Egypt deploys troops in Suez after 9 killed on anniversary of uprising

CAIRO/ISMAILIA, Egypt (Reuters) - Egypt's armed forces deployed troops in the city of Suez early on Saturday after nine people were shot dead during nationwide protests against President Mohamed Mursi, underlining the country's deep divisions as it marked the second anniversary of the uprising that toppled Hosni Mubarak.

Eight of the dead, including a policeman, were shot dead in Suez, and another was shot and killed in the city of Ismailia, medics said. Another 456 people were injured across Egypt, officials said, in unrest on Friday fuelled by anger at Mursi and his Islamist allies over what the protesters see as their betrayal of the revolution.

Mursi said the state would not hesitate in "pursuing the criminals and delivering them to justice". In a statement, he also called on Egyptians to respect the principles of the revolution by expressing their views peacefully.

The troops were deployed in Suez after the head of the state security police in the city asked for reinforcements. The army distributed pamphlets to residents assuring them the deployment was temporary and meant to secure the city.

"We have asked the armed forces to send reinforcements on the ground until we pass this difficult period," Adel Refaat, head of state security in Suez, told state television.

Friday's anniversary laid bare the divide between the Islamists and their secular rivals.

The schism is hindering the efforts of Mursi, elected in June, to revive an economy in crisis and reverse a plunge in Egypt's currency by enticing back investors and tourists.

Inspired by the popular uprising in Tunisia, Egypt's revolution spurred further revolts across the Arab world. But the sense of common purpose that united Egyptians two years ago has given way to internal strife that already triggered bloody street battles last month.

Thousands of opponents of Mursi massed on Friday in Cairo's Tahrir Square - the cradle of the revolt against Mubarak - to rekindle the demands of a revolution they say has been hijacked by the Muslim Brotherhood, the group from which Mursi emerged.

In Suez, the military deployed armored vehicles to guard state buildings, witnesses and security sources said, as symbols of government were targeted across the country.

Street battles erupted in cities including Cairo, Alexandria, Suez and Port Said. Arsonists attacked at least two state-owned buildings. An office used by the Muslim Brotherhood's political party was also torched.

"Our revolution is continuing. We reject the domination of any party over this state. We say no to the Brotherhood state," Hamdeen Sabahy, a popular leftist leader, told Reuters.

The Brotherhood decided against mobilizing for the anniversary, wary of the scope for more conflict after December's violence, stoked by Mursi's decision to fast-track an Islamist-tinged constitution rejected by his opponents.

The Brotherhood denies accusations that it is seeking to dominate Egypt, labeling them a smear campaign by its rivals.

'LEAVE! LEAVE! LEAVE!'

There were conflicting accounts of the lethal shooting in Suez. Some witnesses said security forces had opened fire in response to gunfire from masked men.

News of the deaths capped a day of violence that started in the early hours of Friday. Before dawn in Cairo, police battled protesters who threw petrol bombs and firecrackers as they approached a wall blocking access to government buildings near Tahrir Square.

Clouds of teargas filled the air. At one point, riot police used one of the incendiaries thrown at them to set ablaze at least two tents erected by youths, a Reuters witness said.

Skirmishes between stone-throwing youths and the police continued in streets around the square into the day. Ambulances ferried away a steady stream of casualties.

Protesters echoed the chants of 2011's historic 18-day uprising. "The people want to bring down the regime," they chanted. "Leave! Leave! Leave!" chanted others as they marched towards the square.

"We are not here to celebrate but to force those in power to submit to the will of the people. Egypt now must never be like Egypt during Mubarak's rule," said Mohamed Fahmy, an activist.

There were similar scenes in Suez and Alexandria, where protesters and riot police clashed near local government offices. Black smoke billowed from tires set ablaze by youths.

In Cairo, police fired teargas to disperse a few dozen protesters trying to remove barbed-wire barriers protecting the presidential palace, witnesses said. A few masked men got as far as the gates before they were beaten back.

