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Source: http://news.feedzilla.com/en_us/stories/politics/top-stories/159646359?client_source=feed&format=rss
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Building a hackintosh?that is, installing Mac OS X on non-Apple hardware?used to require extremely restricted hardware choices and quite a bit of know-how. Now your options are vast and the installation process is fairly simple. With that in mind, here is our always up-to-date guide to building a hackintosh that will walk you through purchasing compatible parts, building your machine, and installing OS X all on your own. Thanks to a new process, it's even easier than before.
Currently Up-to-Date Version: Mac OS X 10.7.2 (UniBeast Method)
If you're looking for the former method of installing Mac OS X Lion using TonyMac's EasyBeast utility, we have archived it here. While there's really no reason to follow those instructions if you're looking to install Lion, you can use them to help you install Snow Leopard.
A hackintosh is simply any non-Apple hardware that has been made?or "hacked"?to run Mac OS X. This could apply to any hardware, whether it's a manufacturer-made or personally-built computer. For the purposes of this guide, we're only discussing a tried-and-true method for building a hackintosh that you build.
That means you'll need to be comfortable with the idea of building your own machine
and providing your own technical support when you run into problems. While this can be a little bit of a scary prospect if you're new to building a hackintosh, it comes with the advantage of saving you a lot of money while still providing you with an incredibly powerful, fully customizable machine. We'll also point you to several resources we've put together to help you learn everything you need to know about building a computer so you can feel confident on your first time through the entire computer building process. While it's important to know that building a hackintosh from scratch is not a project for beginners, it is something that anyone can learn to do. We think it's a wonderful alternative to purchasing an official Apple product and a rewarding challenge. Now that you know what to expect, let's get to work.
It may seem strange to have an always up-to-date guide to building a hackintosh because the process changes based on the hardware choices you make. Although this is true, it doesn't change that much. We'll be discussing the process of building a hackintosh on a broad level, as it applies to most hardware. As a result, this guide will not always be able to tell you the exact boxes to tick and choices to make, but it will teach you how to figure that out for yourself. We'll hold your hand as tightly as possible through as much of the process as we can, but there will be some decisions you'll have to make on your own. It can be a little scary sometimes, but that's part of the fun.
In summary, this always up-to-date guide will explain how to pick the right hardware for a great hackintosh and walk you through the standard OS X installation process, but it will also require you to be diligent and informed in regards to the variables in your specific build.
Picking out hardware and building a computer is often the most daunting part of this process. If you've never done it before, it can often feel like putting together puzzle where many of the pieces seem interchangeable but truly are not. That said, we have plenty of resources to help you demystify the purchasing and building process so you're feeling confident.
First, let's talk about choosing hardware and what makes certain options better than others.
When Apple builds their official Macs, their parts are not that different from the parts we can buy online when we build our own PCs. In fact, they're often the same. Additionally, third-party manufacturers will create hardware for Apple's Mac Pro computers to add additional options to the mix. This means that Apple, or the third parties, need to create software drivers for Mac OS X in order for the hardware to work. This means that virtually any hardware with these drivers is going to be hardware you can use in your hackintosh build. Additionally, the talented people on the internet have developed their own open source drivers for non-Mac hardware in order to provide additional options for your hackintosh. While all of these efforts only span a small percentage of the available hardware on the market, it still provides you with a lot of great choices. Many motherboards, graphics cards, and processors are compatible thanks to these combined efforts.
The next question is, how do you know what is and isn't compatible? Like we've already discussed, if Apple has used the part before, that's generally a good sign that you can use it, too. That said, you always want to double-check when you're putting your hardware list together. To help you out, we've created a hackintosh hardware buyer's guide so you can figure out what will and will not work. Follow that guide when choosing your hardware and you should be good to go. You can also reference our Hack Pro and Hack Mini builds, or just use the sample build provided at the end of this section.
Once you have your hardware you're going to need to assemble it into a working computer. We have an entire night school course on computer building, but this specific lesson will walk you through how to build your first computer. Follow it diligently, read your motherboard and case manuals closely, and you should have a functional machine in no time.
With the resources we've discussed, you should be all set to build your hackintosh. Before we move on, however, let's take a look at a sample build so you can get an idea of what a basic hardware shopping list looks like. This is an actual hackintosh we've built, based on hardware suggested by tonymacx86. It only costs a little over $300, so it's a great option for beginners. Here's the parts list:
You'll find lots of builds like this on tonymacx86's blog, so you can build those exact machines or use them as starting points to create your own build. However you want to go about it, be sure to read our a hackintosh hardware buyer's guide if you want help with selecting your parts.
