quoted Aleksandr Solzhenitsyn, the Russian dissident: “One word of truth outweighs the whole world.”


Disputes between media organizations and local party leaders over the limits of reporting and expressions of opinion are common in China, but rarely emerge into public view. This time, calls to support the frustrated journalists spread quickly in Chinese online forums over the weekend, and those who showed up on Monday outside the media offices in Guangzhou, the capital of Guangdong Province, ran the gamut from high school and university students to retirees.


Many carried banners scrawled with slogans and white and yellow chrysanthemums, a flower that symbolizes mourning. One banner read: “Get rid of censorship. The Chinese people want freedom.” Police officers watched, but did not interfere.


The journalists at Southern Weekend have been calling for the ouster of Tuo Zhen, the top propaganda official in Guangdong Province, who took up his post last May.


They blame him for overseeing a change in a New Year’s editorial that originally called for greater respect for constitutional rights under the headline “China’s Dream, the Dream of Constitutionalism.”


The editorial went through layers of changes and ultimately became one praising the direction of the current political system, in which the Communist Party continues to exercise authority over all aspects of governance.


A well-known entrepreneur, Hung Huang, said online that the actions of Mr. Tuo had “destroyed, overnight, all the credibility the country’s top leadership had labored to re-establish since the 18th Party Congress,” the November gathering in Beijing that was the climax of the leadership transition installing Xi Jinping as Communist Party chief. Mr. Xi, who is also scheduled to assume the nation’s presidency in March, has raised expectations that he might pursue a more open-minded approach to molding China’s economic and political models during his planned decade-long tenure.


But more recently, he has said China must respect its socialist roots, which appeared to be a move to placate conservatives in the party.


One journalist for Southern Weekend said Monday night that talks between the various parties had taken place that afternoon, but there were no results to announce. “The negotiations did not go well at all,” the journalist said in a telephone interview.


Signs had emerged earlier that central propaganda officials were moving to dismantle support for the protest. A fiery editorial by Global Times, a populist newspaper, attacked the rebels at Southern Weekend and essentially accused them of conspiring against the government. Xinhua, the state news agency, and other prominent news sites published the editorial online, apparently at the orders of propaganda officials.


“Propaganda is still on the old road,” said an editor at a party media organization.


But by Tuesday morning, the news portals run by large Internet companies like Sina and Sohu rather than by the state had posted disclaimers with the Global Times editorial, saying the opinions did not reflect those of the companies.


It was on the Internet where the campaign to support the beleaguered journalists was reaching full bloom. Bloggers with large readerships, Han Han and Li Chengpeng, urged defiance of press censorship, and calls spread on microblogs for more rallies outside the newspaper offices on Tuesday.


It was unclear how many employees in the Southern Weekend newsroom had heeded calls by reporters for a strike to display their determination to resist censorship. A local journalist who went by the newspaper’s Beijing office on Monday said the building appeared to be open, but quiet. One employee at the site, where about 30 people work, told the journalist that the office was not on strike.


Jonathan Ansfield contributed reporting from Beijing. Mia Li contributed research from Guangzhou, China, and Shi Da from Beijing.



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Intel bets big on thin PCs and phones at Las Vegas show






LAS VEGAS (Reuters) – Top chipmaker Intel Corp on Monday announced shipments of a new low-power chip and showed off next-generation ultra thin laptops and convertible tablets in its latest bid to prove that the struggling PC industry still has a bright future.


At the 2013 Consumer Electronics Show in Las Vegas , Intel said new energy-efficient processors for tablets and laptops are available now, and it outlined features like voice recognition and drastically improved battery life on future PCs.






“Absolutely all-day battery life where you just don’t have to bring your power brick at all anymore,” Kirk Skaugen, corporate vice president and general manager of Intel’s PC Client Group, said of laptops built with the company’s upcoming Haswell processor.


While macroeconomic troubles have weighed on sales for several quarters, the growing popularity of tablets and smartphones is seen as an existential threat to the PC industry.


Anxious to breathe new life into PCs and prove a recent slump in sales is not permanent, Intel and PC manufactures in Las Vegas this week will display a range of ultra thin laptops, dubbed Ultrabooks, and hybrid devices that convert into tablets.


On a stage flanked by dozens of tablets and laptops with rotatable and detachable screens, Skaugen said Intel’s newly available chip based on its current Ivy Bridge architecture sips just 7 watts of energy, more efficient than a previously planned 10 watts of power.


NO-EXCUSES PHONE


The Santa Clara, California-based company has long been king of the PC chip market, particularly through its historic “Wintel” alliance with Microsoft Corp, which led to breathtakingly high profit margins and an 80 percent market share.


