S.Korea sheds some Christmas light on North

SEOUL: South Korean church groups have displayed Christmas lights near the tense border with North Korea, an official said on Sunday, despite concerns about a violent response from Pyongyang.

Dozens of church leaders and followers put up the giant display -- featuring thousands of glittering light bulbs on a tree-shaped steel tower -- near the heavily-fortified border on Saturday, a defence ministry spokesman told AFP.

The lights on a military-controlled hill in Gimpo, west of Seoul, will be displayed until early January and can apparently be seen several kilometres away in the impoverished North suffering from chronic power shortage.

Before the South's "Sunshine Policy" of engagement with North Korea launched in 1998, the seasonal lighting displays were common.

Pyongyang repeatedly condemned them as "psychological warfare" by its capitalist neighbour aimed at spreading Christianity in the isolated communist state.

In 2004 the two Koreas agreed to halt official-level cross-border propaganda and the South stopped the Christmas border illuminations completely.

They were resumed in 2010 after North Korea shelled a frontline island, but were postponed last year in a conciliatory gesture following the death of North Korean leader Kim Jong-Il.

But the latest illumination has provoked fear among some local residents who staged a protest amid concerns about potential retaliation from the North, according to Yonhap news agency.

"All residents here are left to tremble in fear... as long as the light tower stays here," a group of residents said in a statement.

Before Kim's death Pyongyang warned of "unexpected consequences" if Seoul displayed Christmas lights in 2011 and vowed unspecified retaliation.

Cross-border tensions have been high since the nuclear-armed North this month staged a long-range rocket launch widely condemned as a disguised ballistic missile test by the international community.

- AFP/ck

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Little common ground in debate on guns

STORY HIGHLIGHTS

• The NRA wants to staff every school in America with "qualified armed security"


• Obama, Democrats and others see tougher gun control as the way to limit future massacres


• While both sides want to keep children safe, it seems they are living in two different worlds

Washington (CNN) -- For National Rifle Association Vice President Wayne LaPierre and many other pro-gun Americans, the task is clear: The best way to protect children from becoming victims of a slaughter like the one seen last week in Newtown, Connecticut, is to make sure every school in America has "qualified armed security."

For President Barack Obama, many Democratic leaders and a slight majority of the American public, the solution starts with tougher legislation on assault weapons, universal background checks and limits on high-capacity magazines, the first steps needed to begin to make it harder to get at the kinds of firearms that kill thousands of Americans each year.

Both sides are so vested in intractable arguments that there is little room for political common ground. While both sides share a desire to keep children safe, it's like they are living in two different worlds.

On one side, the gun rights advocates argue that a well-armed populace can best defend the innocent. They say that if the teachers at Sandy Hook Elementary School were armed -- or if there were armed security at the front door -- fewer lives would have been lost.

On the other side, the gun control advocates are fighting to protect lives by limiting access to guns. They say that if the weapons used in the Newtown massacre weren't so readily available -- there are at least 310 million non-military firearms in the U.S. today -- then the 27 people who were murdered might still be alive.

"It's hard for people to come to the table to at least talk about it," said Alan Lizotte, dean and professor at the State University of New York at Albany's School of Criminal Justice.

Why would someone own a military-style rifle?

It took the NRA -- the nation's most politically powerful gun lobby that boasts 4.3 million members -- one week and a bizarre press conference-turned-one-way-announcement to do just that.

Where some may have hoped for concessions on the NRA's staunch pro-gun, guns-don't-kill-people-people-kill-people stance, the NRA stayed the course, and even doubled down. They offered no willingness to consider any of the proposals offered this week to amend gun laws including limiting access to assault weapons, requiring universal background checks, limiting sales at gun shows and increasing the use of trigger locks.

Instead, the group pointed to media sensationalism, violent video games, gun-free zones in schools, the failure to enforce gun laws already on the books, issues with the nation's mental health system and other societal problems as feeding the spate of gun violence.

