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FRANKFURT: Debt problems in both the United States and Europe represent the biggest risks for the global economy in 2013, Nobel prize laureate Joseph Stiglitz wrote in a newspaper article on Wednesday.
"In the outlook for 2013, the biggest risks for the global economy are in the US and in Europe," Stiglitz wrote in a guest column for the business daily Handelsblatt.
But "the real risk for the global economy lies in Europe," he warned.
"Spain and Greece are in an economic depression with no hope for a recovery. The eurozone's 'fiscal pact' is no solution, and the European Central Bank's bond purchase is a temporary palliative, at best," Stiglitz wrote.
And the ECB must not impose further conditions for financial aid to countries, he continued.
"Otherwise, the medicine will lead to a deterioration in the patient's condition," Stiglitz argued.
- AFP/de
STORY HIGHLIGHTS
(CNN) -- Whatever other resolutions we make leading up to the New Year -- to call Mom more often, lay off the late-night snacks -- getting ourselves organized is likely near the top of the list. And that often means clearing out the clutter that keeps us from functioning efficiently, whether we're at work or at home.
Many employees -- whether they go to actual offices or do their jobs from home -- find the last week of the calendar year is ideal for sorting through e-mails, clearing their desks, and reorganizing their work spaces. Sorting through stuff is rarely fun, but those who tackle it now will find themselves a step ahead when their now-vacationing colleagues and clients come staggering back after the holidays.
According to the National Association of Professional Organizers, which sponsors the annual "Get Organized Month" each January to help folks take control of their time, tasks and possessions, 83% of members polled say that "paper organization" ranks highest on their individual and corporate clients' to-do lists. For people taking time off between Christmas and New Year's, this week offers a chance to get things in order before 2013 arrives.
Devoting time to both physically and mentally clearing out the "old" and embracing the "new" is about more than just getting rid of stuff. Being organized is really about being in control, says Susan Fleischman, a Chicago-based professional organizer, home stager and founder of clutterfree.
"As joyous as the holidays can be, the period between Thanksgiving and New Year's is probably one of the most stressful of the year for people," she says. That's why spending the week after Christmas decluttering "really helps you recover and detox from the hustle and bustle of the holidays.
"It's very symbolic -- we're ramping up to the ultimate do-over. We all get to turn the calendar page and make a fresh start."
For those at work, says Fleischman, "the phone stops ringing, there are fewer meetings. Real work probably comes to a screeching halt. There are far fewer reasons to keep letting getting organized fall to the bottom of the to-do list." And these days, when employees often feel compelled to work harder and longer, being organized can be a real competitive advantage.
NAPO Industry Member Director Mary Dykstra says that on average, Americans waste time amounting to between six and 12 weeks a year searching for things in their offices and homes. "Just imagine if you could get out from under that clutter and spend that time helping your company build their business and ultimately, your career," says Fleischman, who was a public relations and marketing executive before launching her professional organizing business.
"Every minute counts when it comes to impressing the boss, your colleagues and clients. At work, we strive to project that we're knowledgeable, in control and experts. We're constantly accessing, sharing, reacting to information. Being able to put your hands on the information or generate some information means the better you'll be able to rise to the top and have clarity of thought and creativity and maximize productivity."
But what about moving from work to the home front? Cynthia Ewer, the Washington state-based editor of OrganizedHome.com and the author of "The Complete Idiot's Guide to Getting Organized Fast-Track," suggests we use this in-between-holidays week to step back and reflect on our habits and how well they're working for us at home.
It's important to remember, says Ewer, that "there are different personality types. "Organized" is what works for you. There are filers -- people who love folders. They want the serenity of knowing where things are. Pilers like to keep their eyes on their stuff. Deniers have bags of paperwork shoved into closets. Instead of using a "What-does-it-look-like?" yardstick, it's a "How-will-it-work?" question. Know yourself, and come up with solutions that reflect who you are, she says.
After all, she says, " 'It's here somewhere' is the most frustrating phrase in the English language."
Cutting clutter also can boost the bottom line. "How many times do you go to the store and buy the things you couldn't find?" asks Fleischman. But cleaning up and cleaning out also can generate money, says Ewer.
"It can be a real fun process to turn your clutter into cash."
Nab tax deductions by donating cleared-out items to nonprofit organizations. Declutterers can send usable books, DVDs, video games and music to third-party merchants in exchange for gift cards through the Amazon Trade-In Program. Even computer manufacturers like Apple offer gift cards to customers who send in an old iPhone, iPad or computer for reuse or recycling, if those devices still have monetary value.