By this point you should have purchased your parts, built your computer, and turned it on to make sure everything is functioning. If all systems are go, it's time to move on to the installation process.
Installing Mac OS X on hackintosh hardware involves a bit more than just popping in a DVD, choosing a boot volume, and clicking a button. You'll have to do all of that, too, but there's a bit of prep work involved. Let's get started.
When you turn your machine on, it should display its BIOS welcome screen. This is generally an image with the name of your motherboard and indicators for a few keys you can press to edit your BIOS. Before we can install OS X, we first have to make a few changes to the BIOS (your motherboard's settings), so you're going to need to press the key that corresponds to the BIOS Settings when you power on your machine. This is almost always a function key (like F12) or the delete key, but reference your BIOS image to be sure. (Click the image to the left to see an example.) Press and hold down that magic BIOS settings key and wait for the BIOS settings to load.
The BIOS settings for every motherboard is going to be somewhat similar but never exactly the same. For that reason we can't tell you, command-by-command, where to go to find and make certain adjustments. That said, we can tell you what to look for. Here are the settings you will need to adjust (or at least verify) in your BIOS to make your hardware hackintosh-friendly:
Once you've made these changes, you'll need to save them. In most cases you'll only need to press the escape key a few times to get back to the main screen, and then F10 to save and exit. Your BIOS settings page will tell you which keys save, exit, and so on, so you should have no trouble figuring out the right keys to press.
Now we're ready to actually install OS X, but this is going to be a fairly in-depth process that requires a number of tools. Before getting started, be sure you have the following:
Once you have everything, you'll need to prepare your 8GB+ thumb drive to be bootable and capable of installing Mac OS X Lion. To do so, follow these steps:
When UniBeast finishes, you'll have a hackintosh-bootable USB thumb drive. Plug it into your hackintosh, boot up, and press the key on your keyboard that will take you to the boot selection menu. (If you don't know what it is, just look on your BIOS boot screen. It is commonly ESC, F10, or F12.) If the thumb drive boots successfully you'll see a thumb drive with the tonymacx86 logo appear on your screen along with a single boot option: USB. Choose it and boot into the installer.
Note: In some cases you may need additional boot flags to get to the installer. If you have an unsupported graphics card, you'll need to add GraphicsEnabler=No. If you have an ATI Radeon 6670 installed you'll need to add PCIRootUID=0. You can just type these in at the boot option screen before you press enter to choose "USB" and boot into the installer.
When the Mac OS X Lion Installer finishes booting, you'll be presented with a welcome screen and can choose your language. Do that, but before you can continue you'll need to format your disk. Go to the Utilities menu and choose Disk Utility. Select the disk you want to use for installation and format it. To format it properly, follow these steps:
With your destination disk ready to go, you can now run the Lion installer just like you would on any other Mac. When it completes you might be met with an "Installation Failed" message at the end (or not), but that's nothing to worry about. When the installation is complete just restart your machine. When you do, access your boot menu and choose the USB drive. You still need it to boot up. When you see the familiar boot options screen again you'll now be able to choose the drive you installed Lion on. Pick that and press enter, also entering any boot flags you used when booting into the installer previously.
Now that you've got Lion installed, it's time to make all your hardware work properly. For that, you need to install some drivers. Copy MultiBeast to your hackintosh's hard drive and open it up. Click through the install windows and get to the options page. What you choose is going to vary based on your build, but here's a look at all your choices and what they do, using our sample build as a guide:
IMPORTANT NOTE: If you're building a Sandy Bridge-based hackintosh with a motherboard using Realtek ethernet, be sure to check out Lnx2Mac's ethernet driver. It's released separately from MultiBeast and sometimes the version it provides is not the latest. That is currently the case and the latest version supports newer socket 1155 (meaning Sandy Bridge-compatible) motherboards. If you're having trouble with your ethernet, download it directly.
Once you've made all of your choices, go ahead and run MultiBeast. When it's finished, this generally means you're done and can restart to your brand new hackintosh. In some cases you may need to find additional drivers that MultiBeast didn't provide. This may be a driver for a Wi-Fi adapter you purchased or some third-party PCI card. If the driver wasn't provided by the manufacturer or downloadable on their web site, use popular hackintosh forums (like InsanelyMac and tonymacx86) for help. Either way, once you're done with MultiBeast you can install those drivers as well to finish up the job. Congratulations on all your hard work. You now have a functional hackintosh!
