U.S. plans ‘serious’ sanctions if Iran diplomacy fails

The Obama administration is working on a substantial sanctions package against Iran in case current diplomatic efforts to curb its nuclear program fail, top officials told Congress on Tuesday. Under Secretary of the Treasury Stuart Levy, who developed some of the existing financial sanctions against Iran under the Bush administration, said at a Senate Banking Committee hearing that the “comprehensive” plan would target “key vulnerabilities and fissures” in Iran to show Tehran that it would face “serious costs” for thwarting international demands.

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Schwarzenegger: New budget is ‘perfect medicine’ for California

California Gov. Arnold Schwarzenegger said the state budget plan passed by state lawmakers early Thursday is "the perfect medicine for our ailing economy." The measure, which awaits the governor’s signature, includes tax increases, spending cuts and borrowing to close a $42 billion deficit.

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