US to open military ties soon with Myanmar






WASHINGTON: The United States is poised to take "nascent steps" to open up military ties with Myanmar as a way of bolstering political reforms undertaken by the former state, a senior US defence official said on Wednesday.

The Pentagon said the cooperation likely would take the form of "non-lethal" training for Myanmar officers focusing on humanitarian assistance, military medicine and defence "reform," the official, who spoke on condition of anonymity, told reporters.

"We're looking at nascent steps on the US-Burmese military-military relationship. We generally support the proposition that carefully calibrated, appropriately targeted and scoped military-to-military contact is effective in advancing overall reform efforts in Burma," the official said.

"The bottom line is we're interested, we're looking at ways to move forward and I think you'll see appropriately calibrated steps in the near future," he said.

Relations between the two countries have undergone a sea change since Myanmar's ruling military ceded power last year.

US President Barack Obama's historic visit last month to Yangon underscored the transformation, as both Washington and Myanmar see benefits to bolstering diplomatic and security ties.

The Obama administration, seeking a strategic shift to the Asia-Pacific to counter Beijing's role, is keen to expand its influence in a country where China has had almost unchallenged dominance.

Officials said in October that the United States was willing to allow Myanmar to participate as an observer in major joint exercises in Thailand in 2013, an event that includes military teams from the US and Asian allies.

Senior US military officers, including Lieutenant General Francis Wiercinski, the commanding general of the US Army in the Pacific, and civilian defence officials were part of a US government delegation that held talks in Myanmar in October, opening the door to a defence dialogue.

- AFP/de



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WHO suggests raising liquor price to curb violence against women

NEW DELHI: Even as the national Capital remains shell shocked over the gruesome rape of the 23-year-old, the World Health Organization (WHO) has suggested clamping down on alcohol availability and raising liquor price to reduce its consumption as an important intervention to reduce violence — both sexual and physical — against women.

International studies conducted by the global health watchdog have found that a 1% increase in the price of an ounce of pure alcohol would reduce the probability of intimate partner violence against women by 5.3%. A 10% increase in the excise tax on beer would reduce the probability of child abuse perpetrated by females by approximately 2%. And, a 10% increase in the price of beer would reduce the number of college students involved in violence each year by 4%.

The WHO has sent member states strategies that prove the link between alcohol and violence against women and provides countries like India ways on how they can prevent homicides by reducing alcohol sale times.

It says that changes to permitted alcohol service hours have been implemented in several countries to address alcohol-related harm, including violence.

Studies assessing the impact of interventions to reduce alcohol service hours have been carried out in Brazil and Australia which have resulted in significant reductions in violence. WHO in its recent meeting on this issue actually ended up agreeing that police activity is central to many violence reduction strategies in drinking environments.

This can include highly visible policing of areas associated with alcohol-related disorder, and enforcement activity in licensed premises.

WHO said, "Crime data in the city of Diadema indicated that 60% of murders and 45% of complaints regarding violence against women occurred between 23:00 and 06:00 hours. Many murders took place in areas with high concentrations of drinking establishments, while violence against women was often linked to alcohol. In response, in 2002, a municipal law was implemented that prevented alcohol retailers from selling alcohol after 23:00 hours. Assessment of the impacts of the regulation, estimated that it reduced homicides by almost nine per month, representing a 44% reduction and preventing an estimated 319 homicides over three years."

The WHO adds that the price of alcohol can be increased through increased taxation, state-controlled monopolies, implementation of minimum prices for alcohol and ban on liquor promotions.

It said that alcohol-related violence occurs in and around drinking settings (pubs, bars and nightclubs). Internationally, over half a million people die from interpersonal violence each year and millions more are victims of non-fatal violence. In 2004, violence was one of the top 20 causes of death and disability globally for many forms of aggression, such as intimate partner hostility and child maltreatment, victims can suffer repeatedly and for many years without such abuse coming to the attention of authorities.

Alcohol consumption is connected to more than 60 diseases being a risk factor for esophageal cancer, liver cancer, cirrhosis of liver, homicide, stroke, psychiatric illness and motor vehicle accidents. Around 25% of road accidents in India are alcohol-related and 20% of accident-related head injury victims seen in emergency rooms of hospitals have consumed alcohol prior to the accident.

The Indian government spends nearly $5 billion every year to manage the consequences of alcohol use, which is more than its total excise earning of $4.8 billion.

The Union health ministry had earlier sais that the average age of alcohol consumption in India has been constantly falling by nearly nine years over the past decade.