Teargas was also fired at protesters who tried to remove metal barriers outside the state television building.

Outside Cairo, protesters broke into the offices of provincial governors in Ismailia and Kafr el-Sheikh in the Nile Delta. A local government building was torched in the Nile Delta city of al-Mahalla al-Kubra.

With an eye on parliamentary elections likely to begin in April, the Brotherhood marked the anniversary with a charity drive across the nation. It plans to deliver medical aid to one million people and distribute affordable basic foodstuffs.

Writing in Al-Ahram, Egypt's flagship state-run daily, Brotherhood leader Mohamed Badie said the country was in need of "practical, serious competition" to reform the corrupt state left by the Mubarak era.

"The differences of opinion and vision that Egypt is passing through is a characteristic at the core of transitions from dictatorship to democracy, and clearly expresses the variety of Egyptian culture," he wrote.

Mursi's opponents say he and his group are seeking to dominate the post-Mubarak order. They accuse him of showing some of the autocratic impulses of the deposed leader by, for example, driving through the new constitution last month.

"I am taking part in today's marches to reject the warped constitution, the 'Brotherhoodisation' of the state, the attack on the rule of law, and the disregard of the president and his government for the demands for social justice," Amr Hamzawy, a prominent liberal politician, wrote on his Twitter feed.

The Brotherhood says its rivals are failing to respect the rules of the new democracy that put the Islamists in the driving seat via free elections.

(Additional reporting by Tom Perry, Ahmed el-Shemi, Ashraf Fahim, Shaimaa Fayed and Yasmine Saleh in Cairo and Abdel Rahman Youssef in Alexandria; Writing by Tom Perry; Editing by Robert Woodward and Peter Cooney)

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Obama, Hollande hold phone talks on Mali offensive

WASHINGTON: US President Barack Obama voiced support Friday for France's military intervention in Mali and vowed to work with French counterpart Francois Hollande to tackle extremism across North Africa.

The two presidents discussed other "shared security concerns," including Algeria, Libya and Syria, during telephone talks, the White House said in a statement.

"The president expressed his support for France's leadership of the international community's efforts to deny terrorists a safe haven in Mali," it added.

In condemning a deadly hostage-taking operation by militants in Algeria last week, the two leaders "affirmed their mutual commitment to countering terrorism more broadly in North Africa," according to the statement.

Preliminary estimates from the Algerian authorities say 37 foreign hostages and 29 kidnappers died in an attack at the In Amenas gas field and in the military operation that followed.

Hollande also thanked Obama for his "significant support" of the effort in Mali, the White House said.

The US Air Force has deployed C-17 cargo planes to carry French troops and equipment to northern Mali, where they are trying to help flush out radical extremist fighters.

The United States also was providing intelligence to France, drawing on its network of satellites and surveillance drones.

Paris has asked Washington to help with refueling its warplanes taking part in the fight against militant fighters in Mali, but Obama's administration has yet to approve the request.

Obama and Hollande also "emphasized the need to rapidly establish" both an African-led military force in Mali and a "political roadmap that will lead to elections and restoration of democratic governance," the White House said.

The pair "condemned last week's terrorist act in Algeria," and "affirmed their mutual commitment to countering terrorism more broadly in North Africa."

Turning to Libya, in the wake of an uprising that toppled dictator Muammar Gaddafi in 2011, the two presidents "noted the importance of sustained assistance to Libya as it works to build effective security sector institutions," the statement added.

Hollande and Obama also spoke about Syria, "expressing their strong concern about the humanitarian crisis affecting not just Syria but also neighboring countries and reiterating their commitment to assisting the Syrian people achieve political transition to a post-Assad Syria," the statement said.

Syria's civil war has already claimed the lives of more than 60,000 people since March 2011, according to the United Nations, which has predicted that the number of Syrian refugees in neighboring countries will double to 1.1 million by June if the conflict does not end.

