A rare blue diamond has sold for a record 10.5 million Swiss francs ($9.5m; £6.2m) at auction in Geneva.
It weighs 7.03 carats, is smaller than a penny piece, and is one of only a handful of blue diamonds in existence.
The anonymous phone bidder has yet to name the gem, mounted on a platinum ring, auctioneers Sotheby's said.
The diamond was found in Cullinan mine in South Africa last year, and its clarity was graded as flawless - the highest designation.
Auctioneer David Bennett said: "It is a new world record price for a blue diamond."
It had a pre-sale catalogue estimate of 6.8 million to 10 million francs, excluding commission.
'Beyond beautiful'
The hammer price excluding commission was 9.3 million francs.
The scarcity of the gems is in part down to the fact so few places in the world mine for blue diamonds.
Mr Bennett said: "For people who are looking to buy something that nobody else has, or somebody who wants something that is beyond beautiful, a blue diamond is going to be very difficult to find, so when they appear on the market, you have to have a go."
The stones get their colour when the chemical boron is present during formation.
In May 2008 a 3.73 carat diamond was sold by Sotheby's at auction for nearly $5m (£3.4m) setting the world record price per carat for any gemstone at auction.
Tuesday, May 12, 2009
Monday, May 11, 2009
Sri Lankan troops poised for big breakthrough
The Sri Lankan military is hopeful of neutralising the military capabilities of the Liberation Tigers of Tamil Eelam inside the new safety zone (NSZ) in the next 48 hours and paving the way for the release of civilians being held hostage, even as the United Nations characterised the heavy casualties inside the zone in the last two days as a ‘blood bath’ in which over 100 children are believed to have died.
“On the basis of reports from the military commanders I can say that the troops are poised for a major breakthrough in the next 48 hours. The LTTE would soon lose its wherewithal to offer organised resistance and the troops expect to repeat a feat like on April 20 when the military succeeded in breaching the three-kilometre Tiger earth wall-cum-band and facilitated the escape of 1.16 lakh civilians from the LTTE clutches,” Defence Secretary Gotabaya Rajapaksa told Doordarshan in an interview here on Monday.
The Defence Secretary denied reports of shelling on the NSZ by the military and dismissed them as propaganda by the LTTE to coincide with Monday’s U.N. Security Council meeting. He charged the Tigers with indiscriminate firing at a group of 1,000 fleeing civilians.
The military said 250 of them were either killed or injured in LTTE firing and released purported transcripts of intercepted communication among the Tigers forcibly stopping civilians. It said the LTTE suffered heavy casualties as the troops pushed deeper into the NSZ.
Military spokesperson of the LTTE Rasiah Ilanthriyan was among those killed. On Sunday, it was announced that the second in command in the Sea Tigers wing died in fighting. Sri Lanka Government doctor V. Shanmugarajah, who works at a makeshift hospital in the war zone, said 393 people were either brought to the hospital for burial or had died at the facility on Sunday, while another 37 bodies were brought in on Monday morning. More than 1,300 injured came to the hospital, he said.
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“On the basis of reports from the military commanders I can say that the troops are poised for a major breakthrough in the next 48 hours. The LTTE would soon lose its wherewithal to offer organised resistance and the troops expect to repeat a feat like on April 20 when the military succeeded in breaching the three-kilometre Tiger earth wall-cum-band and facilitated the escape of 1.16 lakh civilians from the LTTE clutches,” Defence Secretary Gotabaya Rajapaksa told Doordarshan in an interview here on Monday.
The Defence Secretary denied reports of shelling on the NSZ by the military and dismissed them as propaganda by the LTTE to coincide with Monday’s U.N. Security Council meeting. He charged the Tigers with indiscriminate firing at a group of 1,000 fleeing civilians.
The military said 250 of them were either killed or injured in LTTE firing and released purported transcripts of intercepted communication among the Tigers forcibly stopping civilians. It said the LTTE suffered heavy casualties as the troops pushed deeper into the NSZ.
Military spokesperson of the LTTE Rasiah Ilanthriyan was among those killed. On Sunday, it was announced that the second in command in the Sea Tigers wing died in fighting. Sri Lanka Government doctor V. Shanmugarajah, who works at a makeshift hospital in the war zone, said 393 people were either brought to the hospital for burial or had died at the facility on Sunday, while another 37 bodies were brought in on Monday morning. More than 1,300 injured came to the hospital, he said.
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Catch me if you can, says ‘richest’ candidate
In a strange move to raise doubts over the honesty of the political class, a candidate from South Chennai, J. Mohanraj, declared that he had Rs 1,977 crore in deposits, making him the richest contestant in the 2009 Lok Sabha elections.
Son of a veteran freedom fighter and Congressman from Tamil Nadu, 57-year-old Mohanraj, is representing the Jebamani Janata Party, an unrecognised party.
