Feinstein has 'concern' about Rice's Benghazi talking points









Sen. Dianne Feinstein said Sunday that she has initiated a review of talking points used by U.N. Ambassador Susan Rice on the attack on the American diplomatic facility in Libya, with the goal of determining why the public comments appeared to conflict with the initial assessment of U.S. intelligence sources.


Feinstein, chair of the Senate Intelligence Committee, defended Rice against what she called the “politicization” of her comments on the battery of Sunday news shows in the wake of the Sept. 11 attack that led to the death of four Americans, including Ambassador Chris Stevens.


But the California senator also said she had “some concern” with the process that produced the unclassified “speaking points” that Rice worked off of, in which she said it was the administration’s preliminary view that the attacks were a spontaneous reaction to an anti-Islamic video, rather than a planned terrorist attack.





Feinstein, appearing on NBC’s “Meet the Press,” said that the now-former director of the Central Intelligence Agency, David H. Petraeus, had “very clearly said that it was a terrorist attack” in a meeting with lawmakers the day after the attack in Benghazi.


PHOTOS: U.S. ambassador killed in Libya


Asked then why Rice would not call the attack "terrorism" days later, Feinstein said it was because Petraeus’ view was based on information that was not yet cleared for public review.


“She could speak publicly only on unclassified speaking points. I have some concern with those speaking points,” Feinstein said. “We gave the direction yesterday that this whole process is going to be checked out. We are going to find out who made changes in the original statement. Until we do, I really think it's unwarranted to make accusations.”


Rep. Mike Rogers (R-Mich.), chair of the House Intelligence Committee, stopped short of saying information was withheld from initial talking points for political reasons.


Still, he said, “I know the narrative was wrong, and the intelligence was right.”


“The narrative, as it went from at least the CIA and other intelligence agencies, was accurate,” he said. “There were some policy decisions made based on the narrative that was not consistent with the intelligence that we had. That's my concern, and we need to say hey, we need to figure out how that happened.”


The episode involving Rice’s testimony on the Sept. 14 news shows is at the heart of Republicans’ questioning the administration’s handling of the Benghazi attack. More recently, it has become the basis for some lawmakers vowing to block the potential nomination of Rice to replace Hillary Rodham Clinton as secretary of State in President Obama’s second term.


Feinstein said it was not right for Rice to be “pilloried” for comments that were consistent with the approved statement she was given to speak off of. Sen. Lindsay Graham (R-S.C.) said that in considering a possible Rice nomination he was “not going to give her a plus for passing on a narrative that was misleading to the American people.”


PHOTOS: 2016 presidential possibilities


“I am very disappointed in Susan Rice … telling a story that was disconnected from reality that did make the president look good at a time when, quite frankly, the narrative should have been challenged not reinforced that Al Qaeda was dismantled,” he said.


Rep. Peter King (R-N.Y.) said that before appearing on the television shows, Rice should have had a fuller understanding of events.


“She certainly could have gotten the classified briefings. She would have sat down with the National Security Council, and she would have known that those talking points had been watered down, and she could have caveated that in her statement, which she didn't,” King said on ABC’s “This Week.” “President Obama said, don't blame Susan Rice because she had nothing to do with Benghazi. Then why did they send her out as the representative to the American people?”


Sen. John McCain (R-Ariz.) said on CBS’ “Face the Nation” that Rice has “a lot of explaining to do,” and should explain her comments if she is nominated.


“They said they wanted to not give classified assessment of what happened because they didn’t want to betray sources. Well if the classified assessment changed the unclassified assessment, then why in the world would you keep that information from the American people,” McCain said.


Sen. Dick Durbin (D-Ill.), a member of the Foreign Relations Committee, said it would be “totally unfair” to hold Rice responsible for simply relaying information she was given. He also accused McCain and Graham of hypocrisy for using the incident to potentially block a Rice nomination.


“Eight years ago when President Bush suggested Condoleezza Rice for secretary of State, some people said, ‘Well wait a minute, wasn’t she part of misleading the American people about intelligence information that led to our invasion of Iraq?’ And it was Sen. McCain and Sen. Graham who stood up and said, ‘Don’t hold her accountable for the intelligence that was given to her,’” Durbin said.