- AFP/fa

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Bihar 'imports' babus as IAS shortfall hits work

PATNA: Bihar's IAS cadre strength is 326, but only 198 IAS officials are there in the state of over 100 million people as 95 posts are vacant while 30 officials are on central deputation and three on interstate deputation. To overcome the crisis, the state government through ads a few years ago invited officials of other cadres to work in Bihar. Quite a few came, and some of these "outsiders" ended up causing huge embarrassment to the "sushasan" that has of late earned global appreciation for Bihar.

The story of "imported" babus assumes significance in view of the recent episode involving J&K cadre IPS officer, Alok Kumar, who had to be unceremoniously removed from the post of Saran range DIG after he was accused of demanding Rs 10 crore from a liquor firm's representative. "The state government should do something about these outsiders who are bringing a bad name to the 'sushasan'," wrote a netizen on a social networking site.

Almost all these "imported" officials happen to hail from Bihar. They are on deputation for a tenure of five or three years. Besides IAS and IPS officials, all-India services officials like D K Srivastava, J K P Singh, P K Rai, Sanjeevan Sinha and Awadhesh Kumar are also working with the Bihar government. Indian Railway Service's Srivastava, Singh and Rai are posted as director (tourism), Bihar State Text-book Corporation MD and Bihar State Power Holding Company Limited CMD respectively while Indian Post & Telecommunication Accounts and Finance Service's Sinha and Kumar are Bihar State Infrastructural Development Agency MD and Bihar State Tourism Development Corporation MD respectively.

Bihar State Warehousing Corporation and Beltron have also one "imported" official each. Five Indian Forest Service officials - M K Sharma, Satyendra, Ashutosh Kumar, P K Gupta and Arvinder Singh - are also serving on key positions in the state.

Among five IAS officials on interstate deputation to Bihar, Pankaj K Pal, Manish K Verma and Abhijit Sinha are currently DMs of Bhojpur, Purnia and East Champaran. Odisha cadre's Sanjay Kumar Singh has been made special secretary to CM after two stints as DM - in Gaya and Patna.

A 2002-batch IAS official, Pal was Gopalganj DM when a woman college principal allegedly slapped him. He was shunted out of Gopalganj and posted in the agriculture department after the killing of a jail doctor inside the Gopalganj jail by the prisoners in 2011. Eighteen months on, he is back in the saddle as the Bhojpur DM.

Yet another MT-cadre IAS official J K Sinha, who once got the coveted post of Patna DM, had to be relieved from his post in the CM secretariat and repatriated to his parent cadre almost overnight after the government received some adverse reports about his conduct. Officially, however, his hasty repatriation was never explained.

Explaining the state government's position, a senior official said states did not have a decisive say in deciding interstate deputations. The Centre's DoPT (department of personnel and training) clears such applications, he said and added not all such officers were bad and that most of them had delivered during their field postings.

Also, the state government will not come to the rescue of any official doing any wrong. "The then Saran DIG Alok Kumar's is a case in point in which the law is taking its own course," the official said and pointed out Bihar was the only state to come up with a law in 2010 to confiscate properties of corrupt babus.

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CDC: Flu seems to level off except in the West

New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.

The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.

Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.

There is still vaccine available although it may be hard to find. The CDC has a website that can help.

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CDC: http://www.cdc.gov/flu/

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'Hot' Guns Fueling Crime, US Study Says

Christmas is the one day of the year that Wal-Mart is closed, but for a group of four New Mexico burglars, it was the perfect time to stop in for some firearms.

Video surveillance cameras caught the masked burglars red-handed, stealing rifle after rifle. Police arrested the four men, and were able to recover the guns. But all too often, stolen weapons end up in the hands of criminals.

The New Mexico caper is part of a flood of gun thefts nationwide. And it's not only commercial gun dealers vulnerable to theft.

Guns are a top target for home burglars looking for something they can easily sell on the street.

An estimated 230,000 guns per year are stolen in home burglaries and property crimes, according to a study by the Department of Justice.