He told Hindustan Times on Monday, “If what the top political leaders have declared as their assets are correct, then mine is also correct. I will say all my assets are in a Swiss bank and if you bring back black money, my name will also be in that list,” he said.
He termed his move as a “patriotic duty” to show how the leaders were “making a mockery” of the Supreme Court judgment and violating all electoral norms.
Mohanraj, however, said he had Rs 2,000 in cash, four acres of land at Oothukottai village, 50 km from Chennai, seven acres in the same village in his wife’s name and 35 gold sovereigns his wife possessed which was now worth Rs 3.50 lakh.
Besides, he owns an apartment worth Rs 10 lakh in the city. But it is hypothecated to a bank for a loan. He said if only the Returning Officer had seen this entry, he should have had doubts over his cash deposits elsewhere
Son of a veteran freedom fighter and Congressman from Tamil Nadu, 57-year-old Mohanraj, is representing the Jebamani Janata Party, an unrecognised party.
He told Hindustan Times on Monday, “If what the top political leaders have declared as their assets are correct, then mine is also correct. I will say all my assets are in a Swiss bank and if you bring back black money, my name will also be in that list,” he said.
He termed his move as a “patriotic duty” to show how the leaders were “making a mockery” of the Supreme Court judgment and violating all electoral norms.
Mohanraj, however, said he had Rs 2,000 in cash, four acres of land at Oothukottai village, 50 km from Chennai, seven acres in the same village in his wife’s name and 35 gold sovereigns his wife possessed which was now worth Rs 3.50 lakh.
Besides, he owns an apartment worth Rs 10 lakh in the city. But it is hypothecated to a bank for a loan. He said if only the Returning Officer had seen this entry, he should have had doubts over his cash deposits elsewhere
8 lakh people homeless as Taliban-army fighting intensifies
Dodging army shells and the Taliban, Sikh families from Swat and other parts of war-ravaged northern Pakistan have landed in a gurdwara on the plains of Punjab.
Many arrived at Gurdwara Panja Sahib in the dusty town of Hasan Abdal, about 40 kilometres northwest of Islamabad, with only the clothes on their back.
“We headed for Hasan Abdal because this is the only place we knew of,” Dr. Ashok Kumar, a six-foot Pathan from Pir Baba village in Buner district, told Hindustan Times.
Displacement is haunting the country as the military takes on the Taliban. A total of 3.6 lakh have fled their homes in northwestern Pakistan in the last week, the United Nations estimated on Sunday. This is in addition to the five lakh displaced in previous bouts of fighting.
Suran Singh, affiliated to the Pakistani Gurdwara Parbhan-dak Committee, is a worried man. He is concerned about meeting the daily needs of about 340 families in Hasan Abdal.
Singh, a homeopathic doctor, left his clinic in Buner and fled with six family members packed in his Suzuki on April 28.
Since his arrival, he has taken charge as spokesman and chief organiser. At home, he was an elected member of the local council. “The only thing people want is to go home,” Singh said.
In many ways, the Sikhs were lucky— they had some place to go to. “Many of our Muslim neighbours and friends have ended up in tents,” he said, stressing that fear of shelling was paramount.
On the imposition of the jaziya tax – a levy by the Taliban on non-Muslims -- Singh said, “I was not approached. In fact, the Taliban came to my area on April 4 and for almost a month we lived under their control. We fled when the fighting intensified.”
Others, however, say they heard of the jaziya tax. “I know families in Tirah were told to pay,” said a young man, who preferred anonymity.
Others said the Taliban were holding some Sikhs against their will.
Manzoor Bhatti, the caretaker of the gurdwara, said the Sikh refugees, many of whom are professional doctors and engineers, are happy to run their affairs.
So far, both the government and the United Nations have helped with supplies. However, to sustain such a large number over a longer period would be difficult.
Sandeep Kumar, a student of Edwards College in Peshawar, said his family never migrated to India after partition “because the Muslims in our area begged us to stay on.” Now, however, “we have been forced out by extremists, not our neighbours.”
“We are Pathans first and Sikh later. These times are troubling for all Pathans not just the Sikhs,” said Suran Singh with a smile, when asked to comment on the offer to migrate to India. “We need to fight this challenge together.”
This is a sentiment shared by many in the Panja Sahib Gurdwara.
Many arrived at Gurdwara Panja Sahib in the dusty town of Hasan Abdal, about 40 kilometres northwest of Islamabad, with only the clothes on their back.
“We headed for Hasan Abdal because this is the only place we knew of,” Dr. Ashok Kumar, a six-foot Pathan from Pir Baba village in Buner district, told Hindustan Times.
Displacement is haunting the country as the military takes on the Taliban. A total of 3.6 lakh have fled their homes in northwestern Pakistan in the last week, the United Nations estimated on Sunday. This is in addition to the five lakh displaced in previous bouts of fighting.
