Venezuela furious at Obama’s comments on ailing Chavez

CARACAS (Reuters) – Venezuela‘s government reacted with fury on Friday to U.S. President Barack Obama‘s criticism of ailing Hugo Chavez‘s “authoritarian” government at a time of national anxiety over his battle to recover from cancer surgery.

In an interview with U.S. network Univision, Obama declined to speculate on the 58-year-old socialist president’s health in Cuba, where he is in a delicate state after his fourth operation since mid-2011 for cancer in his pelvic region.

But he did say U.S. policy was aimed at ensuring “freedom” in Venezuela. “The most important thing is to remember that the future of Venezuela should be in the hands of the Venezuelan people. We’ve seen from Chavez in the past authoritarian policies, suppression of dissent,” Obama said.

Those remarks went down badly with officials in Caracas where emotions are running high over the future of Chavez and his self-styled revolution in the South American OPEC nation.

In power since 1999, Chavez is due to start a new six-year term on January 10 after winning re-election just weeks before Obama did. His health crisis has thrown that into doubt, and Chavez has named a successor in case he is incapacitated.

“With these despicable comments at such a delicate moment for Venezuela, the U.S. president is responsible for a major deterioration in bilateral relations, proving the continuity of his policy of aggression and disrespect towards our country,” the Venezuelan government said in a statement.

‘SLOW’ RECOVERY, BUT SPEAKING

During his tumultuous rule, Chavez has gleefully assumed former Cuban leader Fidel Castro’s mantle as Washington’s main irritant in the region – though oil has continued to flow freely north to the benefit of both nations’ economies.

Adored by poor supporters for his charismatic style and channeling of oil revenue into a wide array of welfare projects, Chavez is regarded as a dictator by opponents who point to his often harsh treatment of political foes.

Officials said doctors had to use “corrective measures” on Chavez to stop unexpected bleeding caused during Tuesday’s six-hour operation, but that his condition had since improved.

“The patient is fulfilling his post-operation protocol satisfactorily, given the complexity of the surgery,” the latest Venezuelan government statement on his condition said. “Recovery has been slow but progressive,” it added, saying Chavez had communicated with relatives and sent greetings to Venezuelans.

Amid rumors Chavez had been unconscious since his operation, presidential press officer Teresa Maniglia indicated he had spoken for the first time on Friday. “‘How are my people?’ was the first thing Chavez said today when he spoke with his family for the first time,” she said via Twitter.

Chavez’s situation is being closely tracked around the region, especially among fellow leftist-run nations from Cuba to Bolivia which depend on his generous oil subsidies and other aid for their fragile economies.

“The president is battling hard – this time for his life, before it was for the Latin American fatherland,” said President Evo Morales of Bolivia, a Chavez friend and ally who announced he was flying to Havana overnight for an “emergency” visit.

“This is very painful for us.”

SPECULATION

Venezuela’s leader has not divulged details of the cancer that was first diagnosed in June 2011, sparking endless speculation among the country’s 29 million people and criticism from opposition leaders for lack of transparency.

“They’re hiding something, I think,” said 57-year-old housewife Alicia Marquina. “I’m not convinced by the announcements they’re making. I’m not a ‘chavista’, but neither am I cruel. I hope he does not suffer much and finds peace.”

If Chavez has to leave office, new elections must be held within 30 days. Chavez has named his vice president, Nicolas Maduro, a 50-year-old former bus driver and union leader, as his heir apparent.

Opposition flagbearer Henrique Capriles, who lost the presidential race against Chavez in October, is the favorite to face Maduro should a new vote be held, though first the governor of Miranda state must retain his post in local elections on Sunday.

“The regime change is already occurring,” Jefferies’ & Co. managing director Siobhan Morden said in one of numerous Wall Street analyses of events in Venezuela. “The question is whether the alternative is Chavista-light or the opposition.”

Even if he dies, Chavez is likely to cast a long shadow over Venezuela’s political landscape for years – not unlike Argentine leader Juan Peron, whose 1950s populism is still the ideological foundation of the country’s dominant political party.

There are parallels with the situation in Cuba too, where Chavez’s close friend and mentor, Fidel Castro, suffered a health downturn, underwent various operations in secret, then eventually handed over power to his brother Raul Castro.

