Moscow Journal: Book Translates American Minutiae for Russians





MOSCOW — After 20 years of opining on weighty bilateral issues like NATO expansion and ballistic missile defense, the political analyst Nikolai V. Zlobin recently found himself trying to explain, for an uncomprehending Russian readership, the American phenomenon of the teenage baby sitter.




In Russia, children are raised by their grandmothers, or, if their grandmothers are not available, by women of the same generation in a similar state of unremitting vigilance against the hazards — like weather — that arise in everyday life. An average Russian mother would no sooner entrust her children’s upbringing to a local teenager than to a pack of wild dogs.


But of course much in everyday American life sounds bizarre to Russians, as Mr. Zlobin documents meticulously in his 400-page book, “America — What a Life!”


It seems strange, 20 years after the fall of the Iron Curtain, that ordinary Russians would still be hungry for details about how ordinary Americans eat and pay mortgages. But to Mr. Zlobin’s surprise, his book — published this year and marketed as a guide to Russians considering a move abroad — is already in its fifth print run, and his publisher has commissioned a second volume.


With the neutrality of a field anthropologist dispatched to suburbia, Mr. Zlobin scrutinizes the American practice of interrogating complete strangers about the details of their pregnancies; their weird habit of leaving their curtains open at night, when a Russian would immediately seal himself off from the prying eyes of his neighbors. Why Americans do not lie, for the most part. Why they cannot drink hard liquor. Why they love laws but disdain their leaders.


“The secret is that everyone wants to know what America is without its ideological blanket,” said Mr. Zlobin, who has lived in the United States on and off for 20 years and serves, at times, as an informal consultant to the Kremlin. “Originally I thought you had to watch the important issues, but it turns out what matters are the very basic ones.”


He is not the first Russian to engage in this exercise. In 1935, Ilya Ilf and Yevgeny Petrov, Soviet satirists, embarked on a road trip across the United States. Their book, “One-Story America,” described its residents’ earnestness (“Americans never say anything they do not mean”) their provinciality (“curiosity is almost absent”) and the ubiquity of advertising, which, they wrote, “followed us all over America, convincing us, begging us, persuading us, and demanding of us that we chew ‘Wrigley’s,’ the flavored, incomparable, first-class gum.”


That book, published less than two decades after the Bolshevik Revolution, was a touch subversive because it did not focus on the class struggle, then the Kremlin’s central talking point about the United States.


Mr. Zlobin is writing at a moment when state-controlled television casts the United States as a global bully, releasing waves of turbulence on the world and covertly undermining President Vladimir V. Putin. Mr. Zlobin does not make much effort to advance that thesis, instead suggesting, in his soft way, that Russian leaders would benefit from understanding what Americans are like.


“I often get appeals for help in Washington — ‘Get to know so and so,’ they tell me, naming some public figure, ‘We need to solve this problem,’ ” he writes. “It is difficult to explain that in the United States, in most cases, problems are not solved this way.”


Mr. Zlobin, who has lived in St. Louis, Chapel Hill, N.C., and Washington, finds his answers in middle-class neighborhoods that most Europeans never see. Readers have peppered him with questions about his chapter about life on a cul-de-sac. Most Russians grew up in dense housing blocks, where children ran wild in closed central courtyards. Cul-de-sac translates in Russian as tupik — a word that evokes vulnerability and danger, a dead end with no escape.


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Apple, Samsung face off in court again






SAN JOSE (Reuters) – Apple Inc and Samsung Electronics squared off again in court on Thursday, as the iPhone maker prepares to convince a U.S. district judge to ban sales of a number of the Korean company’s devices and defend a $ 1.05 billion jury award.


Apple scored a sweeping legal victory in August at the conclusion of its landmark case against its arch-foe, when a U.S. jury found Samsung had copied critical features of the iPhone and iPad and awarded it $ 1.05 billion in damages.






U.S. District Judge Lucy Koh is expected to address a range of issues at the hearing, which began Thursday afternoon. They include setting aside any of the jury’s findings on liability, juror misconduct, and the requested injunction.


Twenty four of Samsung’s smartphones were found to have infringed on Apple’s patents, while two of Samsung’s tablets were cleared of similar allegations.


Koh began by questioning the basis for some of the damages awarded by the jury, putting Apple’s lawyers on the defensive.


“I don’t see how you can evaluate the aggregate verdict without looking at the pieces,” Koh said.