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michael.memoli@latimes.com


Twitter: @mikememoli





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Amazing Time-Lapse Video Features Ever-Changing Earth and Sky










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Heaven meets the Earth in this moving time-lapse video showing gorgeous landscapes underneath an ever-changing night sky.


“Within Two Worlds” was created by photographer Brad Goldpaint. The film features shooting comets, a giant tilting Milky Way, and glowing purple and pink auroras peeking over the horizon. Stunning sequences watch day turn to night and night to day, as overhead stars shine their beautiful light above mountains, forests, and waterfalls.


“This time-lapse video is my visual representation of how the night sky and landscapes co-exist within a world of contradictions. I hope this connection between heaven and earth inspires you to discover and create your own opportunities, to reach your rightful place within two worlds,” Goldpaint wrote on his Vimeo page.


Below you can see some of striking images from the movie, including screenshots of the Geminid meteor shower over Castle Lake in California and auroras over Crater Lake National park in Oregon.




Geminid meteor shower over Castle Lake



The Milky Way soars over Crater Lake as a Lyrid meteor flies overhead.



Star trails over Mount Shasta in California



Pink auroras over Crater Lake


Images and Video: Copyright Goldpaint Photography


Music composed by Serge Essiambre entitled, ‘Believe in Yourself’




Adam is a Wired reporter and freelance journalist. He lives in Oakland, Ca near a lake and enjoys space, physics, and other sciency things.

Read more by Adam Mann

Follow @adamspacemann on Twitter.



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One Direction top British single and album charts
















LONDON (Reuters) – Boy band One Direction topped Britain’s singles and album charts on Sunday, outselling new releases from rock veterans Rod Stewart and the Rolling Stones, the Official Charts Company said.


The English-Irish quintet shot to number one in the album charts with “Take Me Home”, with one of its tracks, “Little Things”, also taking first place in the singles rankings.













Singer Rod Stewart had to settle for number two for his new collection of seasonal classics “Merry Christmas Baby”, while the Rolling Stones were third with their 50th anniversary compilation “GRRR!”.


Also new in the album lists were British tenor Alfie Boe at number six with “Storyteller”, while American punk band Green Day entered in tenth place with “¡Dos!”.


American singer Bruno Mars took second place in the singles charts with “Locked Out Of Heaven”, just ahead of “DNA” at number three from British girl group Little Mix.


(Reporting by Tim Castle; Editing by Will Waterman)


Music News Headlines – Yahoo! News



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Ashlyn Blocker, the Girl Who Feels No Pain


Jeff Riedel for The New York Times


Ashlyn Blocker, who feels no pain, at home in Patterson, GA.







The girl who feels no pain was in the kitchen, stirring ramen noodles, when the spoon slipped from her hand and dropped into the pot of boiling water. It was a school night; the TV was on in the living room, and her mother was folding clothes on the couch. Without thinking, Ashlyn Blocker reached her right hand in to retrieve the spoon, then took her hand out of the water and stood looking at it under the oven light. She walked a few steps to the sink and ran cold water over all her faded white scars, then called to her mother, “I just put my fingers in!” Her mother, Tara Blocker, dropped the clothes and rushed to her daughter’s side. “Oh, my lord!” she said — after 13 years, that same old fear — and then she got some ice and gently pressed it against her daughter’s hand, relieved that the burn wasn’t worse.









Tara Blocker

When Ashlyn was 2, her mother had to wrap her hands to keep her from biting them.






“I showed her how to get another utensil and fish the spoon out,” Tara said with a weary laugh when she recounted the story to me two months later. “Another thing,” she said, “she’s starting to use flat irons for her hair, and those things get superhot.”


Tara was sitting on the couch in a T-shirt printed with the words “Camp Painless But Hopeful.” Ashlyn was curled on the living-room carpet crocheting a purse from one of the skeins of yarn she keeps piled in her room. Her 10-year-old sister, Tristen, was in the leather recliner, asleep on top of their father, John Blocker, who stretched out there after work and was slowly falling asleep, too. The house smelled of the homemade macaroni and cheese they were going to have for dinner. A South Georgia rainstorm drummed the gutters, and lightning illuminated the batting cage and the pool in the backyard.