"Any burglar that goes in a house and finds guns, their eyes are going to light up," says former ATF Assistant Director Mike Bouchard. "That's the first thing they're going to take."

The statistics for commercial thefts show that nearly 25,000 guns per year are lost or stolen from gun dealers.

According to the Bureau of Alcohol Tobacco and Firearms (ATF), more than 4,000 gun stores and retailers have been targeted in the last three years, with 74,000 guns reported stolen or lost. And criminals will use any method possible to get their hands on some weapons, either for their own use, or to sell on the black market.

Minnesota Public Radio, Jeffrey Thompson/AP Photo

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Recently, thieves have taken to using a stolen vehicle to ram down the front doors of a gun store. In North Charleston, S.C., for example, burglars smashed a stolen truck right through Guns and Gold Trading Post, stealing $4,500 worth of guns before making a quick getaway.

"Gun stores are like candy stores for criminals," says Mike Bouchard.

2012 was a record year for gun sales, with more than 19.5 million background checks run for gun purchases, up almost 20% from the previous year. But while legitimate sales skyrocket, huge numbers of illegal guns are hitting the streets.

According to the Justice Department, more than 1.4 million guns were stolen or lost between 2005 and 2010.

Former ATF Assistant Director Bouchard says crooks have easy access to cheap stolen guns on the street.

"If you talk to any criminal, they can find a gun within an hour or two. Cheaper guns that were stolen can be sold for $50. On the street, a typical good handgun will run you $200 to $300," Bouchard said.

Some thieves have even targeted gun shipments, stealing the weapons before they get to market.

Last November, for example, a rogue truck driver allegedly stole a shipment of 111 guns he was supposed to deliver from the Smith and Wesson factory in Springfield, Mass.

When police caught him, they recovered 28 of the stolen guns, but some had already been used in crimes.

When police arrested the alleged stick-up robber known as the Black Jacket Bandit, they found one of the stolen guns was allegedly used by him in a convenience store robbery within weeks of the delivery heist.

In November, more than 100 powerful AK-47s were stolen from a rail yard in Atlanta. The guns were in a box car containing more than 1,000 guns being shipped from an overseas manufacturer to a major U.S. distributor, authorities say.

A few of the weapons have been recovered, but police are deeply concerned about having scores of new assault rifles falling into the wrong hands.

Given all the gun thefts, police say it is critical for gun owners to secure their weapons in gun safes or locked cases. And authorities are urging gun retailers to fortify their buildings, to try to prevent "smash and grab" type robberies.

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North Korea to target U.S. with nuclear, rocket tests

SEOUL (Reuters) - North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its "sworn enemy".

The announcement by the country's top military body came a day after the U.N. Security Council agreed to a U.S.-backed resolution to censure and sanction North Korea for a rocket launch in December that breached U.N. rules.

North Korea is not believed to have the technology to deliver a nuclear warhead capable of hitting the continental United States, although its December launch showed it had the capacity to deliver a rocket that could travel 10,000 km (6,200 miles), potentially putting San Francisco in range, according to an intelligence assessment by South Korea.

"We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States," North Korea's National Defence Commission said, according to state news agency KCNA.

North Korea is believed by South Korea and other observers to be "technically ready" for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un, who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.

China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang's two earlier nuclear tests.

Thursday's statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition, with Xi Jinping due to take office in March.

China's Foreign Ministry called for calm and restraint and a return to six-party talks, but effectively singled out North Korea, urging the "relevant party" not to take any steps that would raise tensions.

"We hope the relevant party can remain calm and act and speak in a cautious and prudent way and not take any steps which may further worsen the situation," ministry spokesman Hong Lei told reporters at a regular press briefing.

North Korea has rejected proposals to restart the talks aimed at reining in its nuclear capacity. The United States, China, Russia, Japan and the two Koreas are the six parties involved.