(Additional reporting by Mario Naranjo and Eyanir Chinea in Caracas, Carlos Quiroga in La Paz; Editing by Paul Simao)

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Euro factory output pain eases

14 December 2012 Last updated at 05:43 ET

Markit’s senior economist Rob Dobson: “There’s some sign of light at the end of the tunnel”

The decline in the eurozone’s manufacturing sector has eased, a closely watched survey indicates, in a rare spot of good news for the region.

Markit’s eurozone manufacturing Purchasing Managers’ Index rose to 46.3 in December from 46.2 in November. A reading below 50 indicates contraction.

The research firm said the rate of decline in manufacturing “showed signs of moderating”.

But the service sector dropped to its weakest levels since July.

Including services and manufacturing, the eurozone PMI composite output index was at 47.3, up from 46.5 in November.

Return to growth?

“The eurozone downturn showed further signs of easing in December, adding to hopes that the outlook for next year is brightening,” said Chris Williamson, chief economist at Markit.

“A return to growth is looking like an increasing possibility in the first half of next year, barring any surprises, if the recent improvements in the survey data can be sustained. The turnaround is being led by Germany.”

Total output from Germany rose for the first time in eight months “though the increase was only very modest as an upturn in the service sector was offset by a faster decline in manufacturing production”, the survey said.

Output fell for the 10th month in a row in France. Earlier on Friday, Fitch kept the French government’s top AAA credit rating, making it the only major ratings agency left to say the country deserves to be among the world’s most creditworthy borrowers.

In the eurozone, only Germany still has an AAA rating from all three major ratings agencies.

Markit said that eurozone confidence remained lower than at any time since before the 2008-09 financial crisis.

Separately, a survey showed China’s huge manufacturing sector expanded in December at its fastest pace in 14 months as new orders and employment rose,

The HSBC PMI for December rose to 50.9, the highest level since October 2011. It was the fifth straight month of gains.

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Cuban lawmakers meet to consider economy, budget

HAVANA (AP) — Cuban lawmakers are holding the second of their twice-annual sessions with a year-end report expected on the state of the country’s economy.

Legislators are also to approve next year’s budget.

Cuban leaders have sometimes used the parliamentary gatherings to make important announcements or policy statements.

Observers will be watching for word on the progress of President Raul Castro‘s economic reform plan and efforts to promote younger leaders.

The unicameral parliament will reconvene in February with a new membership following elections. It is then expected to name Castro to another five-year term.

State-run media said Castro presided over Thursday’s session.

It was not open to international journalists.

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Sitar maker: Ravi Shankar’s legacy inspires others

NEW DELHI (AP) — The walls of Sanjay Sharma‘s music shop are lined with gleaming string instruments and old photographs of legendary musicians.

Beatles George Harrison, John Lennon and Paul McCartney. Indian classicial musicians Zakir Hussain, Shiv Kumar Sharma and Vishwamohan Bhatt. And the man who brought these two very different musical worlds together: Ravi Shankar.

Like his grandfather and father before him, Sharma built, tuned and repaired instruments for the sitar virtuoso, who introduced Westerners to Indian classical music, and through his friendship with Harrison became a mainstay of the 1960s counterculture scene.

From his tiny shop tucked into the crowded lanes of central Delhi’s Bhagat Singh market, Sharma traveled the world with Shankar. Late in the maestro’s life, as his health and strength flagged, he even designed a smaller version of the instrument that allowed him to keep playing.

Shankar, who died Tuesday at age 92, was “a saint, an emperor and lord of music,” Sharma says in a tribute posted to the website of his sought-after shop, Rikhi Ram’s Music.

“When I opened my eyes there was him,” says Sharma, 44, surrounded by display cases full of sitars, sarangis (a stringed instrument played with a violin-like bow), guitars, tabla drums and sarods, a deeply resonating instrument played by plucking the strings.

Shankar “was music and music was him,” he says.

Sharma’s grandfather started the business in 1920 in the northern city of Lahore, now in Pakistan. He met a young Ravi Shankar at a concert there in the 1940s. Following the India-Pakistan partition and the relocation of the shop to New Delhi, the family began making sitars for Shankar in the 1950s.