At present, on an average, Indians take their first sip of alcohol at the age of 19 compared to 28 in the 1990s. Soon, experts say it will reduce to 15 years.

Nearly 62.5 million people in India drink alcohol with the per capita consumption being around four litres per adult per year.

For every six men, one woman drinks alcohol in India.

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Obama Launches Gun-Violence Task Force













Five days after deadliest elementary school shooting in U.S. history, President Obama said his administration plans immediate action early next year on proposals to curb an "epidemic of gun violence."


At a morning news conference, Obama announced the formation of a task force to be headed by Vice President Joe Biden that will formulate a package of policy recommendations by January.


"The fact that this problem is complex can no longer be an excuse for doing nothing," Obama said. "The fact that we can't prevent every act of violence doesn't mean that we can't steadily reduce the violence and prevent the very worst violence."


The president said he intends to push for implementation of the proposals "without delay."


"This is not some Washington commission. This is not something where folks are going to be studying the issue for six months and publishing a report that gets read and then pushed aside.


"This is a team that has a very specific task to pull together real reforms right now," he said.


While Obama did not offer specifics, he suggested the task force would examine an array of steps to curb gun violence and prevent mass shootings, including legislative measures, mental health resources and a "look more closely at a culture that all-too-often glorifies guns and violence."








Joe Biden to Lead Task Force to Prevent Gun Violence Watch Video









President Obama Expected to Make Guns Announcement Watch Video









Sandy Hook Shooting Sparks Search for Gun Control Solution Watch Video





He urged Congress to confirm a director for the Bureau of Alcohol, Tobacco and Firearms, which has been without an official leader for six years. Obama also expressed his longstanding desire to see the national background check system strengthened and a ban on the sale of some assault-style weapons reinstated.


"I will use all the powers of this office to help advance efforts aimed at preventing more tragedies like this," Obama said.


Obama made similar pronouncements following at least four other mass shootings that marked his first term. But few policy changes were made.


"This is not the first incident of horrific gun violence of your four years. Where have you been?," asked ABC News' Jake Tapper.


"I've been president of the United States, dealing with the worst economic crisis since the Great Depression, an auto industry on the verge of collapse, two wars. I don't think I've been on vacation," Obama responded.


In the coming weeks, Biden will lead a working group that includes top officials from the departments of Justice, Homeland Security, Education and Health and Human Services to draft an action plan.


Obama met privately Monday with Biden and three members of his Cabinet — Education Secretary Arne Duncan, Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius — to discuss steps forward in the aftermath of Newtown.


The vice president's new role is rooted in his experience as a U.S. Senator with writing and shepherding into law the 1994 Crime Bill and chairing the Senate Judiciary Committee, which oversees criminal justice issues.


The 1994 Crime Bill included the ban on certain types of semi-automatic rifles (better known as the "assault weapons ban") and new classes of people banned from owning or possessing firearms, in addition to expanding the federal death penalty and the Violence Against Women Act.



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Grabbing Water From Future Generations



This piece is part of Water Grabbers: A Global Rush on Freshwater, a special National Geographic Freshwater News series on how grabbing land—and water—from poor people, desperate governments, and future generations threatens global food security, environmental sustainability, and local cultures.


Suresh Ponnusami sat back on his porch by the road south of the Indian textile town of Tirupur. He was not rich, but for the owner of a two-acre farm in the backwoods of a developing country he was doing rather well. He had a TV, a car, and a maid to bring him drinks and ensure his traditional white Indian robes were freshly laundered every morning.


The source of his wealth, he said, was a large water reservoir beside his house. And as we chatted, a tanker drew up on the road. The driver dropped a large pipe from his vehicle into the reservoir and began sucking up the contents.


Ponnusami explained: "I no longer grow crops, I farm water. The tankers come about ten times a day. I don't have to do anything except keep my reservoir full." To do that, he had drilled boreholes deep into the rocks beneath his fields, and inserted pumps that brought water to the surface 24 hours a day. He sold every tanker load for about four dollars. "It's a good living, and it's risk-free," he said. "While the water lasts."


A neighbor told me she does the same thing. Water mining was the local industry. But, she said, "every day the water is reducing. We drilled two new boreholes a few weeks ago and one has already failed."


Surely this is madness, I suggested. Why not go back to real farming before the wells run dry? "If everybody did that, it would be well and good," she agreed. "But they don't. We are all trying to make as much money as we can before the water runs out."