Without lifting her eyes from the crochet hooks in her hands, Ashlyn spoke up to add one detail to her mother’s story. “I was just thinking, What did I just do?” she said.


Over six days with the Blockers, I watched Ashlyn behave like any 13-year-old girl, brushing her hair, dancing around and jumping on her bed. I also saw her run without regard for her body through the house as her parents pleaded with her to stop. And she played an intense game of air hockey with her sister, slamming the puck on the table as hard and fast as she could. When she made an egg sandwich on the skillet, she pressed her hands onto the bread as Tara had taught her, to make sure it was cool before she put it into her mouth. She can feel warmth and coolness, but not the more extreme temperatures that would cause anyone else to recoil in pain.


Tara and John weren’t completely comfortable leaving Ashlyn alone in the kitchen, but it was something they felt they had to do, a concession to her growing independence. They made a point of telling stories about how responsible she is, but every one came with a companion anecdote that was painful to hear. There was the time she burned the flesh off the palms of her hands when she was 2. John was using a pressure-washer in the driveway and left its motor running; in the moments that they took their eyes off her, Ashlyn walked over and put her hands on the muffler. When she lifted them up the skin was seared away. There was the one about the fire ants that swarmed her in the backyard, biting her over a hundred times while she looked at them and yelled: “Bugs! Bugs!” There was the time she broke her ankle and ran around on it for two days before her parents realized something was wrong. They told these stories as casually as they talked about Tristen’s softball games or their son Dereck’s golf skills, but it was clear they were still struggling after all these years with how to keep Ashlyn safe.


A couple of nights after telling me the story about putting her hand in the boiling water, Ashlyn sat in the kitchen, playing with the headband that held back her long brown hair. We had all been drawing on napkins and playing checkers and listening to Ashlyn and Tristen sing “Call Me Maybe,” when all of a sudden Tara gasped and lifted the hair away from her daughter’s ears. She was bleeding beneath it. The headband had been cutting into her skin entire time we were sitting there.



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How to Survive Societal Collapse in Suburbia





On a clear morning in May, Ron Douglas left his home in exurban Denver, eased into his Toyota pickup truck and drove to a business meeting at a Starbucks. Douglas, a bearded bear of a man, ordered a venti double-chocolate-chip Frappuccino — “the girliest drink ever,” he called it — and then sat down to discuss the future of the growing survivalist industry.




Many so-called survivalists would take pride in keeping far away from places that sell espresso drinks. But Douglas, a 38-year-old entrepreneur and founder of one of the largest preparedness expos in the country, isn’t your typical prepper.


At that morning’s meeting, a strategy session with two new colleagues, Douglas made it clear that he doesn’t even like the word “survivalist.” He believes the word is ruined, evoking “the nut job who lives out in the mountains by himself on the retreat.” Instead, he prefers “self-reliance.”


When prompted by his colleagues to define the term, Douglas leaned forward in his chair. “I’m glad you asked,” he replied. “Take notes. This is good.”


For the next several minutes, Douglas talked about emergency preparedness, sustainable living and financial security — what he called the three pillars of self-reliance. He detailed the importance of solar panels, gardens, water storage and food stockpiles. People shouldn’t just have 72-hour emergency kits for when the power grid goes down; they should learn how to live on their own. It’s a message that Douglas is trying to move from the fringe to the mainstream.


“Our main goal is to reach as many people and get the word out to as many people as we can, to get them thinking and moving in this direction,” he said. “Sound good?”


The preparedness industry, always prosperous during hard times, is thriving again now. In Douglas’s circles, people talk about “the end of the world as we know it” with such regularity that the acronym Teotwawki (tee-ought-wah-kee) has come into widespread use. The Vivos Group, which sells luxury bunkers, until recently had a clock on its Web site that was ticking down to Dec. 21, 2012 — a date that, thanks to the Mayan calendar, some believe will usher in the end times. But amid the alarmism, there is real concern that the world is indeed increasingly fragile — a concern highlighted most recently by Hurricane Sandy. The storm’s aftermath has shown just how unprepared most of us are to do without the staples of modern life: food, fuel, transportation and electric power.


