US pledges US$60m for Syria opposition






ROME: The United States on Thursday pledged US$60 million in "non-lethal" assistance for the Syrian political opposition to President Bashar al-Assad as well as the first direct US aid to rebel fighters in the form of food and medical assistance.

"The US will be providing an additional US$60 million in non-lethal assistance to support the efforts of the Syrian opposition coalition over the coming months," US Secretary of State John Kerry said after talks between the 11-nation Friends of Syria and the opposition in Rome.

"We will be sending medical supplies and food to the (rebel) Supreme Military Council, so there will be direct assistance," he added.

"All Syrians... must know that they can have a future," Kerry said.

A State Department official said the US$60 million (49 million euros) in aid would be used to help local councils and communities in liberated areas in Syria, to provide basic goods and services and "fulfil administrative functions including security, sanitation and education services."

The official said the new money was in addition to US$50 million in non-lethal support Washington has already provided to help Syrian opposition activists, including communications equipment.

That aid was provided through Turkey, while the United States has also contributed some US$380 million dollars in humanitarian aid through UN agencies and aid groups.

Asked about congressional approval of the funding, Kerry told journalists he was "very confident for rapid delivery".

He said the goal was to give a boost to the opposition and show Assad that he could not use violence to resolve the conflict.

"This is the beginning of the process that will change (Assad's) calculation."

The announcement of aid came as news broke of a car bomb explosion in a suburb of the flashpoint city of Homs that left "dead and wounded", according to state news agency SANA, which blamed "terrorists" for the blast.

Kerry had earlier met for about an hour with opposition leader Ahmed Moaz al-Khatib at the 16th-century Villa Madama on a hilltop above Rome.

The Rome talks come two days before an important meeting of the main opposition National Coalition on Saturday in Istanbul, where the umbrella group is to elect a prime minister and government to run parts of Syria seized from Assad's control.

A watchdog reported, meanwhile, that rebels had seized control of the Umayyad Mosque in the second city of Aleppo after days of fierce clashes that damaged the historic building.

Regime troops were forced to withdraw at dawn, taking up positions in buildings around the landmark structure, said the Syrian Observatory for Human Rights.

Officials from the United States, Britain, France, Germany, Italy, Turkey, Egypt, Jordan, Saudi Arabia and the United Arab Emirates took part in the Rome talks, as well as EU foreign policy chief Catherine Ashton.

The Syrian opposition -- which initially vowed a boycott -- had been lured back to the meeting after the US and Britain promised specific offers of help.

In Paris on Wednesday, Kerry said he wanted to hear from Khatib about how best to end the violence in Syria, where the United Nations says at least 70,000 have died and hundreds of thousands have been uprooted since the conflict broke out in March 2011.

US media including The New York Times and Washington Post have reported that the "non-lethal" aid to be provided to the opposition could include equipment such as vehicles, communications gear and night-vision goggles.

The New York Times also reported that a US mission training rebels at a base in the region was already under way.

Russia, Assad's most powerful supporter, has kept up pressure for the two sides in the Syrian conflict to sit down for negotiations.

In Moscow, French President Francois Hollande said ahead of a meeting with Russian counterpart Vladimir Putin that a political solution to the Syrian crisis was possible within weeks.

"I think that in the next few weeks we will manage to find a political solution that will stop the conflict from escalating," Hollande told Echo of Moscow radio station in comments translated into Russian.

Hollande stressed Russia's key role as a member of the UN Security Council, where it has vetoed resolutions that would have put pressure on Assad to end hostilities.

"We must finally start the process of political dialogue that has not yet started on the territory of Syria."

"President Putin and I both understand all the seriousness of the situation. And even though our positions at the moment differ, we want to find the best solution for Syria."

- AFP/xq



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Five major psychiatric disorders linked in new study

(CBS News) An international group of scientists have identified genetic links between five major psychiatric disorders, including autism, ADHD, bipolar disorder, depression and schizophrenia.


Their study, published in the medical journal Lancet, could change how we understand and treat the illnesses.