Samsung’s lawyers argued the ruling against it should be “reverse engineered” to be sure the $ 1.05 billion was legally arrived at by the jury, while Apple said the ruling should stand as is.


FIERCEST RIVAL


Samsung is Apple’s fiercest global business rival, and their battle for consumers’ allegiance is shaping the landscape of the smartphone and tablet industry, and has claimed several high-profile victims including Nokia.


While most of the devices facing injunction are older and, in some cases, out of the market, such injunctions have been key for companies trying to increase their leverage in courtroom patent fights.


In October, a U.S. appeals court overturned a pretrial sales ban against Samsung’s Galaxy Nexus smartphone, dealing a setback to Apple’s battle against Google Inc’s increasingly popular mobile software.


Some analysts say Apple’s willingness to license patents to HTC could convince Koh it does not need the injunction, as the two companies could arrive at a licensing deal.


Apple is also attempting to add more than $ 500 million to the $ 1 billion judgment because the jury found Samsung willfully infringed on its patents.


Samsung, for its part, wants the verdict overturned, saying the foreman of the jury in the trial did not disclose that he was once embroiled in litigation with Seagate Technology, a company that Samsung invested in.


Both Apple and Samsung have filed separate lawsuits covering newer products, including the Samsung Galaxy Note II. That case is pending in U.S. District Court in San Jose and is set for trial in 2014.


(Reporting By Poornima Gupta)


Gadgets News Headlines – Yahoo! News


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Tim McGraw and Faith Hill Kick Off Special Series of Las Vegas Shows















12/09/2012 at 05:00 PM EST







Tim McGraw and Faith Hill


Denise Truscello/WireImage


Tim McGraw and Faith Hill looked at each other, their hands on each others knees and shared a passionate kiss just after midnight Sunday morning.

The moment was a long time coming – it capped off their first weekend as a Las Vegas headlining act.

Earlier in the 90 minute show, McGraw told the crowd at the Venetian that he and his wife were going to "have fun tonight" and it genuinely seemed like they did, singing with each other for several songs while still letting the other perform their solo hits. Though the show – called the Soul2Soul series – is technically not the same "residency" show Las Vegas is known for, the couple will perform for 10 weekends through April.

At a press conference several months ago, McGraw and Hill promised a "personal" show, and they delivered in a big way. In fact, it got very personal as McGraw complimented his wife on her flowing black dress, saying, "It's gonna look good on the floor later."

The duo also took a moment to sit down and speak with the crowd. Though they didn't field any questions, they spoke about the most common questions they get asked. "We always get asked what was the music we heard first, who influenced us," Hill said.

Rather than answer it, the duo then sing a few of their main influences – Hill sang George Strait; McGraw sang The Eagles.

"I love doing other people's music, better than my own," McGraw joked.

With few bells and whistles, the show puts the focus squarely on it's two superstars, and considering the rousing ovations McGraw and Hill received Saturday, that's perfectly fine with their fans.

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Smokers celebrate as Wash. legalizes marijuana


SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.


Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.


A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.


"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"


Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.


Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.


In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.


The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.


King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.


Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.


Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."


Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.


In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.


Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."


He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"


"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."


Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.


But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.


The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.


"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."


The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.


That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.


Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.


"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.


___


Johnson can be reached at https://twitter.com/GeneAPseattle


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Wall St Week Ahead: "Cliff" worries may drive tax selling

NEW YORK (Reuters) - Investors typically sell stocks to cut their losses at year end. But worries about the "fiscal cliff" - and the possibility of higher taxes in 2013 - may act as the greatest incentive to sell both winners and losers by December 31.


The $600 billion of automatic tax increases and spending cuts scheduled for the beginning of next year includes higher rates for capital gains, making tax-related selling even more appealing than usual.


Tax-related selling may be behind the weaker trend in the shares of market leader Apple , analysts said. The stock is down 20 percent for the quarter, but it's still up nearly 32 percent for the year.


Apple dropped 8.9 percent in the past week alone. For a stock that gained more than 25 percent a year for four consecutive years, the embedded capital gains suddenly look like a selling opportunity if one's tax bill is going to jump sharply just because the calendar changes.


"Tax-loss selling is always a factor (but) tax-gains selling has been a factor this year," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.


"You have a lot of high-net-worth individuals in taxable accounts, and that could be what's affecting stocks like Apple. If you look at the stocks that people have their largest gains in, they seem to be under a little bit more pressure here than usual."