The survivalist business surged in the wake of 9/11, when authorities instructed New Yorkers to prepare disaster kits, learn how to seal doors and vents with duct tape and be ready to evacuate at any time. Threat-level warnings about possible terrorist attacks kept Americans rattled for years, and were followed by various disasters of other types: the financial meltdown, Hurricanes Katrina and Ike, drought, blackouts and concerns over everything from rising sea levels to Iran’s nuclear program.


Late last year, Douglas and his partners formed the Red Shed Media Group, a single corporate home for several endeavors: the Self Reliance Expo, conventions that Douglas founded in 2010, dedicated to showcasing survival gear and skills; Self Reliance Broadcasting, an Internet-based channel devoted to the cause; and an entity that controls the rights to publishing “Making the Best of Basics,” a popular survivalist handbook. The name Red Shed was symbolic for Douglas. “When your grandfather went and did a project,” he told me, “he went out to the red shed and pulled out all the tools he needed for the job.” Douglas wants his virtual red shed to be a single place where people can get all the preparedness information they need. Five expos this year have drawn 40,000 people who pay $10 each. The radio network has logged more than two million podcast downloads; in one day alone in July, it reported nearly 90,000 downloads. The book, which was first published in 1974, includes recipes for everything from wild pig (“they are easy to prepare”) to dove pie (“simmer for one hour or until doves are tender”). Douglas said it had sold about 20,000 copies this year.


But the goal isn’t just to sell to the same old preparedness crowd. Red Shed wants to attract liberals and political moderates to a marketplace historically populated by conservatives and right-wing extremists. “It’s not the end of the world,” Douglas told me last spring, making a bold statement for someone in his industry. “It’s not doomsday.” It’s about showing the gun-toting mountain man in his camouflage and the suburban soccer mom in her minivan that they want the same thing: peace of mind. “We don’t say, ‘Hurry up and buy your stuff because Obama is going to ruin the country,’ ” Douglas said. “We don’t get into the political crap. We just want to teach people the lifestyle.”



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Egypt crash kills 49 schoolchildren; transportation chief resigns









CAIRO — The Egyptian transportation minister resigned Saturday after 49 children were killed on their way to school in southern Egypt in a collision between their bus and a train.

The state-run news agency said a total of 51 people died in all in the accident near Mandara village in Assiut province. Another 16 were injured.


Before submitting his resignation and taking responsibility for the crash, Transportation Minister Mohamed Rashad Metiny requested an investigation by the national Railways System.





The bus, which was carrying 60 students, collided with the train as it was crossing the track.


Roads and railways in Egypt are known for their poor safety record. Many have not been renovated in 30 years. The accident Saturday was the second serious mishap in the two months.


In October, as many as six people died in a train crash near the Nile Delta. Police officials arrested the assistant conductor, who was put under investigation.


The railway system is a popular means of transportation for many of Egypt's 82 million citizens. Egyptians have repeatedly called on the government to invest in the rails and provide newer, safer train cars.


The country's crumbling infrastructure and hazardous transportation system serves as another obstacle for President Mohamed Morsi, who most Egyptians say failed to deliver on his promises in his first 100 day-plan as president. Morsi briefly addressed the nation after Saturday’s crash. He sent condolences and promised support to families of the deceased.


"President Mohamed Morsi is responsible and must follow up personally," the April 6 group, an activist organization said in a statement. "He is the one who chose this failed government whose disasters increase day after day."


ALSO:


Israel destroys Hamas headquarters in Gaza City 


Politician Balasaheb Thackeray dies in India; Mumbai on alert


Australian scientists find excess greenhouse gas near fracking 





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Israel's Rocket-Hunting Ace Got His Start Playing <em>Warcraft</em>



War has once again erupted between Hamas and the Israel Defense Forces, with the Gaza-based militant group launching hundreds of rockets and missiles at Israeli towns. But many of these projectiles never made it to their targets, thanks to the new Iron Dome missile defense system that’s arguably become this conflict’s most important technological difference-maker. This article, first published in April, tracks the story of Iron Dome’s most prolific “gunner.” While his record for shooting down missiles and rockets has by now undoubtedly fallen, the tale still gives insight into the battle now gripping Israel and Gaza.