For the first time, researchers were able to see if there are any genetic variants that are linked to not just one of those disorders, but to all five. "And there were," Dr. Jordan Smoller, one of the lead researchers in the study, said on "CBS This Morning."

Smoller, a psychiatry professor at Massachusetts General Hospital, explained, "There were several regions of the genome, several variations that seemed to increase the risk for all five. It's important to realize, of course, that this is a small part of the genetic component of these disorders, but it points to a shared biology."

The researchers took this approach because disorders often cluster in families. Smoller added, "It's not only that, we sometimes see the same family being affected with multiple kinds of disorders, so there was some evidence that there would be shared links, but this is the first time we've been able to see specific DNA variations."

Will the study affect how we treat these disorders?

"Well, not immediately," Smoller said. "But one of the interesting findings from the study was that genes involved in how calcium channels operate in the brain. These are important for how brain cells communicate. It seemed to be associated with all of these disorders, so it raises the possibility that treatments that target those channels might have broad effects."

But just because you have family members that have one of these disorders doesn't mean you will develop a disorder, Smoller explained. "We do know that all psychiatric disorders do seem to run in families to a degree," he said. "We also know that genes are not destiny. It is not the entire picture. But the hope is that we're going learn something fundamental about how these disorders occur."

Asked if eventually predicting these disorders is possible, Smoller said, "We're not there yet, but the more we learn about the genetic and non-genetic causes of these disorders, the better position we're going to be to know who might be at risk and what we might be able to do."

For more with Smoller, watch the video in the player above.

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Why Should We Care? The Politics of Picking a Pope





Feb 28, 2013 9:34am


gty pope farewell jef 130228 wblog Why Should We Care? The Politics of Picking a Pope



                             (Image Credit: L’Osservatore Romano/Vatican/Getty Images)


ANALYSIS


VATICAN CITY – In a U.S presidential campaign, the New Hampshire primary is thought of as “retail politics,” where the candidates actually get to meet and have contact with real voters.


That’s Walmart, compared to a Vatican conclave. This process is more of a boutique.


READ MORE: Benedict XVI Begins Final Day as Pope


All the voters and all the viable candidates can fit into one room. In some cases, they have known each other – or known “of” each other – for years. In some cases, they have worked with (or against) each other in the daily management of the church.


It’s not just the fancy costumes, the churchly rituals or the sweep of history that makes this process so fascinating. There’s also the sheer human drama of it all.


VIDEO: Pope Benedict’s Last Sunday Prayer Service


For the 115 men planning to take part in the conclave to elect a pope, all of whom have devoted their lives to the Catholic church, this choice might well be the most important contribution they make. A lifetime of service reduced to a single election.


It’s also crucial for the world’s 1.2 billion Roman Catholics.


The new pope will set the tone of the institution on issues of life and death: abortion, birth control, genetic medicine, euthanasia and more.


He’ll frame the church’s role in the moral debate about the way we live our lives, as individuals and as families. Divorce, gay rights, adoption, education, the role of women (not least in the church) are all areas in which previous pope’s have exerted tremendous influence.


He’ll instantly be the most powerful spiritual leader in the world, a global ambassador for Christian values (however he and the rest of the church interpret that mandate).


9 Men Who Could Replace Pope Benedict XVI


Will he be able to win over a wayward flock? Many have left the church, bitterly disappointed by the betrayal of pedophile priests, the mismanagement of arrogant administrators or even what they perceive as the institution’s irrelevance in the modern era.


At its best, the church is a voice of compassion and social justice. But it has also, at times, been a voice of intolerance, as well as a bastion of the status quo.


On one level, this is local politics. Each voting cardinal – even the ones who live thousands of miles away – has a titular church, an actual church here in Rome assigned to them where they officially serve as the pastor. So the conclave represents the Roman clergy’s electing the next Bishop of Rome.


At another level, it’s global. Prelates from 50 countries do their best to discern (through the guidance of the Holy Spirit) how to make the universal church thrive in a new millennium.


Win or lose in a presidential election, we all know it’ll start all over again in four years’ time. There are checks and balances too, so, for better or worse, “change” tends to be largely a campaign slogan.