Of this year's top 20 performers in the S&P 1500 index, which includes large, small and mid-cap stocks, all but four have lost ground in the last five trading sessions.


The rush to avoid higher taxes on portfolio gains could cause additional weakness.


The S&P 500 ended the week up just 0.1 percent after another week of trading largely tied to fiscal cliff negotiation news, which has pushed the market in both directions.


A PAIN PILL FROM THE FED?


This week's Federal Reserve meeting could offer some relief if policymakers announce further plans to help the lackluster U.S. economy. The Federal Open Market Committee will meet on Tuesday and Wednesday. The policy statement is expected at about 12:30 p.m. EST on Wednesday after the conclusion of the meeting - the Fed's last one for the year.


Friday's jobs report showing non-farm payrolls added 146,000 jobs in November eased worries that superstorm Sandy had hit the labor market hard.


"After the FOMC meeting, I think it's going to be downhill from there as worries about the fiscal cliff really take center stage and prospects of a deal become less and less likely," said Mohannad Aama, managing director of Beam Capital Management LLC in New York.


"I think we are likely to see an escalation in profit-taking ahead of tax rates going up next year," he said.


MORE VOLUME AND VOLATILITY


Volume could increase as investors try to shift positions before year end, some analysts said.


While most of that would be in stocks, some of the extra trading volume could spill over into options, said J.J. Kinahan, TD Ameritrade's chief derivatives strategist.


Volatility could pick up as well, and some of that is already being seen in Apple's stock.


"The actual volatility in Apple has been very high while the market itself has been calm. I expect Apple's volatility to carry over into the market volatility," said Enis Taner, global macro editor at RiskReversal.com, an options trading firm in New York.


Shares of Apple, the largest U.S. company by market value, on Friday registered their worst week since May 2010. In another bearish sign, the stock's 50-day moving average fell to $599.52 - below its 200-day moving average at $601.38.


"There's a lot of tax-related selling happening now, and it will continue to happen. Apple is an example, even (though) there are other factors involved with Apple," Aama said.


If tax rates are going up, an investor would sell now to book gains and pay lower capital gains taxes, according to Aama. But if an investor has capital losses, then "you take losses and have them count against capital gains or regular income if you do not have any offsetting capital gains.


"In essence, higher capital gains tax rates will give your losses a higher value next year than this year as the income tax shield will be worth more in 2013. So if you have no capital gains this year, you are better off holding off on selling your losers in 2012 and waiting till 2013," he said in an email.


While investors may be selling stocks to avoid higher taxes in 2013, companies may continue to announce special and accelerated dividend payments before year end. Among the latest, Expedia announced a special dividend of 52 cents a share to be paid on December 28.


To be sure, the big sell-off in stocks following the November 6 election was likely related to tax selling, making it hard to judge how much more is to come.


Even with stocks' recent declines, the three major U.S. stock indexes are still up for the year. The Dow Jones industrial average <.dji> is up 7.7 percent for 2012 so far, while the benchmark Standard & Poor's 500 index <.spx> is up 12.8 percent and the Nasdaq Composite Index <.ixic> is up 14.3 percent for the year to date.


Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston, said there is a decent chance that the market could rally before the year ends.


"Even with little or spotty news that one would put in the positive bucket regarding the (cliff) negotiations, the market has basically hung in there, and I think it's hung in there in anticipation of something coming," he said.


(Wall St Week Ahead runs every Sunday. Questions or comments on this column can be emailed to: caroline.valetkevitch(at)thomsonreuters.com)


(Reporting by Caroline Valetkevitch; Editing by Jan Paschal; Multimedia versions of Reuters Top News are now available for:; 3000 Xtra: visit Reuters Top News; BridgeStation: view story .134; For London stock market outlook please click on <.l>; Pan-European stock market outlook <.eu>; Tokyo stock market outlook <.t>)



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News Analysis: U.N. Envoy Rice Faulted for Rwanda Tie in Congo Conflict


Phil Moore/Agence France-Presse — Getty Images


Congolese soldiers re-entered the city of Goma last Monday. Susan E. Rice, left, has been criticized for the United States’ role in the conflict







WASHINGTON — Almost two decades after the Clinton administration failed to intervene in the genocide in Rwanda, the United States is coming under harsh criticism for not moving forcefully in another African crisis marked by atrocities and brutal killings, this time in Rwanda’s neighbor, the Democratic Republic of Congo.