KFAR GVIROL, Israel — While many of the boys in Idan Yahya’s high school class were buffing up and preparing themselves for selection into elite combat units, this gawky teenager was spending “a lot of time” playing Warcraft — the real-time strategy computer game where opposing players command virtual armies in a battle to dominate the fictional world of Azeroth.


Four years later, the high school jocks who sweated it out in pre-military academies so they could make the cut into the Israel Defense Force’s Special Operations units are now crawling through the sand dunes on the outskirts of the Gaza Strip and watching while Idan knocks rockets out of the sky hundreds of meters above their heads. Idan Yahya, 22, an Iron Dome “gunner” in the Active Air Defense Wing 167, currently holds the record for the number of rockets intercepted: eight.


People in the army describe him variously as a geek and an ace. But the geek who grew up playing Warcraft is now a highly prized soldier on the cutting edge of real war craft. He’s the Israeli army’s top rocket interceptor.


The Iron Dome is a mobile anti-rocket interception system that Israel moves around the country to shoot down the rockets fired at its civilian population centers by armed groups in Gaza and southern Lebanon. Its radar picks up launches and fires interceptor missiles at them if they’re calculated to be heading towards populated centers. The system has become increasingly important as Hamas, Hezbollah and other groups amass surface-to-surface missiles to hit the Israeli home front with, thus bypassing the Israel Defense Force’s overwhelming advantage of concentrated firepower and fighter aircraft. Should Israel attack Iran’s nuclear installations, the expected rocket reprisals from the armed groups on its borders will keep Iron Dome very, very busy.


As the war between Israelis and Arabs enters its sixth decade (or its 500th depending on who you ask), it is increasingly becoming a hi-tech rocket war. The IDF’s Director of Military Intelligence Maj. Gen. Aviv Kochavi in February said there were 200,000 rockets aimed at Israel from the south, north and east. And in this increasingly technological battlefield of rockets, anti-rocket interceptors, radars, control rooms, drones and drone hacking, it is soldiers like Idan Yahya (and whoever his counterparts on the Arab side are) who are making the most impact.


Computer geek, keyboard combatant, soldier, call him what you will, Idan and others like him man the controls of the latest rock star in advanced military technology. “There are a lot of flashing blips, signs, symbols, colors and pictures on the screen. You look at your tactical map; see where the threat is coming from. You have to make sure you’re locked onto the right target. There’s a lot of information and there is very little time. It definitely reminds me of Warcraft and other online strategy games,” Idan says.



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“Sister” Director Tackles Taboo of Switzerland’s Class Divide With Her Oscar Contender
















LOS ANGELES (TheWrap.com) – Director Ursula Meier can hardly believe that her film “Sister” – which depicts tenements, poverty and a seemingly rigid class system in lovely Switzerland – has made it over the Alps to Hollywood for Academy consideration.


“It shows a not-very-usual aspect of Switzerland,” Meier told the audience at a showing of “Sister” Thursday night at the Landmark, part of TheWrap’s Academy Screening Series. “We don’t show the beautiful mountains and the green and the lush life … For me it was important to show another point of view on this country to the world. Because usually it’s Montblanc, chocolate, and Swatch.”













Indeed, with her second film, Meier has given international audiences something else to associate with Switzerland: larcenous snow urchins.


“Sister” centers mostly around 12-year-old Simon (Kacey Mottet Klein), who lives in a high-rise tenement in a not-so-snowy valley far below a ski resort and takes gondolas to the top to steal wealthy tourists’ skis right out from under their goggles.


Wily Simon is financing not just his own existence but that of Louise (Lea Seydoux), the title character, who just might be the worst parental figure or caretaker in a cinematic year that did, after all, include “Beasts of the Southern Wild.”


It would involve spoilers to explain why Simon’s older sis is not everything she’s cracked up to be. But there’s nothing misleading about this boy-crazy, substance-abusing twentysomething gal’s unfitness to watch over Simon, the breadwinner of their sad two-person family.


He has to empty out his cash drawer to bribe Louise into snuggling with him, and when he entrusts her with the mere task of waxing skis, she can’t even do that without spilling cigarette ashes on the stolen merchandise.