It would be sheer exaggeration to say any presidential contest were a battle for the soul of the United States.


But in a very real way that’s what this process is for the world’s largest church.



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Benedict: Pope aware of his flaws?




Pope Benedict XVI delivers his last Angelus Blessing to thousands of pilgrims gathered in Saint Peter's Square on February 24.




STORY HIGHLIGHTS


  • Sister Mary Ann Walsh: Pope Benedict acknowledged that he made mistakes

  • Walsh: In firestorm over scholarly quotes about Islam, he went to great lengths to atone

  • Walsh: Similarly, he quickly reversed a decision that had angered Jews and repaired ties

  • Even his stepping down is a nod to his humanity and his love of the church, she says




Editor's note: Sister Mary Ann Walsh is director of media relations for the U.S. Conference of Catholic Bishops and a member of the Sisters of Mercy of the Americas Northeast Regional Community. She is a former foreign correspondent at Catholic News Service (CNS) in Rome and the editor of "John Paul II: A Light for the World," "Benedict XVI: Essays and Reflections on his Papacy," and "From Pope John Paul II to Benedict XVI."


(CNN) -- One of the Bible's paradoxical statements comes from St. Paul's Epistle to the Galatians: "Power is made perfect in infirmity."


The poetic statement proclaims that when we are weak, we are strong. Pope Benedict XVI's stepping down from what many consider one of the most powerful positions in the world proves it. In a position associated with infallibility -- though that refers to formal proclamations on faith and morals -- the pope declares his weakness.



Sister Mary Ann Walsh

Sister Mary Ann Walsh



His acceptance of frailty speaks realistically about humanity: We grow old, weaken, and eventually die. A job, even one guided by the Holy Spirit, as we Roman Catholics believe, can become too much for us.


Acceptance of human frailty has marked this papacy. We all make mistakes, but the pope makes them on a huge stage.


He was barely into his papacy, for example, when he visited Regensburg, Germany, where he once taught theology. Like many a professor, he offered a provocative statement to get the conversation going. To introduce the theme of his lecture, the pope quoted from an account of a dialogue between the Byzantine Emperor Manuel II Paleologus and an unnamed Muslim scholar, sometime near the end of the 14th century -- a quote that was misinterpreted by some as a condemnation of Mohammed and Islam.


Opinion: 'Gay lobby' behind pope's resignation? Not likely


Twice, the pope emphasized that he was quoting someone else's words. Unfortunately, the statement about Islam was taken as insult, not a discussion opener, and sparked rage throughout the Muslim world.


The startled pope had to explain himself. He apologized and traveled two months later to Istanbul's Blue Mosque, where he stood shoeless in prayer beside the Grand Mufti of Istanbul. Later he hosted Muslim leaders at the Vatican at the start of a Catholic-Muslim forum for dialogue. It was a human moment -- a mistake, an apology and atonement -- all round.










A similar controversy erupted when he tried to bring the schismatic Society of St. Pius X back into the Roman Catholic fold.


In a grand gesture toward reconciliation, he lifted the excommunication of four of its bishops, unaware that one, Richard Williamson, was a Holocaust denier. This outraged many Jews. Subsequently the Vatican said the bishop had not been vetted, and in a bow to modernity said officials at least should have looked him up on the Internet.


In humble response, Benedict reiterated his condemnation of anti-Semitism and told Williamson that he must recant his Holocaust views to be fully reinstated. Again, his admission of a mistake and an effort to mend fences.


News: Scandal threatens to overshadow pope's final days


Pope Benedict XVI came from a Catholic Bavarian town. Childhood family jaunts included trips to the shrine of the Black Madonna, Our Lady of Altotting. He entered the seminary at the age of 13. He became a priest, scholar and theologian. He lived his life in service to the church. Even in resigning from the papacy, he embraces the monastic life to pray for a church he has ever loved.


With hindsight, his visit to the tomb of 13th century Pope Celestine V, a Benedictine monk who resigned from the papacy eight centuries before, becomes poignant.


