22.8.07

The researchers said Indian immigrants founded more companies than those from the next four countries -- Britain, China, Taiwan and Japan -- combined.

Wed Aug 22, 12:53 PM ET

The huge backlog in US immigration visas is leading to a "reverse brain-drain" that will force skilled workers to return to their home country, a report released Wednesday concludes.

The study by the Ewing Marion Kauffman Foundation found that more than one million potential immigrants, including scientists, engineers, doctors and researchers, are competing for 120,000 permanent US resident visas each year.

The report said some applicants must wait several years, in part because the number of employment visas issued to immigrants from any single country is fewer than 10,000 per year.

"The United States benefits from having foreign-born innovators create their ideas in this country," said Vivek Wadhwa, a Harvard Law School fellow and co-author of the report.

"Their departures would be detrimental to US economic well-being."

The study by researchers at Duke, New York and Harvard universities is the third in a series of studies focusing on immigrants' contributions to the US economy.

In this study, "Intellectual Property, the Immigration Backlog, and a Reverse Brain-Drain," the researchers concluded that the number of skilled workers waiting for visas is significantly larger than the number that can be admitted to the United States.

"This imbalance creates the potential for a sizeable reverse brain-drain from the United States to the skilled workers' home countries," the foundation said.

The report said a majority of immigrant company founders, including many in the tech sector, came to the United States as students. Many ended up staying in the United States after graduation, with a number founding new companies.

It said 31 percent of the startups in tech centers had an immigrant key founder, including 52.4 percent in California's Silicon Valley.

The researchers said Indian immigrants founded more companies than those from the next four countries -- Britain, China, Taiwan and Japan -- combined.

They also concluded that foreign nationals living in the United States were inventors or co-inventors in 25.6 percent of international patent applications filed from the United States in 2006.

The total number of applicants and their family members waiting for permanent residence in the United States in 2006 was estimated at 1,055,084. Additionally, there were some 126,421 residents abroad waiting for visas, making a worldwide total of 1,181,505.

"Given that the US comparative advantage in the global economy is in creating knowledge and applying it to business, it behooves the country to consider how we might adjust policies to reduce the immigration backlog, encourage innovative foreign minds to remain in the country, and entice new innovators to come," said Robert Litan, vice president of research and policy at the Kauffman Foundation.

Saving for Banks Rainy Day

21.8.07

Largest Military Expenditures, 2005

(Military expenditure: in MER1 dollar terms)

Rank

Country

Spending
level2
($ billions)

Per
capita
($)

World
share
(%)

1.

United States

$478.2

$1,604

48%

2.

United Kingdom

48.3

809

5

3.

France

46.2

763

5

4.

Japan

42.1

329

4

5.

China3

41.0

31.2

4

6.

Germany

33.2

401

3

7.

Italy

27.2

468

3

8.

Saudi Arabia

25.2

1,025

3

9.

Russia3

21.0

147

2

10.

India

$20.4

$18.5

2%

11.

South Korea

16.4

344

2

12.

Canada

10.6

327

1

13.

Australia

10.5

522

1

14.

Spain

9.9

230

1

15.

Israel

9.6

1,430

1


Subtotal, top 15

$839.8


84%


World

$1,001.0

155

100%

1. MER = market exchange rate.

2. Spending figures are in U.S. dollars, at constant (2003) prices and exchange rates.

3. Estimated figure.

Source: SIPRI Yearbook 2006, Stockholm International Peace Research Institute.

Windows reboot caused Skype glitch

FRANKFURT: A two-day outage that left millions of Skype users unable to use the popular Internet phone service was caused by an abnormally high number of restarts after people had downloaded a Windows security update, the company said.

The worldwide outage, which began on Thursday and ended on Saturday, left millions of Skype users unable to log on to make phone calls or send instant messages.

Luxembourg-based Skype Ltd, part of online auction giant eBay Inc, has more than 220 million users in total but typically has 5 million to 6 million users online at any given time. In January, Skype reported that it had counted 9 million users online at one time.

In an update to users on Skype's Heartbeat blog, employee Villu Arak said the disruption was not because of hackers or any other malicious activity.

