Japan on watch as yen rises, stocks plunge (Reuters)

TOKYO (Reuters) ? Japanese policymakers voiced growing alarm on Tuesday as the yen scaled highs seen before last week's intervention and global stock markets crumbled under mounting fears of a new financial crisis.

Finance Minister Yoshihiko Noda on several occasions repeated the mantra that he was watching markets closely as the dollar slid below 77 yen, under levels that spurred Tokyo to take action on August 4.

He indicated that authorities would wait to see market reaction to U.S. Federal Reserve decisions later in the day (2:15 p.m. EDT) before deciding whether to act again.

Bank of Japan Governor Masaaki Shirakawa showed similar levels of concern, telling parliament he needed to be particularly mindful of the risks that a strong yen poses to the Japanese economy.

"Several measures are available, depending on the outcome of the FOMC meeting, and since this could have a big impact on Japan we need to respond flexibly," Noda said when asked about the chance that the yen could rise after the Fed meeting. "I want to coordinate with the BOJ and respond as appropriate."

While the yen climbed, global stock markets went into a nosedive as the U.S. government's loss of its top credit rating and a piecemeal response to Europe's sovereign debt woes frayed investor nerves.

With U.S. stocks poised for further steep losses, markets are pinning their hopes on some form of action by the Federal Open Market Committee, even though most analysts expect the Fed to refrain from big policy steps.

The Japanese currency was trading at around 77.05 against the dollar, close to a four-month high of 76.29 yen hit before Tokyo sold a record of about 4.5 trillion yen last week.

The Japanese authorities are concerned that yen's untamed rise could derail the economy's recovery from the damage wrought in March by the triple-blow of a massive earthquake and tsunami and a radiation crisis at a crippled nuclear plant.

The central bank also stepped in, loosening monetary policy by boosting its asset buying scheme by half to 15 trillion yen ($193 billion) in a move aimed both at making the intervention more effective and shoring up market confidence.

The effects of Japan's third foray into currency markets in less than a year, have worn off quickly as fears that twin debt crises in the United States and Europe could tip the world economy back into recession drove investors into low-risk assets such as the yen, gold and the Swiss franc.

GOING SOLO

Additional solo intervention could also meet with limited success as Japan is unlikely to get the necessary cooperation from the Group of 20 and Group of Seven countries.

"For Japan, there aren't really any policy alternatives left to stop yen strength," said Junya Tanase, chief foreign exchange strategist at JPMorgan Bank in Tokyo.

"It is difficult for G20 to coordinate on policy because the group is so big. The G7 can coordinate to provide liquidity, but their basic stance is one that is critical of intervention."

The Group of Seven finance ministers and central bankers tried to calm markets with their pledge over the weekend to act if needed, while the European Central Bank bought Italian and Spanish debt in the market to sling a safety net under the euro zone's third- and fourth-largest economies.

Neither managed to prevent a sharp sell-off, but Japanese government sources told Reuters the feeling among G7 nations was that without those actions markets could have turned much uglier.

BOJ Governor Shirakawa told parliament he still expected Japan's economy to return to moderate growth, but highlighted growing discomfort with a strong yen and increased overseas risks to the economy.

"It's happening against the backdrop of weakness in the global economic recovery, and uncertainty over U.S. and European fiscal problems," Shirakawa said, referring to the rising yen.

"These factors, coupled with the short-term downside effect from yen rises, hurt (Japan's business) sentiment."

Despite Japan's own troubles with public debt twice the size of the $5 trillion economy, the post-quake recession and a political stalemate, its deep bond market is seen as one of the relatively few safe investments both by Japanese and foreign investors.

(This story is corrected in the third paragraph to show the U.S. Federal Reserve decisions are expected at 2:15 p.m. EDT.)

($1 = 77.670 Japanese Yen)

(Additional Reporting by Leika Kihara; Writing by Tomasz Janowski; Editing by Joseph Radford)

Source: http://us.rd.yahoo.com/dailynews/rss/japan/*http%3A//news.yahoo.com/s/nm/20110809/bs_nm/us_japan_economy_noda

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Family, friends remember fallen fighters as heroes (AP)

One relied on his deep faith. Another was planning a marriage proposal. And yet another would shoot baskets with his mom when they had something serious to discuss.

But the brothers, fathers, sons and uncles who died when a U.S. military helicopter was shot down in eastern Afghanistan all had something in common: a love of family and country, according to friends and family members. Those who knew them said the soldiers were aware of the dangers they faced but were dedicated to their mission ? even if it meant giving their lives.

Here are the stories of some of the fallen:

____

Patrick Hamburger planned to propose to his girlfriend, but had a job to do first: a mission in Afghanistan.

The 30-year-old sergeant from Grand Island, Neb., joined the Nebraska National Guard when he was a senior at Lincoln Southeast High School, but this was his first deployment, his brother Chris Hamburger told The Associated Press on Sunday.

