U.S. holding passports hostage until parents pay child support

WASHINGTON - New passport requirements that have complicated travel this summer also have uncovered untold numbers of child-support scofflaws and forced them to pay millions.

The price of a passport: $311,491 in back support payments for a U.S. businessman now living in China; $46,000 for a musician seeking to perform overseas; and $45,849 for a man planning a Dominican Republic vacation.

The State Department denies passports to non-custodial parents who owe more than $2,500 in child support. Once the parents make good on their debts, they can reapply for passports.

Now that millions of additional travelers need passports to fly back from Mexico, Canada, the Caribbean and South America, collections under the Passport Denial Program are on pace to about double this year, federal officials say.

In one case last year, a man got his parents to pay his overdue child support: $50,498 to the state of Illinois.

"For us, it's been amazing to see how people who owe back child support seem to be able to come up with good chunks of money when it involves needing their passport," said Adolfo Capestany of Washington state's Division of Child Support.

(http://www.azcentral.com)

Arizona - Ruling says hospitals can require full payment from patients

PHOENIX - A state appellate court on Tuesday ruled in a case with bottom-line impact for health-care consumers, deciding that all hospital patients aren't entitled to discounts given to many group insurance plans.

A dissenting Court of Appeals judge said the ruling ignores that some standard rates charged by hospitals could be "unconscionable."

Seven patients and their insurance company, Medical Savings Insurance Co., had appealed a Maricopa County Superior Court judge's ruling in favor of Phoenix-based Banner Health, a major Arizona hospital company.

The case revolved around the widespread practice in the American health-care industry for hospitals and other providers to give sharp price discounts to group plans that agree to steer patients to those providers.

Banner had rebuffed partial payments offered by Medical Savings on behalf of the patients as reasonable amounts for the care provided. Banner then sued to recover after the patients refused to pay Banner's full bills for their care.

All the patients or family members had signed admission papers agreeing to pay their hospital bills. Some of those agreements specifically referred to rates which Banner had filed with state regulators.

While Banner argued that it appropriately billed the patients, Medical Insurance contended that it and the patients were responsible only for reasonable charges.

Banner charged the patient 400 percent of its costs, sought full payment from only 2 percent of its customers and usually received 34 percent of its billed charges from patients who received similar care, Medical Insurance argued.

However, the majority of a three-judge panel noted that Banner had no agreement with Medical Insurance to provide rate discounts to its insured and that the patients' promises to pay were the only agreements between Banner and the patients regarding Banner's charges.

Hospitals are free to accept reduced payments to satisfy a bill but an unwillingness to do so for all patients isn't illegal or make the hospital's full rates unreasonable, Judge John C. Gemmill wrote for the panel's majority.

Judge Donn Kessler dissented from part of the ruling, saying the case should have included an evaluation of whether the full rates Banner filed with the state amounted to "unconscionable contract terms."

Banner's 576 pages of "single-space impenetrable filed rates" effectively make it impossible for consumers to price-shop in advance for their hospital care, Kessler said.

Judge Patricia A. Orozco joined Gemmill in the majority.

(http://www.azcentral.com)

Success Story Reg. "Chinese product scares prompt US fear"

By Laura Smith-Spark BBC News, Washington

Success story

A lesson may lie in the approach taken by the fireworks industry, which has focused on education and stringent product testing within China.

Firework safety has improved with closer monitoring in China

In the late 1980s and early 1990s, standards for Chinese-made fireworks were so low that as many as 75% failed US safety tests.

To tackle the problem, US importers were encouraged to pay for a testing operation set up in China - the American Fireworks Standards Laboratory (AFSL) - to monitor production straight from the assembly line.

At least three-quarters of US fireworks importers are signed up to the scheme and the lab has about 50 technicians in China.

Since 1994, injury rates among US consumers have dropped by more than two-thirds and sales of fireworks have increased greatly. About 99% of the fireworks used in the US come from China.

John Rogers, executive director of the AFSL, said: "It's had a very positive impact for the American public, for the government that regulates fireworks and obviously for the companies."

He admits that initially Chinese factories "weren't happy" about the AFSL's checks but, as Chinese-language guidelines were produced to help them meet US requirements, attitudes changed.

"What the manufacturers understand is that safer, better quality fireworks translates into bigger sales, so now they like what we do," he said.

"I think that every industry that imports products from China could very well benefit from this kind of a programme."