NRA clear on gun debate stance: arm schools

They then announced a new national program to train and arm thousands of armed security to be stationed at each of the nation's nearly 100,000 public and 33,000 private schools. They point to the fact that Sandy Hook Elementary School -- and most other schools in America -- are considered gun-free zones as a reason why it was easily attacked.

Policies banning guns at schools create a place that "insane killers" consider "the safest place to inflict maximum mayhem with minimum risk," LaPierre, said Friday. LaPierre said U.S. society has left children "utterly defenseless."

"The only thing that stops a bad guy with a gun is a good guy with a gun," he said.

The organization also indicated that it would push back against a growing legislative movement to introduce or, in some cases, reintroduce gun control legislation.

"We can't lose precious time debating legislation that won't work," LaPierre said.

The NRA's hard line came in stark contrast to President Obama's own plan after the Newtown shooting.

The list: Despite emotions, little happens legislatively after mass shootings

Obama appealed to the pro-gun lobby who he said "has members who are mothers and fathers" likely impacted by the shooting. But then he also invited them to "do some self-reflection."

Authorities must work to make "access to mental health care at least as easy as access to a gun," and the country needs to tackle a "culture that all too often glorifies guns and violence," he said.

Obama tapped Vice President Joe Biden to lead an administration effort to develop recommendations in January for preventing another tragedy like the Newtown school shooting.

"This is not some Washington commission. This is not something where folks are going to be studying the issue for six months and publishing a report that gets read and then pushed aside," Obama said Wednesday. "This is a team that has a very specific task to pull together real reforms right now."

Across the rest of the nation, attitudes about guns appear to be changing.

A CNN/ORC International poll released Wednesday indicated that a slight majority now favor major restrictions on owning guns or an outright ban on gun ownership by ordinary citizens and more than 6 in 10 favor a ban on semi-automatic assault rifles.

iReport: NRA member cuts up card in protest

Forty-three percent said the shootings in Connecticut make them more likely to support gun control laws, a 15-point increase from January 2011 following the Arizona gun rampage that wounded U.S. Rep. Gabrielle Giffords. Half of those questioned said the school shootings have not changed their opinions on gun control, down 19 points from January 2011.

But there's an ocean of difference between the two sides, a gulf broadened by heated rhetoric and an almost singular focus on being "right."

NRA comments draw swift opposition in reactions

While gun control advocate New York Mayor Michael Bloomberg called the NRA's stance "a shameful evasion of the crisis facing our country," gun rights proponent and economist John Lott applauded the group for "coming out strongly questioning these gun free zones."

Connecticut senator-elect Chris Murphy tweeted his disgust after seeing the NRA's statement: "Walking out of another funeral and was handed the NRA transcript. The most revolting, tone deaf statement I've ever seen," he said on Twitter.

Former Republican National Committee Chairman and NRA supporter Michael Steele called the NRA's remarks "very haunting and very disturbing."

New Jersey Gov. Chris Christie, considered by some as a potential 2016 Republican presidential candidate, also disagreed with the NRA's position. "You don't want to make this an armed camp for kids," he said at an event in Newark Friday morning. "I don't think that's a positive example for children. We should be able to figure out other ways to enhance safety."

The differences both in perspective and approach couldn't be more divergent, folks on both sides of the issue point out.

"I think that people are hard wired differently. If you look at the world as a beautiful place and I'm in the arts, I'm a composer, I write music, I write poetry, if you believe the world's a beautiful place, your viewpoint is different than if you feel 'I have to have my guns to protect myself,' " said Hollis Thoms, 64, from Annapolis, Maryland, as he protested outside of the Willard InterContinental Hotel just after the NRA's press conference.

That's exactly the type of rhetoric that baffles Paul Martin, who commented on CNN.com.

"I am a gun owner. I would be in favor of a ban on assault type weapons, and limiting magazines to a max of 10 rounds. It's the crazies that say 'ban all weapons' that make me nervous about giving any ground at all," Martin wrote.

"Approach it reasonably, with assurances that you won't go bonkers and demand a total ban, and you might make progress. Approach it just from anger and you will be fought all the way."