But it has struggled to adapt its powerful PC processors for battery-powered smartphones and tablets, a fast-growing market led by Qualcomm Inc, Samsung Electronics Co Ltd, ARM Holdings Plc and others.


Mike Bell, who co-heads Intel’s mobile and wireless business, introduced a new processor platform, code named Lexington, targeted at low-priced smartphones in emerging markets like Latin America and Asia.


“It’s designed to be a no-excuses multimedia phone,” he said.


Acer, Safaricom and Lava have already agreed to use the new chips in future phones, Bell said.


A handful of manufacturers and telecom carriers in Europe and Asia have already launched smartphones using Intel’s Medfield processors this year. Google’s Motorola Mobility in September launched the Razr i in Europe and Latin America as the first handset of a multi-device agreement between the two groups.


But Intel is fighting an uphill battle in a market where chips made using technology from ARM Holdings have become ubiquitous. Intel also has yet to release a chip for 4G telephone networks, keeping it out of the running for major smartphone design wins in the United States.


Sales of smartphone processors soared 58 percent in the third quarter, but Intel had just 0.2 percent of that market, according to a recent report from Strategy Analytics.


By comparison, worldwide PC shipments fell 8.6 percent in the third quarter, according to IDC.


Intel said 3D cameras would be integrated in future Ultrabooks to allow consumers to use gestures and facial recognition to control their devices. Upcoming Ultrabooks will also include voice interaction, Skaugen said.


“We’re basically going to give the PC the same human senses we’ve all had,” he said.


Intel and other tech companies are increasingly looking for ways to let PCs and other devices use cameras, GPS chips, microphones and other kinds of sensors to predict their users’ needs.


“It’s this combination of computer devices doing things before you ask them to do it, in that they’re smart enough to know based on their sensors,” said Patrick Moorhead, principal analyst at Moor Insights & Strategy.


(Reporting By Noel Randewich; Editing by Dan Grebler)


Tech News Headlines – Yahoo! News





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Bama bashes Notre Dame 42-14 in BCS title game


MIAMI GARDENS, Fla. (AP) — Alabama romped to its second consecutive BCS championship, and third in four seasons, beating No. 1 Notre Dame 42-14 in a BCS championship game that was no classic after all.


AJ McCarron threw four touchdown passes and Eddie Lacy ran for 140 yards and scored twice for the second-ranked Crimson Tide, which scored on its first three drives and cruised to the second-most lopsided BCS championship game victory Monday night.


Alabama (13-1) became the third team to win three national titles in four seasons since polls started being used to crown champions in 1936, and the first since Nebraska from 1994-97.


Tide coach Nick Saban now has won four national championships. Only Alabama's Paul "Bear" Bryant, with six, has more.


The Fighting Irish (12-1) didn't score until they were down 35-0 late in the third quarter.


In a matchup of tradition-rich programs tied for the most AP national championships with eight, Notre Dame was looking for its first national championship in 24 years. The Crimson Tide got its ninth.


The Crimson Tide marched with ease on the opening drive, going 82 yards on five plays to take a 7-0 lead on Lacy's 20-yard touchdown run up the middle with 12:03 left in the first quarter.


Notre Dame (12-0) had allowed only two rushing touchdowns in its surprising run to the championship game. The Fighting Irish were the first team to reach the BCS championship game after starting the season unranked. They were trying to become the first team to go from unranked to national champion since BYU in 1984.


Alabama quickly made the Fighting Irish look as if they were in over their heads.


Notre Dame did nothing to respond to Alabama's opening march, and on its punt back, the Crimson Tide might have caught a break. Returner Christion Jones muffed the kick, but Notre Dame was flagged for interfering with the catch, though it was one of Jones' teammates that made contact with him.


Lacy and the Crimson Tide went right back to work, hammering away at Notre Dame's vaunted defense. The Irish struggled to bring down the 220-pound tailback, who even ran through Heisman Trophy finalist Manti Te'o on a screen pass.


In the second quarter, it was freshman T.J. Yeldon slipping through Te'o's arms in the backfield on a third-down run and getting a first down.


Lacy set up Alabama's second touchdown with another 20-yard run, this time to the Irish 2. Instead of running into a Notre Dame goal-line defense that has become known for goal-line stands, McCarron faked a handoff and found tight end Michael Williams all alone for the score and a 14-0 lead.


Alabama made it 3 for 3 on the next drive when Yeldon scored from a yard out on the first play of the second quarter.


The Alabama fans seemed outnumbered at Sun Life Stadium by Fighting Irish followers, pumped to see their team try to win its first national title in 24 years. But the folks in Crimson and houndstooth were making all the noise as the Tide rolled.


Lacy landed one more blow with 31 seconds left in the half. McCarron dumped off to Lacy, who spun off two tacklers, and went 11 yards to make it 28-0.