Of course, the majority of goods imported from China are perfectly safe - but until standards improve across the board, US consumers must rely on officials to sift out potential hazards before they cause harm.

(http://news.bbc.co.uk/)

Mattel Recalls Millions of Toys (as reported by Fox News, BBC, and CNN)

Reported by FOX News

Mattel Recalls Millions of Toys, Adds to Chinese-Made-Lead-Linked List

Toy-making giant Mattel Inc. (MAT) issued recalls Tuesday for about 9 million Chinese-made toys that contain magnets that can be swallowed by children or could have lead paint.

The recalls includes 7.3 million play sets, including Polly Pocket dolls and Batman action figures, and 253,000 die cast cars that contain lead paint. The action was announced on the company's Web site and at a news conference here by the Consumer Product Safety Commission.

Reported by BBC
Mattel recalls millions more toys

US toymaker Mattel has recalled more than 18 million toys worldwide, the second such recall in two weeks.

Chinese-made Sarge die-cast toys from the Pixar film Cars have been recalled because their paint contains lead.

It has also recalled toys containing small magnets that can come loose, including Polly Pocket, Batman Magna, Doggie Daycare and One Piece playsets.

Reported by CNN (under US)

BETHESDA, Maryland (CNN) -- Toymaker Mattel is voluntarily recalling 9 million of its toys in the United States including popular characters such as Batman, Barbie, Polly Pockets and a toy from Pixar's "Cars" movie because of hazards to children, the U.S. Consumer Product Safety Commission said Tuesday.

Mattel's Barbie and Tanner doll set is one of the products being recalled.

"The company has ordered that all products be pulled off retail shelves," said Nancy Nord, acting chairman of the commission.

Mattel is recalling 18.2 million magnetic toys globally and the majority of the toys are no longer available in stores.

Six slam-dunk time management tips

By Robert Half International

(CareerBuilder.com) -- The basketball court and the office may have more in common than you think. After all, one key to top performance in both arenas is time management. Keeping a careful eye on the clock can help your team sink buzzer-beating shots and allow you to work more effectively.

But properly managing your time isn't always easy, especially if last-minute projects or requests seem to constantly pop up. Even star players sometimes have trouble prioritizing competing demands. In fact, in a recent survey conducted by Robert Half International, executives cited time management as the greatest challenge they face today.

Whether you're a time-tested veteran or a promising rookie, the following tips will help you manage your time better:

Create a to-do list.

At the end of each day, invest some time in identifying and writing down the next day's tasks and rank them in terms of importance and urgency. Review your prioritized to-do list in the morning to get a good jump on the day.

Develop a system.

Tracking systems can help you stay on point. Options include project-management software programs, which electronically track activities and deadlines, and "tickler" files that remind you of pending items. And, of course, there's always a good old-fashioned planner, which you can use to write down each project on your plate, its status and the next steps you need to take. Choose whichever option you are most likely to stick with. By systematically monitoring your progress, you'll be less likely to procrastinate or overlook important dates and details.

Clean up.

How many times have you searched frantically for an important document only to find it days later, buried under outdated memos, take-out menus and sticky notes? Schedule time once a week to remove clutter from your office so you can work more efficiently. Go through documents and separate the critical from the unimportant. Once you've categorized an item, file it, forward it or trash it -- just don't leave it to collect dust on your desk.

Don't overextend yourself.

For instance, you can't write a detailed memo while simultaneously talking on the phone, filing paperwork and thinking about an upcoming brainstorming session. When working on a crucial assignment, give the issue at hand your undivided attention so you do it right the first time. Fight the urge to multitask, which often impedes real productivity by leading to oversights and errors.

Take a break from technology.

When you're trying to concentrate, is there anything more distracting than a vibrating cell phone or the pinging sound of an incoming e-mail or instant message? If possible, give yourself periodic breaks from technology. This will allow you to work free of interruption and get more done.

Help others.

There's no better way to build rapport, foster goodwill and gain allies than by volunteering to assist overworked and frazzled co-workers. By lending a hand when you can, you're likely to be offered one in return the next time you're swamped.

Developing stellar time-management skills takes practice and discipline, but your efforts will pay big dividends. By establishing good habits and making the most of each workday, you'll not only avoid mad scrambles, you'll also increase your chances of completing your projects well before the buzzer sounds.

(http://www.cnn.com/)

Battered jeans earn big bucks for Sri Lanka

by Mel GunasekeraSun Aug 12, 4:06 AM ET

The denims look tattered and frayed, but shoppers in Europe and the United States are prepared to pay good money for "distressed" jeans and Sri Lanka is cashing in.

