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 edges up with help from McDonald's

NEW YORK (Reuters) - Stocks were modestly higher on Monday, helped by stronger-than-expected sales from McDonald's, but gains were constrained as investors awaited any sign of progress in talks to avert the so-called fiscal cliff.

Developments in Europe also tempered sentiment after Italian Prime Minister Mario Monti said he would resign once the 2013 budget is approved. The move added to uncertainty about reducing euro zone debt and drove Italy's borrowing costs higher.

U.S. President Barack Obama met with Republican House Speaker John Boehner on Sunday to negotiate a deal for avoiding the "fiscal cliff" that is set to go into effect in the new year.

The two sides declined to provide details about the unannounced meeting. Obama is expected to make remarks at 2 p.m. (1900 GMT) from Michigan where he is touring an auto plant.

The fiscal cliff talks have kept markets on edge in the last month as investors worry the scheduled measures could send the economy into recession if politicians do not reach a deal.

While the negotiations are at the forefront of investors' minds, most have adopted the position that a deal will be reached, even if it is at the last minute, said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati, Ohio.

"We haven't had any 'progress' the last two weeks or so, yet all in all equity markets have continued to hang tough," said Detrick. "The rhetoric from Washington is strong, but Wall Street is betting something probably will get done."

The Dow was helped by a gain in McDonald's Corp . The fast food chain's stronger-than-expected November sales marked a rebound after a decline in October. The stock was up 1 percent at $89.33.

The Dow Jones industrial average <.dji> gained 32.64 points, or 0.25 percent, to 13,187.77. The Standard & Poor's 500 Index <.spx> added 1.09 points, or 0.08 percent, to 1,419.16. The Nasdaq Composite Index <.ixic> rose 9.90 points, or 0.33 percent, to 2,987.95.

Ingersoll-Rand Plc said it will spin off its security division and announced a $2 billion share buyback, sending its shares up 2.4 percent at $49.86.

Cisco Systems boosted the Nasdaq after it laid out its midterm growth strategy on Friday. Its shares were up 2 percent at $19.72.

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Egypt army gets temporary power to arrest civilians

CAIRO (Reuters) - Egypt's government has temporarily given the military the authority to arrest civilians to help safeguard a constitutional referendum planned for Saturday, the official gazette said.

The order, gazetted late on Sunday, said the military would support police and liaise with them to protect "vital institutions" until the referendum result is declared.

The decree gave army officers the right to make arrests and transfer detainees to prosecutors.

Despite its limited nature, the edict will revive memories of Hosni Mubarak's emergency law, also introduced as a temporary expedient, under which military or state security courts tried thousands of political dissidents and Islamist militants.

But a military source stressed that the measure, introduced by a civilian government, would have a short shelf-life.

"The latest law giving the armed forces the right to arrest anyone involved in illegal actions such as burning buildings or damaging public sites is to ensure security during the referendum only," the military source said.

"The armed forces secured polling stations during previous elections when it was in charge of the country," the source said, referring to 16 months of army rule after Mubarak fell.

"Now the president is in charge. In order for the armed forces to be involved in securing the referendum, a law had to be issued saying so," the source added.

Presidential spokesman Yasser Ali said the committee overseeing the vote had requested the army's assistance.

"The armed forces will work within a legal framework to secure the referendum and will return (to barracks) as soon as the referendum is over," Ali said.

On Saturday, the military urged rival political forces to solve their disputes via dialogue and said the opposite would drag the country into a "dark tunnel", which it would not allow.

A statement issued by the military spokesman and read on state radio and television made no mention of President Mohamed Mursi, but said a solution to the political crisis should not contradict "legitimacy and the rules of democracy".

A military source close to top officers said the statement "does not indicate any future intervention in politics".

A military council took over after a popular revolt ended Mubarak's 30 years of army-backed rule last year. It then handed power to Mursi, who became Egypt's first freely elected leader in June. The military has not intervened in the latest crisis.