“It was important for me, when we were at the ski resort, to showing the back door of the restaurant, and the workers inside … And it’s just at the end, when it’s finished, when there is no more snow and the ski resort is closed, for the first time Simon looks at the landscape. And we can see how beautiful this place is, but it’s too late now.”


Meier worked with her young leading man on her first theatrical feature, 2009′s “Home,” where he played Isabella Huppert’s son when he was just 7. She’s emphatic that Klein is not the kind of child actor who has to be tricked into giving a performance.


“During the first casting, I ask him, ‘What do you like to do in your life, Kasey?’ And he told me, ‘Thinking.’ So I said ‘OK, think,’ and I turned on the camera, and he was amazing … He understands that acting is to be, not to look like. So I really wanted to write for him with this film, because it was such an amazing experience on my first film.”


The role of the severely neglectful “sister” was tougher to nail down, both for the director and her leading actress.


“This character was the challenge of the film,” Meier said. “Because Kacey’s character is a child, so for the spectator, of course he’s a victim. But with the character of Louise, for Lea as an actress, at the beginning for her it was very hard to find the fragility of the character. I showed her a lot of films like ‘Vagabond’ … I explained to her, you were 14 when you were pregnant; it was too young for a girl, and you stopped your studies and got bad jobs you cut with your family.”


Sometimes, she said, they’d fight because “she couldn’t find the fragility of the character, and suddenly, months later, wow – it was like we cut something open and all the emotion that came out from her was very deep. I was afraid of the spectators judging the character. It was not easy, in the writing, or in the directing with the actors, because I wanted that they would love these characters, even if they’re sometimes terrible. But I like terrible characters.”


Pond told Meier that when it came to supporting actress Gillian Anderson, of “X-Files” fame, “the first time I watched, I didn’t realize it was her till the end credits” – an experience probably shared by most of those in attendance at the screening.


“I’m very happy that you say that,” said Meier, “because if you recognize the actress, you think about the actress.” But the director did want Armstrong to provoke a where-have-I-seen-you-before vibe.


“I really wanted to be played by a star – not to have a star in my film, but because it was important for Simon to have a kind of phantasma this lady, of what he wants as a mother.


And as a spectator, you can have a phantasma on the star. So I like that she came from another country, and not speak French, because she’s almost an apparition.”


Meier admitted she was frightened before the Swiss premiere – before “Sister” went on to play various fests and win the special Golden Bear award at the Berlin Film Festival.


“When I had the first screening in Switzerland, a lady came back to me and was very moved by the film, because it’s usually a taboo to show poverty in Switzerland. She cried and told me, ‘I grew up in exactly the same place. My father was a worker in the factory we saw in the film, and as a child we never had the money to go up.’ I liked that she just said up.”


Movies News Headlines – Yahoo! News



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Well: Meatless Main Dishes for a Holiday Table

Most vegetarian diners are happy to fill their plates with delicious sides and salads, but if you want to make them feel special, consider one of these main course vegetarian dishes from Martha Rose Shulman. All of them are inspired by Greek cooking, which has a rich tradition of vegetarian meals.

I know that Greek food is not exactly what comes to mind when you hear the word “Thanksgiving,” yet why not consider this cuisine if you’re searching for a meatless main dish that will please a crowd? It’s certainly a better idea, in my mind, than Tofurky and all of the other overprocessed attempts at making a vegan turkey. If you want to serve something that will be somewhat reminiscent of a turkey, make the stuffed acorn squashes in this week’s selection, and once they’re out of the oven, stick some feathers in the “rump,” as I did for the first vegetarian Thanksgiving I ever cooked: I stuffed and baked a huge crookneck squash, then decorated it with turkey feathers. The filling wasn’t nearly as good as the one you’ll get this week, but the creation was fun.

Here are five new vegetarian recipes for your Thanksgiving table — or any time.

Giant Beans With Spinach, Tomatoes and Feta: This delicious, dill-infused dish is inspired by a northern Greek recipe from Diane Kochilas’s wonderful new cookbook, “The Country Cooking of Greece.”


Northern Greek Mushroom and Onion Pie: Meaty portobello mushrooms make this a very substantial dish.


Roasted Eggplant and Chickpeas With Cinnamon-Tinged Tomato Sauce and Feta: This fragrant and comforting dish can easily be modified for vegans.