"He didn't have to go, and he wanted to go because his group was getting deployed. He wanted to be there for them. That's him for you," Chris Hamburger said, adding that Patrick always looked out for his two younger brothers and friends.

He was also the kind of guy who helped his girlfriend raise her 13-year-old daughter from another relationship as well as the couple's own 2-year-old daughter, and planned to propose marriage when he got home, Chris Hamburger said.

Patrick Hamburger had been in Afghanistan less than two weeks and had arrived at Forward Operating Base Shank a few days before climbing aboard the helicopter with U.S. Navy SEALs and other troops to rush to the aid of a U.S. Army Ranger unit under fire from insurgents.

"It doesn't come as a total surprise that he was trying to help people and that's how it all ended up happening," Chris Hamburger said.

___

If someone was sad, Michael Strange tried to make them smile. He loved snowboarding, surfing, scuba diving, running, and shooting guns on the range.

"He loved his friends, his family, his country; he loved making people laugh. He was one of a kind," Strange's brother, Charles Strange III, 22, said Sunday outside the family's Philadelphia home, where American flags were planted throughout the neighborhood.

Strange, 25, decided to join the military when he was still in high school, and had been in the Navy for about six years, first stationed in Hawaii and for the last two in Virginia Beach, where he became a SEAL about two years ago, his mother, Elizabeth Strange, told The Associated Press.

But he always told his family not to worry.

"He wasn't supposed to die this young. He was supposed to be safe," Elizabeth Strange said. "And he told me that and I believed him. I shouldn't have believed him because I know better. He would say `Mom, don't be ridiculous and worry so much. I'm safe.'"

Charles Strange said his brother loved the SEALS, especially "the competitiveness, getting in shape and running and swimming and all of that."

He also had two sisters, 21-year-old Katelyn and 7-year-old Carly, and recently became an uncle. The family last saw him in June, when he came for a weeklong visit for his birthday, his mother said. He was supposed to be back for Thanksgiving.

"It was going to be such a good time," his mother said.

____

If Elizabeth Newlun wanted to have a serious conversation with her son, John Brown, she had to shoot baskets with him.

"There's nothing athletic about me, but I realized that you have to get into other people's comfort zone to get information," said Newlun, of Rogers, Ark., explaining that her son, an Air Force technical sergeant, was a "gentle giant" who "just loved anything physical, anything athletic."

Newlun said her son played football and basketball in high school and went to John Brown University on a swimming scholarship. He had wanted to go into the medical field and become a nurse anesthetist, but decided to join the military after seeing a video of a special tactical unit, she said.

The airman was a paramedic and ready to attend to the medical needs of anyone who was rescued, his mother said.

Arkansas state Rep. Jon Woods went to high school with Brown in Siloam Springs and remembered playing basketball and watching "Saturday Night Live" on the weekends.

"When you think of what the ideal model of a soldier would be, he would be it," said Woods. "He could run all day."

___

Aaron Carson Vaughn was a man of deep faith, insisting to his family that he didn't fear his job as a Navy SEAL "because he knew where he was going" when he died.

"Aaron was a Christian and he's with Jesus today," Geneva Vaughn of Union City, Tenn., told The Associated Press on Saturday. "He told us when we saw him last November that he wasn't afraid ... he said, `Granny, don't worry about me.'"

"He was a tough warrior, but he was a gentle man."

Geneva Vaughn said her grandson, 30, joined the SEALS straight out of boot camp and was already a decorated fighter when he was asked by the Navy to return stateside to become an instructor. But he applied to SEAL Team 6 after two years, earning his way onto the squad in 2010.

He asked the military to return him to combat and shipped out just six weeks before he was killed, Vaughn said.

"He was doing what he loved to do and he was a true warrior," Geneva Vaughn said.

Aaron Vaughn leaves behind his wife, Kimberly, and two children, 2-year-old son Reagan and 2-month-old daughter Chamberlyn.

"They will take away his love for Christ. They will take his dream and his love for the country and they will know what an amazing man he is," Kimberly said about the children in an interview on NBC's "Today" show Monday.

___

Robert James Reeves and Jonas Kelsall had been childhood friends in Shreveport, La., where they played soccer together and graduated from Caddo Magnet High School, Kelsall's father, John, told The Times of Shreveport and KLSA-TV.

Both joined the military after graduation, though the 32-year-old Reeves spent a year at Louisiana State University first, his father, Jim Reeves, told the newspaper.

Reeves became a SEAL in 1999 and served on SEAL Team 6, his father said. During his many deployments, he earned four Bronze Stars and other honors.

Kelsall, 33, was one of the first members of SEAL Team 7, his father said.