"Leading an orderly life is about saving time, saving money, reducing stress," says Fleischman, who also blogs about organizing tips and clutter makeovers. "And that's energy you can spend on leisure pursuits, which is very important to emotional well-being."
Some tips for cutting through the workplace and home clutter this holiday week:
• Stockpile your supplies. Fleischman advises making sure you've got the right trash bins, shredders, file folders and markers at your fingertips before you start sorting and tossing.
• Take it a zone at a time. Your office, home and car didn't become a mess overnight, so declutter in increments. Fleischman suggests starting with desktops, then floors, then moving on to file cabinets and bookcases.
• Go from horizontal to vertical piles. If you're purging papers, clear those piles from your desk and the floor by placing newly sorted files in a cabinet or an upright vertical file. This way, your eyes can quickly scan and identify what you need at a glance.
• Free up the fridge. "Get the ghosts of Christmas past out of there -- all those little cans of this and that, the beef sticks from the gift basket no one can bear to throw out," says Ewer. Besides, this clean-up also will save you some calories.
• Be realistic. If you really write out bills at the kitchen table and not in the home office, says Ewer, get yourself a wheeled cart you can roll where the work gets done. If your kids' toys actually live in the family room -- not in the bedroom toy box -- create a storage solution there.
"Look at your patterns of living and organize yourself accordingly."
WASHINGTON New York area-lawmakers in both parties erupted in anger late Tuesday night after learning the House Republican leadership decided to allow the current term of Congress to end without holding a vote on aid for victims of Superstorm Sandy.
Rep. Peter King, R-N.Y., said he was told by the office of Majority Leader Eric Cantor of Virginia that Speaker John Boehner of Ohio had decided to abandon a vote this session.
Cantor, who sets the House schedule, did not immediately comment. House Democratic Whip Steny Hoyer of Maryland told reporters that just before Tuesday evening's vote on "fiscal cliff" legislation, Cantor told him that he was "99.9 percent confident that this bill would be on the floor, and that's what he wanted."
A spokesman for Boehner, Michael Steel said, "The speaker is committed to getting this bill passed this month."
A House Republican aide confirmed to CBS News producer Jill Jackson that the House would not take up the bill during this session.
In remarks on the House floor, King called the decision "absolutely inexcusable, absolutely indefensible. We cannot just walk away from our responsibilities."
The Senate approved a $60.4 billion measure Friday to help with recovery from the October storm that devastated parts of New York, New Jersey and nearby states. The House Appropriations Committee has drafted a smaller, $27 billion measure, and a vote had been expected before Congress' term ends Thursday at noon.
29 Photos
29 Photos
More than $2 billion in federal funds has been spent so far on relief efforts for 11 states and the District of Columbia struck by the storm, one of the worst ever to hit the Northeast. The Federal Emergency Management Agency's disaster relief fund still has about $4.3 billion, enough to pay for recovery efforts into early spring, according to officials. The unspent FEMA money can only be used for emergency services, said Rep. Frank Pallone Jr., D-N.J.
New York, New Jersey, Connecticut, District of Columbia, West Virginia, Virginia, Maryland, New Hampshire, Delaware, Rhode Island, Pennsylvania and Massachusetts are receiving federal aid.
Sandy was blamed for at least 120 deaths and battered coastline areas from North Carolina to Maine. New York, New Jersey and Connecticut were the hardest hit states and suffered high winds, flooding and storm surges. The storm damaged or destroyed more than 72,000 homes and businesses in New Jersey. In New York, 305,000 housing units were damaged or destroyed and more than 265,000 businesses were affected.
"This is an absolute disgrace and the speaker should hang his head in shame," said Rep. Eliot Engel, D-N.Y.
"I'm here tonight saying to myself for the first time that I'm not proud of the decision my team has made," said Rep. Michael Grimm, R-N.Y. "It is the wrong decision, and I' m going to be respectful and ask that the speaker reconsider his decision. Because it's not about politics, it's about human lives."
"I truly feel betrayed this evening," said Rep. Nita Lowey, D-N.Y.
"We need to be there for all those in need now after Hurricane Sandy," said Rep. Gregory Meeks, D-N.Y.
The House Democratic leader, Rep. Nancy Pelosi of California, said she didn't know whether a decision has been made and added, "We cannot leave here doing nothing. That would be a disgrace."
Minutes after the House of Representatives approved a bipartisan Senate deal to avert the "fiscal cliff" and preserve Bush-era tax cuts for all Americans making less than $400,000 per year, President Obama praised party leaders and wasted little time turning to the next fiscal fight.
"This is one step in the broader effort to strengthen our economy for everybody," Obama said.