The army statement said the military's duty was to protect national interests and secure vital state institutions.

"The armed forces affirm that dialogue is the best and only way to reach consensus," it added. "The opposite of that will bring us to a dark tunnel that will result in catastrophe and that is something we will not allow."

Hassan Abu Taleb of the Al Ahram Center for Political and Strategic Studies said Saturday's army statement suggested the military wanted both sides to talk out their differences, but discounted the chance of direct military intervention.

"They realize that interfering again in a situation of civil combat will squeeze them between two rocks," he said.

(Additional reporting by Yasmine Saleh; Writing by Alistair Lyon; editing by Philippa Fletcher)

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Hug It Out: Public Charter and District Schools Given $25 Million to Get Along

If you need a loan, ask Bill and Melinda Gates. Or better yet, ask one of the seven cities that are splitting a new $ 25 million grant courtesy of the couple’s philanthropic foundation.

The funds are going to promote cross collaboration between charter and district schools, which have previously operated in a strict and contentious independence from one another.

The foundation announced the award this week, and the cities benefiting are Boston, Denver, Hartford (CT), New Orleans, New York City, Philadelphia and Spring Branch (TX).

How did they get so lucky? They’re among a group of 16 communities that signed the Gates-sponsored “District-Charter Collaboration Compacts” pledging for an open-source collaboration between public charter and district public schools.

Communication between these two models is unusual to say the least; they’ve had a long and illustrious history of battling each other over tax dollars, students and even building space.

But when charter schools first opened 20 years ago, their original purpose was to create an experimental educational space which would then share its best methods with public district schools. Instead, the two grew into rivals and critics of each are vehemently opposed to the other.

Among the complaints, charter schools are seen as selfishly siphoning off the most motivated students from the district while upholding a rich-poor educational divide and failing to live up to the promise of a better education. Others say its district schools that are the issue for their unionized teacher complacency and a consistent inability to keep a large margin of students from falling through the cracks.

In truth, neither system is a slam-dunk, and both are experiencing closures nationwide due to underperformance.

The goal of the District-Charter Collaboration Compacts is to restore the original relationship of the two camps, effectively establishing a regular protocol of sharing their best practices, innovations and resources.

Don Shalvey, the deputy director at teh Gates Foundation told The New York Times, “It took Microsoft and Apple 10 years to learn to talk. So it’s not surprising that it took a little bit longer for charters and other public schools. It’s pretty clear there is more common ground than battleground.”

But what will this grand collaboration yield? If all goes according to plan, students from both camps will benefit from new teacher effectiveness practices, college-ready tools and supports, and innovative instructional delivery systems.

According to the Gates Foundation, only one-third of students meet the criteria of college ready by the time they graduate. And most of the kids who don’t are often minority students from lower income areas. By creating collaborative aims with charter and district, kids from all over can have access to a wider swath of teaching frameworks and curriculums. 

Related Stories on TakePart:

• Public Dollars for Private Schools? Voices from the Voucher Debate

• School Vouchers: The Debate Heats Up Across the U.S.

• Howard Fuller: One of the Most Powerful Educators in America

---

A Bay Area native, Andri Antoniades previously worked as a fashion industry journalist and medical writer.  In addition to reporting the weekend news on TakePart, she volunteers as a webeditor for locally-based nonprofits and works as a freelance feature writer for TimeOutLA.com. Email Andri | @andritweets | TakePart.com

Linux/Open Source News Headlines – Yahoo! News

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Prince William on Morning Sickness Lasting All Day

By Maggie Coughlan

12/09/2012 at 11:00 AM EST

If you don't think laughter is the best medicine, just ask Prince William.

Despite a stressful week – which included a pregnancy announcement, hospital visits and more – the dad-to-be has managed to maintain his sense of humor.

The Prince, making his first public appearance since wife Kate was released from King Edward VII hospital following a four-day stay with hyperemesis gravidarum (severe morning sickness), attended the Winter Whites Gala in London on Saturday.