"After all these years and numerous rounds of six-party talks we can see that China's influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats," said Cai Jian, an expert on Korea at Fudan University in Shanghai.

Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il's Feb 16 birthday.

"North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement)," said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.

U.S. URGES NO TEST

Washington urged North Korea not to proceed with a third test just as the North's statement was published on Thursday.

"Whether North Korea tests or not is up to North Korea," Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.

"We hope they don't do it. We call on them not to do it," Davies said after a meeting with South Korean officials. "This is not a moment to increase tensions on the Korean peninsula."

The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.

A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.

North Korea's 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT - compared with 13-18 kilotons for the Hiroshima bomb - and U.S. intelligence estimates put the 2009 test's yield at roughly two kilotons

North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.

According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.

North Korea has not yet mastered the technology needed to make a nuclear warhead small enough for an intercontinental missile, most observers say, and needs to develop the capacity to shield any warhead from re-entry into the earth's atmosphere.

North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.

The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father, Kim Jong-il, who oversaw the country's military and nuclear programs.

The older Kim died in December 2011.

"The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage," the commission was quoted as saying.

(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan and Ron Popeski)

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Australians warned to leave Benghazi immediately

SYDNEY: Australia on Friday joined three European nations in urging its citizens to leave the Libyan city of Benghazi due to a "specific, imminent threat to Westerners" linked to French action in Mali.

The advice followed similar warnings from governments in Britain, Germany and the Netherlands, which sparked an angry response from Libya's government. Tripoli said there was "no new intelligence" to justify such concerns.

But Australia's department of foreign affairs said: "We are aware of a specific, imminent threat to Westerners in Benghazi. All Australians in Benghazi should leave immediately.

"There is a risk of retaliatory attacks against Western targets in Libya following the French intervention in the conflict in Mali in January 2013," it said in an updated travel advice.

"A number of militant groups are known to operate in Libya and some may seek to target Western interests."

Only two Australians are registered as being in Benghazi and just 22 in Libya, said the department.

The alert came after US Secretary of State Hillary Clinton testified to Congress this week about the September attack on the US diplomatic mission in Benghazi that killed four Americans, including the ambassador to Libya.

It also comes as French troops battle Al-Qaeda-linked militants in Mali, amid rising concern about Islamist extremism across north Africa after last week's bloody attack on the In Amenas gas plant in Algeria.

- AFP/fa

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NRI initiative raises millions for educating India’s children

NEW DELHI: A group of Indian-Americans in New York attended an unusual black-tie dinner gala one November evening last year. Over a video link they chatted with students of a Pune slum school. This was one of many fundraisers hosted by voluntary organization Pratham USA. Its mission: Mobilize Indians in the US to get involved in its work.

The dinner was a success. More than 400, mostly those of Indian origin, pledged support to Pratham USA. On a single night, they donated $1.4million to educate tiny tots in India's impoverished pockets.

Pratham USA is an overseas arm of Pratham (India), working to ensure that "every child is in school and learning well". It's created a circle of giving where NRIs chip in with funds and expertise to strengthen the parent body's educational initiatives. One of the best-known names in education, NGO Pratham has been working with the government in 21 states to improve pre-school education, provide additional learning support to in-school and out-of-school children, mainstream school dropouts, provide vocational training and computer literacy to those from vulnerable backgrounds. It touches the lives of over 2 million students annually.

For many like Atul Varadhachary (50), one of Pratham USA's founders, the visible impact of Pratham's work and its dedicated staffers are motivating factors. "Many of us have family in India. It's satisfying when you go back and see the difference your support is making," Varadhachary, who moved to the US in 1987, said.

He brought his daughters, aged 15 and 11, from Houston to visit a Pratham school in Mumbai last year. Like him, many initial members such as Vijay Goradia, founder of Vinmar International, a $ 3billion global distributor of chemicals and polymer are involved in Pratham programmes. "We often network Pratham board members with educationists in the US. There are many commonalities in terms of challenges faced by students and principals and dialogue helps," says Varadhachary.