When you installed Lion you likely received the most up-to-date version because the App Store automatically provides you with the latest. If you bought a thumb drive that may not be the case and you'll need to update. At some point you will need to update anyhow, so here's what you need to know.
For the most part, updating is pretty straightforward and you won't run into issues, but it's good to check tonymacx86's blog when updates are released to see what you'll need to do. In most cases you'll just download the latest update from Apple directly (rather than running Software Update), remove Sleepenabler.kext (provided you're using it), and then re-install it and any overwritten drivers using MultiBeast.
So how do you know what drivers were overwritten? In most cases, the only driver you'll have to reinstall is the AppleHDA Rollback, because that driver needs to be installed directly into your System Library where OS X makes changes. If you made any edits to graphics drivers, the 10.7.2 may overwrite them so you'll need to make those edits to the new, updated drivers as well. Whenever possible, MultiBeast installs special to a folder called Extra on your hard drive and then injects them into the boot process during startup. This method is used to prevent them from being overwritten by system updates, but if you have any drivers/kexts that aren't installed to Extra you may have to re-install them each time.
When a new update does roll around, don't update through Software Update. Download the updater directly from Apple. You can usually find it on their support site or by searching for the name of the update (e.g. "Mac OS X Lion 10.7.x Update"). Re-install anything necessary when you're done and test everything to make sure it works. Most updates should go very smoothly, but you should always back up your boot volume beforehand (we like Carbon Copy Cloner for this process) in case something goes wrong. You never know what can happen, and restoring from a backup is considerably less time-consuming than going through this entire process again from scratch.
Things go wrong with hackintoshes all the time. It's unlikely you'll create one without running into, at least, a minor dilemma. A lot of troubleshooting involves trial and error, unfortunately, and you'll just have to tinker around until you get the problem fixed. You will be able to find help on the InsanelyMac and tonymacx86 forums if you get stuck. You can also use tonymacx86's rBoot rescue CD to help you boot when you're having trouble doing so. You'll also want to spend some time disabling potentially problematic options and kexts in your /Extra folder (which you can get to by pressing Command+Shift+G, choosing Go to Folder, typing /Extra, and see if removing anything can help. Sometimes you'll need to add things, too, to get the proper hardware support without any glitches so just be diligent and you'll get there.
Finally, once you do get things working you should clone your hard drive so you have a boot-able copy available should things go awry. This way you can restore back to that copy or at least compare the things that changed since it was all working nicely. No matter what you think, you're going to screw something up at some point. Keep a backup. You won't regret it.
For more troubleshooting tips, check out our hackintosh troubleshooting guide.
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WASHINGTON ? A briefing paper prepared for Attorney General Michael Mukasey during the Bush administration in 2007 outlined failed attempts by federal agents to track illicitly purchased guns across the border into Mexico and stressed the need for U.S. and Mexican law enforcement officials to work together on such efforts using a tactic that now is generating controversy.
The information contained in one paragraph of a lengthy Nov. 16, 2007, document marks the first known instance of an attorney general being given information about the tactic known as "gun-walking." It since has become controversial amid a probe by congressional Republicans criticizing the Bureau of Alcohol, Tobacco, Firearms and Explosives for using it during the Obama administration in an arms-trafficking investigation called Operation Fast and Furious that focused on several Phoenix-area gun shops.
Though the briefing paper for Mukasey does not use the term "gun-walking," ATF officials at the time referred to the failed attempts in that way. The tactic ? following suspected low-level "straw" buyers of guns instead of arresting them right after purchase ? is aimed at identifying and bringing charges against gun-trafficking ringleaders, who have long escaped federal prosecution. Justice Department policy long has required that illicit arms shipments be intercepted whenever possible.
Attorney General Eric Holder is due on Capitol Hill next week to respond to Republicans who doubt his assertion that he didn't know about allegations that the tactic was in use until early this year.
Maryland Rep. Elijah Cummings, top Democrat on the House Oversight and Government Reform Committee, wrote to the panel's Republican chairman, Darrell Issa of California, asking that he call Mukasey to testify about his knowledge of the program.
"Given the significant questions raised by the disclosures in these documents, our committee's investigation will not be viewed as credible, even-handed, or complete unless we hear directly from Attorney General Mukasey," Cummings wrote.