Opinion: Madness in the air in Washington

CNN's Josh Levs, David Mattingly, Catherine Shoichet, Paul Steinhauser and Holly Yan contributed to this report

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Newtown parents reject NRA plan

NEWTOWN, Conn. When Adam Lanza started his lethal attack on Sandy Hook Elementary School, Andrei Nikitchyuk's eight year-old son and another third grader were on their way to the principal's office. It was their turn to bring the daily attendance sheet to the front office, near where principal Dawn Hochsprung and psychologist Mary Sherlach would become the first casualties inside the school.

Play Video

Gun control advocate speaks out on defiant NRA

Play Video

Mental illness and the gun control debate

"When they got close to the office, they heard the shots fired, my son saying that the bullets were flying by him," Nikitchyuk recalled in an interview with CBS News. "I don't think he saw the bullets, but probably he saw the hits in the wall next to them."

Within moments, second grade teacher Abbey Clements pulled the boys into her classroom, where she had already hidden 19 children behind a wall, and locked the door.

"She really is a hero, and we are indebted to her," Nikitchyuk said. "She saved those two kids."

Nikitchyuk's son, nicknamed Bear, is his third child to attend Sandy Hook Elementary, following the path of his two older sisters. As the whole suburban town of 28,000 residents continues to struggle with the shock and grief of the shooting spree that claimed the lives 20 first-graders, 6 adults, and the killer's mother, Nikitchyuk has channeled his emotions into action for greater gun control.

"I will do whatever is in my power to change the situation," he said. "What I don't understand is how the gun manufacturing lobby can argue with a tragedy like this. I don't know how they are looking in the faces of their children. I would like them to make personal statements that they will do whatever it takes to make sure that our children are safe. I want to tell Wall Street to not expect the same type profits of arms manufacturers like they had before."

Nikitchyuk, who immigrated from Russia 22 years ago, is a former Soviet military officer who was trained to fire the Russian-made AK-47 machine gun (sold in U.S. under the trade name Saiga). CBS News has reported that Adam Lanza had a Saiga shotgun in the trunk of the car he drove to the school - the only one of four guns he possessed that he did not bring inside.

"Why are we allowing sales of weapons as terrible as this in this country?" Nikitchyuk asked. "Can you tell me what sport could use such a weapon. If you want to use guns for hunting, that's one thing. You don't need an AK 47."

Play Video

A "good guy with a gun" in every school?

Lanza committed the 26 murders at the school with a .223 caliber Bushmaster semi-automatic rifle and emptied at least three 30-bullet magazines. He also carried a Sig Sauer 9mm pistol (the same model issued to Secret Service agents), and a Glock 10mm semi-automatic pistol (issued to park rangers to shot wild game), which he used to kill himself once police arrived on the scene.

"This is insanity," said Nikitchyuk. "We have an escalation of weapons in this country. This is a civilian country. Why do we give these kind of military-grade munitions in the hands of people that are as unstable as that person was?"

On Tuesday Nikitchyuk went public by attending a news conference at the Capitol, in Washington, along with many families victimized by other mass shootings, from Columbine High School in 1999 to the Aurora movie massacre this past summer. The event was organized by the Brady Center to Prevent Gun Violence.

Nikitchyuk later attended a White House meeting with Obama senior adviser Valerie Jarrett.

Play Video

Newtown police chief shares his story

"We know that the President is committed," he said.

Nikitchyuk appealed to pro-gun rights members of Congress to support the President's proposals to ban the sale of assault weapons and gun magazines that hold more than ten bullets, while expanding background checks to all guns buyers, including at gun shows.

"There is nothing wrong about changing your opinion when you have a really strong evidence. What can be stronger than what happened in Sandy Hook?" Nikitchyuk said. "As a country, we cannot move forward unless we change our gun laws."

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Obama, Congress Waving Bye-Bye Lower Taxes?

The first family arrived in the president's idyllic home state of Hawaii early today to celebrate the holidays, but President Obama, who along with Michelle will pay tribute Sunday to the late Sen. Daniel Inouye at the National Memorial Cemetery of the Pacific, could be returning home to Washington sooner than he expected.