The Southeastern Conference, winners of the last six BCS championships, was storming toward seven in a row. Those familiar "S-E-C!" chants started early in this one.


The Fighting Irish started the third quarter with a promising drive that ended with another Alabama highlight.


HaHa Clinton-Dix made a sensational diving interception, grabbing a tipped pass and tapping his toe inches from the sideline. Alabama turned the game's first turnover into another long scoring drive. McCarron capped this one with a 34-yard TD pass to freshman Amari Cooper, the longest TD pass the Irish have given up this season.


With the score 35-0 and some Fighting Irish fans in the stadium record crowd of 80,120, Notre Dame finally got on the board with 4:08 left in the third.


Everett Golson took an option keeper 2 yards for a touchdown to break a streak of 108 minutes, 7 seconds in which Alabama had not allowed a point in a BCS championship game, dating to the last 6 minutes of the fourth quarter of the 2009 title game against Texas at the Rose Bowl. Alabama had scored 69 straight points in that span.


Alabama had 529 yards. The Irish defense came in allowing 286 per game.


Golson, the redshirt freshman quarterback who coach Brian Kelly had nurtured through the season, was 21 for 36 for 270 yards.


___


Follow Ralph D. Russo at www.Twitter.com/ralphDrussoAP


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Japan’s Cleanup After a Nuclear Accident Is Denounced


Ko Sasaki for The New York Times


Bags of contaminated soil outside the Naraha-Minami school near the Fukushima Daiichi nuclear power plant.







NARAHA, Japan — The decontamination crews at a deserted elementary school here are at the forefront of what Japan says is the most ambitious radiological cleanup the world has seen, one that promised to draw on cutting-edge technology from across the globe.








Ko Sasaki for The New York Times

Workers reflected in the glass of the Naraha-Minami Elementary School






But much of the work at the Naraha-Minami Elementary School, about 12 miles away from the ravaged Fukushima Daiichi nuclear power plant, tells another story. For eight hours a day, construction workers blast buildings with water, cut grass and shovel dirt and foliage into big black plastic bags — which, with nowhere to go, dot Naraha’s landscape like funeral mounds.


More than a year and a half since the nuclear crisis, much of Japan’s post-Fukushima cleanup remains primitive, slapdash and bereft of the cleanup methods lauded by government scientists as effective in removing harmful radioactive cesium from the environment.


Local businesses that responded to a government call to research and develop decontamination methods have found themselves largely left out. American and other foreign companies with proven expertise in environmental remediation, invited to Japan in June to show off their technologies, have similarly found little scope to participate.


Recent reports in the local media of cleanup crews dumping contaminated soil and leaves into rivers has focused attention on the sloppiness of the cleanup.


“What’s happening on the ground is a disgrace,” said Masafumi Shiga, president of Shiga Toso, a refurbishing company based in Iwaki, Fukushima. The company developed a more effective and safer way to remove cesium from concrete without using water, which could repollute the environment. “We’ve been ready to help for ages, but they say they’ve got their own way of cleaning up,” he said.


Shiga Toso’s technology was tested and identified by government scientists as “fit to deploy immediately,” but it has been used only at two small locations, including a concrete drain at the Naraha-Minami school.


Instead, both the central and local governments have handed over much of the 1 trillion yen decontamination effort to Japan’s largest construction companies. The politically connected companies have little radiological cleanup expertise and critics say they have cut corners to employ primitive — even potentially hazardous — techniques.


The construction companies have the great advantage of available manpower. Here in Naraha, about 1,500 cleanup workers are deployed every day to power-spray buildings, scrape soil off fields, and remove fallen leaves and undergrowth from forests and mountains, according to an official at the Maeda Corporation, which is in charge of the cleanup.


That number, the official said, will soon rise to 2,000, a large deployment rarely seen on even large-sale projects like dams and bridges.


The construction companies suggest new technologies may work, but are not necessarily cost-effective.


“In such a big undertaking, cost-effectiveness becomes very important,” said Takeshi Nishikawa, an executive based in Fukushima for the Kashima Corporation, Japan’s largest construction company. The company is in charge of the cleanup in the city of Tamura, a part of which lies within the 12-mile exclusion zone. “We bring skills and expertise to the project,” Mr. Nishikawa said.


Kashima also built the reactor buildings for all six reactors at the Fukushima Daiichi plant, leading some critics to question why control of the cleanup effort has been left to companies with deep ties to the nuclear industry.


Also worrying, industry experts say, are cleanup methods used by the construction companies that create loose contamination that can become airborne or enter the water.


At many sites, contaminated runoff from cleanup projects is not fully recovered and is being released into the environment, multiple people involved in the decontamination work said.


Makiko Inoue contributed reporting from Tokyo.



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