What started out as an informal network with a few hands in 2000 has now grown into a formal initiative involving 10,000 people across 14 US cities. They collectively generate over $11mn annually towards Pratham's work.

They have also roped in GenNext. Second-generation Indian migrants intern in Pratham balwadis and schools, volunteer ideas or money. Sharing his experience on the organization's website, 16-year-old Dhruv Kothari admits that a brush with the project made him realize how much he took for granted his education in a US school. He has been raising funds every time family and friends drop by at home and collected over $420 in a week. He followed it up with a fundraiser in his father's office which raked $550.

Madhav Chavan, co-founder of Pratham says the US body, has been a constant support. "When you interact with them you realize they are genuinely interested in the concrete impact of their work."

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Penalty could keep smokers out of health overhaul

WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.

The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.

For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.

Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.

Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.

Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.

Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.

Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.

"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.

"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.

Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.

"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."

Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.

First, the law allows insurers to charge older adults up to three times as much as their youngest customers.

Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.

And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.

Here's how the math would work:

Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.

But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.

"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.

In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.

Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.

"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."

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Online:

Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx

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Feds Bust Man in Alleged Bombs-for-Drugs Sting

Jan 24, 2013 7:07pm

Ryan Budnick/KMGH

A Colorado man who claimed to be a former demolition expert in the U.S. Marines was arrested Thursday after he allegedly tried to trade guns and homemade bombs with a 20-meter “kill zone” for cocaine.

Richard Lawrence Sandberg, 35, was taken into custody Thursday at his Morrison, Colo. home, ATF spokesman Bradley Beyersdorf told ABC News. Sandberg is facing one count of unlawful possession of a firearm or explosive device.

According to court documents, police became aware of Sandberg on January 18, when a confidential informant told a Denver police detective that Sandberg wanted to trade “numerous firearms and grenades” for drugs. The Denver police detective then contacted the Bureau of Alcohol, Tobacco, Firearms and Explosives.

On Tuesday, the documents say, an undercover ATF agent met with Sandberg at his home.

Sandberg allegedly told the undercover agent that he was in possession of 18 M67 military grenades that he offered to sell for $200 to $300 a piece, according to the criminal complaint.

The complaint did not say where Sandberg may have gotten the grenades, but said “Sandberg claimed to have been active in war zones in Iraq, Somalia, Africa, and Pakistan.”

“Sandberg also stated that he was in possession of several thousand rounds of ammunition and also in possession of uranium-tipped armor-piercing ammunition,” the complaint said.

In addition to the grenades, Sandberg allegedly claimed to have about a dozen homemade bombs, called “frags,” designed to create a “kill zone” within 20 meters and a “hurt zone” within 60 meters if they went off. The complaint says Sandberg also claimed to have access to C4 plastic explosives and napalm.

In one conversation, Sandberg “made disparaging remarks about the current administration and them wanting to take away his guns,” according to the complaint.

Bureau of Alcohol, Tobacco, Firearms and Explosives

If any law enforcement officers tried to take his guns, the complaint says Sandberg told the agent that “it would be a bad day for them and lots of them would die. Sandberg stated that he was ready and willing to die.”

At one point, the undercover ATF agent offered to pay for pipe bombs and a small explosive called a “cricket.” Sandberg refused, the complaint says, instead insisting that “they could set up a trade for cocaine.”

During the Thursday operation, the street in front of Sandberg’s home was blocked for several hours while ATF agents and three local bomb squads made sure the house was safe. Multiple improvised explosive devices were taken from the house and rendered safe at a remote location,according to U.S. Attorney’s spokesman Jeffrey Dorchner.

One house next door to Sandberg’s had to be temporarily evacuated, Beyersdorf said.

Sandberg appeared in federal court Thursday afternoon and was advised of the charges against him. He has not entered a plea. Sandberg is being held without bond until a detention hearing scheduled for Jan. 29, Dorchner said.

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