Suran Singh, affiliated to the Pakistani Gurdwara Parbhan-dak Committee, is a worried man. He is concerned about meeting the daily needs of about 340 families in Hasan Abdal.
Singh, a homeopathic doctor, left his clinic in Buner and fled with six family members packed in his Suzuki on April 28.
Since his arrival, he has taken charge as spokesman and chief organiser. At home, he was an elected member of the local council. “The only thing people want is to go home,” Singh said.
In many ways, the Sikhs were lucky— they had some place to go to. “Many of our Muslim neighbours and friends have ended up in tents,” he said, stressing that fear of shelling was paramount.
On the imposition of the jaziya tax – a levy by the Taliban on non-Muslims -- Singh said, “I was not approached. In fact, the Taliban came to my area on April 4 and for almost a month we lived under their control. We fled when the fighting intensified.”
Others, however, say they heard of the jaziya tax. “I know families in Tirah were told to pay,” said a young man, who preferred anonymity.
Others said the Taliban were holding some Sikhs against their will.
Manzoor Bhatti, the caretaker of the gurdwara, said the Sikh refugees, many of whom are professional doctors and engineers, are happy to run their affairs.
So far, both the government and the United Nations have helped with supplies. However, to sustain such a large number over a longer period would be difficult.
Sandeep Kumar, a student of Edwards College in Peshawar, said his family never migrated to India after partition “because the Muslims in our area begged us to stay on.” Now, however, “we have been forced out by extremists, not our neighbours.”
“We are Pathans first and Sikh later. These times are troubling for all Pathans not just the Sikhs,” said Suran Singh with a smile, when asked to comment on the offer to migrate to India. “We need to fight this challenge together.”
This is a sentiment shared by many in the Panja Sahib Gurdwara.
World's carmakers racing to form alliances
The breakdown of two of Detroit's Big Three is bringing a new urgency to the scramble among the world's automakers to forge alliances with former rivals, carve inroads into new markets and shop for well-known brands.
The turmoil has led to a flurry of deals that is realigning the automotive playing field. Italian automaker Fiat's bid to become a truly global player by acquiring control of Chrysler and eyeing General Motors Corp.'s European operations is only the most obvious move. There have been several others -- some in the works, others only rumored -- spanning Europe, Asia and North America.
The goal for automakers, analysts say, is to survive the worst climate for vehicle sales in decades by getting bigger and broader. To do that, they're looking to either acquire distribution networks in new markets for their own cars or bid for the brands that have come up for sale as a result of Chrysler and GM's struggles.
But it's still not clear how much your local auto-dealer row will have changed a decade from now.
"The GM and Chrysler restructurings are going to trigger a major shift in the way the automaker landscape looks over the next five to 10 years," said George Peterson, president of Tustin consulting firm AutoPacific. "There could be so many permutations and combinations that you can't really predict what will happen."
Chrysler, which also sells the Dodge and Jeep brands, filed for bankruptcy protection April 30, the same day it struck an alliance with Fiat that ultimately could give the Italian company a controlling stake in the onetime American auto stalwart. GM is trying to avoid bankruptcy in part by unloading its Saturn and Hummer brands in the U.S., its Opel division in Europe and its Swedish car marque Saab. It's also killing its Pontiac brand.
Striking the deal for Chrysler will give Fiat, which fled the U.S. market in the 1980s, an instant dealer network to sell small, fuel-efficient cars built in North America and based on models such as the Fiat 500, popular in Europe. The Italian company is also in talks with GM to take over Opel and has expressed interest in Saab.
Completing all those deals could vault Fiat into the top five among the world's auto companies in terms of sales. (It currently ranks 11th.) But others are angling for Opel -- Canadian auto parts maker Magna International Inc., for instance -- and reports have surfaced that Chinese automaker Geely Automobile Holdings Ltd. is interested in Saab. Geely denied that report.
Other reports have Penske Automotive Group Inc., the Bloomfield Hills, Mich., dealership chain, in talks with GM about acquiring Saturn's distribution network. GM said Monday that it was in talks with two bidders for Hummer.
Not everyone is in the hunt. Renault-Nissan, the Franco-Japanese alliance that some point to as a model for global auto hookups, said this week that it had no plans to bid on Chrysler's or GM's dangling assets.
Germany's Volkswagen, the world's third-largest automaker behind GM and Toyota Motor Corp., also is sitting this one out -- for now. VW already is a mini-U.N. of transportation, fielding an international portfolio of nameplates that includes Audi in Germany, Seat (pronounced say-aht) in Spain, Lamborghini in Italy, Skoda in the Czech Republic, Bugatti in France and Bentley in Britain. And it is in the process of merging with its majority shareholder, German sports-car maker Porsche.
Rather than buy more brands, VW appears intent on shoring up its presence in the United States, where it has a paltry 2% market share.
The globalization gambit is nothing new, of course. Auto companies have been forging cross-border alliances in recent years to share technology, which has become increasingly complex and expensive to develop, notes Ron Pinelli, president of AutoData Ltd., which compiles industry sales figures.