In 2009, on a visit to Aquila, Italy, Benedict left at Celestine's tomb the pallium, a stole-like vestment that signifies episcopal authority, that Benedict had worn for his installation as pope. The gesture takes on more meaning as the monkish Benedict steps down.


We expect the pope to be perfect. Catholics hold him to be the vicar of Christ on earth. He stands as a spiritual leader for much of the world. Statesmen visit him from around the globe. He lives among splendid architecture, in the shadow of the domed St. Peter's Basilica. All testify to an almost surreal omnipotence.


Complete coverage of the pope's resignation


In this world, however, walked a vulnerable, human person. And in a paradox of life, his most human moment -- giving up the power of office -- may prove to be his most potent, delivering a message that, as St. Paul noted many centuries ago, "Power is made perfect in infirmity."


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The opinions expressed in this commentary are solely those of Mary Ann Walsh.






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Portugal seizes 79 tonnes of meat containing horse






LISBON: Portuguese authorities said they had launched fraud proceedings after seizing 79 tonnes of wholesale food and thousands of packaged meals that contained horsemeat despite not being labelled with it.

The 79 tonnes of "meat and meat-based products" were seized in plants that processed, packaged and distributed meat to supermarkets, the government's Economic and Food Safety Authority said in a statement.

Authorities also seized nearly 19,000 packets of food "such as lasagne, hamburgers, canneloni and meatballs" in retail and distribution outlets, said the statement published on Tuesday.

Five criminal cases of fraud were opened over the seizures, it added, without giving further derails.

A vast food scandal has erupted across Europe after horsemeat was found in supposedly beef ready-made meals and burgers in Britain and Ireland.

Among various companies implicated in the scandal, Swiss food giant Nestle last week withdrew dishes destined for restaurants in Portugal, Spain and Italy.

- AFP/xq



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Why Apple may owe you $5



















Kids playing TapFish, a virtual aquarium game, racked up hundreds in unexpected bills, parents claimed.




STORY HIGHLIGHTS


  • Apple settles lawsuit over in-game iTunes purchases by kids

  • Parents claimed kids racked up huge bills for "freemium" games like "TapFish"

  • Apple will offer credits or cash refunds for people who can show their bills

  • Anyone can get $5 in iTunes credit, and parents with bigger claims can receive more




(CNN) -- Apple has settled a lawsuit filed by parents who say their kids downloaded free games from the mobile App Store and then proceeded to rack up hefty bills buying in-game extras.


Under the proposed settlement of a 2011 class-action lawsuit, Apple will offer a $5 iTunes gift card to any U.S. parent who claims that their child paid for extras without their knowledge. The company will offer larger credits, or cash refunds, for people who can show that their bills were larger than $5.


On Friday, the deal will go before a federal judge, who is expected to approve it.


The proposed settlement, first reported by legal-news site Law360 and tech blog GigaOM, does not state how much Apple will pay overall or how many users are affected. Apple will create a website for people interested in cashing in on the settlement and send an e-mail notification to roughly 23 million customers.


People who want more than $5 must show that a larger amount was racked up by their kids in any 45-day period. Those who can show more than $30 in purchases may choose a cash refund instead of an Apple credit. Purchases made until the date of the settlement would be eligible for refunds.


An Apple spokesman said the company would have no comment on the proposed settlement.


In the past few years, this "freemium" business model has become increasingly popular in mobile and social gaming. Zynga games like "FarmVille" led the way for games that are free to download and play but then require players to pay small fees for in-game upgrades or premium content.


Those fees can add up quickly. The lawsuit came after media reports of several cases in which kids' in-game purchases led to parental sticker shock.


Kevin Ofel, an editor at GigaOM, wrote that he got a 2010 iTunes bill for $375 after his kids spent money on the game "TapFish," a virtual aquarium that can be loosely described as "FarmVille" under water.


The lure of digital fish is apparently a strong one. A Florida father reported that his 7-year-old amassed a $613 bill playing the same game.


On its iTunes page, the latest version of the game, "TapFish 2," lists "top in-app purchases" ranging from 99 cents up to $19.99. The game is listed as appropriate for children 4 and older.