Ponnusami and his neighbors were selling water to dyeing and bleaching factories in Tirupur. The factories once got their water from a giant reservoir on southern India's biggest river, the Kaveri (see picture). But the Kaveri was now being pumped dry by farmers and industry farther upstream. The reservoir was nearly empty most of the year. So the factories had taken to buying up underground water from local farmers.


It is a trade that is growing all over India—and all over the world.


Draining Fossil Aquifers


We are used to thinking of water as a renewable resource. However much we waste and abuse it, the rains will come again and the rivers and reservoirs will refill. Except during droughts, this is true for water at the surface. But not underground. As we pump more and more rivers dry, the world is increasingly dependent on subterranean water. That is water stored by nature in the pores of rocks, often for thousands of years, before we began to tap it with our drills and pumps.


We are emptying these giant natural reservoirs far faster than the rains can refill them. The water tables are falling, the wells have to be dug ever deeper, and the pumps must be ever bigger. We are mining water now that should be the birthright of future generations.


In India, the water is being taken for industry, for cities, and especially for agriculture. Once a country of widespread famine, India has seen an agricultural revolution in the past half century. India now produces enough food to feed all its people; the fact that many Indians still go hungry today is an economic and political puzzle, because the country exports rice.


But that may not last. Researchers estimate that a quarter of India's food is irrigated with underground water that nature is not replacing. The revolution is living on borrowed water and borrowed time. Who will feed India when the water runs out?


Nobody knows how much water is buried beneath our feet. But we do know that the reserves are being emptied. The crisis is global and growing, but remains largely out of sight and out of mind.


The latest estimate, published in the journal Water Resources Research this year, is that India alone is pumping out some 46 cubic miles (190 cubic kilometers) of water a year from below ground, while nature is refilling only 29 cubic miles (120 cubic kilometers), a shortfall of 17 cubic miles (70 cubic kilometers) per year. A cubic kilometer is 264.2 billion gallons, or about enough water to fill 400,000 Olympic-size swimming pools.


Close behind India, Pakistan is overpumping by 8.4 cubic miles (35 cubic kilometers), the United States by 7.2 cubic miles (30 cubic kilometers), and China and Iran by 4.8 cubic miles (20 cubic kilometers) each per year. Globally, the shortfall is about 60 cubic miles (250 cubic kilometers) per year, more than three times the rate half a century ago. Egypt, Uzbekistan, Libya, Algeria, Morocco, Syria, Australia, Israel, and others are all pumping up their water at least 50 percent faster than the rains replenish. In some places, water that you could once bring to the surface with a bucket on a short rope is now a mile or more down.


See pictures of the Nile at work >>





Farming's Big Thirst


Overwhelmingly, the problem is agriculture. Farming takes two-thirds of all the water we grab from nature, but that figure rises to 90 percent in many of the driest and most water-stressed regions.


This cannot go on, as the United States is already discovering. For more than half a century now, farmers have been pumping out one of the world's greatest underwater reserves, the Ogallala aquifer, which stretches beneath the High Plains from Texas to South Dakota. The pumping began in order to revive the plains after the horrors of the 1930s Dust Bowl. By the 1970s there were 200,000 water wells, supplying more than a third of the U.S.'s irrigated fields.


For a while it was a huge success. In a good year, the High Plains produced three-quarters of the wheat traded on international markets, restocking Russian grain stores and feeding millions of starving Africans. But the Ogallala water is drawing down, many wells are going dry, and the output of the pumps has halved. A quarter of the aquifer is gone in parts of Texas, Oklahoma, and Kansas, and over wide areas the water table has fallen by more than 100 feet. In some places, the sagebrush is returning because farmers are giving up on irrigated planting. (See "That Sinking Feeling About Groundwater in Texas.")


Other countries are heading in the same direction. Water tables are falling by more than a meter a year beneath the North China Plain, the breadbasket of the most populous nation on Earth. Saudi Arabia has almost pumped dry a vast water reserve beneath the desert in just 40 years.


Libya is doing the same beneath the Sahara. Muammar Qaddafi, Libya's late ruler, spent $30 billion of his country's oil revenues on giant pump fields in the desert, and a 2,000-mile (3,200-kilometer) network of pipes to bring underground water that is thousands of years old to coastal farms. Even though it was bombed by NATO forces last year, what Qaddafi called the Great Manmade River Project appears to still be functioning. But nature will eventually accomplish what the bombs did not. Water tables are dropping, pumping is getting harder, and the water is getting saltier.