Some foreign affairs have foundered. The marriage of Chrysler and Germany's Daimler (parent of Mercedes-Benz) famously failed, as did a dalliance between GM and Fiat earlier in the decade.
And Ford Motor Co.'s decision to give up on collecting foreign auto marques kicked off the worldwide auto swap meet in 2007, when it began dismantling its Irvine-based stable of foreign luxury brands, eventually selling off Aston Martin, Jaguar and Land Rover. The last piece, Swedish automaker Volvo, is on the auction block.
Ford is concentrating on simplifying its vehicle lineup and using some of its popular European models, such as the Fiesta and the Euro-version of the Focus, as the basis for small cars that it hopes will be profitable sellers in America.
Other liaisons have been more successful. Paris-based PSA Peugeot Citroen has teamed with Japan's Mitsubishi Motors Corp. to build a PSA-badged crossover SUV based on the Mitsubishi Outlander.
The question remains how markedly the reshuffling will alter the global auto market.
Barring a complete collapse of GM, the upper ranks of the world's auto companies aren't likely to change significantly in the near future, analyst say, despite repeated predictions that waves of Chinese and Indian cars are about to flood global markets. Fiat, if it succeeds in its multiple acquisitions, might be the only car company to dramatically raise its international profile.
In the meantime, South Korean automaker Hyundai Motor Co. -- which also controls the Kia brand -- continues to solidify its position in the United States, still the world's most important car market. Based on sales last year, Hyundai-Kia ranks No. 5 globally and No. 7 in the U.S.
And Toyota, despite recent struggles, isn't likely to be displaced by Fiat any time soon.
There are more than 100 Chinese auto companies, and it's unclear which ultimately will rise to true prominence.
In the coming years, "you'll see new badges, you'll see new companies from China and India," said Dan Cheng, head of consultant A.T. Kearney's North American auto practice. "But they'll be niche players.
"I would not expect to see 12 different full-line [automakers] offering a full range of vehicles."
The turmoil has led to a flurry of deals that is realigning the automotive playing field. Italian automaker Fiat's bid to become a truly global player by acquiring control of Chrysler and eyeing General Motors Corp.'s European operations is only the most obvious move. There have been several others -- some in the works, others only rumored -- spanning Europe, Asia and North America.
The goal for automakers, analysts say, is to survive the worst climate for vehicle sales in decades by getting bigger and broader. To do that, they're looking to either acquire distribution networks in new markets for their own cars or bid for the brands that have come up for sale as a result of Chrysler and GM's struggles.
But it's still not clear how much your local auto-dealer row will have changed a decade from now.
"The GM and Chrysler restructurings are going to trigger a major shift in the way the automaker landscape looks over the next five to 10 years," said George Peterson, president of Tustin consulting firm AutoPacific. "There could be so many permutations and combinations that you can't really predict what will happen."
Chrysler, which also sells the Dodge and Jeep brands, filed for bankruptcy protection April 30, the same day it struck an alliance with Fiat that ultimately could give the Italian company a controlling stake in the onetime American auto stalwart. GM is trying to avoid bankruptcy in part by unloading its Saturn and Hummer brands in the U.S., its Opel division in Europe and its Swedish car marque Saab. It's also killing its Pontiac brand.
Striking the deal for Chrysler will give Fiat, which fled the U.S. market in the 1980s, an instant dealer network to sell small, fuel-efficient cars built in North America and based on models such as the Fiat 500, popular in Europe. The Italian company is also in talks with GM to take over Opel and has expressed interest in Saab.
Completing all those deals could vault Fiat into the top five among the world's auto companies in terms of sales. (It currently ranks 11th.) But others are angling for Opel -- Canadian auto parts maker Magna International Inc., for instance -- and reports have surfaced that Chinese automaker Geely Automobile Holdings Ltd. is interested in Saab. Geely denied that report.
Other reports have Penske Automotive Group Inc., the Bloomfield Hills, Mich., dealership chain, in talks with GM about acquiring Saturn's distribution network. GM said Monday that it was in talks with two bidders for Hummer.
Not everyone is in the hunt. Renault-Nissan, the Franco-Japanese alliance that some point to as a model for global auto hookups, said this week that it had no plans to bid on Chrysler's or GM's dangling assets.
Germany's Volkswagen, the world's third-largest automaker behind GM and Toyota Motor Corp., also is sitting this one out -- for now. VW already is a mini-U.N. of transportation, fielding an international portfolio of nameplates that includes Audi in Germany, Seat (pronounced say-aht) in Spain, Lamborghini in Italy, Skoda in the Czech Republic, Bugatti in France and Bentley in Britain. And it is in the process of merging with its majority shareholder, German sports-car maker Porsche.
Rather than buy more brands, VW appears intent on shoring up its presence in the United States, where it has a paltry 2% market share.