By then, the musician was already famous in India and beginning to collaborate with some of the greats of Western music, including violinist Yehudi Menuhin and jazz saxophonist John Coltrane.

The Beatles visited in 1966 and bought instruments, memorialized in some of the many photographs that line the shop’s walls. Another shows Shankar’s daughter and the heir of his sitar legacy, Anoushka Shankar. But there is no picture of another Shankar daughter, American singer Norah Jones, who was estranged from her father.

Sharma’s own father succeeded his grandfather as the supplier of Shankar’s sitars. And then Sharma himself in the 1980s.

The bedroom-sized shop has two counters, one for conducting business and one for working on instruments under the beam of a large work lamp. Wood shavings and dust cover the floor of a workshop at the back.

As he chatted with visiting Associated Press journalists on Thursday, Sharma worked on a sitar, peering through his glasses as he used a mallet to hammer in a new fret. He plucked the strings, and as the sound resonated around the room, he leaned close in to the instrument and listened intently to the vibrations. Satisfied with the results, he moved on to the next fret.

It takes 15 months for a sitar to be ready for use. The actual crafting of the instrument from red cedar and hollowed-out, dried pumpkins takes three months. Then, it is left untouched to go through what is called “Delhi seasoning,” in which the extremes of New Delhi’s climate — blistering summer, followed by a brief monsoon, and a near-freezing, three-month winter — work their magic.

In 2005, a serious bout of pneumonia left Shankar with a frozen left shoulder.

“He was growing old and he wanted to experiment and change the instrument” so he could continue playing, Sharma says.

Sharma, a large, balding man, created what he calls the “studio sitar,” a smaller version of the instrument. But holding it was still difficult. So Sharma went to a Home Depot near Shankar’s San Diego, California-area home and bought some supplies to build a detachable stand.

The musician was thrilled. Sharma says Shankar told him, “Your father was a brilliant sitar maker, but you are a genius.”

Shankar was performing in public until a month before his death. Despite ill health, he appeared re-energized by the music, Sharma said.

Now, as Sharma mourns the giant of Indian music, he also worries about the future of the art itself. He sees traditional Indian instruments gradually losing their place in their own country to zippy, electronic Bollywood music.

“We are losing the originality and the core of our Indian music,” says Shankar, himself a trained Hindustani classical musician who plays the sitar and tabla, the Indian pair-drums.

At the same time, Shankar’s work as a global ambassador of music has borne fruit, Sharma says: “Because the music has gone to the West, we’re getting lots of new musical aspirants from the Western countries.”

When jazz artist Herbie Hancock was in New Delhi a few years ago, he stopped by Sharma’s shop to buy a sitar.

And in one of the shop’s display windows gleams a newly crafted sitar made of teak.

“That,” Sharma said, “is for Bill Gates.”

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Actelion says FDA accepts lung drug for review

ZURICH (Reuters) – Biotechnology company Actelion said on Friday the U.S. health regulator accepted a submission on the company’s macitentan drug, meant to treat patients with a potentially life-threatening lung condition.

Actelion submitted the application for its drug for the treatment of pulmonary arterial hypertension, a condition characterized by abnormally high blood pressure in the arteries of the lungs, in October.

The Swiss company is banking on macitentan to replace Tracleer, which also treats pulmonary arterial hypertension (PAH) and currently accounts for around 90 percent of group sales, but goes off patent from 2015 and faces growing competition from U.S. rival Gilead’s Letairis.

The review period of the U.S. regulator, the Food and Drug Administration, is expected to last 12 months, Actelion said.

(Reporting by Martin de Sa’Pinto; Editing by Muralikumar Anantharaman)

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HMRC warns 300,000 late filers

13 December 2012 Last updated at 19:06 ET

About 300,000 people who have failed to send in their tax returns for 2010-11 could soon see their goods seized.

The taxman is sending warning letters to those who have now run up late-filing penalties of £1,300 for that year, under self-assessment.

They can still pay, or ask for the penalty to be taken off their income in 2013-14 if they are in the PAYE system.

The letters are part of a continuing campaign against a persistent minority of non-filers.

A spokesman for HM Revenue & Customs (HMRC) said the defaulters could still pay their fines, and submit the late tax returns.