Soon we may have a full global picture of how the world's underground water reserves are disappearing. Researchers are using NASA's GRACE satellite, which measures changes in the Earth's gravity field, to spot where the pores in rocks are being emptied of water. Jay Famiglietti, an earth science professor at the University of California, Irvine, is analyzing the findings. He says water security will soon rival energy security as the fastest-rising issue on the global geopolitical agenda.


More and more countries are so short of water for farming that they can feed their citizens only by importing crops grown using someone else's water. But the number of countries with spare water to export in this way is diminishing. The fear is that as the world's water supplies run on empty, the world's stomachs will as well.


Often, even before the water runs out, the pumps start to bring up water that is salty or toxic. In parts of India, there are epidemics of fluoride poisoning caused by drinking water containing high levels of this natural compound, which dissolves from hard rocks beneath water-bearing strata. I have seen villages full of severely disabled children, and adults suffering muscle degeneration, organ failure, and cancer caused by these poisons. Some communities call it "the devil's water."


We should not be doing this, says Brian Richter, freshwater strategist at The Nature Conservancy. "Falling groundwater levels are the bellwethers of the unsustainability of our water use," Richter said. "We're raiding our savings accounts with no payback plan."


We should not be stealing water from future generations, Richter said. We should instead use underground water sparingly and with caution.


Seeking Solutions


This can be done, starting with agriculture. Scientists are already working on new varieties of crops that need much less water to grow. And technologists are coming up with less wasteful ways to irrigate those crops. (See "Saving a River, One Farm at a Time.")


The truth is that, despite growing shortages, water is still usually so cheap that it is often wasted. The majority of the world's farmers irrigate simply by flooding their fields. But only a fraction of that water gets absorbed by the plants. Some of it percolates underground and can eventually be pumped to the surface again. But much of it is lost to evaporation.


Even spraying from pivots loses huge amounts of water to the air, where it may get carried out to sea or otherwise lost to local use. So the race is on to develop cheap drip irrigation, in which water is distributed across fields in pipes and dripped into the soil close to plant roots. That way we may be able to save our underground water reserves for future generations.


Meanwhile, communities across the world are running out of water. Where are things worst? The UN Environment Programme (UNEP) nominates the Gaza Strip, the Palestinian enclave on the shores of the Mediterranean between Israel and Egypt. It looks as though it will become the first territory in the world to lose its only water supply.


Gaza has no rivers. It cannot afford desalinated seawater. So its 1.7 million inhabitants drink from the underground reserves. But pumping is being done at three times the recharge rate, water tables are falling fast, and what comes through the wells is increasingly contaminated by seawater seeping into the emptying rocks. A UN report this year said Gaza's water probably will be undrinkable by 2016. What then?


Gaza is an extreme case. And water is only one of its many problems. But it offers a warning for the world. It shows what can happen as the water runs out—what will happen in many other places if we continue to steal water from our children and their children.


Fred Pearce is a journalist and author on environmental science. His books include When the Rivers Run Dry and The Land Grabbers, both for Beacon Press, Boston. He writes regularly for New Scientist magazine, Yale Environment 360, and The Guardian, and has been published by Nature and The Washington Post.


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Eric Cantor plays loyal lieutenant to Boehner



When it was his turn, Majority Leader Eric Cantor, their second-in-command, took the opportunity to plead for discipline and unity.

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South Koreans vote in presidential election






SEOUL: South Koreans went to the polls Wednesday to choose a new president in a close and potentially historic election that could result in Asia's fourth-largest economy getting its first female leader.

Voters face a clear choice between the ruling conservative party candidate Park Geun-Hye and her liberal rival from the main opposition party, Moon Jae-In, with opinion polls unable to separate the two.

The eventual occupant of the presidential Blue House will face numerous challenges, including a belligerent North Korea, a slowing economy and soaring welfare costs in one of the world's most rapidly ageing societies.

Polling booths opened at 6:00 am (2100 GMT Tuesday) and were scheduled to close at 6:00 pm with a national holiday declared to allow maximum turnout among the 40 million-plus registered voters.

Park, 60, is looking to make history by becoming the first female president of a still male-dominated nation, and the first to be related to a former leader.

She is the daughter of one of modern Korea's most polarising figures, the late dictator Park Chung-Hee, who is both admired for dragging the country out of poverty and reviled for his ruthless suppression of dissent during 18 years of autocratic rule.

He was shot dead by his spy chief in 1979. Park's mother had been killed five years earlier by a pro-North Korea gunman aiming for her father.