That's because the President didn't get his Christmas wish: a deal with Congress on the looming fiscal cliff.

Members of Congress streamed out of the Capitol Friday night with no agreement to avert the fiscal cliff -- a massive package of mandatory tax increases and federal spending cuts triggered if no deal is worked out to cut the deficit. Congress is expected to be back in session by Thursday.

It's unclear when President Obama may return from Hawaii. His limited vacation time will not be without updates on continuing talks. Staff members for both sides are expected to exchange emails and phone calls over the next couple of days.

Meanwhile, Speaker of the House John Boehner is home in Ohio. He recorded the weekly GOP address before leaving Washington, stressing the president's role in the failure to reach an agreement on the cliff.

"What the president has offered so far simply won't do anything to solve our spending problem and begin to address our nation's crippling debt," he said in the recorded address, "The House has done its part to avert this entire fiscal cliff. ... The events of the past week make it clearer than ever that these measures reflect the will of the House."

Fiscal Cliff Negotiations Halted for Christmas Watch Video

Cliffhanger: Congress Heads Home after 'Plan B' Vote Pulled from House Floor Watch Video

Fiscal Cliff: Boehner Doesn't Have Votes for Plan B Watch Video

Senate Minority Leader Mitch McConnell echoed the sentiment while lamenting the failure to reach a compromise.

"I'm stuck here in Washington trying to prevent my fellow Kentuckians having to shell out more money to Uncle Sam next year," he said.

McConnell is also traveling to Hawaii to attend the Inouye service Sunday.

If the White House and Congress cannot reach a deficit-cutting budget agreement by year's end, by law the across-the-board tax hikes and spending cuts -- the so called fiscal cliff -- will go into effect. Many economists say that will likely send the economy into a new recession.

Reports today shed light on how negotiations fell apart behind closed doors. The Wall Street Journal, citing unnamed sources, reported that when Boehner expressed his opposition to tax rate increases, the president allegedly responded, "You are asking me to accept Mitt Romney's tax plan. Why would I do that?"

The icy exchange continued when, in reference to Boehner's offer to secure $800 billion in revenue by limiting deductions, the speaker reportedly implored the president, "What do I get?"

The president's alleged response: "You get nothing. I get that for free."

The account is perhaps the most thorough and hostile released about the series of unsuccessful talks Obama and Boehner have had in an effort to reach an agreement about the cliff.

Unable to agree to a "big deal" on taxes and entitlements, the president is now reportedly hoping to reach a "small deal" with Republicans to avoid the fiscal cliff.

Such a deal would extend unemployment benefits and set the tone for a bigger deal with Republicans down the line.

In his own weekly address, Obama called this smaller deal "an achievable goal ... that can get done in 10 days."

But though there is no definitive way to say one way or the other whether it really is an achievable goal, one thing is for certain: Republican leadership does not agree with the president on this question.

Of reaching an agreement on the fiscal cliff by the deadline, Boehner said, "How we get there, God only knows."

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Madness in the air in Washington

National Rifle Association Executive Vice President Wayne LaPierre calls on Congress to pass a law putting armed police officers in every school in America.

STORY HIGHLIGHTS

• David Gergen: After election, there were hopes partisan tension would fade


• He says this week we've seen a complete breakdown on the fiscal cliff


• The NRA doubled down on its anti-gun-control rhetoric despite Newtown, he says


• Gergen: We're seeing the character assassination of a hero, Chuck Hagel

Editor's note: David Gergen is a senior political analyst for CNN and has been an adviser to four presidents. A graduate of Harvard Law School, he is a professor of public service and director of the Center for Public Leadership at Harvard University's Kennedy School of Government. Follow him on Twitter.

(CNN) -- What in the world is gripping Washington? Everywhere one turns -- from finances to guns to nominations -- there is madness in the air.

With time rapidly running out, efforts have collapsed to reach a major agreement on federal spending and taxes before year's end, and both Congress and President are leaving town for the holidays. At best, they will return next week and construct a small bridge over the "fiscal cliff"; at worst, they won't. But who knows?