Michael O'Higgens, a former chairman of homeless charity Centrepoint, which the gala benefited, told reporters: "[William] said they shouldn't call it morning sickness as it's a day and all night sickness."

Inside the event, William shared his more serious perspective on his country's homeless population.

"About this time a few years ago, for one night, I gave up the warmth and comfort of my bed and tried sleeping on the streets of London. Of course, this was just one night. I was cold but safe and I knew I had a home waiting for me," he said.

"Many others have no such luck. The cold streets are the only reality they know. And yet so often their spirit shines through. What these unfortunate men, women and young people could achieve given the right opportunities is limitless. I really, really believe that," he continued.

William was originally scheduled to attend the British Military Tournament at Earl's Court in London on Sunday, but has canceled and will be spending the day "privately with the Duchess instead," a spokesman for the couple, both 30, said in a statement to PEOPLE.

"It is well known that hyperemesis gravidarum often recurs and, until further notice, to allow the Duchess a degree of privacy during her pregnancy, we do not intend to offer regular condition checks or advise of routine developments associated with it," the spokesman added.

The couple's next engagement is Wednesday December 12, when they are set to attend the royal premiere of The Hobbit movie in London's West End.

• Reporting by SIMON PERRY

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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

Read More..

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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Egypt's Mursi scraps decree, fails to appease opponents

CAIRO (Reuters) - Egypt's president scrapped a decree that gave him extra powers and ignited violent protests, but irate opponents said on Sunday he had deepened the conflict by pressing on with a vote on a constitution shaped by Islamists.

President Mohamed Mursi and his Islamist partisans have insisted the referendum go ahead on December 15 to seal a democratic transition that began when a popular uprising felled Hosni Mubarak 22 months ago after three decades of one-man rule.

The retraction of Mursi's November 22 decree, announced around midnight after a "national dialogue" boycotted by almost all the president's opponents, has failed to calm a war of words.

Prime Minister Hisham Kandil, a technocrat with Islamist leanings, said the referendum was the best test of opinion.

"The people are the makers of the future as long as they have the freedom to resort to the ballot box in a democratic, free and fair vote," he said in a cabinet statement.

But opposition factions, uncertain of their ability to vote down the constitution against the Islamists' organizational muscle, want the document redrafted before any vote.

Ahmed Said, a liberal leader of the main opposition National Salvation Front, said Mursi's withdrawal of his November 22 decree had not annulled its consequences, describing the race to a referendum as "shocking" and an "act of war" against Egyptians.

The Front has promised a formal response later on Sunday.

Egypt tipped into turmoil after Mursi grabbed powers to stop any court action to hinder the transition. An assembly led by Mursi's Muslim Brotherhood and other Islamists then swiftly approved the constitution it had spent six months drafting.

Liberals, leftists, Christians and others had already quit the assembly in dismay, saying their voices were being ignored.

The April 6 movement, prominent in the anti-Mubarak revolt, derided the result of Saturday's talks as "manipulation and a continuation of deception in the name of law and legitimacy".

A leftist group led by defeated presidential candidate Hamdeen Sabahy demanded the referendum be deferred until a consensus could be reached on a new draft, saying there could be "no dialogue while blood is being spilled in the streets".

But Muslim Brotherhood spokesman Mahmoud Ghozlan said scrapping Mursi's decree had removed any cause for controversy.

"We ask others to announce their acceptance of the referendum result," he said on the group's Facebook page, asking whether the opposition would accept "the basics of democracy".

"NOT LOGICAL"

More protests were planned near Mursi's palace, despite tanks, barbed wire and other barriers installed last week after clashes between Islamists and their rivals killed seven people.

"A constitution without consensus can't go to a referendum," said Hermes Fawzi, 28, a protester outside the palace. "It's not logical that just one part of society makes the constitution."

After the dialogue hosted by Mursi, a spokesman announced that the president had issued a new decree whose first article "cancels the constitutional declaration" of November 22. He said the referendum could not be delayed for legal reasons.