The globalization gambit is nothing new, of course. Auto companies have been forging cross-border alliances in recent years to share technology, which has become increasingly complex and expensive to develop, notes Ron Pinelli, president of AutoData Ltd., which compiles industry sales figures.
Some foreign affairs have foundered. The marriage of Chrysler and Germany's Daimler (parent of Mercedes-Benz) famously failed, as did a dalliance between GM and Fiat earlier in the decade.
And Ford Motor Co.'s decision to give up on collecting foreign auto marques kicked off the worldwide auto swap meet in 2007, when it began dismantling its Irvine-based stable of foreign luxury brands, eventually selling off Aston Martin, Jaguar and Land Rover. The last piece, Swedish automaker Volvo, is on the auction block.
Ford is concentrating on simplifying its vehicle lineup and using some of its popular European models, such as the Fiesta and the Euro-version of the Focus, as the basis for small cars that it hopes will be profitable sellers in America.
Other liaisons have been more successful. Paris-based PSA Peugeot Citroen has teamed with Japan's Mitsubishi Motors Corp. to build a PSA-badged crossover SUV based on the Mitsubishi Outlander.
The question remains how markedly the reshuffling will alter the global auto market.
Barring a complete collapse of GM, the upper ranks of the world's auto companies aren't likely to change significantly in the near future, analyst say, despite repeated predictions that waves of Chinese and Indian cars are about to flood global markets. Fiat, if it succeeds in its multiple acquisitions, might be the only car company to dramatically raise its international profile.
In the meantime, South Korean automaker Hyundai Motor Co. -- which also controls the Kia brand -- continues to solidify its position in the United States, still the world's most important car market. Based on sales last year, Hyundai-Kia ranks No. 5 globally and No. 7 in the U.S.
And Toyota, despite recent struggles, isn't likely to be displaced by Fiat any time soon.
There are more than 100 Chinese auto companies, and it's unclear which ultimately will rise to true prominence.
In the coming years, "you'll see new badges, you'll see new companies from China and India," said Dan Cheng, head of consultant A.T. Kearney's North American auto practice. "But they'll be niche players.
"I would not expect to see 12 different full-line [automakers] offering a full range of vehicles."
Governor to release plans for what will happen if budget measures fail
Gov. Arnold Schwarzenegger told legislative leaders Monday the state's annual income tax collections are expected to fall this year for the first time since 1938, punctuating a budget shortfall that he said will reach $21.3 billion if voters reject a slate of ballot measures next week.
With passage of the measures appearing unlikely, Schwarzenegger announced that he would release plans Thursday -- five days before the May 19 special election -- to show Californians the devastating consequences for government if the propositions fail.
State finance officials have been drafting plans for cuts in fire services, prisons, schools and other areas in the event that Propositions 1A through 1E, which plug a $6-billion budget hole, cannot overcome strong voter opposition reflected in recent polls.
The second scenario, if the measures pass, will still be devastating: The state budget will still be $15.4 billion out of balance since Schwarzenegger and lawmakers approved it in February, administration officials said Monday. That is nearly double recent projections.
In a letter to legislative leaders, Schwarzenegger explained why state finances have plunged so quickly since February, when he signed a spending plan intended to keep the state solvent through June of next year. Collections from personal income -- which the state relies upon heavily -- are expected to be lower this year than last, something that has not happened in more than 70 years, the governor wrote.
Schwarzenegger had postponed the unveiling of his revised budget from May 14, when it normally would have been released, until May 28, nine days after the special election. But in a visit to a senior center in Culver City on Monday, Schwarzenegger said he would release a summary for the two alternatives on the original date "so that people see what the difference is."
"The way it is right now, severe cuts will happen," he said. "And it's important also for people to know this is not a scare tactic. This is just to let you know what could happen. "
Some of the harsh contingency plans have already leaked out and been the focus of media reports in recent days.
Jon Coupal, president of the Howard Jarvis Taxpayers Assn., which is leading the opposition to the ballot measures, said it appeared that the governor was trying to politicize the budget process.
"It strikes me that the timing certainly raises the appearance of being wholly politically driven," Coupal said, predicting the strategy would backfire. "They're clearly trying to persuade voters to vote in a certain manner."
Schwarzenegger used the phrase "severe cuts" nine times to describe what could happen.
He spoke of closing fire stations and reducing engine crews, releasing nearly 40,000 prison inmates, slashing $3.6 billion from education and laying off tens of thousands of school employees, borrowing billions from local governments and making further cuts to healthcare programs.
"None of those options are pleasant, that is the important thing for people to know," he said.
The May 19 propositions are intended to have a direct impact on this year's budget by changing the lottery and redirecting voter-allocated funds for early childhood education and mental health programs. They also would affect the state's finances over the next several years, by extending recently enacted tax increases for an additional period.