Moon, who was chief of staff to the late left-wing president Roh Moo-Hyun, is a former human rights lawyer who was once jailed for protesting against the Park Chung-Hee regime.

After locking in the support of their respective conservative and liberal bases, the two candidates put a lot of campaign effort into wooing crucial centrist voters, resulting in significant policy overlap.

Both have talked of "economic democratisation" -- a campaign buzzword about reducing the social disparities caused by rapid economic growth -- and promised to create new jobs and increase welfare spending.

Moon has been more aggressive in his proposals for reining in the power of the giant family-run conglomerates, or "chaebol" that dominate the economy and there are significant differences on North Korea.

While both have signalled a desire for greater engagement with Pyongyang, Park's approach is far more cautious than Moon's promise to resume aid without preconditions and seek an early summit with North Korean leader Kim Jong-Un.

Although North Korea has not been a major campaign issue, its long-range rocket launch last week -- seen by critics as a disguised ballistic missile test -- was a reminder of the unpredictable threat from across the border.

Pyongyang has made no effort to conceal its election preference, having spent months attacking Park's New Frontier Party (NFP) and outgoing President Lee Myung-Bak, whose five-year term was marked by a freeze in inter-Korean contacts.

On Tuesday, North newspapers urged voters to reject the NFP as "a group of gangsters bereft of elementary ethics and morality" and warned that Park was "hell-bent" on confrontation with Pyongyang.

The never-married Park has promised a strong, maternal style of leadership that would steer the country through the challenges of global economic troubles.

"I have no family to take care of and no children to pass wealth to. You, the people, are my family and your happiness is the reason that I stay in politics," Park said in a televised press conference on Tuesday.

"Like a mother who dedicates her life to her family, I will become the president who takes care of the lives of each one of you," she said.

A female president would be a big change for a country that the World Economic Forum recently ranked 108th out of 135 countries in terms of gender equality -- one place below the United Arab Emirates and just above Kuwait.

Moon has stressed the need for a change after what he described as five years of a corrupt and incompetent NFP presidency.

"If you spare them punishment, past wrongs will be extended," he said on the last day of campaigning.

Turnout is expected to be crucial.

Older Koreans, who generally favour Park, are seen as more dependable voters and Moon's camp has pushed hard to ensure the younger demographic that make up his support base actually cast their ballots.

- AFP/fa



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Manipur rebels supplying arms to Maoists, says NIA

NEW DELHI: Left wing extremists (LWE) had been procuring Chinese arms and communication equipment from banned Manipuri outfit, People's Liberation Army (PLA), via Myanmar and routing it to Kolkata through Guwahati between 2006 and 2011, a supplementary chargesheet filed by the National Investigation Agency (NIA) in the CPI (Maoist)-PLA nexus case has revealed.

According to the chargesheet, all the communication equipment recovered from Maoists have made-in-China marks, while arms recovered from PLA members too belonged to Chinese brands. It is, however, yet to be established conclusively whether they came from China and were routed via Myanamar or were pilfered out of Myanmar or some other source.

The chargesheet has been filed against Maoist leaders Pallab Borborah, Indranil Chanda and PLA's external affairs chief Asem Ibotombi Singh alias Angou, who were all arrested this year from Assam, Kolkata and Odisha, respectively. The accused are alleged have played a significant role in training of Maoists by PLA in Jharkhand's Saranda forests apart from procurement of arms and communication equipment.

Earlier, NIA had filed a chargesheet against three top PLA leaders — N Dilip Singh alias Wangba, Senjam Dhiren Singha alias Raghu and Kh Arnold Singh alias Becon.

One of the main evidence against the accused in the chargesheet is the email that PLA members had exchanged among themselves, and their Myanmar-based bosses. The emails exposed the nexus, helping agencies to sniff them out. "Maoists use very little modern technology. They rely on human couriers. But PLA members regularly wrote e-mails to their bosses in Myanmar. This exposed them," said an official privy to the probe.

The emails also mentioned aliases of Borborah and Chanda whose real identity was later established following statements of former PLA and Maoist members and are part of the chargesheet.

The chargesheet says the nexus was initiated by then PLA external affairs chief Gypsy Sharma in 2006. Later, Becon was appointed as the liaison officer and sent to Kolkata to coordinate the operation, where he met Chanda. However, for the first two years no deal could be struck save for PLA gifting some arms and communication equipment to conduct tests.