Egypt is torn between Islamists, who were suppressed for decades, and their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms. Many Egyptians just crave stability and economic recovery.

Each side has mobilized tens of thousands of supporters in rival rallies in Cairo and other cities. Mursi's foes have chanted for his downfall. Islamists fear a plot to oust the most populous Arab nation's first freely elected president.

Islamists reckon they can win the referendum and, once the new constitution is in place, an election for a new parliament about two months later. The Islamist-led lower house elected this year was dissolved after a few months by a court order.

Investors appeared relieved at Mursi's retraction of his decree, sending Egyptian stocks 4.4 percent higher on Sunday. Markets are awaiting approval of a $4.8 billion IMF loan later this month designed to support the budget and economic reforms.

The new decree removed some parts of the old one that had angered the opposition, including an article that had given Mursi broad powers to confront threats to the revolution or the nation - wording that critics said gave him arbitrary authority.

It also dropped an article that had shielded Mursi's actions from the courts until a new parliament was elected, reflecting his distrust of a judiciary largely unreformed from Mubarak's era. But the new decree said "constitutional declarations including this declaration" remained beyond judicial review.

The new decree also set procedures to form an assembly to write a new constitution if Egyptians vote this draft down.

The military, which led Egypt's transition for 16 turbulent months after Mubarak fell, told feuding factions on Saturday that only dialogue could avert "catastrophe". But a military source said these remarks did not herald an army takeover.

(Additional reporting by Tamim Elyan and Yasmine Saleh; Writing by Alistair Lyon; Editing by Mark Heinrich)

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Shakira's Foundations Are Transforming Thousands of Kids' Futures

Heroes Among Us

By Marisa Laudadio

12/08/2012 at 10:40 AM EST

Shakira with students of the Barefoot Foundation in Colombia

Courtesy Shakira

Shakira was 8 when her parents taught her what life was like for the most vulnerable people in her native Colombia. Visiting an impoverished area, "I saw kids living on the street, running around barefoot and sniffing glue," says the singer. "I made a promise to myself that I would become successful and do everything in my power to help those kids." 

She has turned that vow into a second calling. Launched 17 years ago, her Pies Descalzos Foundation (and its U.S. counterpart, Barefoot Foundation) will open its seventh school and community center in Colombia next fall. The foundations provide education and nutrition to about 6,000 kids, plus jobs and resources for 30,000 others. 

"Last year some of our students had among the highest placements on standardized tests in the country – and we are talking about kids who are the children of families displaced by violence and conflict," says Shakira, 35, who also supports projects in Haiti and South Africa. "There is nothing more gratifying than seeing a child who could have been recruited into drug trafficking or guerrilla warfare not only graduating from high school but excelling throughout and now preparing for university."

"That includes David Rueda, 17, who graduates this month. Going to college, he says, is "something that my parents or brothers and sisters couldn't [do]." Shakira hopes to pass on her commitment when she and soccer star Gerard Piqué, 25, welcome a baby next year. "I want my child to grow up in a fair and just world," she says, "knowing he too can be an agent of change." 

Watch Shakira and more at the 55th Annual Grammy Awards Feb. 10 at 8 p.m. ET on CBS.

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Egyptian military urges dialogue to avert "catastrophe"

CAIRO (Reuters) - Egypt's military said on Saturday only dialogue could avert "catastrophe", stepping into a crisis pitting an Islamist president against opponents of his drive to reshape a nation in turmoil since Hosni Mubarak's overthrow.

An army statement, which state radio and television interrupted their programs to read out, told feuding factions that a solution to the upheaval in the most populous Arab nation should not contradict "legitimacy and the rules of democracy".

That sounded like a swipe at protesters who have besieged the palace of freely elected President Mohamed Mursi and who have called for his removal, going beyond mainstream opposition demands for him to retract a decree that expanded his powers.