The only measure that appears likely to pass is Proposition 1F, which would prevent elected state officials from receiving salary hikes in deficit years.
latimes
With passage of the measures appearing unlikely, Schwarzenegger announced that he would release plans Thursday -- five days before the May 19 special election -- to show Californians the devastating consequences for government if the propositions fail.
State finance officials have been drafting plans for cuts in fire services, prisons, schools and other areas in the event that Propositions 1A through 1E, which plug a $6-billion budget hole, cannot overcome strong voter opposition reflected in recent polls.
The second scenario, if the measures pass, will still be devastating: The state budget will still be $15.4 billion out of balance since Schwarzenegger and lawmakers approved it in February, administration officials said Monday. That is nearly double recent projections.
In a letter to legislative leaders, Schwarzenegger explained why state finances have plunged so quickly since February, when he signed a spending plan intended to keep the state solvent through June of next year. Collections from personal income -- which the state relies upon heavily -- are expected to be lower this year than last, something that has not happened in more than 70 years, the governor wrote.
Schwarzenegger had postponed the unveiling of his revised budget from May 14, when it normally would have been released, until May 28, nine days after the special election. But in a visit to a senior center in Culver City on Monday, Schwarzenegger said he would release a summary for the two alternatives on the original date "so that people see what the difference is."
"The way it is right now, severe cuts will happen," he said. "And it's important also for people to know this is not a scare tactic. This is just to let you know what could happen. "
Some of the harsh contingency plans have already leaked out and been the focus of media reports in recent days.
Jon Coupal, president of the Howard Jarvis Taxpayers Assn., which is leading the opposition to the ballot measures, said it appeared that the governor was trying to politicize the budget process.
"It strikes me that the timing certainly raises the appearance of being wholly politically driven," Coupal said, predicting the strategy would backfire. "They're clearly trying to persuade voters to vote in a certain manner."
Schwarzenegger used the phrase "severe cuts" nine times to describe what could happen.
He spoke of closing fire stations and reducing engine crews, releasing nearly 40,000 prison inmates, slashing $3.6 billion from education and laying off tens of thousands of school employees, borrowing billions from local governments and making further cuts to healthcare programs.
"None of those options are pleasant, that is the important thing for people to know," he said.
The May 19 propositions are intended to have a direct impact on this year's budget by changing the lottery and redirecting voter-allocated funds for early childhood education and mental health programs. They also would affect the state's finances over the next several years, by extending recently enacted tax increases for an additional period.
The only measure that appears likely to pass is Proposition 1F, which would prevent elected state officials from receiving salary hikes in deficit years.
latimes
Europe Imagines Its Suburbs Without the Car
VAUBAN, Germany — Residents of this upscale community are suburban pioneers, going where few soccer moms or commuting executives have ever gone before: they have given up their carsStreet parking, driveways and home garages are generally forbidden in this experimental new district on the outskirts of Freiburg, near the Swiss border. Vauban’s streets are completely “car-free” — except the main thoroughfare, where the tram to downtown Freiburg runs, and a few streets on one edge of the community. Car ownership is allowed, but there are only two places to park — large garages at the edge of the development, where a car-owner buys a space, for $40,000, along with a home.
As a result, 70 percent of Vauban’s families do not own cars, and 57 percent sold a car to move here. “When I had a car I was always tense. I’m much happier this way,” said Heidrun Walter, a media trainer and mother of two, as she walked verdant streets where the swish of bicycles and the chatter of wandering children drown out the occasional distant motor.
Vauban, completed in 2006, is an example of a growing trend in Europe, the United States and elsewhere to separate suburban life from auto use, as a component of a movement called “smart planning.”
Automobiles are the linchpin of suburbs, where middle-class families from Chicago to Shanghai tend to make their homes. And that, experts say, is a huge impediment to current efforts to drastically reduce greenhouse gas emissions from tailpipes, and thus to reduce global warming. Passenger cars are responsible for 12 percent of greenhouse gas emissions in Europe — a proportion that is growing, according to the European Environment Agency — and up to 50 percent in some car-intensive areas in the United States.
While there have been efforts in the past two decades to make cities denser, and better for walking, planners are now taking the concept to the suburbs and focusing specifically on environmental benefits like reducing emissions. Vauban, home to 5,500 residents within a rectangular square mile, may be the most advanced experiment in low-car suburban life. But its basic precepts are being adopted around the world in attempts to make suburbs more compact and more accessible to public transportation, with less space for parking. In this new approach, stores are placed a walk away, on a main street, rather than in malls along some distant highway.
“All of our development since World War II has been centered on the car, and that will have to change,” said David Goldberg, an official of Transportation for America, a fast-growing coalition of hundreds of groups in the United States — including environmental groups, mayors’ offices and the American Association of Retired People — who are promoting new communities that are less dependent on cars. Mr. Goldberg added: “How much you drive is as important as whether you have a hybrid.”