“These non-filers have ignored numerous communications from HMRC, dating back to April 2011, including flyers, reminder letters, penalty notices and warning letters,” he said.

“A customer can still phone us if they think they should not be in self-assessment, and will be taken through a number of questions to indicate if they should be in self-assessment or not.

“If they shouldn’t have been in it for 2010-11, penalties will then be waived,” he added.

About 7,000 higher-rate taxpayers who had missed tax returns from earlier years were sent similar warning letters in October.

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The Hobbit: Richard Armitage Talks Preparations For Playing Thorin Oakenshield

British actor Richard Armitage admitted it wasn’t a walk in the park to play a J.R.R. Tolkien character in Peter Jackson’s reimagining of “The Hobbit,” the first installment of which is on its way into theaters.

Upon touching down in New Zealand, where the trilogy was shot, the cast had a lot of character preparation to do.

PLAY IT NOW: Martin Freeman Discusses The Hobbit’s ‘Good Chemistry’ & Playing Bilbo Baggins

“We arrived in February 2011 and we went straight into a training program, which was called ‘Dwarf Bootcamp,’ which was literally boots — these huge boots. We learned how to walk, we wrestled with each other, we did archery together, we did sword fighting, hammer fighting, horse riding — everything you could possibly think of,” Richard, who plays Thorin Oakenshield in the film told Access Hollywood at the film’s junket.

In addition, the cast, which includes his former “Cold Feet” co-star James Nesbitt as Bofur, found ways to get to know each other better off set.

VIEW THE PHOTOS: The Hobbit: An Unexpected Journey — New York City Premiere

“We went round to each other’s houses and we cooked food together, we went to the pub and got drunk together, so there was an incredibly great bonding time between the dwarves,” he said.

Richard had plenty of experience sword fighting and horse riding in the BBC America series “Robin Hood,” but it was something else that came in handy during the long days on set.

“I’d done a number of shows where I’d had to use sword fighting and I’d also done horse riding. I’d also pulled guns out of my pocket. That was less useful,” he laughed, likely referring to his recent role in the PBS-import series “MI-5,” where he played a British spy. “But, yeah, you draw on everything. I’d worked at the Royal Shakespeare Company, so the vocal work was really useful to kind of pull that from there. I’d worked in a circus, there were… all sorts of things that were really useful, but the one thing that I do have — for lack of talent — is stamina and that’s the one thing I think everybody needed on this job.”

VIEW THE PHOTOS: Meet ‘The Hobbit’ Cast!

An imagination was useful also, but Richard said what turned out on the big screen was still wilder – and more beautiful – than he dreamed of.

“So many moments… Actually, apart from the eagles — which every single time I’ve seen this film absolutely blows my mind and I can barely keep the tears back and [it has] nothing to do with the pathos of the scene, just that feeling of flight moves me — is the throne of Aragorn, in the beginning of the prologue,” he told Access of the moment that moved him most. “When it got to [filming] that scene, I walked on and… it was just a green cross on the floor with a tiny green chair… [But in the film], they just made this incredible, almost space aged, sort of suspended seat in the middle of this stalagmite. It just blows my mind when I see that.”

VIEW THE PHOTOS: The Brit Pack: Hot Shots Of Stars From The UK!

“The Hobbit: An Unexpected Journey” hits theaters on December 14, 2012, followed by “The Hobbit: The Desolation of Smaug,” on December 13, 2013 and “The Hobbit: There and Back Again,” on July 18, 2014.

– Jolie Lash

Copyright 2012 by NBC Universal, Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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U.S. federal agency to test RIM’s BlackBerry 10

TORONTO (Reuters) – Research In Motion said a U.S. federal agency, which recently outlined plans to move away from BlackBerry in favor of Apple Inc’s iPhone, is now set to begin testing RIM‘s new BlackBerry 10 platform and devices.

The U.S. Immigration and Customs Enforcement agency (ICE), will early next year begin a pilot program on RIM’s new line of BlackBerry 10 smartphones and BlackBerry Enterprise Service 10 (BES 10), which allows corporations and government users to run the new devices on their networks, a RIM spokeswoman said late on Wednesday.

The news, which comes just as shares of the embattled company rallied to their highest close in seven months, signals that RIM’s BlackBerry 10 platform is gaining some traction ahead of its official launch next month.