David Gergen

And that's a big part of the problem -- no one can be confident that our national leaders are still capable of governing responsibly. And in the process, they are putting both our economy and our international reputation at risk.

Fresh poison

President Barack Obama had rightly hoped that the elections would clear the air; they haven't. If anything, the recent squabbling over the federal budget has injected fresh poison into relationships and dimmed prospects for other bipartisan agreements in the next few years, starting with hopes for a "grand bargain"in 2013.

John Boehner and Eric Cantor, the House GOP leaders

The President insists he remains an optimist, but if he and Republicans can't agree on how to bring the nation's finances under control -- something fundamental to the welfare of the country -- why should we have faith they will succeed on other important issues like energy, education, immigration and gun safety?

As the blame game heats up, Republicans are sure to pay the biggest price with the public. It was bad enough that they lost the message fight, letting themselves be painted as protectors of the wealthy. But it was inexcusable when they revolted against House Speaker John Boehner in his search for a way forward: that only reinforced a narrative that the Grand Old Party has fallen hostage to its right wing -- a narrative that already exacted a huge price in the fall elections.

Most voters -- I am among them -- believe the country needs a center-right party but will not support an extremist party.

President Obama is certainly not blameless in these financial talks. Early on, he overplayed his hand, alienating rank-and-file Republicans. Like Boehner, he has been more accommodating recently, offering concessions on taxes and entitlement spending that narrowed the negotiating gap between the parties, even as his leftward allies fretted.

Still, Boehner has a point in arguing that what Obama now has on the table comes nowhere close to what the he was advocating in the election season: a ratio of 2.5 dollars in spending cuts to 1.0 dollars in tax increases.

The buck stops on the President's desk, so that ordinarily one would expect him to take the lead in these final days before January 1. For reasons that are still unclear, he instead chose in his press statement late Friday to toss responsibility for negotiations next week into the laps of Congressional leaders.

Perhaps he has reached a quiet understanding with Boehner and Senate Majority Leader Harry Reid that the two of them can work out a stripped-down agreement. Let's hope so. But as we enter the holidays, it appears to be a mess. And time is quickly running out.

The NRA in denial

As if Friday weren't gloomy enough, the National Rifle Association weighed in with its long-awaited response to the horrors of Newtown, Connecticut. There had been hints that the NRA would offer a more conciliatory stance. Just the opposite: they doubled down.

Incredibly, Wayne LaPierre, executive vice president of the NRA, called for putting armed police officers in every school. Isn't that what parents of every six-year old have been longing for: to have their child studying and playing under the watchful eye of an armed guard? Has LaPierre visited an elementary school classroom in recent years? If so, he would know his idea would be repulsive in most schools.

Just as strikingly, the NRA response refused to acknowledge and address the beliefs of a majority of Americans in recent polls that the U.S. needs tougher laws in favor of gun safety. Americans aren't saying no one should have guns or that the 2nd Amendment should be gutted but they are demanding a national conversation to see what can be sensibly done. It is hard to have a conversation when one side won't talk.

Character assassination

Meanwhile, in a less noticed but important saga in Washington, we are once again watching the character assassination of a public servant of honor and distinction.

Chuck Hagel served America with valor as a sergeant in the Vietnam war, earning two Purple Hearts. He was a popular Republican senator from Nebraska who paid close attention to international affairs and is now co-chair of the President's Foreign Intelligence Advisory Board, serving with another former Senator, David Boren.

Ever since Hagel's name arose as a top candidate to become the next Secretary of Defense, he has been pilloried for statements and stands he has taken in the past. Is it legitimate to question his positions on Israel, Iran, and on gays? Absolutely. But what is grossly unfair is to misstate them, saying that he is against sanctions on Iran when in fact he has argued in favor of international sanctions, not unilateral sanctions (which don't work). As someone who strongly favors Israel, I am also deeply troubled by the way he has been misrepresented as virtually anti-Semitic.

Nor is this a fair fight. Hagel is in no-man's land because his name is prominently mentioned but he hasn't been formally nominated, so the White House isn't rushing to the barricades to support him.