Levittown and Scarsdale, New York suburbs with spread-out homes and private garages, were the dream towns of the 1950s and still exert a strong appeal. But some new suburbs may well look more Vauban-like, not only in developed countries but also in the developing world, where emissions from an increasing number of private cars owned by the burgeoning middle class are choking cities.
In the United States, the Environmental Protection Agency is promoting “car reduced” communities, and legislators are starting to act, if cautiously. Many experts expect public transport serving suburbs to play a much larger role in a new six-year federal transportation bill to be approved this year, Mr. Goldberg said. In previous bills, 80 percent of appropriations have by law gone to highways and only 20 percent to other transport.
In California, the Hayward Area Planning Association is developing a Vauban-like community called Quarry Village on the outskirts of Oakland, accessible without a car to the Bay Area Rapid Transit system and to the California State University’s campus in Hayward.
Sherman Lewis, a professor emeritus at Cal State and a leader of the association, says he “can’t wait to move in” and hopes that Quarry Village will allow his family to reduce its car ownership from two to one, and potentially to zero. But the current system is still stacked against the project, he said, noting that mortgage lenders worry about resale value of half-million-dollar homes that have no place for cars, and most zoning laws in the United States still require two parking spaces per residential unit. Quarry Village has obtained an exception from Hayward.
Besides, convincing people to give up their cars is often an uphill run. “People in the U.S. are incredibly suspicious of any idea where people are not going to own cars, or are going to own fewer,” said David Ceaser, co-founder of CarFree City USA, who said no car-free suburban project the size of Vauban had been successful in the United States.
In Europe, some governments are thinking on a national scale. In 2000, Great Britain began a comprehensive effort to reform planning, to discourage car use by requiring that new development be accessible by public transit.
“Development comprising jobs, shopping, leisure and services should not be designed and located on the assumption that the car will represent the only realistic means of access for the vast majority of people,” said PPG 13, the British government’s revolutionary 2001 planning document. Dozens of shopping malls, fast-food restaurants and housing compounds have been refused planning permits based on the new British regulations
In Germany, a country that is home to Mercedes-Benz and the autobahn, life in a car-reduced place like Vauban has its own unusual gestalt. It is long and relatively narrow, so that the tram into Freiburg is an easy walk from every home. Stores, restaurants, banks and schools are more interspersed among homes than they are in a typical suburb. Most residents, like Ms. Walter, have carts that they haul behind bicycles for shopping trips or children’s play dates.
For trips to stores like IKEA or the ski slopes, families buy cars together or use communal cars rented out by Vauban’s car-sharing club. Ms. Walter had previously lived — with a private car — in Freiburg as well as the United States.
“If you have one, you tend to use it,” she said. “Some people move in here and move out rather quickly — they miss the car next door.”
Vauban, the site of a former Nazi army base, was occupied by the French Army from the end of World War II until the reunification of Germany two decades ago. Because it was planned as a base, the grid was never meant to accommodate private car use: the “roads” were narrow passageways between barracks.
The original buildings have long since been torn down. The stylish row houses that replaced them are buildings of four or five stories, designed to reduce heat loss and maximize energy efficiency, and trimmed with exotic woods and elaborate balconies; free-standing homes are forbidden.
By nature, people who buy homes in Vauban are inclined to be green guinea pigs — indeed, more than half vote for the German Green Party. Still, many say it is the quality of life that keeps them here.
Henk Schulz, a scientist who on one afternoon last month was watching his three young children wander around Vauban, remembers his excitement at buying his first car. Now, he said, he is glad to be raising his children away from cars; he does not worry much about their safety in the street.
In the past few years, Vauban has become a well-known niche community, even if it has spawned few imitators in Germany. But whether the concept will work in California is an open question.
More than 100 would-be owners have signed up to buy in the Bay Area’s “car-reduced” Quarry Village, and Mr. Lewis is still looking for about $2 million in seed financing to get the project off the ground.
But if it doesn’t work, his backup proposal is to build a development on the same plot that permits unfettered car use. It would be called Village d’Italia.
excerpts..the newyorktimes
As a result, 70 percent of Vauban’s families do not own cars, and 57 percent sold a car to move here. “When I had a car I was always tense. I’m much happier this way,” said Heidrun Walter, a media trainer and mother of two, as she walked verdant streets where the swish of bicycles and the chatter of wandering children drown out the occasional distant motor.
Vauban, completed in 2006, is an example of a growing trend in Europe, the United States and elsewhere to separate suburban life from auto use, as a component of a movement called “smart planning.”
Automobiles are the linchpin of suburbs, where middle-class families from Chicago to Shanghai tend to make their homes. And that, experts say, is a huge impediment to current efforts to drastically reduce greenhouse gas emissions from tailpipes, and thus to reduce global warming. Passenger cars are responsible for 12 percent of greenhouse gas emissions in Europe — a proportion that is growing, according to the European Environment Agency — and up to 50 percent in some car-intensive areas in the United States.