In 2008, when Wangba replaced Gypsy Sharma in the PLA, he took one CPI (Maoist) central committee member to Myanmar, where Maoists and PLA signed a joint declaration against the Indian state and mooted the idea of forming a United Strategic Front.

The first payment to procure arms was made in 2009. A deal was struck to procure arms and communication equipment worth Rs 50 lakh. A total of Rs 33 lakh in three installments was paid before the accused were arrested.

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Pictures: "Beautiful" Geminid Meteor Showers Grace Skies









































































































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Can Cops Read Shooter's Sabotaged Computer?













Sandy Hook Elementary School shooter Adam Lanza may have tried to sabotage his own computer before going on a murderous rampage that claimed the lives of 20 children, but experienced investigators said today that law enforcement forensic experts could still recover critical evidence from the damaged drives.


Connecticut State Police Lt. Paul Vance revealed Monday that a computer crimes unit was working in conjunction with a forensics laboratory to "dissect" any evidence relevant to the case, but he declined to comment further on what type of evidence was involved and in what condition it was in. Later that day, law enforcement officials told ABC News that police recovered a badly damaged computer from Lanza's home that appeared to have been attacked by a hammer or screwdriver.


Sources said if they can still read the computer's hard drive, they hope to find critical clues that may help explain Lanza's motives in the killing.


Former FBI forensic experts told ABC News that in cases similar to this one, damage to the computer does not necessarily mean the computer files cannot be accessed.


"If he took a hammer to the outside, smashed the screen, dented the box, it's more than likely the hard drive is still intact," said Al Johnson, a retired FBI special agent who now works privately examining digital evidence and computer data. "And even if the hard drive itself is damaged, there are still steps that can be taken to recover everything."








Gun Control Debate Resurfaces After Sandy Hook Shooting Watch Video









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Sandy Hook Elementary Shooter: What Caused Shooting? Watch Video





Brett Harrison, a former FBI computer forensics expert who now works with a D.C. consulting firm, said that authorities have a great deal of technology at their disposal to retrieve that data. How much is recovered, he said, will depend entirely on how much damage was done to the well-insulated "platters" -- discs lodged deep inside the machine -- where Lanza's every digital footstep was recorded.


It is likely, he said, that Lanza's computer has been moved to a "clean room" where, if the discs are intact, they could be removed and then carefully re-inserted in a fresh hard drive. If the calibrations are done correctly, investigators would still be able to unlock the clues on the discs.


If the discs aren't in perfect condition, Harrison said, "There is equipment they can use to read the data off a record even if a portion of it is damaged."


Johnson said it is tedious work done in a clean environment because the tolerances of the discs is so precise – even a particle of dust could destroy crucial evidence.


"We're talking about a tolerance of less than a human hair," said Johnson, who now does computer forensics for a South Carolina-based investigative firm.


Police have not said exactly what they expect to find on the computer's hard drive, but the former FBI experts said typically there could be record of visits to violent web sites, or to online stores that sell ammunition, or to email that might reveal if Lanza shared any hints of his plans with others.


"I'm not big on speculation," Harrison said, "but you're talking about potentially finding all the normal things that people do with their computer – Facebook pages, internet activity, email, you name it."


For now, the FBI is keeping mum on what kind of computer forensic help it could be offering in the case.


"At this time, in deference to the ongoing investigation being conducted by the CSP, the FBI is not releasing information regarding operational or forensic assistance provided in the Sandy Hook Elementary School shooting," an FBI spokesperson said.


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Morgan Stanley fined over Facebook IPO






WASHINGTON: Morgan Stanley agreed Monday to pay a $5 million fine to settle charges that it improperly handled crucial information on Facebook's earnings ahead of the company's disastrous IPO.

The securities regulator of the state of Massachusetts had charged that Morgan Stanley, the lead underwriter for the $16 billion stock issue in May, coached Facebook on how to present lowered earnings estimates to company analysts.

At the same time, those estimate revisions, made just days before the initial public offering closed, were not shared with all investors as Morgan Stanley set a high issue price and increased the number of shares on sale.

Facebook shares collapsed after the first day of trade on May 18, eventually falling to half the $38 IPO price, as institutional investors dumped the shares worried about lowered earnings potential.

The share price fall angered many institutional and retail investors who said they had been misinformed about the company's earnings forecasts.

The Massachusetts state secretary William Galvin said Morgan Stanley had violated securities industry rules against unethical and dishonest conduct.

Morgan Stanley agreed to the civil penalty without either admitting or denying the charges.

- AFP/fa



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