Jacquelyn Martin/Associated Press

Congolese soldiers re-entered the city of Goma last Monday. Susan E. Rice, left, has been criticized for the United States’ role in the conflict.






While President Obama and Secretary of State Hillary Rodham Clinton have taken some of the blame, critics of the Obama administration’s Africa policy have focused on the role of Susan E. Rice, the United States ambassador to the United Nations and a leading contender to succeed Mrs. Clinton, in the administration’s failure to take action against the country they see as a major cause of the Congolese crisis, Rwanda.


Specifically, these critics — who include officials of human rights organizations and United Nations diplomats — say the administration has not put enough pressure on Rwanda’s president, Paul Kagame, to end his support for the rebel movement whose recent capture of the strategic city of Goma in Congo set off a national crisis in a country that has already lost more than three million people in more than a decade of fighting. Rwanda’s support is seen as vital to the rebel group, known as M23.


Support for Mr. Kagame and the Rwandan government has been a matter of American foreign policy since he led the Tutsi-dominated Rwandan Patriotic Front to victory over the incumbent government in July 1994, effectively ending the Rwandan genocide. But according to rights organizations and diplomats at the United Nations, Ms. Rice has been at the forefront of trying to shield the Rwandan government, and Mr. Kagame in particular, from international censure, even as several United Nations reports have laid the blame for the violence in Congo at Mr. Kagame’s door.


A senior administration official said Saturday that Ms. Rice was not freelancing, and that the American policy toward Rwanda and Congo was to work with all the countries in the area for a negotiated settlement to the conflict.


Aides to Ms. Rice acknowledge that she is close to Mr. Kagame and that Mr. Kagame’s government was her client when she worked at Intellibridge, a strategic analysis firm in Washington. Ms. Rice, who served as the State Department’s top African affairs expert in the Clinton administration, worked at the firm with several other former Clinton administration officials, including David J. Rothkopf, who was an acting under secretary in the Commerce Department; Anthony Lake, Mr. Clinton’s national security adviser; and John M. Deutch, who was director of the Central Intelligence Agency.


Payton Knopf, a spokesman for Ms. Rice, declined to comment about whether her work with Rwanda at Intellibridge affected her dealings with Rwanda in her present job as the United States ambassador to the United Nations.


Two months ago, at a meeting with her French and British counterparts at the French Mission to the United Nations, according to a Western diplomat with knowledge of the meeting, Ms. Rice objected strongly to a call by the French envoy, Gerard Araud, for explicitly “naming and shaming” Mr. Kagame and the Rwandan government for its support of M23, and to his proposal to consider sanctions to pressure Rwanda to abandon the rebel group.


“Listen Gerard,” she said, according to the diplomat. “This is the D.R.C. If it weren’t the M23 doing this, it would be some other group.” The exchange was reported in Foreign Policy magazine last week.


A few weeks later, Ms. Rice again stepped in to protect Mr. Kagame. After delaying for weeks the publication of a United Nations report denouncing Rwanda’s support for the M23 and opposing any direct references to Rwanda in United Nations statements and resolutions on the crisis, Ms. Rice intervened to water down a Security Council resolution that strongly condemned the M23 for widespread rape, summary executions and recruitment of child soldiers. The resolution expressed “deep concern” about external actors supporting the M23. But Ms. Rice prevailed in preventing the resolution from explicitly naming Rwanda when it was passed on Nov. 20.


Mr. Knopf, the spokesman for Ms. Rice, said the view of the United States was that delicate diplomatic negotiations under way among Rwanda, Congo and Uganda could have been adversely affected if the Security Council resolution explicitly named Rwanda. “Working with our colleagues in the Security Council, the United States helped craft a strong resolution to reinforce the delicate diplomatic effort then getting under way in Kampala,” Mr. Knopf said.


The negotiations subsequently fell apart, and the M23 continued to make gains in eastern Congo. Last week, the M23 withdrew from Goma but left behind agents and remain in range of the city.


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Software guru McAfee wants to return to United States












GUATEMALA CITY (Reuters) – Software guru John McAfee, fighting deportation from Guatemala to Belize to face questions about the slaying of a neighbor, said on Saturday he wants to return to the United States.