RIM, a one-time pioneer in the smartphone industry, has lost market share in recent years to the iPhone and devices powered by Google Inc’s market-leading Android operating system, even among the business audience who once used BlackBerry devices exclusively.

Waterloo, Ontario-based RIM is now seeking to persuade both corporations and government users to stick with its smartphones, which have long been valued for their strong security features. It promises that its new line of devices, which will be powered by the BlackBerry 10 operating system, will be both smoother and faster than previous BlackBerry phones.

RIM is betting that these new devices – to be launched on January 30 – will revive its fortunes. But that may well depend to a large extent on the response from enterprise customers, many of whom have recently begun to flee to rival platforms.

ICE is one such example. The agency, in October, announced plans to end a long relationship with RIM, stating that its now aging line-up of BlackBerry devices could “no longer meet the mobile technology needs of the agency.

At the time, ICE outlined intentions to buy iPhones for more than 17,600 employees. It is not immediately clear whether the agency plans to revisit this plan or whether its intends to use RIM’s new BES 10 platform to manage both iPhones and BlackBerry devices. A spokeswoman for the agency was not immediately able to comment on the pilot program or the agency’s plans.

SHARES SURGE

The news comes soon after yet another rally in RIM shares on Wednesday, after Eric Jackson – a long-time bear on RIM’s stock – penned an opinion piece on his now bullish stance on the company.

Jackson, the founder of Ironfire Capital, in his piece, said parallels drawn by some analysts between RIM and its now-defunct rival Palm are flawed, as Palm never had the kind of installed subscriber base that RIM enjoys.

In his article, published on Wednesday on the TheStreet.com, Jackson contends that RIM’s new BlackBerry 10 devices have much better odds of success than Palm’s Pre device, which failed to capture a following despite positive reviews on the device and its operating system.

Jackson, who was short RIM’s stock for an extended period, argues that the positive sentiment building in RIM’s stock ahead of the launch of the make-or-break line of devices is unlikely to dissipate in a hurry, as a large portion of RIM’s 80 million subscribers are likely to upgrade to BB10 when the new devices are launched. Jackson said he now has a long position in RIM.

Shares in the company rose 5.6 percent to close at $ 13.31 on the Nasdaq – their highest close since May 1. Its Toronto-listed shares rose 5.8 percent to close at C$ 13.14.

The stock has more than doubled in price since September 24, when the shares were trading slightly above the $ 6 level in both New York and Toronto. The wave of optimism around BB10 has in recent weeks been bolstered by a number of analyst upgrades on the stock.

(Editing by Dan Grebler and Muralikumar Anantharaman)

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McAfee arrives in U.S. from Guatemala

MIAMI (Reuters) – Computer software pioneer John McAfee, who is wanted for questioning in Belize over the murder of a fellow American, arrived in Miami on Wednesday evening after he was deported by Guatemala, according to fellow passengers on an American Airlines flight.

After landing, McAfee, 67, was escorted from the plane by airport security officers, passengers said. Shortly afterward, he tweeted, “I am in South Beach,” referring to the popular tourist area on Miami Beach.

“Some people felt uncomfortable that he was on our flight. … We all knew the story,” said Maria Claridge, 36, a South Florida photographer who was on the Silicon Valley entrepreneur’s flight to Miami.

McAfee, who was seated in the coach section and had a whole row to himself, was wearing a suit and was “very calm” during the flight, she added.

“He looked very tired, he looked like a man who hadn’t slept in days. I’d say he even looked depressed,” said another passenger, Roberto Gilbert, a Guatemalan who lives in Miami.

McAfee had been held for a week in Guatemala, where he surfaced after evading police in Belize for nearly a month following the killing of American Gregory Faull, his neighbor on the Caribbean island of Ambergris Caye.

Police in Belize want to quiz McAfee as a “person of interest” in Faull’s death, although the technology guru’s lawyers blocked an attempt by Guatemala to send him back there.

Authorities in Belize say he is not a prime suspect in the investigation. McAfee has denied any role in Faull’s killing.

The goateed McAfee has led the world’s media on a game of online hide-and-seek in Belize and Guatemala since he fled after Faull’s death, peppering the Internet with pithy quotes and colorful revelations about his unpredictable life.