Obama lamented that earlier attempts at a much larger fiscal deal that would have cut spending and dealt with entitlement reforms failed. He said he hoped future debates would be done with "a little less drama, a little less brinksmanship, and not scare folks quite as much."
But Obama drew a line in the sand on the debt ceiling, which is set to be reached by March.
"While I will negotiate over many things, I will not have another debate with this Congress over whether they should pay the bills for what they've racked up," Obama said. "We can't not pay bills that we've already incurred."
An hour after his remarks, Obama boarded Air Force One to return to his planned Hawaiian holiday vacation, reuniting with his family, who have been vacationing there since just before Christmas.
AP Photo/Charles Dharapak
House Republicans agreed to the up-or-down vote Tuesday evening, despite earlier talk of trying to amend the Senate bill with more spending cuts before taking a vote. The bill delays for two months tough decisions about automatic spending cuts that were set to kick in Wednesday.
A majority of the Republicans in the GOP-majority House voted against the fiscal cliff deal. About twice as many Democrats voted in favor of the deal compared to Republicans. One hundred fifty-one Republicans joined 16 Democrats to vote against the deal, while 172 Democrats carried the vote along with 85 Republicans.
The Senate passed the same bill by an 89-8 vote in the wee hours of New Year's Day. If House Republicans had tweaked the legislation, there would have been no clear path for its return to the Senate before a new Congress is sworn in Thursday.
The vote split Republican leaders in the House. House Speaker John Boehner, R-Ohio, voted yes, and so did the GOP's 2012 vice presidential candidate, Rep. Paul Ryan, R-Wis.
But House Majority Leader Eric Cantor, R-Va., the No. 2 Republican in the House, voted no. It was his opposition that had made passage of the bill seem unlikely earlier in the day.
The deal does little to address the nation's long-term debt woes and does not entirely solve the problem of the "fiscal cliff."
Indeed, the last-minute compromise -- far short from a so-called grand bargain on deficit reduction -- sets up a new showdown on the same spending cuts in two months amplified by a brewing fight on how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.
"Now the focus turns to spending," said Boehner in a statement after the vote. "The American people re-elected a Republican majority in the House, and we will use it in 2013 to hold the president accountable for the 'balanced' approach he promised, meaning significant spending cuts and reforms to the entitlement programs that are driving our country deeper and deeper into debt."
Republicans hope that allowing the fiscal cliff compromise, which raised taxes without an equal amount of spending cuts, will settle the issue of tax rates for the coming debates on spending.
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BEIJING: British teenage tennis sensation Laura Robson crashed out of the Shenzhen Open in straight sets on Tuesday, a disappointing start to a year in which she is seeking to break into the world top 50.
The 18-year-old, currently ranked 53rd in the world, lost her second-round match against Romania's Monica Niculescu 2-6 3-6 in one hour and 16 minutes.
She was seeded seventh in the hard court tournament, and came into the contest ranked five places above her opponent.
Meanwhile, Chinese number one Li Na defeated Luxembourger Mandy Minella 6-4 6-0 in her first round match.
The 2011 French Open singles title winner and top seed will face American Julia Cohen in the next phase of the competition.
The Shenzhen Open, which carries a total prize money of $500,000, is being played for the first time as tennis expands in China on the back of Li's huge popularity.
- AFP/fa
STORY HIGHLIGHTS
As the fiscal cliff looms, what's your New Year's message to Washington? Go to CNN iReport to share your video.
(CNN) -- A full two hours after a midnight deadline, the Senate overwhelmingly passed a deal Tuesday to avert the feared fiscal cliff on a 89-8 vote.
The Senate package would put off budget cuts for two months and preserve Bush-era income tax cuts for individuals earning less than $400,000 or couples earning less than $450,000.
The measure now goes to the House where it faces an uncertain future in the Republican-controlled body.
"Glad it's over," said Senate Majority Leader Harry Reid, D-Nevada, after the vote. "We'll see if the Republicans in the House can become functional instead of dysfunctional."
A statement from House leadership made no promises.
"Decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members -- and the American people -- have been able to review the legislation," the statement said.
A vote could come as early as New Year's Day.
Sen. John Hoeven, R-North Dakota, was hopeful the House will approve the package as well.
"The vote was 89 to 8. Bipartisan vote. 89 votes," he said. "I think it sends a strong message and I think it will be approved by the House."
What the package proposes
Read the bill (pdf)
Under the Senate package:
-- Taxes would stay the same for most Americans. But it will rise for individuals making more than $400,000 and couples making more than $450,000. For them, it will go from the current 35% to the Clinton-era rate of 39.6%.