Headlined "Meeting of the attorney general with Mexican Attorney General Medina Mora," the briefing paper informed Mukasey that the tactic had been tried unsuccessfully but that the ATF wanted to try again and wanted Mukasey to persuade Mexico's attorney general to provide a team of corruption-free Mexican agents who would assist in the effort. Perhaps implied but not fully detailed in this document was the reason for the failure ? that Mexican authorities south of the border fell down on the job, claiming they didn't see the vehicle carrying the guns that the ATF agents had alerted them to.
The briefing paper for Mukasey ? dated two days after he was installed as attorney general ? was among hundreds of pages of documents that Rep. Darrell Issa, R-Calif., subpoenaed in his investigation of Operation Fast and Furious. The Justice Department turned over the material this week to the Issa-chaired House Oversight and Government Reform Committee.
In Section G, titled "Arms Trafficking," the briefing paper for Mukasey states that "of particular importance, ATF has recently worked jointly with Mexico on the first-ever attempt to have a controlled delivery of weapons being smuggled into Mexico by a major arms trafficker." It adds: "While the first attempts at this controlled delivery have not been successful, the investigation is ongoing, and ATF would like to expand the possibility of such joint investigations and controlled deliveries ? since only then will it be possible to investigate an entire smuggling network, rather than arresting simply a single smuggler."
"To that end, it is essential that a Mexican vetted unit be assigned to work with ATF in this regard," the document states. "ATF's attache in Mexico City has briefed Attorney General Medina Mora on this attempted controlled delivery, and stressed the importance of such a vetted unit being assigned," the paper states.
The briefing paper said it was the "first-ever attempt," but an email by an ATF official disputed that.
"I am going to ask DOJ to change `first ever.' ... There have been cases in the past where we have walked guns," ATF official Carson Carroll wrote in an email to ATF headquarters official William Hoover, the assistant director for field operations.
Carroll's email did not elaborate, but a month ago, Justice Department documents released in the probe of Fast and Furious disclosed the first of two Bush-era probes, Operation Wide Receiver, which was carried out by ATF's Tucson, Ariz., office beginning in 2006. In it, several hundred weapons wound up in the hands of arms traffickers.
The AP contacted Mukasey's law office Thursday in New York about the briefing paper, but the former attorney general did not respond to questions about his recollection of the document or what, if any, action it produced.
The language in the briefing paper to Mukasey referred to the second of two Bush-era probes and covered events that had occurred in that second probe in the preceding two months ? specifically, a probe that began when an ATF agent identified several suspects from Mexico who were buying large numbers of weapons from a gun shop in Phoenix.
ATF emails from the 2007 probe obtained last month by the AP show there was concern inside the agency that its Phoenix office had engaged in gun-walking that resulted in guns disappearing inside Mexico ? and that perhaps the tactic should be stopped.
"Have we discussed the strategy with the US Attorney's Office re letting the guns walk?" Hoover, the headquarters official, asked in an Oct. 4, 2007, email to William Newell, then ATF's special agent in charge of the Phoenix field division.
The probe ran into trouble after agents saw the same suspects buy additional weapons from the same store and followed the suspects south toward the border at Nogales, Ariz., on Sept. 27, 2007. ATF officials notified the government of Mexico to be on the lookout. ATF agents saw the vehicle the suspects were driving reach the Mexican side of the border, but 20 minutes later, Mexican law enforcement authorities informed ATF that they did not see the vehicle.
The 2007 probe referred to in the briefing paper for Mukasey operated out of the same ATF office that more recently ran the flawed Operation Fast and Furious. Both probes resulted in weapons disappearing across the border into Mexico. The 2007 probe was relatively small ? involving more than 200 weapons, just a dozen of which ended up in Mexico as a result of gun-walking. Fast and Furious involved more than 2,000 weapons. Nearly 700 of the Fast and Furious guns have been recovered ? 276 in Mexico and 389 in the United States, according to ATF data through Oct. 20, the latest available.
According to ATF data, 94,000 weapons have been recovered in the past five years in Mexico, 64,000 of them traced to the United States.
Controversy erupted over Operation Fast and Furious after two assault rifles purchased by a now-indicted small-time buyer under scrutiny in the operation turned up at a shootout in Arizona where Customs and Border Protection agent Brian Terry was killed.