He trained in San Diego and met his wife of three years, Victoria, when he was attending the University of Texas out of Basic Underwater Demolition training, his father said.

Reeves placed several American flags outside his home and his neighbors joined in, many decorating their homes in red, white and blue in support of the families.

___

When he was a Maui High School football player, no one could match Kraig Vickers' intensity on the field.

But off the field? "You couldn't find a nicer guy," his former coach remembers.

"He played middle linebacker, so he was really smart, the quarterback of the defense; and when he put on his helmet, no one could match his intensity and aggressiveness," coach Curtis Lee told the Maui News (http://bit.ly/oaKsGp).

Kraig Vickers had been a Navy Bomb Disposal Team member, his father, Robert Vickers, told the newspaper. He said his son would have turned 37 on Thursday before declining further comment on his death.

Kraig Vickers graduated high school in 1992.

He lived in Virginia Beach, Va., with his wife, Nani, who was pregnant, and their three children, his friend from childhood, Michael Labuanan, told the newspaper.

"I gravitated towards Kraig because of his easygoing personality and the drive to become the best person that he could be," said Labuanan in an email.

U.S. Rep Mazie Hirono released a statement Sunday, extending her "gratitude to Kraig Vickers for his loyal service to our country."

___

Jon Tumilson got an early start on his preparation to join the SEALS. He had been a wrestler in high school and competed in marathons and triathlons.

Neighbors remembered the Rockford, Iowa, man as a warrior committed to the SEALs, no matter the pain he endured in training or the risks he ran on each mission.

"When he did something, he put his all into it," Jan Stowe, a neighbor of the Tumilsons for more than 30 years, told the Des Moines Register.

Tumilson, who was 35 when he died, "was going to be a Navy SEAL since I can't remember when," Stowe said. "He's like a hero to everyone here."

Another neighbor, Mark Biggs, said people were shocked by his death.

"You just never thought it would happen to Jon," Biggs told the Mason City Globe Gazette. "He's done so many dangerous things."

Friend Justin Schriever remembered Tumilson as "a die-hard at everything. He'd always go the extra mile on everything. He wouldn't let anything stop him from accomplishing something."

___

Brian Bill had plans for when he finished his military service. He wanted to return to graduate school and hoped one day to become an astronaut.

And for those who knew him, such lofty goals were not out of reach for the young man who wanted to be the best at anything he pursued.

"He set his standards high. He was that kind of person," Kimberly Hess, a friend who graduated with him in 2001 from Vermont's Norwich University, told The Advocate newspaper. "He was remarkably gifted and very thoughtful. There wasn't anything he wouldn't do for you no matter the time or day."

Bill was also a mountaineer, a skier, a pilot and triathlete.

Diane Warzoha, who had Bill as a student at Trinity Catholic High School in Stamford, said it was no surprise that he fulfilled his goal of joining the SEALs.

"Brian just wanted to do his best, to protect other people ... Challenge did not deter him, ever."

___

Associated Press writers Timberly Ross in Omaha, Neb., Chris Talbott in Nashville, Rochelle Hines in Oklahoma City and Ron Todt in Philadelphia contributed to this report.

Source: http://us.rd.yahoo.com/dailynews/rss/us/*http%3A//news.yahoo.com/s/ap/20110808/ap_on_re_us/us_afghanistan_crash_vignettes

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Copter shot down, killing 30 US troops, 8 Afghans (AP)

KABUL, Afghanistan ? Insurgents shot down a U.S. military helicopter during fighting in eastern Afghanistan, killing 30 Americans, most of them belonging to the same elite Navy SEALs unit that killed Osama bin Laden, as well as seven Afghan commandos, U.S. officials said. It was the deadliest single loss for American forces in the decade-old war.

The downing Saturday was a stinging blow to the lauded, tight-knit SEAL Team 6, months after its crowning achievement, and was also a heavy setback for the U.S.-led coalition as it begins to draw down thousands of combat troops fighting what has become an increasingly costly and unpopular war.

None of the 22 SEAL personnel killed in the crash were part of the team that killed bin Laden in a May raid in Pakistan, but they belonged to the same unit. Their deployment in the raid in which the helicopter crashed would suggest that the target was a high-ranking insurgent figure.

Special operations forces, including the SEALs and others, have been at the forefront in the stepped up strategy of taking out key insurgent leaders in targeted raids, and they will be relied on even more as regular troops pull out.

The strike is also likely to boost the morale of the Taliban in a key province that controls a strategic approach to the capital Kabul. The overnight raid took place in the Tangi Joy Zarin area of Wardak province's Sayd Abad district, about 60 miles (97 kilometers) southwest of Kabul. Forested peaks in the region give the insurgency good cover and the Taliban have continued to use it as a base despite repeated NATO assaults.