Instead, he said that the disruption "was triggered by a massive restart of our users' computers across the globe within a very short timeframe as they re-booted after receiving a routine set of patches through Windows Update," Arak wrote.

Microsoft Corp released its monthly patches, and many computers are set to automatically download and install them. Installation requires a computer restart.

"The high number of restarts affected Skype's network resources. This caused a flood of log-in requests, which, combined with the lack of peer-to-peer network resources, prompted a chain reaction that had a critical impact," Arak wrote.

Arak did not blame Microsoft for the troubles and said the outage ultimately rested with Skype. Arak said Skype's network normally has an ability to heal itself in such cases, but a previously unknown glitch in Skype's software prevented that from occurring quickly enough.

In a statement, Microsoft described its patch as routine and reiterated that the disruption resulted from a bug in Skype software.

Users from Vietnam to Brazil to Germany to the United States had complained they could not log on and make phone calls or send instant messages.

The outage was a critical moment for the company, founded in 2003 by Niklas Zennstrom and Janus Friis, and was the first major outage since October 2005 when its service was down only for a few hours.

"This disruption was unprecedented in terms of its impact and scope," Arak wrote. "We would like to point out that very few technologies or communications networks today are guaranteed to operate without interruptions."

(http://http://infotech.indiatimes.com/)


Foreclosures: No relief in sight

July foreclosures nearly double from last year; industry group raises forecast for more.


(Reported by NBC Nightly News on Aug 23)

By Les Christie, CNNMoney.com staff writer

August 21 2007: 8:11 AM EDT


NEW YORK (CNNMoney.com) -- The flood of foreclosure filings showed no sign of let-up in July, according to the latest data from RealtyTrac, the online marketer of foreclosure properties.

179,599 foreclosure filings, which include default notices, auction sale notices and bank repossessions, were reported nationwide for a 9 percent rise over the previous month and a 93 percent jump compared with July, 2006.

This past winter, RealtyTrac had forecast a 33 percent increase in U.S. foreclosures for the year but now it's raised its outlook. "It's trending to close to 2 million now, 60 percent more than last year," said Rick Sharga, RealtyTrac's vice president for marketing.

Moody's Economy.com is even more pessimistic with its forecast of some 2.5 million defaults for the year.

"While 43 states experienced year-over-year increases in foreclosure activity, just five states - California, Florida, Michigan, Ohio and Georgia - accounted for more than half of the nation's total foreclosure filings," James J. Saccacio, chief executive of RealtyTrac said in a statement.

Nevada, at one filing per every 199 households, had the highest rate of any state, but California where one in every eight Americans lives, had the most numerically - a total of 39,013 and one for every 333 households. That was nearly four times higher than a year ago.

California had six of the top 10 metro areas with the highest foreclosure rates led by Stockton, which was second only to Detroit among metro areas, Merced was third, Modesto fourth, Vallejo-Fairfield fifth, Riverside-San Bernardino eighth and Sacramento ninth.

Florida had the next highest total among the states, 19,179, or one for every 431 households. Georgia, at one for every 299 households, had the second highest rate.

Seven states, led by Utah, recorded year-over-year declines in filings. Utah had just 485, one for every 1,800 households and 58.3 percent fewer than in July, 2006. Oklahoma, down 34.4 percent, New Mexico, down 26.9 percent, and Rhode Island, down 18.8 percent, also had substantial drop-offs.

Saccacio said, "Some of these states could be benefiting from increased interest from real estate investors who have pulled out of more volatile markets where home price appreciation seems to have hit its peak."

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

20.8.07

Long-term budget view may surprise you

When was the peak of military spending? Not this year or last

16.8.07

Americans Popping Nearly Twice as Many Painkillers Than in 1997

People in the United States are living in a world of pain and they are popping pills at an alarming rate to cope with it.

The amount of five major painkillers sold at retail establishments rose 90 percent between 1997 and 2005, according to an Associated Press analysis of statistics from the Drug Enforcement Administration.