In the industrial town of Avissawella east of the capital Colombo, it takes workers around 13 minutes to cut and sew basic five-pocket denims.

They then spend another four days torturing the pants by dying, bleaching, and sandpapering them to get a "distressed" look.

"Each garment is dyed or dipped around 16 and sometimes as many as 30 times to achieve the proper torn, tattered look," explains Indrajith Kumarasiri, chief executive of Sri Lanka's Brandix Denim.

"We earn more money by making denims look dirty and torn, the classic clean look doesn't bring us much," Kumarasiri told AFP during a visit to the 10-million dollar plant, which can make over three million pairs of jeans a year.

Basic denim jeans cost around six dollars to make, but the shabbier "premium" ones cost twice as much.

"In many ways, premium denims are replacing the little black dress as the wear-anywhere fashion staple," he said.

Overseas buyers such as Levis, Gap and Pierre Cardin are now regular buyers of premium jeans from Sri Lanka where they can be made for as little as 12 dollars a pair, and often sell for over 100 dollars.

Buyers have been gradually shifting production out of Europe to low-cost countries such as Sri Lanka, explains Ajith Dias, chairman of the Sri Lanka Joint Apparel Association Forum.

"Retaining the business and growing the order book is tough with India and China competing with us on price and quicker lead times," Dias said.

Sri Lanka's three-billion dollar garment industry accounts for more than half its annual seven billion dollars of export earnings, and it provides jobs for nearly one million people. Nearly all the garments are shipped to the United States and the European Union.

But Dias said casual wear, including jeans, are they key to Sri Lanka's success in the price-sensitive global apparel market, and now account for 16 percent of total garment export earnings.

"We have invested millions to install high-tech plants, develop a sound raw material base and design garments, to ensure we remain competitive, by doing everything from fabric to retail hangers," Dias said.

Brandix, Sri Lanka's biggest exporter with annual sales in excess of 320 million dollars, and MAS Holdings, are also expanding overseas.

In an attempt to get an advantage over the competition, Sri Lanka is trying to position itself as an ethical manufacturer in the hope of getting greater access to the US and European markets at lower duty rates.

"We have high labour standards. We don't employ child labour, we provide rural employment and we empower women. There are no anti-dumping cases against us on trading practices," said Suresh Mirchandani, chief executive of Favourite Garments.

While eco-friendly and ethically-made clothes are becoming increasingly fashionable, their manufacture provides challenges for Sri Lanka.

Big-name brands are now adding organic-cotton clothes to their collection. "The joke is that one day we'll have a shirt we can eat," said Prasanna Hettiarachchi, general manager of MAS Holdings.

He said Levis recently launched eco-jeans using organic cotton, natural dyes, a coconut shell button on the waist band and a price tag made of recycled paper printed with environmentally friendly soy ink. The price tag is a cool 250 dollars.

"We are also working on an eco garment," said Brandix Denim's Kumarasiri.

And when asked what made a perfect pair of jeans, he had a quick answer.

"Same as always. It comes down to how your behind looks when you wear them," grins Kumarasiri.

"No matter how good the wash, the detail or the label, if it doesn't look good on your behind, it won't sell."

(http://news.yahoo.com/)

U.S. NATIONAL DEBT CLOCK

U.S. NATIONAL DEBT CLOCK

The Outstanding Public Debt as of 11 Aug 2007 at 07:53:25 AM GMT is:

The estimated population of the United States is 302,674,890
so each citizen's share of this debt is $29,641.98.

The National Debt has continued to increase an average of
$1.47 billion per day since September 29, 2006!

US Army to expand recruiting incentives

By KIMBERLY HEFLING, Associated Press Writer

WASHINGTON - Need a down-payment for your home? Seed money to start a business? The Army wants to help — if you're willing to join up. Despite spending nearly $1 billion last year on recruiting bonuses and ads, Army leaders say an even bolder approach is needed to fill wartime ranks.

Under a new proposal, men and women who enlist could pick from a "buffet" of incentives, including up to $45,000 tax-free that they accrue during their career to help buy a home or build a business. Other options would include money for college and to pay off student loans.

An Associated Press review of the increasingly aggressive recruiting offerings found the Army is not only dangling more sign-up rewards — it's loosening rules on age and weight limits, education and drug and criminal records.