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Northwestern players Jeravin Matthews, rear left, David Nwabuisi (33) and Brian Peters, right, struggle to recover a fumble by Nebraska's Quincy Enunwa (18) in the first half of an NCAA college football game in Lincoln, Neb., Saturday, Nov. 5, 2011. The ball was recovered by Northwestern's Ibraheim Campbell. (AP Photo/Dave Weaver)
Northwestern players Jeravin Matthews, rear left, David Nwabuisi (33) and Brian Peters, right, struggle to recover a fumble by Nebraska's Quincy Enunwa (18) in the first half of an NCAA college football game in Lincoln, Neb., Saturday, Nov. 5, 2011. The ball was recovered by Northwestern's Ibraheim Campbell. (AP Photo/Dave Weaver)
Northwestern's Dan Persa, right, is pursued by Nebraska's Terrence Moore (90) and Baker Steinkuhler (55), in the first half of their NCAA college football game in Lincoln, Neb., Saturday, Nov. 5, 2011. (AP Photo/Dave Weaver)
Northwestern's Jeremy Ebert (11) catches a pass between Nebraska's Daimion Stafford (3) and Ciante Evans, right, in the first half of their NCAA college football game in Lincoln, Neb., Saturday, Nov. 5, 2011. (AP Photo/Dave Weaver)
Nebraska quarterback Taylor Martinez (3) is tackled by Northwestern's Quentin Williams (88) during the first half of an NCAA college football game in Lincoln, Neb., Saturday, Nov. 5, 2011. (AP Photo/Dave Weaver)
Northwestern's Adonis Smith, center, struggles for yardage against Nebraska's Terrence Moore (90) and Baker Steinkuhler (55), with Northwestern's Brian Mulroe, top center, in the first half of their NCAA college football game in Lincoln, Neb., Saturday, Nov. 5, 2011. (AP Photo/Dave Weaver)
LINCOLN, Neb. (AP) ? Starting quarterback Dan Persa was on the sideline in the second half because of a bum shoulder, and Northwestern's maligned defense was doing all it could to hold off Nebraska.
Surely, most fans wearing scarlet and cream at Memorial Stadium were thinking it was just a matter of time before the ninth-ranked Cornhuskers took control of this game.
The Wildcats wouldn't let it happen, hanging on to upset Nebraska 28-25 for their first win over a top-10 opponent in two years.
"A great program win for us," Northwestern coach Pat Fitzgerald said. "To come on the road and put together our most complete game of the year. ... Not perfect. Not a work of art. There are some things we can correct."
The critiques can wait, though. There was much to celebrate after this one.
Second-string quarterback Kain Colter ran for two touchdowns and passed for another as Persa cheered him on from the sideline.
Just as important, a defense that had been allowing 32 points and 432 yards a game held up its end.
"We got beat. It's that plain and simple," Nebraska coach Bo Pelini said. "They outplayed us, they outcoached us. What are you going to say? They won the football game. They deserve it. I give Northwestern a lot of credit. We didn't respond."
The loss to the 17-point underdog Wildcats (4-5, 2-4) dropped Nebraska (7-2, 3-2) into a second-place tie with Iowa and Michigan in the Big Ten's Legends Division. Michigan State moved into sole possession of first place with its win over Minnesota.
The win was Northwestern's first over a top-10 team since a 17-10 road victory over then-No. 8 Iowa on Nov. 7, 2009.
Persa injured his left shoulder in the second quarter when he was slammed to the ground by defensive end Eric Martin. Persa tried to play a couple more series, but he was on the sideline with his left arm in a sling after halftime.
Colter, who typically shares playing time with Persa at quarterback, took all but four snaps in the second half. He ran for 58 yards and completed four of six passes for 115 yards. Third-string quarterback Trevor Siemian came in and went 3 of 4 for 67 yards.
"I feel like we could really go into this game and make a statement," Colter said. "We had a great week of practice, came into the game with a great game plan and a lot of focus. We just went out there and executed. We really wanted this game."
Jeremy Ebert caught six passes for a career-high 147 yards and went over the 2,000-yard mark for his career on an 81-yard touchdown play that put the Wildcats up 21-10 early in the fourth quarter.
After the Huskers had pulled to 21-18, Colter scored from the 1 with 1:34 left to finish a 13-play, 66-yard drive that chewed more than 7 minutes off the clock.
"I give it up to our O-line," Ebert said. "We dominated the line of scrimmage. That final drive, for us to score, that was all them."
Nebraska, missing Jared Crick and two other defensive linemen because of injury, couldn't stop the running of Colter, Jacob Schmidt and Treyvon Green on Northwestern's last touchdown drive.