-- Itemized deductions would be capped at $250,000 for individuals and $300,000 for couples.
-- Taxes on inherited estates will go up to 40% from 35%.
-- Unemployment insurance would be extended for a year for 2 million people.
-- The alternative minimum tax -- a perennial issue -- would be permanently adjusted for inflation.
-- Child care, tuition and research and development tax credits would be renewed.
-- The "Doc Fix" -- reimbursements for doctors who take Medicare patients -- will continue, but it won't be paid for out of the Obama administration's signature health care law.
-- Prevents a spike in milk prices. Agriculture Secretary Tom Vilsack said milk prices would have doubled to $7 a gallon because a separate agriculture bill had expired.
What's not addressed
While the package provides some short-term certainty, it leaves a range of big issues unaddressed.
It doesn't mention the debt ceiling, and temporarily puts off for two months the so-called sequester -- a series of automatic cuts in federal spending that would have taken effect Wednesday. It would have reduced the budgets of most agencies and programs by 8% to 10%.
This means that, come late February, Congress will have to tackle both those thorny issues.
"We're going to have to deal with the sequester, that's true," said Sen. Max Baucus, D-Montana, "but look, this is better than nothing."
Reid said the agreement was a win for average Americans.
"I've said along that our most important priority was to protect the middle class families," he said. "This legislation does that."
And maybe a bit more.
According to the U.S. Census Bureau, median household income in 2011 was $50,054, which is well below the tax cut threshold approved by the Senate.
Senate Minority Leader Mitch McConnell, R-Kentucky, praised the effort, but said it shouldn't have taken so long to get an agreement.
"We don't think taxes should be going up on anyone but we all knew that if we did nothing they would be going up on everyone today," he said. "We weren't going to let that happen."
All eyes on the House
As lawmakers left the chamber around 2 a.m., there was no sentiment of celebration, more a sense of relief that the vote was done.
One of the last members to leave was 88-year-old retiring Hawaii Senator Daniel Akaka. He walked down the steps bent over his cane, assisted by an aide, but smiling.
Others rubbed their eyes from lack of sleep. It was the end to a very long, down-to-the wire day -- and all eyes now turn to the House.
GOP sources said House members saw little practical difference in settling the issue Monday night versus Tuesday.
But if tax-averse House Republicans approve the bill on Tuesday -- when taxes have technically gone up -- they can argue they've voted for a tax cut to bring rates back down, even after just a few hours, GOP sources said. That could bring some more Republicans on board, one source said.
Read more: Why your paycheck is getting smaller, no matter what
Concerns persist
Read more: What if there's no deal on fiscal cliff
The White House budget office noted in September that sequestration was designed during the 2011 standoff over raising the federal debt ceiling as "a mechanism to force Congress to act on further deficit reduction" -- a kind of doomsday device that was never meant to be triggered. But Congress failed to substitute other cuts by the end of 2012, forcing the government to wield what the budget office called "a blunt and indiscriminate instrument."
In its place, the Senate plan would use $12 billion in new tax revenue to replace half the expected deficit reduction from the sequester and leave another $12 billion in spending cuts, split half-and-half between defense and domestic programs.
Read more: Medicare patients may suffer if country goes over fiscal cliff
Conservative lobbyist Grover Norquist, whose Americans for Tax Reform pushes candidates to sign a pledge never to raise taxes, said the plan "right now, as explained" would preserve most of the Bush tax cuts and wouldn't violate his group's pledge.
"Take the 84% of your winnings off the table," Norquist told CNN. "We spent 12 years getting the Democrats to cede those tax cuts to the American people. Take them off the table. Then we go back and argue about making the tax cuts permanent for everyone."
But Robert Reich, who served as labor secretary in the Clinton administration, said the $450,000 threshold "means the lion's share of the burden of deficit reduction falls on the middle class, either in terms of higher taxes down the road or fewer government services." In addition, he said, the plan does nothing to raise the federal debt ceiling just as the federal government bumps up against its borrowing limit.
And that, Arizona GOP Sen. John McCain told CNN, is likely to be "a whole new field of battle."
"We just added 2.1 trillion in the last increase in the debt ceiling, and spending continues to go up," McCain said. "I think there's going to be a pretty big showdown the next time around when we go to the debt limit."
CNN's Matt Smith, Mike Pearson, Jessica Yellin, Dana Bash, Deirdre Walsh, Lisa Desjardins, Ted Barrett and Ashley Killough contributed to this report.
Two hours after a midnight deadline for action, the Senate passed legislation early New Year's Day to avert the so-called "fiscal cliff" with an overwhelming vote of 89-8.