It's all part of an Army effort to fill its ranks even as the percentage of young people who say they plan to join the military has hit a historic low — 16 percent by the Pentagon's own surveying — in the fifth year of the Iraq war.

Among the changes that have helped attract more recruits:

• Increasing to $20,000 the bonus for troops who join by Sept. 30 and leave for boot camp within a month.

• Raising the enlistment age to 42.

• Allowing recruits to come in with non-offensive tattoos on their hands and neck.

• Offering a $2,000 bonus to Army soldiers who refer a new recruit.

• Enlisting recruits who don't meet weight standards and must trim down their first year.

• Advertising that targets potential recruits' parents.

• Increasing the number of recruits with general education diplomas rather than regular high school diplomas.

• Creating a more pleasant boot camp environment.

• Sending "gung-ho" soldiers fresh from boot camp or war zones back to their hometowns to visit old friends and schoolmates to promote the Army.

• Increasing to more than 15 percent the number of Army and Army Reserve troops given waivers for medical and moral reasons or for positive drug and alcohol screen tests.

(AP)

Mortgage defaults growing

World's largest insurer, in a presentation on subprime exposure, says total delinquencies in its real estate portfolio at 2.5 percent.

NEW YORK (CNNMoney.com) -- Another rough day on the subprime front. AIG, the world's largest insurer and one of the biggest mortgage lenders, said residential mortgage delinquencies and defaults are becoming more common among borrowers in the category just above subprime.

France's biggest listed bank, BNP Paribas, froze $2.2 billion worth of funds, citing subprime woes. And the European Central Bank felt it had to inject $130.5 billion into euro-zone money markets to help calm jittery markets.

AIG (Charts, Fortune 500) said total delinquencies in its $25.9 billion mortgage insurance portfolio were 2.5 percent.

It said 10.8 percent of subprime mortgages were 60 days overdue, compared with 4.6 percent in the category with credit scores just above subprime, indicating that the threat to the mortgage market may be spreading.

While maintaining that it is "comfortable" with its mortgage exposure, AIG gave a gloomy assessment of the market in a presentation to investors and analysts.

It said delinquency rates for first mortgages had risen to 3.98 percent in June from 3.56 in April and a low of 3.08 in July 2005. First mortgages represent 90 percent of AIG's domestic mortgage business.

AIG divided its mortgage portfolio into three categories: subprime, for borrowers with credit scores below 620; "non-prime," for borrowers with credit scores between 620 and 659; and prime, for borrowers with credit ratings above 660.

As of June 30, AIG's finance arm, which originates first and second mortgages, recorded delinquencies of 3.68 percent in subprime, 2.13 percent in non-prime, and 0.81 percent in prime.

More than 2 million hybrid adjustable rate mortgages (ARMs) come up for reset this fall - peaking in October with more than $50 billion due.

Borrowers who took out hybrid ARMs in 2004 and 2005 to secure low "teaser" rates for the first two or three years of the loan may see their monthly mortgage payments climb by 35 percent or more.

Foreclosures could explode, which would hurt everyone on the food chain: Borrowers lose their homes; lenders lose their payments; local governments lose tax base; and neighborhoods lose resiliency.

The already poor performance of many mortgage loans will worsen substantially through the rest of the year, according to an analysis in late July by Moody's Economy.com.

The company predicts that 2.5 million first mortgages will default this year, with little chance for improvement soon - Economy.com expects delinquencies to peak in the summer of 2008 at 3.6 percent of all outstanding mortgage debt, up from 2.9 percent during the first three months of 2007.

The worst-hit loan category will be subprime adjustable-rate mortgages (ARMs). Economy.com expects foreclosures for those loans to hit 10 percent of that group by mid-2008. The foreclosure rate for that group is currently 4 percent and was as low as 2.5 percent in 2005.

Subprime ARMs issued during the last three months of 2006 could fare worst of all, with a projected foreclosure rate of just under 20 percent during the fall of 2011. That would mean a full one in five owners still paying off subprime ARMs from late 2006 - about 12,000 in all - would lose their homes. Many others from that group would have already lost their homes to foreclosure in the previous years.

One-time, high-flying markets will suffer the most. California's Central Valley is particularly vulnerable, according to the study. Other hard-pressed areas cluster in Florida, Nevada, New York, Arizona and the District of Columbia.

The delinquency increase will be sparked by two main factors: Falling home prices and rising interest rates on adjustable mortgages

(http://money.cnn.com)