The signals from 1600 Pennsylvania Avenue were that the Secretary of Defense nominee would be announced in a package with the Secretary of State. The President has now gone ahead with John Kerry but the absence of a Defense nominee has now left Hagel dangling in the breeze, a piñata.

The White House should now move early next week -- by announcement or by leak -- to settle this by making a decision. Whether or not the President nominates Hagel, he should put a stop to the defamation by recognizing Hagel as a patriot with an independent mind and a long record of honor. If selected as Secretary, Hagel would be a very fine member of the national security team.

One had hoped that the shootings at Sandy Hook would draw us together. Sadly, they haven't. Now, perhaps the blessings of the holidays and a brief moment to take a breath will lift our sights. Surely, this madness should not continue into the New Year.

Follow @CNNOpinion on Twitter

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The opinions expressed in this commentary are solely those of David Gergen.

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Egyptians vote on divisive new constitution

CAIRO: Egyptians voted on Saturday in the final round of a referendum on a new constitution championed by President Mohamed Morsi and his Islamist allies against fierce protests from the secular-leaning opposition.

The proposed charter is expected to be adopted after already garnering 57 percent support in the first round of the referendum a week ago.

But the slim margin and the low first-round turnout, in which fewer than one in three eligible voters cast a ballot, has emboldened the opposition, which looks likely to continue its campaign against Morsi after Saturday's voting.

Egypt has already been shaken by a month of protests, some of them violent.

On December 5, eight people were killed and hundreds injured in clashes between rival demonstrators outside the presidential palace in Cairo.

On the eve of Saturday's polling, more clashes erupted in Egypt's second city Alexandria, injuring 62 people, including 12 police officers. Twelve people were arrested, as stone-throwing mobs torched vehicles, the interior ministry said.

Some 250,000 police and soldiers were deployed to provide security during the referendum. The army has also positioned tanks around the presidential palace in Cairo since early this month.

The constitution was drafted by a panel dominated by Morsi's Muslim Brotherhood and ultra-orthodox Salafist groups. Christians and liberals who criticised changes they saw as weakening human and women's rights boycotted the process.

The protests began a month ago on November 22, when Morsi decreed sweeping powers putting himself above judicial review to force through the draft charter.

Although he gave up those powers weeks later under pressure from the protests, he pressed ahead with the referendum.

To do so, he split the voting over two successive Saturdays after more than half of Egypt's judges said they would not provide the statutory supervision of polling stations.

The main opposition group, the National Salvation Front, launched a last-ditch campaign to vote down the charter after deciding a boycott would be counter-productive.

But it and Egyptian human rights groups alleged the first round was marred by fraud, setting up a possible later challenge to the results.

Preliminary tallies from the final round were expected by early Sunday.

"I am voting 'yes' because Egypt needs a constitution to be stable," Mohamed Mamza, a 49-year-old driver lining up to vote in Giza, southwest Cairo, told AFP.

Nearby, another voter, Sayyed Mostafa, a 25-year-old accountant, said he was "of course voting 'no'."

He explained: "This constitution doesn't respect Egyptians. It forgets that there was a revolution in Egypt. We deserve better."

If, as expected, the new constitution is adopted, Morsi will have to call parliamentary elections within two months, to replace the Islamist-dominated assembly ordered dissolved by Egypt's top court in June.

Continued instability will imperil Egypt's economy, which has been limping along ever since the 2011 revolution that overthrew autocratic leader Hosni Mubarak.

The International Monetary Fund has put on hold a $4.8-billion loan Egypt needs to stave off a currency collapse, and Germany has indefinitely postponed a plan to forgive $316 million of Egypt's debt.

National Salvation Front chief Mohamed ElBaradei, a former UN atomic energy agency chief, warned in an online video that "the country is on the verge of bankruptcy."

But he said "a solution is still possible" if Morsi is prepared for "sincere dialogue" and allows a new constitution to be drafted through a more inclusive process.