Senate passage set the stage for a final showdown in the House, where a vote could come as early as today.
"While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay," President Obama said in a statement shortly after the vote.
"There's more work to do to reduce our deficits, and I'm willing to do it. But tonight's agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans," he added.
The bill extends Bush-era tax cuts permanently for people making less than $400,000 per year and households making less than $450,000.
The steep "sequester" budget cuts scheduled to go into effect with the New Year would be postponed for two months.
The deal also would affect taxes on investment income and estates, and extend unemployment benefits for a year.
Officials also decided at the last minute to use the measure to prevent a $900 pay raise for lawmakers due to take effect this spring.
The failure of a deal to pass Congress by Jan. 1 technically triggers an income tax hike on all Americans and automatic spending cuts, though lawmakers could still prevent a tax hike by making retroactive any legislation that passes in the weeks ahead, experts said.
The deal at hand will not entirely solve the problem of the "fiscal cliff," however. In fact, it could set up a new showdown over the same spending cuts in just two months that would be amplified by a brewing fight over how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.
In addition to extending current tax rates for households making $450,000 or less, the latest plan would raise the estate tax from 35 to 40 percent for estates larger than $5 million; and prevent the alternative minimum tax from hammering millions of middle-class workers.
Capital gains taxes would rise to 20 percent from 15 percent.
The deal would also extend for one year unemployment insurance benefits set to expire today for two million people, and avert a steep cut to Medicare payments for doctors.
"Working though the night and throughout the day we've reached an agreement with Sen. McConnell," Senate Majority Leader Harry Reid, D-Nev., said early Tuesday morning prior to the vote.
"I've said all along our most important priority is protecting middle class Americans, this legislation does that," Reid added.
He said he is "disappointed" they were not able to make the grand bargain and that more work needs to be done in the future.
"But we tried, if we did nothing the threat of a recession is very real," Reid concluded.
Speaking after Reid, Senate Minority Leader Mitch McConnell, R-KY., called the deal an "imperfect solution" and noted this should not be the model on how things get done in the Senate.
McConnell also thanked Vice President Joe Biden, who visited Capitol Hill late Monday night and brokered the deal with McConnell.
The House Democratic leader Nancy Pelosi issued a statement saying that when legislation clears the Senate, "I will present it to the House Democratic caucus."
Read more: "2013 Smart Guide: 10 ideas that will shape the year"
The first half of 2012 will be remembered for the saga over whether or not to publish controversial research involving versions of the H5N1 bird flu virus engineered to spread more easily in mammals. In the end openness won out, and both contentious studies did finally see the light of day.
This was also the year that saw the battle to eradicate polio reach its crucial endgame – just as another problem, in the form of totally drug resistant tuberculosis, reared its head.
Away from infectious disease, 2012 brought us a theory on the link between Tutankhamun, epilepsy and the first monotheistic religion, and an insight into the perils of premature ageing in Italy's ominously named Triangle of Death. Here are 10 more of the year's memorable stories.
Babies are born dirty, with a gutful of bacteria
Far from being sterile, babies come complete with an army of bacteria. The finding could have implications for gut disorders and our health in general
Forensic failure: 'Miscarriages of justice will occur'
Our survey of UK forensic scientists reveals that many are concerned that closure of the Forensic Science Service will lead to miscarriages of justice
Scandal of an underfunded and undertreated cancer
Lung cancer in those who have never smoked is on the rise – but they face the same stigma as their smoking counterparts
Ovarian stem cells discovered in humans
Stem cells capable of forming new eggs could promise limitless eggs for IVF treatments, and the rejuvenation of older eggs
Paralysis breakthrough: spinal cord damage repaired
An implant helping paralysed people stand unaided suggests the spinal cord is able to recover function years after severe damage
A real fMRI high: My ecstasy brain scan
Graham Lawton reports the highs, lows and psychedelic purple doors involved in taking MDMA while having his brain scanned
You may carry cells from siblings, aunts and uncles
Male cells found in the umbilical cord blood of baby girls with older brothers suggests fetal cells cross between mother and baby more than once thought
Can we deter athletes who self-harm to win?
The Paralympics may encourage a debate on a dangerous practice – and potential ways to prevent it
First non-hormonal male 'pill' prevents pregnancy
A non-hormonal drug that temporarily reverses male fertility appears to have few side effects in mice
Mining MRSA genetic code halts superbug outbreak
Whole genome sequencing of an MRSA outbreak has identified the person who unwittingly spread the bacteria around a hospital, stopping further infection
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