Coiled Greek Winter Squash Pie: The extra time this beautiful vegetable pie takes to assemble is worth it for a holiday dinner.


Baked Acorn Squash Stuffed With Wild Rice and Kale Risotto: Serve one squash to each person at your Thanksgiving meal: They’ll be like miniature vegetarian (or vegan) turkeys.


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Privatizing Greece, Slowly but Not Surely


Eirini Vourloumis for The International Herald Tribune


Potential privatization hit a wall at Katakolo, a seaside town where Christos Konstantopoulos paused near abandoned beachfront homes. More Photos »







THE government inspectors set out from Athens for what they thought was a pristine patch of coastline on the Ionian Sea. Their mission was to determine how much money that sun-kissed shore, owned by the Greek government, might sell for under a sweeping privatization program demanded by the nation’s restive creditors.




What the inspectors found was 7,000 homes — none of which were supposed to be there. They had been thrown up without ever having been recorded in a land registry.


“If the government wanted to privatize here, they would have to bulldoze everything,” says Makis Paraskevopoulos, the local mayor. “And that’s never going to happen.”


Athens agreed. It scratched the town, Katakolo, off a list of potential properties to sell. But as Greece redoubles its efforts to raise billions to cut its debt and stoke its economy, the situation in Katakolo illustrates the daunting hurdles ahead.


In the three years since the International Monetary Fund, the European Central Bank and the European Commission — the so-called troika of lenders — first required Greece to sell state assets, a mere 1.6 billion euros have been raised. Last Tuesday, European leaders said Greece needed an additional 15 billion euros in aid through 2014 to meet debt-reduction targets — partly because Athens has failed to make money on privatization.


Now, the troika may consider cutting an already lowered target for Greece to raise 19 billion euros by 2015 to about 10 billion euros as investors worry that Greece may have to leave the euro. The troika is requiring that Greece must still raise 50 billion through privatizations by 2022.


The I.M.F. estimates that those funds, should they materialize, will trim only up to 1 percent from Greece’s debt, which is expected to rise to a staggering 189 percent of the nation’s economic output in 2013, from 175 percent this year.


But with Greece’s economy headed into its sixth year of recession, and unemployment at 25 percent, the nation’s immediate goal is to lure any investment it can through long-term leases on state properties to create jobs and get money flowing into depleted public coffers.


“This could put the economy back in motion,” says Andreas Taprantzis, the executive director of the Hellenic Republic Asset Development Fund, a new agency set up to hasten privatization. If investors develop land, restructure highways or build business parks, the activity would “help employment, which is a major issue for Greece,” he says.


Indeed, privatization is one of the last hopes here for luring foreign cash.


Efforts stumbled anew last summer, when the government fell and two chaotic elections were held, amplifying fears of what is known in financial circles as a “Grexit” — a Greek exit from the euro. Investor confidence fell so low that a recent survey by the BDO consulting firm found that Greece was considered more risky for investment than Syria.


Yet as Prime Minister Antonis Samaras took steps last week to secure an additional 31.5 billion euros of bailout money from creditors, the thinking is that if one major asset can be sold now, investors will feel better about spending their money on Greece.


OFFICIALS are trotting out Greece’s most tempting offer: OPAP, the highly profitable gambling company in which the government has a major stake. Its gambling agencies abound around Athens and in Greek villages. Last week, as the government went on a road show to China to drum up investor interest, eight bids landed, including one from a Chinese concern.


Still, Mr. Taprantzis’s agency faces a daunting task. The idea of the country selling off its crown jewels touches a raw nerve here. Many Greeks say the government is buckling to decrees from the troika. Citizen protests have flared over nearly every state asset up for offer, including ones that have long bled cash — even if shedding them would help Greece’s finances.


Others say the government is so desperate that prime assets will be sold too cheaply. In the case of OPAP, Greeks grumble about the government’s logic in selling one of the few things that brings a steady stream of money to the treasury.


Given the culture of clientelism that pervades business dealings in Greece, others are concerned that properties will wind up in the hands of powerful Greek oligarchs who, these critics worry, may be waiting for an opportunity to get them at a cut-rate price.


Dimitris Bounias contributed reporting.



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