The Taliban claimed they downed the helicopter with a rocket while it was taking part in a raid on a house where insurgents were gathered in Wardak overnight. Wreckage of the craft was strewn across the crash site, a Taliban spokesman said.

A senior U.S. administration official in Washington said it appeared the craft had been shot down. The official spoke on condition of anonymity because the crash is still being investigated.

"Their deaths are a reminder of the extraordinary sacrifices made by the men and women of our military and their families, including all who have served in Afghanistan," President Barack Obama said in a statement, adding that his thoughts and prayers go out to the families of those who perished.

The U.S.-led coalition said 30 American service members, a civilian Afghan interpreter and seven Afghan commandos were killed when their CH-47 Chinook crashed in the early hours Saturday. A current U.S. official and a former U.S. official said the Americans included 22 SEALs, three Air Force combat controllers and a dog handler and his dog. The two spoke on condition of anonymity because military officials were still notifying the families of the dead.

Geneva Vaughn of Union City, Tennessee, told The Associated Press on Saturday that her grandson Aaron Carson Vaughn, a Tennessee native, was one of the SEALs who was killed.

Jon Tumilson of Rockford, Iowa, was also among the SEALs killed in the attack, his father George Tumilson told The Des Moines Register.

Afghan President Hamid Karzai announced the number of people killed in the crash and the presence of special operations troops before any other public figure. He also offered his condolences to the American and Afghan troops killed in the crash.

The deaths bring to 365 the number of coalition troops killed this year in Afghanistan and 42 this month.

Taliban spokesman Zabiullah Mujahid said in a statement that the helicopter was involved in an assault on a house where insurgent fighters were gathering. During the battle, the fighters shot down the helicopter with a rocket, he said.

The casualties are believed to be largest loss of life in the history of SEAL Team Six, officially called the Navy Special Warfare Development Group, or DEVGRU. The team is considered the best of the best among the already elite SEALs, which numbers 3,000 personnel.

NPR and ABC News first reported that those aboard were believed to be Navy SEALs. The AP withheld the report at the request of their sources until they believed the majority of families of those lost had been notified.

The death toll surpasses the previous worst single day loss of life for the U.S.-led coalition in Afghanistan since the war began in 2001 ? the June 28, 2005 downing of a military helicopter in eastern Kunar province.

In that incident, 16 Navy SEALs and Army special operations troops were killed when their craft was shot down while on a mission to rescue four SEALs under attack by the Taliban. Three of the SEALs being rescued were also killed and the fourth wounded.

Afghanistan has more U.S. special operations troops, about 10,000, than any other theater of war. The forces, often joined by Afghan troops, carry out as many as a dozen raids a night and have become one of the most effective weapons in the coalition's arsenal, also conducting surveillance and infiltration.

From April to July this year, special operations raids captured 2,941 insurgents and killed 834, twice as many as those killed or captured in the same three-month period of 2010, according to NATO.

The coalition plans to increase its reliance on special operations missions as it reduces the overall number of combat troops.

Night raids have drawn criticism from human rights activists and infuriated Karzai, who says they anger and alienate the Afghan population. But NATO commanders have said the raids are safer for civilians than relatively imprecise airstrikes.

The loss of so many SEALs at once will have a temporary impact on the tempo of missions they can carry out, but with an ongoing drawdown of special operations forces from Iraq, there will be more in reserve for Afghan missions.

The site of the crash, Tangi, is a particularly dangerous area, the site where many of the attacks that take place in the province are planned, said Wardak's Deputy Gov. Ali Ahmad Khashai. "Even with all of the operations conducted there, the opposition is still active."

The U.S. army had intended to hand over its Combat Outpost Tangi to Afghan National Security Forces in April, but the Afghans never established a permanent base there. "We deemed it not to be stategic and closed it," said coalition spokesman U.S. Army Maj. Jason Waggoner. "The Taliban went in and occupied it because it was vacant."

Western military commanders have been debating moving forces from other areas in Afghanistan to reinforce troops around the capital and in the east, where the Taliban is often aided by al-Qaida and other terrorist groups. Earlier this year, the U.S. military closed smaller outposts in at least two eastern provinces and consolidated its troops onto larger bases because of increased insurgent attacks and infiltration from the Pakistan border.There have been at least 17 coalition and Afghan aircraft crashes in Afghanistan this year.

Most of the crashes were attributed to pilot errors, weather conditions or mechanical failures. However, the coalition has confirmed that at least one CH-47F Chinook helicopter was hit by a rocket propelled grenade on July 25. Two coalition crew members were injured in that attack.

___

Associated Press writers Anne Gearan and Lolita C. Baldor in Washington, and Rahim Faiez and Patrick Quinn in Kabul contributed to this report.

Source: http://us.rd.yahoo.com/dailynews/rss/asia/*http%3A//news.yahoo.com/s/ap/20110807/ap_on_re_as/as_afghanistan

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