"We're thin up front," Pelini said. "They were just getting the push. It looked like we'd have them stopped for no gain and it'd leak for 3 or 4 yards."
Colter converted a fourth-and-1 with a 4-yard run around right end to the Nebraska 14, and five plays later the Wildcats were in the end zone.
Persa, who was 9 of 14 for 79 yards in the first half, slapped Christian Jones on the helmet, high-fived Drake Dunsmore and gave a quick hug to Colter as they came off the field.
Taylor Martinez, who passed for 289 yards and two scores, hurriedly moved Nebraska down the field. He hit Kenny Bell for a 14-yard touchdown with 18 seconds to play, but Charles Brown recovered the onside kick and Northwestern ran out the clock.
Nebraska finished with a season-low 122 yards on 35 carries, the third time this season it did not rush for at least 200 yards.
The Wildcats bottled up Nebraska running back Rex Burkhead and forced two costly turnovers in the first half.
Burkhead, who had 100-yard outings in five of his last six games, was limited to 69 yards on 22 carries.
Burkhead fumbled for the first time this season after the Huskers had driven to the Northwestern 5. Jack DiNardo reached in and stripped the ball, and Tyler Scott recovered.
Northwestern went nowhere after the turnover and punted into the wind, setting Nebraska up just inside the 50. But Quincy Enunwa got hit hard by Jeravin Matthews after catching a 25-yard pass, and Ibraheim Campbell recovered for the Wildcats.
"We had a lot of passion in practice and that really got spread around," defensive end Quentin Williams said. "Really, the defense and the whole team collectively really put our foot down and said enough is enough. We really needed to come out here and play a complete game, defense especially."
Northwestern kept alive its hopes of being bowl eligible for a fifth straight year. The Wildcats have no more road games and finish with Rice, Minnesota and Michigan State.
"I said it after last week, that if we wanted to make this season special we had to make it a November to remember," Fitzgerald said. "We're two steps up the mountain. But this one will go for naught if we're not humble."
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After escaping the media frenzy in the States to promote her new handbag collection Down Under, Kim Kardashian sat down with protective younger sister Khloe Kardashian Odom for a live interview on Australia's popular morning talk-show, Sunrise.
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ATHENS/CANNES, France (Reuters) ? Intense European pressure forced debt-stricken Greece to seek political consensus on a new bailout plan instead of holding a referendum after EU leaders raised the prospect of a Greek exit from the euro to preserve the single currency.
Fast-moving events in Athens overshadowed the first day of a summit of the Group of 20 major economies on the French Riviera on Thursday, with anxious world leaders urging Europe to act to stop contagion from its sovereign debt crisis.
Greek Prime Minister George Papandreou bowed to cabinet rebels and agreed to step down and make way for a negotiated coalition government if his Socialists back him in a confidence vote on Friday, government sources told Reuters.
"He was told that he must leave calmly in order to save his (PASOK) party," one source said on condition of anonymity. "He agreed to step down. It was very civilized, with no acrimony."
Papandreou, son and grandson of left-wing prime ministers, hinted he was ready to quit for the sake of national unity, telling parliament he was not wedded to his job.
G20 leaders meeting in Cannes discussed increasing the International Monetary Fund's resources and building a financial firewall to protect vulnerable euro zone economies Italy and Spain from a possible Greek default.
Papandreou said his call this week for a referendum, which sparked panic on global financial markets and infuriated European partners, "was never a purpose in itself", and he would be happy if the vote were not held.
Papandreou told PASOK lawmakers he had agreed to talks with the center-right opposition on a transitional government to implement a new EU/IMF bailout program agreed last week, and pave the way for early elections.
At a bruising meeting in Cannes on Wednesday night, French President Nicolas Sarkozy and German Chancellor Angela Merkel warned him that Athens would not receive a cent more in aid until it met its commitments to the euro zone.
Greece was due to get a vital 8 billion euro installment this month and says it will run out of money in mid-December if it does not get the loan.
Despite the turmoil in Athens and uncertainty over the euro zone, European stock markets and the euro rallied in volatile trading as the likelihood grew that Greece would not hold the highly risky referendum.
The European Central Bank also provided a surprise boost by cutting interest rates by 25 points to 1.25 percent and saying its policy of buying euro zone government bonds would continue for now with limited scope to support its monetary policy.
The leaders of China, Russia and the United States pressed the Europeans to move more swiftly to contain the debt crisis, with Washington urging Germany to relent and let the ECB play a greater role in financial firefighting, G20 sources said.