The settlement notes that Apple offers paid content on free games that are rated appropriate for children older than 4, 9 and 12 in its App Store.


In 2011, Apple revised its in-app purchasing policy, requiring users to re-enter their account password before paying for enhancements within games. The lawsuit was filed after that policy change, with plaintiffs arguing that it didn't go far enough since minors could still make purchases.









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Gun control fight entering final round in Senate

Senate lawmakers this week are beginning what appears to be their final push to pass gun control legislation in response to the deadly massacre at a Newtown, Conn., elementary school in December.

On Wednesday, Sen. Dianne Feinstein, D-Calif., is chairing a Senate Judiciary Committee hearing on the "Assault Weapons Ban of 2013," which she introduced last month. The following day, the Judiciary Committee plans to consider the assault weapons ban, which would also ban high-capacity ammunition magazines, as well as three other bills. 

The assault weapons ban is seen as having virtually no chance to get through Congress. The decision by Senate Judiciary Committee Chairman Patrick Leahy, D-Vt., to nonetheless consider it in committee signals that the Senate is taking a piecemeal approach to passing gun control legislation, rather than trying to pass a comprehensive bill. That's because the assault weapons bill, which has a good chance to clear the committee, would almost certainly drag down the other gun control legislation if it were part of a comprehensive package presented to the full Senate. Feinstein herself acknowledged this week that her bill faced "very tough" prospects on the Senate floor.

The other gun control bills scheduled to be taken up Thursday are a Leahy-backed measure to combat illegal arms trafficking; a bill sponsored by Sen. Barbara Boxer, D-Calif., focused on school safety; and a bill mandating universal background checks sponsored by Sen. Chuck Schumer, D-N.Y.  

Because Judiciary Committee rules allow any senator to ask for a one-week delay, it is likely the markup will be postponed until March 7. (A spokesman for the ranking member of the committee, Sen. Charles Grassley, R-Iowa, said in a statement that no decision had been made but that "there are some shenanigans going on" because a final version of Schumer's bill has yet to be introduced.) The Judiciary Committee will put together final versions of the bills and vote on them, and the Senate leadership can then decide how to bring them to the Senate floor for consideration.

Schumer has been working with Sen. Tom Coburn, R-Okla., and two other senators to reach compromise on the background check bill. The parties have reached an impasse over the issue of whether gun sellers should be forced to keep a record of gun sales.

By law, the federal government must destroy evidence of background checks within 24 hours - otherwise, some argue, the government would have a de facto federal gun registry. Schumer thus argues that sellers should be required to maintain a record of the sale.

The idea is that if a gun is used in a crime and is traced to the seller, the seller would be able to produce a record of the transaction. That incentivizes the seller to perform the background check. That's because he would be in trouble if he sold the weapon to someone who the government could show would have failed a background check.

Jim Kessler of the centrist-Democratic think tank Third Way, who was formerly with Americans for Gun Safety, called the records "critically important."

"It is very difficult to enforce a universal background check law without being able to ask someone to prove that they did the background check," he said.


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Pope Thanks Crowd in Final Address












On his final full day as the leader of the Roman Catholic Church, Pope Benedict XVI thanked a huge crowd for respecting his historic decision to step down and told them that God will continue to guide the church.


"The decision I have made, after much prayer, is the fruit of a serene trust in God's will and a deep love of Christ's Church," Benedict said to cheers in his last public words as pope.


Benedict, 85, is the first pope to resign in 600 years. He told the crowd today that he was "deeply grateful for the understanding, support and prayers of so many of you, not only here in Rome, but also throughout the world."


Pope Benedict's Last Sunday Prayer Service


Under sunny skies on this late February day, hundreds of thousands of people, some waving flags, some banners, flocked to Vatican City to see Benedict make a final lap around St. Peter's Square. Throughout his eight-year papacy, Benedict has conducted a weekly audience from St. Peter's. Before delivering his last papal address today, Benedict waved to the festive group of supporters as he toured the square in his glass-encased popemobile.