More than 200,000 pounds of codeine, morphine, oxycodone, hydrocodone and meperidine were purchased at retail stores during the most recent year represented in the data. That total is enough to give more than 300 milligrams of painkillers to every person in the country.

Oxycodone, the chemical used in OxyContin, is responsible for most of the increase. Oxycodone use jumped nearly six-fold between 1997 and 2005. The drug gained notoriety as "hillbilly heroin," often bought and sold illegally in Appalachia. But its highest rates of sale now occur in places such as suburban St. Louis, Columbus, Ohio, and Fort Lauderdale, Fla.

The world of pain extends beyond big cities and involves more than oxycodone.

In Appalachia, retail sales of hydrocodone — sold mostly as Vicodin — are the highest in the nation. Nine of the 10 areas with the highest per-capita sales are in mostly rural parts of West Virginia, Kentucky or Tennessee.

Suburbs are not immune to the explosion.

While retail sales of codeine have fallen by one-quarter since 1997, some of the highest rates of sales are in communities around Kansas City, Mo., and Nashville, Tenn., and on New York's Long Island.

The DEA figures analyzed by the AP include nationwide sales and distribution of drugs by hospitals, retail pharmacies, doctors and teaching institutions. Federal investigators study the same data trying to identify illegal prescription patterns.

An AP investigation found these reasons for the increase:

—The population is getting older. As age increases, so does the need for pain medications. In 2000, there were 35 million people older than 65. By 2020, the Census Bureau estimates the number of elderly in the U.S. will reach 54 million.

—Drugmakers have embarked on unprecedented marketing campaigns. Spending on drug marketing has gone from $11 billion in 1997 to nearly $30 billion in 2005, congressional investigators found. Profit margins among the leading companies routinely have been three and four times higher than in other Fortune 500 industries.

—A major change in pain management philosophy is now in its third decade. Doctors who once advised patients that pain is part of the healing process began reversing course in the early 1980s; most now see pain management as an important ingredient in overcoming illness.

Retired Staff Sgt. James Fernandez, 54, of Fredericksburg, Va., survived two helicopter crashes and Gulf War Syndrome over 20 years in the Marine Corps. He remains disabled from his service-related injuries and takes the equivalent of nine painkillers containing oxycodone every day.

"It's made a difference," he said. "I still have bad days, but it's under control."

Such stories should hearten longtime advocates of wider painkiller use, such as Russell Portenoy, head of New York's Beth Israel pain management department. But they have not.

"I'm concerned and many people are concerned," he said, "that the pendulum is swinging too far back."

Consider:

—More people are abusing prescription painkillers because the medications are more available. The vast majority of people with prescriptions use the drugs safely. But the number of emergency room visits from painkiller abuse has increased more than 160 percent since 1995, according to the government.

—Spooked by high-profile arrests and prosecutions by state and federal authorities, many pain-management specialists now say they offer guidance and support to patients but will not write prescriptions, even for the sickest people. The increase in painkiller retail sales continues to rise, but only barely. There was a 150 percent increase in volume in 2001. Four years later, the year-to-year increase was barely 2 percent.

—People who desperately need strong painkillers are forced to drive a long way — often to a different state — to find doctors willing to prescribe high doses of medicine. Siobhan Reynolds, the widow of a New Mexico patient who needed large amounts of painkillers for a connective tissue disorder, said she routinely drove her late husband to see an accommodating doctor in Oklahoma.

Perhaps no place illustrates the trends and consequences for the world of pain better than Myrtle Beach, a sprawling community of strip malls, hotels and bars perched along a 60-mile strip of sand on the Atlantic Ocean. The metro area, which includes three counties, is home to 350,000 people but sees more than 14 million tourists annually, drawn to its warm water, golf courses and shopping.

During the eight-year period reflected in government figures, oxycodone distribution increased 800 percent in the area of Myrtle Beach, partly due to a campaign by Purdue Pharmaceuticals of Stamford, Conn. The privately held company has pleaded guilty to lying to patients, physicians and federal regulators about the addictive nature of the drug.

Use of other drugs soared in the area, too: Hydrocodone use increased 217 percent; morphine distribution went up 180 percent; even meperidine, most commonly sold as Demerol, jumped 20 percent.