"Europe should aid itself. The European Union has everything for that today -- the political authority, the financial resources and the backing of many countries," Russian President Dmitry Medvedev said.
Canadian Prime Minister Stephen Harper said the leaders had discussed contingency plans if Greece were to leave the euro zone, "but my expectation is that cooler heads will prevail and the package will be accepted (by Greece)".
ITALY NEXT
Italy was next in the euro zone firing line, facing fierce pressure to make good on long delayed economic reforms.
European G20 leaders along with U.S. President Barack Obama, IMF Managing Director Christine Lagarde and new ECB President Mario Draghi met on the sidelines to press Italian Prime Minister Silvio Berlusconi for a timetable for key labor market, pension and privatization measures, EU sources said.
Berlusconi failed to win agreement from his divided center-right cabinet for the reforms just before flying to Cannes.
A draft plan agreed with the G20 on Thursday includes a commitment by Italy to get its budget deficit "near balance" by 2013 and to rapidly reduce its debt-to-GDP ratio, sources told Reuters. That is less ambitious than Italy's promise only last month to balance its budget in 2013.
EU leaders are concerned that if Italy cannot get its finances in order, the economy -- the eurozone's third largest -- could go the way of Greece, Ireland and Portugal in needing a bailout from the EU.
GREECE REVOLT
In Athens, Finance Minister Evangelos Venizelos led the revolt against Papandreou, saying Greece's euro membership was a historic achievement and "cannot depend on a referendum".
Dissident PASOK lawmakers called for a temporary national unity government, which some suggested could be led by former ECB vice-president Lucas Papademos.
Signaling for the first time a will to compromise, opposition leader Antonis Samaras called for a transitional government to lead Greece to early elections within weeks and said parliament should first ratify last week's 130 billion euro ($178 billion) bailout deal.
European Union leaders have long called for national unity in support of painful austerity measures required to cut the country's crippling debt, expected to reach 160 percent of gross domestic product this year.
Sarkozy told a news conference the tough message delivered by France and Germany to Greece's political class was starting to bear fruit. "Things are progressing," he said, welcoming Samaras' support for the bailout plan.
Euro area leaders talked openly of a possible Greek exit from the 17-nation currency area, seeking to maximize pressure on Athens and preserve the euro in case of a "no" vote.
Merkel repeated that the stability of the euro had priority for Germany over Greece's euro membership, touching a popular nerve at home.
Germany's best selling Bild newspaper railed against Greece and demanded it be ejected from the euro. A telephone poll found 86 percent of Germans want Greece out of the currency.
The chairman of euro zone finance ministers, Luxembourg Prime Minister Jean-Claude Juncker, said policymakers were working on possible scenarios for a Greek exit.
The specter of a possible hard Greek default and euro exit hung over the G20 summit, highlighting Europe's frailty and divisions just when Sarkozy had hoped to showcase his leadership of the world's major economies.
The summit had been meant to focus on reforms of the global monetary system and steps to rein in speculative capital flows and regulate commodities markets, but the shockwaves from Greece upended the talks.
Obama said Europe had taken some important steps toward a comprehensive solution to its debt crisis but now needed to flesh out and implement the plan quickly.
A disorderly Greek default would reverberate across the euro zone, engulfing big economies like Italy and Spain, and potentially plunging the global economy into a recession.
CREDIT LINES?
Euro zone finance ministers are working to accelerate implementation of an anti-crisis package agreed on October 27.
That plan, which includes debt relief for Greece, a recapitalization of European banks and a leveraging of the bloc's rescue fund, was meant to stem the two-year old crisis before Papandreou's referendum call cast the bloc into turmoil.
Officials said the meeting focused on speeding up the creation of a firewall to protect other vulnerable euro zone states from the fallout from Greece.
The risk premium on Italian bonds over safe-haven German Bunds has hit euro-lifetime highs this week, despite European Central Bank buying of its bonds. Spain had to pay its highest yield since 2008 at a bond auction on Thursday.
The G20 is considering an IMF proposal to create a new short-term line of credit to help countries that are facing economic shocks beyond their control, a G20 official familiar with the talks said.
British finance minister George Osborne said leaders discussed increasing the global lender's resources, which China strongly backed, and he had heard no dissenting voices.