“I’m happy to be going home,” McAfee, dressed in a black suit, told reporters shortly before his departure from Guatemala City airport on Wednesday afternoon. “I’ve been running through jungles and rivers and oceans and I think I need to rest for a while. And I’ve been in jail for seven days.”

Guatemala’s immigration authorities had been holding McAfee since he was arrested last Wednesday for illegally entering the country with his 20-year-old Belizean girlfriend.

The eccentric tech pioneer, who made his fortune from the anti-virus software bearing his name, has been chronicling life on the run in a blog, www.whoismcafee.com.

He said he had no immediate plans after reaching Florida.

“I’m just going to hang in Miami for a while. I like Miami,” he told Reuters by telephone just before his plane left. “There is a great sushi place there and I really like sushi.”

BELIZE STILL WAITING

Residents of the Belizean island of Ambergris Caye, where McAfee has lived for about four years, said McAfee and Faull, 52, had quarreled at times, including over McAfee’s unruly dogs.

McAfee says Belize authorities will kill him if he turns himself in for questioning. He has said he was being persecuted by Belize’s ruling party for refusing to pay some $ 2 million in bribes.

Belize’s prime minister has rejected the allegations, calling McAfee paranoid and “bonkers.

Belize police spokesman Raphael Martinez said the country still wanted to question McAfee about the Faull case.

“He will be just under the goodwill of the United States of America. He is still a person of interest, but a U.S. national has been killed and he has been somewhat implicated in that murder. People want him to answer some questions,” he said.

Martinez noted that Belize’s extradition treaty with the United States extended only to suspected criminals, a designation that did not currently apply to McAfee.

“Right now, we don’t have enough information to change his status from person of interest to suspect,” he said.

Residents and neighbors on Ambergris Caye said McAfee was unusual and at times unstable. He was seen to travel with armed bodyguards, sporting a pistol tucked into his belt.

The predicament of McAfee, a former Lockheed systems consultant, is a far cry from his heyday in the late 1980s, when he started McAfee Associates. McAfee has no relationship now with the company, which was sold to Intel Corp.

McAfee was previously charged in Belize with possession of illegal firearms, and police had raided his property on suspicions that he was running a lab to produce illegal synthetic narcotics. He said he had not taken drugs since 1983.

“I took drugs constantly, 24 hours of the day. I took them for years and years. I was the worst drug abuser on the planet,” he told Reuters before his arrest in Guatemala. “Then I finally went to Alcoholics Anonymous, and that was the end of it.”

(Writing by Dave Graham, Michael O’Boyle and David Adams. Reporting by Sofia Menchu and Mike McDonald.; Editing by Peter Cooney)

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Obama backers turn from re-election to “fiscal cliff” fight

WASHINGTON (Reuters) – After a year of knocking on doors and working the phones to get President Barack Obama re-elected, Meechie Biggers had gotten over her fear of talking politics with strangers.

So when she came to Washington last week, the small-town real estate agent and a few like-minded Tennesseeans paid a visit to one of their Republican senators, Bob Corker, to try to persuade him to back Obama’s proposal to raise tax rates for the wealthy.

Biggers didn’t think she had much of a chance of changing his mind, and perhaps she didn’t. But four days later, Corker became the latest Republican to say his party should consider Obama’s proposed tax hike as part of a year-end budget deal.

“It’s a testament to knocking on doors and giving people your two cents,” Biggers said.

The election ended more than a month ago, but the campaign continues for many of the 2 million-plus foot soldiers who helped secure Obama’s second term.

Flush with victory, many volunteers and staffers are now mounting a grassroots effort to ensure that any deal that emerges from year-end “fiscal cliff” discussions includes a tax increase on the wealthiest households.

It’s an open question how many will stick with him if he is forced to consider cutting popular programs such as Medicare that enjoy broad support on the left.

But for now, it’s a chance to help Obama fulfill one of his central campaign promises – economic justice – and build on the momentum of his re-election. It also enables them to maintain friendships and a sense of purpose that were forged through the campaign.

“You can only go to so many celebrations, parties and lunches. And then you’re ready to help the president get done what he needs to get done,” said Lenda Sherrell, a retired accountant from Monteagle, Tennessee, who visited Corker along with Biggers.