It is no small wonder that federal authorities suspected the area was home to a notorious "pill mill," or a clinic that dispenses prescription medication without verifying that it's needed.

The U.S. attorney for South Carolina secured a 58-count indictment in June 2002 against seven physicians and one employee of the Comprehensive Care and Pain Management Center, a nondescript storefront on Myrtle Beach's main drag.

Tipped off by local pharmacists concerned about an increase in the volume of painkiller prescriptions, the federal investigation created a furor in the medical profession. The owner, D. Michael Woodward, was sentenced to 15 years in the case and has relinquished his license.

A second physician, Deborah Bordeaux, had worked at the clinic less than two months before quitting in disgust. Bordeaux, now serving a two-year prison term, was threatened with a 100-year sentence if she did not help the prosecution.

Officials with the Justice Department and the DEA would not discuss what some activists say is a "war on doctors."

Reynolds, the widow who drove her late husband hundreds of miles for his pills, became an activist after the Myrtle Beach indictments. She contributed money to appeal some of the criminal convictions in South Carolina and started the Pain Relief Network, an advocacy organization for people living in pain. She believes the doctors sent to prison were railroaded.

"It was a witch hunt," she said.

Bordeaux's husband, Edworth Swaim, agrees. A retired U.S. Postal Service employee, Swaim believes his wife was sentenced to two years because she would not turn on her former colleagues. Even though Bordeaux had worked at the clinic less than two months and eventually sued over what she alleged was rampant Medicare fraud, he said she did not stand a chance of avoiding prison.

"She wasn't guilty of anything, so she wasn't going to plead to anything," Swaim said. "She was absolutely railroaded, made an example of. I can't tell you how angry I am."

Myrtle Beach physicians are not convinced that the "Myrtle Beach Eight," as they became known, were innocent.

A Myrtle Beach internist who also works in addiction medicine, Brian Adler, said physicians were flooded with patients seeking pain medicine after the clinic was shut down.

The community has a slightly higher-than-average number of older people and relatively high numbers of people between 21 and 64 who describe themselves as disabled.

"There's a significant problem with narcotics in this area," Adler said. After the pain management clinic closed, "all those folks were like rats, scurrying from a burning building, trying to get their fix."

Other physicians were concerned about patients with legitimate needs for painkillers. The federal bust raised the stakes.

When radio commentator Rush Limbaugh settled a federal case charging him with illegally obtaining painkillers, he did not get prison time. Neither did NFL star Brett Favre, who publicly acknowledged an addiction to Vicodin that he obtained legally.

To pain management specialists, they were being blamed for everyone's addiction.

The DEA cites 108 prosecutions of physicians during the past four years; 83 pleaded guilty or no contest, while 16 others were convicted by juries. Eight cases are pending, and one physician is being sought as a fugitive.

In congressional testimony, the agency's deputy assistant administrator, Joseph T. Rannazzisi, estimated that fewer than 1 percent of the nation's physicians — under 9,000 — illegally provide prescription drugs to patients. He told lawmakers it is far more common for people to illegally obtain prescription drugs from friends and family members.

"It is not merely illegal but could feed or lead to an addiction and place that loved one in a life-threatening situation," Rannazzisi said.

It is impossible to reliably measure painkiller abuse.

A 2004 government study estimated between 2 million and 3 million doses of codeine, hydrocodone and oxycodone are stolen annually from pharmacies, distributors and drug manufacturers. The AP's analysis only included retail sales and did not include estimates of diverted pharmaceuticals.

John Charles, director of medical affairs at the Grand Strand Regional Medical Center in Myrtle Beach, practices pain management. A few years ago, Charles said, he took a drastic step to reduce his potential legal risks: He stopped prescribing painkillers.

The decision gave him peace of mind, but he does not expect there to be less of a need for painkillers or physicians who prescribe them.

"People with cancer are surviving longer, elderly people are living longer," Charles said. "So, physicians are walking a fairly fine line. We're walking a narrow path. And I think we'll continue to see it for a while."

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

National Debt as a Percent of GDP



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