While there have been efforts in the past two decades to make cities denser, and better for walking, planners are now taking the concept to the suburbs and focusing specifically on environmental benefits like reducing emissions. Vauban, home to 5,500 residents within a rectangular square mile, may be the most advanced experiment in low-car suburban life. But its basic precepts are being adopted around the world in attempts to make suburbs more compact and more accessible to public transportation, with less space for parking. In this new approach, stores are placed a walk away, on a main street, rather than in malls along some distant highway.
“All of our development since World War II has been centered on the car, and that will have to change,” said David Goldberg, an official of Transportation for America, a fast-growing coalition of hundreds of groups in the United States — including environmental groups, mayors’ offices and the American Association of Retired People — who are promoting new communities that are less dependent on cars. Mr. Goldberg added: “How much you drive is as important as whether you have a hybrid.”
Levittown and Scarsdale, New York suburbs with spread-out homes and private garages, were the dream towns of the 1950s and still exert a strong appeal. But some new suburbs may well look more Vauban-like, not only in developed countries but also in the developing world, where emissions from an increasing number of private cars owned by the burgeoning middle class are choking cities.
In the United States, the Environmental Protection Agency is promoting “car reduced” communities, and legislators are starting to act, if cautiously. Many experts expect public transport serving suburbs to play a much larger role in a new six-year federal transportation bill to be approved this year, Mr. Goldberg said. In previous bills, 80 percent of appropriations have by law gone to highways and only 20 percent to other transport.
In California, the Hayward Area Planning Association is developing a Vauban-like community called Quarry Village on the outskirts of Oakland, accessible without a car to the Bay Area Rapid Transit system and to the California State University’s campus in Hayward.
Sherman Lewis, a professor emeritus at Cal State and a leader of the association, says he “can’t wait to move in” and hopes that Quarry Village will allow his family to reduce its car ownership from two to one, and potentially to zero. But the current system is still stacked against the project, he said, noting that mortgage lenders worry about resale value of half-million-dollar homes that have no place for cars, and most zoning laws in the United States still require two parking spaces per residential unit. Quarry Village has obtained an exception from Hayward.
Besides, convincing people to give up their cars is often an uphill run. “People in the U.S. are incredibly suspicious of any idea where people are not going to own cars, or are going to own fewer,” said David Ceaser, co-founder of CarFree City USA, who said no car-free suburban project the size of Vauban had been successful in the United States.
In Europe, some governments are thinking on a national scale. In 2000, Great Britain began a comprehensive effort to reform planning, to discourage car use by requiring that new development be accessible by public transit.
“Development comprising jobs, shopping, leisure and services should not be designed and located on the assumption that the car will represent the only realistic means of access for the vast majority of people,” said PPG 13, the British government’s revolutionary 2001 planning document. Dozens of shopping malls, fast-food restaurants and housing compounds have been refused planning permits based on the new British regulations
In Germany, a country that is home to Mercedes-Benz and the autobahn, life in a car-reduced place like Vauban has its own unusual gestalt. It is long and relatively narrow, so that the tram into Freiburg is an easy walk from every home. Stores, restaurants, banks and schools are more interspersed among homes than they are in a typical suburb. Most residents, like Ms. Walter, have carts that they haul behind bicycles for shopping trips or children’s play dates.
For trips to stores like IKEA or the ski slopes, families buy cars together or use communal cars rented out by Vauban’s car-sharing club. Ms. Walter had previously lived — with a private car — in Freiburg as well as the United States.
“If you have one, you tend to use it,” she said. “Some people move in here and move out rather quickly — they miss the car next door.”
Vauban, the site of a former Nazi army base, was occupied by the French Army from the end of World War II until the reunification of Germany two decades ago. Because it was planned as a base, the grid was never meant to accommodate private car use: the “roads” were narrow passageways between barracks.
The original buildings have long since been torn down. The stylish row houses that replaced them are buildings of four or five stories, designed to reduce heat loss and maximize energy efficiency, and trimmed with exotic woods and elaborate balconies; free-standing homes are forbidden.
By nature, people who buy homes in Vauban are inclined to be green guinea pigs — indeed, more than half vote for the German Green Party. Still, many say it is the quality of life that keeps them here.
Henk Schulz, a scientist who on one afternoon last month was watching his three young children wander around Vauban, remembers his excitement at buying his first car. Now, he said, he is glad to be raising his children away from cars; he does not worry much about their safety in the street.
In the past few years, Vauban has become a well-known niche community, even if it has spawned few imitators in Germany. But whether the concept will work in California is an open question.
More than 100 would-be owners have signed up to buy in the Bay Area’s “car-reduced” Quarry Village, and Mr. Lewis is still looking for about $2 million in seed financing to get the project off the ground.
But if it doesn’t work, his backup proposal is to build a development on the same plot that permits unfettered car use. It would be called Village d’Italia.
excerpts..the newyorktimes
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