(Additional reporting by Lefteris Papadimas in Athens, David Ljungren, Abhijit Neogy, Giselda Vagnoni, Catherine Bremer, Gernot Heller, Daniel Flynn, Luke Baker, Gui Qing Koh and Alexei Anischuk in Cannes; Writing by Paul Taylor; Editing by Janet McBride)
Source: http://us.rd.yahoo.com/dailynews/rss/business/*http%3A//news.yahoo.com/s/nm/20111103/bs_nm/us_g20
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J. Scott Applewhite / AP
Supercommittee member Sen. Max Baucus, D-Mont., second from left, holds his hand out as he questions Congressional Budget Office Director Douglas Elmendorf, on Capitol Hill in Washington, Oct. 26, 2011.
Whether or not Congress?s deficit supercommittee succeeds in finding $1.2 trillion in savings by Thanksgiving, one likely result is that sometime in the next 18 months, Congress will tackle tax reform.
There are already many areas of agreement between Senate Finance Committee Chairman Max Baucus, Democrats? top tax writer, and Republican Rep. Dave Camp, his counterpart on the powerful House Ways and Means Committee. Over the last year, both men have held a series of hearings on the issue. Tax reform isn?t something that should be done hastily? just look at the Savings & Loan Crisis produced by the rushed tax reform process in 1986 ? but with so much already discussed, a comprehensive overhaul is already well on it?s way. So much is apparent in the current supercommittee negotiations.
Last week, deficit negotiators from both sides unveiled their offers. Dems proposed a $3 trillion-deficit cutting plan and Republicans proposed a $2.2 trillion version. The biggest difference? Taxes. The seemingly wide rift on this issue was on display at a public hearing Tuesday, during which Texas Rep. Jeb Hensarling? sharply told Senator Patty Murray,? ?Certainly we cannot tax our way out of this crisis.? But this sparring belies the state of near-consensus on tax reform. There?s now enough agreement that if Republicans were to give an inch on revenue, a deal could quickly be achieved.
(MORE: Tax Reform and the Revenue Problem)
If the supercommittee does come to an agreement, it will likely include $800 billion in new revenue that House Speaker John Boehner and Majority Leader Eric Cantor discussed with the White House during the summer?s heated debt ceiling talks. Assuming the agreement is passed by both chambers, the supercommittee would send instructions on tax reform to the relevant Congressional committees, which would then spend much of next year enacting tax reform. There are two sticking points: Democrats are demanding a few hundred billion dollars in revenue increases up front, which would be achieved in part by doing away with the? flashy deductions for the rich that they?ve been harping on for months?breaks for corporate jets, race horses and carried interest. And Democrats also want to start the tax debate from a baseline that assumes the expiration of George W. Bush?s 2001 tax cuts, which are up for renewal next year. Republicans don?t like either of these requirements, which is why, a senior Senate source close to the talks tells me, there?s a 75% chance that the supercommittee will deadlock (up from 70% two weeks ago).
But in recent days, a bevy of Republicans, including former Wyoming Senator Alan Simpson, Georgia Senator Saxby Chambliss and former New Hampshire Senator Judd Gregg, have argued, as conservative New York Times columnist David Brooks did during the summer?s heated debt ceiling negotiations, that Republicans would be crazy to walk away from a deal that would deeply cut the deficit while only moderately raising taxes. Even John Boehner this week pushed for the supercommittee to come to an agreement, and GOP sources hinted that their party? might give ground on the revenue front. The thinking goes that if Republicans cut a deal, they?ll get entitlement reform. Even changes to Social Security, which Democrats had long refused to consider, are now on the table. And if they don?t make one, tax reform will likely be enacted anyway without major tweaks to federal benefit programs. That?s why House Republican sources tell me the committee is likely to reach a deal.
As for the remaining areas of disagreement, without President Obama in the room to give away the farm, Democrats have the upper hand and are holding the line on revenue. Any movement will likely have to come from Republicans, who have more incentive to make concessions than Dems do. If the committee deadlocks, $1.2 trillion in cuts to entitlements and defense spending will automatically trigger in January 2013. Because the entitlement cuts won?t affect benefits, only providers, Democrats would not have a hard time accepting such an outcome. Republicans, on the other hand, loathe the Pentagon cuts.
(MORE: Warren Buffett and the Supercommittee)
The bad news for Democrats if the committee deadlocks could be the market reaction. Dems have spent the last few months making overtures to the ratings agencies and they believe that there will not be a credit rating downgrade if the committee fails to reach an agreement. But Wall Street reacted to August?s debt ceiling debacle by dropping hundreds of points. Even with prospects for tax reform looking up, that kind of market disruption is the last thing President Obama wants going into election season.
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