The city of Rome planned for more than 200,000 people to head to the Vatican for today's event. Streets around St. Peter's were blocked off to cars as pedestrians from around the world headed to the square.








The Conclave: Secret World of Picking the Pope Watch Video











Papal Appearance: Faithful Flock to Saint Peter's Square Watch Video





9 Men Who Could Replace Pope Benedict XVI


The conclave to elect Benedict's replacement will start next month at a date yet to be determined. Benedict issued a decree known as a "motu poprio" that will allow cardinals to convene the conclave sooner than the March 15 date that would have been mandated under the old rules.


Benedict today asked the faithful to pray for him and for the new pope.


"My heart is filled with thanksgiving to God who ever watches over his church," Benedict said.


The German-born Benedict, who had appeared frail at times in recent months, seemed more energized in his remarks today. He has said he will devote more time to prayer and meditation after he leaves the papacy.


Benedict will meet Thursday with his cardinals in the morning and then flies by helicopter at 5 p.m. to Castel Gandolfo, the papal residence south of Rome. Benedict will greet parishioners there from the palazzo's balcony, his final public act as pope.


Then, at 8 p.m., the exact time at which his retirement becomes official, the Swiss Guards standing outside the doors of the palazzo at Castel Gandolfo will go off duty, their service protecting the head of the Catholic Church finished.


In retirement, Benedict will continue to wear white and will be called "Pope Emeritus," or the "Supreme Roman Pontiff Emeritus" or "Your Holiness," the Vatican announced Tuesday. Benedict will ditch his trademark red shoes, opting for a pair of brown shoes given to him on a trip to Mexico. But he will still reside on Vatican grounds in a former nunnery.


Benedict's final days as pope have been marked by controversy. For nearly a week now Italian newspapers speculated that Benedict really resigned because of a dossier he was given detailing a sex and blackmail scandal in the Catholic Church. The Italian media news reports do not state any attribution.


It turns out a dossier does exist. The Vatican spokesman Monday underscored that the contents of the dossier are known only to the pope and his investigators, three elderly prelates whom the Italian papers have nicknamed "the 007 cardinals."


But the dossier itself will remain "For the Pope's Eyes Only."






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Vatican 'Gay lobby'? Probably not






STORY HIGHLIGHTS


  • Benedict XVI not stepping down under pressure from 'gay lobby,' Allen says

  • Allen: Benedict is a man who prefers the life of the mind to the nuts and bolts of government

  • However, he says, much of the pope's time has been spent putting out fires




Editor's note: John L. Allen Jr. is CNN's senior Vatican analyst and senior correspondent for the National Catholic Reporter.


(CNN) -- Suffice it to say that of all possible storylines to emerge, heading into the election of a new pope, sensational charges of a shadowy "gay lobby" (possibly linked to blackmail), whose occult influence may have been behind the resignation of Benedict XVI, would be right at the bottom of the Vatican's wish list.


Proof of the Vatican's irritation came with a blistering statement Saturday complaining of "unverified, unverifiable or completely false news stories," even suggesting the media is trying to influence the papal election.


Two basic questions have to be asked about all this. First, is there really a secret dossier about a network of people inside the Vatican who are linked by their sexual orientation, as Italian newspaper reports have alleged? Second, is this really why Benedict XVI quit?



John L. Allen Jr.

John L. Allen Jr.



The best answers, respectively, are "maybe" and "probably not."


It's a matter of record that at the peak of last year's massive Vatican leaks crisis, Benedict XVI created a commission of three cardinals to investigate the leaks. They submitted an eyes-only report to the pope in mid-December, which has not been made public.


It's impossible to confirm whether that report looked into the possibility that people protecting secrets about their sex lives were involved with the leaks, but frankly, it would be surprising if it didn't.


There are certainly compelling reasons to consider the hypothesis. In 2007, a Vatican official was caught by an Italian TV network on hidden camera arranging a date through a gay-oriented chat room, and then taking the young man back to his Vatican apartment. In 2010, a papal ceremonial officer was caught on a wiretap arranging liaisons through a Nigerian member of a Vatican choir. Both episodes played out in full public view, and gave the Vatican a black eye.