The statement also called for a "serious" national dialogue - perhaps one more credible than talks convened by Mursi on Saturday in the absence of opposition leaders. They insist he must first scrap his November 22 decree, defer next week's popular vote on a new constitution and allow the text to be revised.

Deep rifts have emerged over the destiny of a country of 83 million where Mubarak's ouster after 30 years of autocratic rule led to a messy army-led transition, with the Muslim Brotherhood and its allies winning two elections. Many Egyptians crave a return to stability and economic recovery.

The spokesman for the main Islamist coalition demanded that the referendum go ahead on time on the constitution drafted by an Islamist-led assembly from which liberals had walked out.

The army, which ran Egypt for months after Mubarak fell in February 2011, again cast itself primarily as the neutral guarantor of the nation and a military source said there was no plan to retake control of the country or its turbulent streets.

"DARK TUNNEL"

"The armed forces affirm that dialogue is the best and only way to reach consensus," the statement said. "The opposite of that will bring us to a dark tunnel that will result in catastrophe and that is something we will not allow."

The military, however, did seem poised to take a more active role in security arrangements for the December 15 referendum.

A cabinet source said the cabinet had discussed reviving the army's ability to make arrests if it were called upon to back up police, who normally provide security for elections.

Mursi's office said the "national dialogue", chaired by the president, had begun with about 40 political and other public figures discussing "means to reach a solution to differences over the referendum...and the constitutional decree".

The instability in Egypt worries the West, especially the United States, which has given Cairo billions of dollars in military and other aid since it made peace with Israel in 1979.

The army issued its statement while protesters were still camped out by the gates of the presidential palace.

The tens of thousands of Mursi foes who surged past tanks and barbed wire to reach the palace gates on Friday night had dispersed. But a hard core stayed overnight in a score of tents.

Some had spray-painted "Down with Mursi" on tanks of the elite Republican Guard posted there after clashes between rival groups killed at least seven people and wounded 350 this week.

Others draped the tanks with posters of Mursi and the word "Leave" scored across his face in red letters.

"We are no longer calling for scrapping the decree and delaying the referendum," Samir Fayez, a Christian protester at the palace, said. "We have one demand in five letters: leave."

Nearby, a Mursi supporter named Mohamed Hassan was quietly observing the scene. He suggested that the Muslim Brotherhood and its ultra-orthodox Salafi Islamist allies could easily overwhelm their foes if they chose to mobilize their base.

"The Brotherhood and Salafis by themselves are few but they have millions of supporters who are at home and haven't taken it to the streets yet," murmured the 40-year-old engineer.

"HATE US, BUT TALK"

The Muslim Brotherhood's supreme guide, Mohamed Badie, denounced opposition protests that have swirled around the walls of the Mursi's palace, saying they "ruin legitimacy".

Badie said eight people, all of them Brotherhood members, had been killed this week and urged the interior minister to explain why police had failed to prevent assailants from torching the organization's headquarters and 28 other offices.

"Get angry with the Brotherhood and hate us as much as you like, but be reasonable and preserve Egypt's unity," he told a news conference. "We hope everyone gets back to dialogue."

The well-organized Brotherhood, which thrust Mursi from obscurity to power, remains his surest source of support, with over 80 years of religious and political struggle behind it.

In the referendum, due to be followed by a parliamentary election, Islamist proponents of the constitution may benefit from the votes of millions of Egyptians desperate for the country to move on and revive its crippled economy.

A Brotherhood official welcomed the army's "balanced" line. Former Arab League chief Amr Moussa, now an opposition leader, said the army was reacting to an "enormously dangerous" crisis.

The military was the power behind all previous presidents and an army council temporarily took over after Mubarak's fall. However, Mursi pushed the generals aside in August and they had shown little appetite to intervene in Egypt's latest crisis.

(Additional reporting by Edmund Blair, Omar Fahmy and Yasmine Saleh; Writing by Alistair Lyon; Editing by Mark Heinrich)

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