“My goal is to get back to America as soon as possible,” McAfee, 67, said in a phone call to Reuters from the immigration facility where he is being held for illegally crossing the border to Guatemala with his 20-year-old girlfriend.












“I wish I could just pack my bags and go to Miami,” McAfee said. “I don’t think I fully understood the political situation. I’m an embarrassment to the Guatemalan government and I’m jeopardizing their relationship with Belize.”


The two neighboring countries in Central America are locked in a decades-long territorial dispute and voters in 2013 will decide in a referendum how to proceed.


Responding to McAfee’s remarks, a U.S. State Department spokeswoman said U.S. citizens in foreign countries are subject to local laws. Officials can only ensure they are “treated properly within this framework,” she said.


On Wednesday, Guatemalan authorities arrested McAfee in a hotel in Guatemala City where he was holed up with his Belizean girlfriend.


The former Silicon Valley millionaire is wanted for questioning by Belizean authorities, who say he is a “person of interest” in the killing of fellow American Gregory Faull, McAfee’s neighbor on the Caribbean island of Ambergris Caye.


The two had quarreled at times, including over McAfee’s unruly dogs. Authorities in Belize say he is not a prime suspect in the investigation.


Guatemala rejected McAfee’s request for asylum on Thursday. His lawyers then filed several appeals to block his deportation. They say it could take months to resolve the matter.


The software developer has been evading Belize authorities for nearly four weeks and has chronicled his life on the run in his blog, www.whoismcafee.com.


McAfee claims authorities will kill him if he turns himself in for questioning. He has denied any role in Faull’s killing and said he is being persecuted by Belize’s ruling party for refusing to pay some $ 2 million in bribes.


Belize’s prime minister has rejected this, calling McAfee paranoid and “bonkers.


BEATING HEAD AGAINST WALL


After making millions with the anti-virus software bearing his name, McAfee later lost much of his fortune. For the past four years he has lived in semi-reclusion in Belize.


He started McAfee Associates in the late 1980s but left soon after taking it public. McAfee now has no relationship with the company, which was later sold to Intel Corp.


Hours after his arrest, McAfee was rushed to a hospital for what his lawyer said were two mild heart attacks. Later he said the problem was stress. McAfee said he fainted after days of heavy smoking, poor eating and knocking his head against a wall.


He told Reuters he no longer has access to the Internet and has turned over the management of his blog to friends in Seattle, Washington. On Saturday, they began posting a series of files claiming to detail Belize’s corruption.


Residents and neighbors in Belize have said the eccentric tech entrepreneur, who is covered in tribal tattoos and kept an entourage of bodyguards and young women on the island, had appeared unstable in recent months.


Police in April raided his property in Belize on suspicion he was running a lab to make illegal narcotics. There already was a case against him for possession of illegal firearms.


McAfee says the charges are an attempt to frame him.


“People are saying I’m paranoid and crazy but it’s difficult for people to comprehend what has been happening to me,” he said. “It’s so unusual, so out of the mainstream.”


(Editing by Dave Graham and Bill Trott)


Tech News Headlines – Yahoo! News


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Jason Aldean's Holiday Plans: Visiting Santa with His Kids















12/08/2012 at 06:30 PM EST







Jessica Ussery and Jason Aldean


Bauer-Griffin


After a year of professional highs – and personal lows – Jason Aldean is looking forward to a quiet holiday with family.

"I'm on the road so much during the year, so what I look forward to the most is being home with my family, " he told PEOPLE at the taping of the CMT Artists of the Year special (airing Saturday at 10/9 CT), where he walked the red carpet hand-in-hand with his wife, Jessica.

Aldean says being with Jessica and their daughters – Keeley, 10, and Kendyl, 5 – and doing "things like taking the girls to the mall to shop or to see Santa Claus" are on his holiday must-do list. "Things that simple to me are really cool."

Looking back at 2012, some highlights for the country star include releasing a chart-topping album and playing sold out stadiums.

But Aldean also faced personal hurdles when photos surfaced showing him getting affectionate with another woman. Still, for the singer, who publicly apologized for his behavior, life is good.

"This year, the tour went really well, the album has done really well, and good stuff has definitely outweighed the bad," he says. "All that other stuff is kind of in the past and we're just looking to have a great year in 2013."

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Smokers celebrate as Wash. legalizes marijuana


SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.


Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.


A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.


"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"


Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.


Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.


In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.


The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.


King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.


Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.


Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."


Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.


In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.


Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."


He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"


"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."


Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.


But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.


The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.


"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."


The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.


That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.


Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.


"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.


___


Johnson can be reached at https://twitter.com/GeneAPseattle


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Wall Street Week Ahead: "Cliff" worries may drive tax selling


NEW YORK (Reuters) - Investors typically sell stocks to cut their losses at year end. But worries about the "fiscal cliff" - and the possibility of higher taxes in 2013 - may act as the greatest incentive to sell both winners and losers by December 31.


The $600 billion of automatic tax increases and spending cuts scheduled for the beginning of next year includes higher rates for capital gains, making tax-loss selling even more appealing than usual.


Tax-related selling may be behind the weaker trend in the shares of market leader Apple , analysts said. The stock is down 20 percent for the quarter, but it's still up nearly 32 percent for the year.


Apple dropped 8.9 percent in this past week alone. For a stock that gained more than 25 percent a year for four consecutive years, the embedded capital gains suddenly look like a selling opportunity if one's tax bill is going to jump sharply just because the calendar changes.


"Tax-loss selling is always a factor (but) tax-gains selling has been a factor this year," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.


"You have a lot of high-net-worth individuals in taxable accounts, and that could be what's affecting stocks like Apple. If you look at the stocks that people have their largest gains in, they seem to be under a little bit more pressure here than usual."


Of this year's top 20 performers in the S&P 1500 index, which includes large, small and mid-cap stocks, all but four have lost ground in the last five trading sessions.


The rush to avoid higher taxes on portfolio gains could cause additional weakness.


The S&P 500 ended the week up just 0.1 percent after another week of trading largely tied to fiscal cliff negotiation news, which has pushed the market in both directions.


A PAIN PILL FROM THE FED?


Next week's Federal Reserve meeting could offer some relief if policymakers announce further plans to help the lackluster U.S. economy. The Federal Open Market Committee will meet on Tuesday and Wednesday. The policy statement is expected at about 12:30 p.m. on Wednesday after the conclusion of the meeting - the Fed's last one for the year.


Friday's jobs report showing non-farm payrolls added 146,000 jobs in November eased worries that Superstorm Sandy had hit the labor market hard.


"After the FOMC meeting, I think it's going to be downhill from there as worries about the fiscal cliff really take center stage and prospects of a deal become less and less likely," said Mohannad Aama, managing director of Beam Capital Management LLC in New York.


"I think we are likely to see an escalation in profit-taking ahead of tax rates going up next year," he said.


MORE VOLUME AND VOLATILITY


Volume could increase as investors try to shift positions before year end, some analysts said.


While most of that would be in stocks, some of the extra trading volume could spill over into options, said J.J. Kinahan, TD Ameritrade's chief derivatives strategist.


Volatility could pick up as well, and some of that is already being seen in Apple's stock.


"The actual volatility in Apple has been very high while the market itself has been calm. I expect Apple's volatility to carry over into the market volatility," said Enis Taner, global macro editor at RiskReversal.com, an options trading firm in New York.


Shares of Apple, the largest U.S. company by market value, registered their worst week since May 2010. In another bearish sign, the stock's 50-day moving average fell to $599.52 - below its 200-day moving average at $601.38.


"There's a lot of tax-related selling happening now, and it will continue to happen. Apple is an example, even (though) there are other factors involved with Apple," Aama said.


While investors may be selling stocks to avoid higher taxes in 2013, companies may continue to announce special and accelerated dividend payments before year end. Among the latest, Expedia announced a special dividend of 52 cents a share to be paid on December 28.


To be sure, the big sell-off in stocks following the November 6 election was likely related to tax selling, making it hard to judge how much more is to come.


Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston, said there's a decent chance that the market could rally before year end.


"Even with little or spotty news that one would put in the positive bucket regarding the (cliff) negotiations, the market has basically hung in there, and I think it's hung in there in anticipation of something coming," he said.


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: caroline.valetkevitch(at)thomsonreuters.com)


(Reporting by Caroline Valetkevitch; Editing by Jan Paschal; Multimedia versions of Reuters Top News are now available for:; 3000 Xtra: visit Reuters Top News; BridgeStation: view story .134; For London stock market outlook please click on .L/O; Pan-European stock market outlook .EU/O; Tokyo stock market outlook .T/O; Wall St Week Ahead runs every Friday.)



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