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In that context, it would be a little odd if the cardinals didn't at least consider the possibility that insiders leading a double life might be vulnerable to pressure to betray the pope's confidence. That would apply not just to sex, but also potential conflicts of other sorts too, such as financial interests.


Vatican officials have said Benedict may authorize giving the report to the 116 cardinals who will elect his successor, so they can factor it into their deliberations. The most immediate fallout is that the affair is likely to strengthen the conviction among many cardinals that the next pope has to lead a serious house-cleaning inside the Vatican's bureaucracy.


It seems a stretch, however, to suggest this is the real reason Benedict is leaving. For the most part, one should probably take the pope at his word, that old age and fatigue are the motives for his decision.


That said, it's hard not to suspect that the meltdowns and controversies that have dogged Benedict XVI for the last eight years are in the background of why he's so tired. In 2009, at the height of another frenzy surrounding the lifting of the excommunication of a Holocaust-denying traditionalist bishop, Benedict dispatched a plaintive letter to the bishops of the world, voicing hurt for the way he'd been attacked and apologizing for the Vatican's mishandling of the situation.


Even if Benedict didn't resign because of any specific crisis, including this latest one, such anguish must have taken its toll. Benedict is a teaching pope, a man who prefers the life of the mind to the nuts and bolts of government, yet an enormous share of his time and energy has been consumed trying to put out internal fires.


It's hard to know why Benedict XVI is stepping off the stage, but I doubt it is because of a "gay lobby."


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The opinions expressed in this commentary are solely those of John L. Allen Jr.






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Impact of China's demand for iron ore on shipping industry






SINGAPORE : China's appetite for iron ore may be among the few bright spots for the shipping industry this year, although there are still many empty vessels plying the waterways.

Analysts have said that those unable to wait out the recovery are likely to go under.

After years of low freight rates, overcapacity and few cargoes, dry bulk shipping firms are finally seeing the light on the horizon.

Credit Suisse predicts China's appetite for iron ore will grow 11 per cent this year, fuelling a pick-up for shippers.

Credit Suisse expects this to spur global commodity demand to 5.3 per cent, from 4.8 per cent last year.

Mercator Lines (Singapore) believes 2013 may be a turning point.

During its third quarter, the dry bulk shipping company was forced to lower its debt by selling one vessel, and terminating settlement agreements with two of its chartered vessels in advance.

Shalabh Mittal, CEO of Mercator Lines (Singapore), said: "We have seen the worst in 2012. 2013 will be more of consolidation...We have already seen the current freight rates are better than 2012's average. So even though it is a very small increase from a very small base, the sentiments reflect that the growth in trade is happening."

But that does not mean a quick turnaround for the global market.

Industry watchers expect overcapacity rates to remain high.

ICAP Shipping said there is still an oversupply of about 16 per cent in the dry cargo market.

Christopher Jones, director of Sale & Purchase at ICAP Shipping, said: "This year, we do not see too much of an improvement. One of the key factors is the oversupply of tonnage in all sectors.

"Freight rates are still lolloping and we seize on any kind of upturn, but analysing ore trades into China for example, they are very slack at the moment because of the high price of iron ore."

ICAP Shipping added that unless more older vessels exit the market by 'scrapping', or the demolition of old ships, market fundamentals are not going to return to equilibrium anytime soon.

Meanwhile, others unable to hold out will either have to fold or find a more profitable business to operate in, like oil and gas.

Patrik Wheater, editor of Shipping World & Shipbuilder, said: "We are seeing a lot of diversification in the shipbuilding side. Shipyards, either building bulk carriers, tankers, that market is not as good as it once was, so they need to diversify and look at other segments and the oil and gas segment is a saving grace for some yards.

"Although last year 900 Chinese shipyards closed, more shipyards are likely to close in China this year."

So far in 2013, the Baltic Dry Index (BDI), the key benchmark for international freight rates, has risen 6.4 per cent, a minor recovery at least, from last year's near 60 per cent slump.

- CNA/ms



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