The effort gives Obama added leverage in Washington at a time when many Republican allies are undergoing a painful re-examination in the wake of last month’s election.

Groups aligned with the conservative Tea Party movement, who pressed successfully for deep spending cuts in earlier budget fights, have been less visible in the fiscal-cliff battle, and business groups have pressed Republican lawmakers to abandon their no-tax-hike stance.

The grassroots pressure from the left could weaken Republicans’ resolve to hold the line against tax hikes, said Chris Arterton, a professor of political management at George Washington University. “It tends to take the wind out of their sails if their citizens are pushing in a direction that is absolutely contradictory to the politician’s views,” he said.

Corker’s office said he appreciates hearing from his constituents but he has not changed his view that increased tax revenue should come from eliminating deductions rather than raising rates.

The post-election effort stands in stark contrast to Obama’s first term, when officials did not keep his massive grassroots organization engaged in battles over spending, health care and climate change. This time around, campaign officials and liberal allies have made a concerted effort to harness the network for inside-the-Beltway policy battles.

ACTIVISTS INVITED TO WHITE HOUSE

One week after the election, Obama thanked 30,000 volunteers in a conference call and asked them to stay involved in the budget fight. Top activists such as Biggers and Sherrell have been invited to the White House for strategy and networking sessions.

Even as he tries to hammer out a deal with House of Representatives Speaker John Boehner, Obama has jetted to campaign-style rallies around the country to keep up the pressure. He has encouraged backers to send Twitter messages describing how they would be hurt by the automatic tax increases due to kick in if the fiscal cliff isn’t averted. On Monday, his campaign urged supporters in Republican congressional districts to call their lawmakers to support the tax hike.

Many of the volunteers and staffers who powered the campaign’s massive get-out-the-vote effort are continuing their work under the banner of The Action, a coalition of labor and liberal groups that launched three days after Obama’s November 6 victory.

As Obama’s Tennessee state director, Justin Wilkins steered volunteers in the deeply Republican state to phone banks and door-knocking efforts in more competitive states such as North Carolina. Now he is overseeing many of those same volunteers as part of The Action.

“Nobody had to be called. People literally came running,” he said.

Like both of Obama’s election campaigns, The Action combines cutting-edge digital tools with an emphasis on boots-on-the-ground action. A slick website directs supporters to events in their local area and provides the phone numbers of House lawmakers who have yet to back a legislative maneuver that would force a vote on Obama’s proposed tax hike in the Republican-controlled chamber. Backers can download distinctive yellow-and-black signs to wave at local rallies or post online.

Participants have spent the past month mounting demonstrations outside Republican lawmakers’ local offices and writing letters to local newspapers – a strategy designed to boost local news coverage and build public support for the tax hike.

Republicans have complained that the campaign-style tactics are complicating efforts to reach a deal. “A month after his re-election and weeks before the fiscal cliff, he’d still rather campaign than cooperate,” Senate Republican Leader Mitch McConnell said on Wednesday.

Public opinion polls show that a majority of Americans support the idea of raising taxes on the wealthiest 2 percent of U.S. households.

Volunteers see the fight as central to Obama’s prospects for a successful second term. Obama will have a tough time pursuing priorities like education without additional revenue, they say.

The Action’s narrow focus on raising taxes for the wealthy has allowed the coalition to avoid conflicts over other elements of the fiscal cliff fight that might prove more divisive, such as spending cuts or changes to popular entitlements such as Medicare and Social Security. Participants say they’re not sure whether the coalition will stay intact once the tax-hike battle is resolved.

“It’s relatively easy for the Democrats to coalesce around this, but there won’t be the same united front for the next issue,” said University of Michigan politics professor Michael Traugott.

Whether the coalition survives, many of those involved say they intend to keep up the effort to advance Obama’s agenda in the years to come.

“It was kind of a little bit scary to me to go knock on people’s doors and ask them their political stance, but I did it,” Biggers said.

“For me to go to somebody else and say, this is my opinion, do you want to hear it? That’s not me. But maybe it is now.”

(Reporting by Andy Sullivan. Editing by Fred Barbash, Mary Milliken and Lisa Shumaker.)

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