- AFP/al

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Obama: Get short-term fix to fiscal cliff, then broader deal

STORY HIGHLIGHTS

• NEW: President Obama spoke with congressional leaders about a possible deal


• A Democratic source lays out possible scenarios


• House Republicans reject Speaker Boehner's tax alternative


• Everyone's taxes go up in 11 days without an agreement

Washington (CNN) -- President Barack Obama spoke separately Friday with Speaker John Boehner and the top Senate Democrat to try to salvage a fiscal cliff deal by the end of year, after Republican disarray in the U.S. House put the negotiations in limbo.

In a previously unscheduled statement to reporters, Obama outlined a possible agreement that he said would include protecting middle-class Americans from a tax hike, extending unemployment benefits and setting a framework for future deficit reduction steps.

He called on Congress to pass the agreement after a Christmas break so he can sign it before the end of the year, when the fiscal cliff arrives in the form of automatic tax increases and deep spending cuts.

"Laws can only pass with support from Democrats and Republicans," Obama said in urging both sides to compromise.

The president planned to fly with his family to Hawaii on Friday night for the holiday and return to Washington after Christmas, while House and Senate members also headed home with plans to return on December 27 if needed.

Boehner's spokesman said the speaker will be "ready to find a solution that can pass both houses of Congress" when he returns to Washington.

While congressional leaders continued to bicker Friday over the next step, the president's phone discussion with Boehner and a White House meeting with Senate Majority Leader Harry Reid signaled an attempt to provide the nation and investors with hope that an agreement can be reached.

An aide to Reid said the short-term proposal to avoid the fiscal cliff should include extending tax cuts for middle-class families and unemployment insurance while delaying the automatic spending cuts set to take effect in the new year.

Obama acknowledged what had become obvious: the broader deficit reduction deal he seeks will likely come in stages, rather than in the so-called grand bargain he and Boehner have been negotiating.

The main issue of disagreement continued to be taxes, specifically whether rates should go up on top income brackets for the wealthiest Americans as part of an agreement to reduce the nation's chronic federal deficits and debt.

Without a deal, the fiscal cliff could trigger a recession, economists warn. Stocks closed down sharply on Friday over the latest impasse in the deficit talks, a sign of investor fears of a slowdown as the nation slowly continued to emerge from recession.

Earlier Friday, Reid called for House Republicans to quickly approve a Senate plan championed by Obama that would extend tax cuts for family income up to $250,000 while allowing rates to return to higher levels of the 1990s above that threshold.

His Republican counterpart, Sen. Mitch McConnell of Kentucky, responded that the Senate should instead take up a House Republican measure extending the tax cuts for everyone as a temporary move before negotiations next year on broader tax reform.

The GOP revulsion over any kind of tax rate increase has stymied deficit negotiations for two years and led to unusual political drama, such as McConnell recently filibustering his own proposal and Thursday night's rebuff by House Republicans of an alternative tax plan pushed by Boehner, their leader.

Boehner said at a news conference Friday that his Republican colleagues refused to back his plan, which would have extended all tax cuts except for income over $1 million, because of fears of being blamed for a tax increase.

"They weren't taking it out on me," he said. "They were dealing with the perception that somebody might accuse them of raising taxes."

The lack of backing by his own caucus was a political blow to Boehner and raised more questions than answers about what happens next in the tough negotiations with Obama on either a broad deficit reduction agreement or a smaller step to avoid the fiscal cliff.

A breakdown of Boehner's miscalculation on Plan B

A senior Democratic Senate source said scenarios under consideration by the party include trying to work out short-term or comprehensive agreements now, or going into next year -- and over the fiscal cliff -- without a deal to quickly pass a compromise plan in the new Congress that convenes on January 3.

Waiting until next year would make the vote a tax cut from the automatic higher rates that will take effect under the fiscal cliff, instead of the current situation of extending some cuts and having top rates go up, the source noted.

In addition, Democrats will have two more seats in the new Senate and a stronger House minority, as well as increased pressure on Republicans to keep taxes low on middle class Americans, according to the source.

Trying to hammer out a deal now means working with limited time and stronger Republican contingents in both chambers, the source said.

Boehner made clear Friday that the negotiations with Obama on a broad deficit reduction agreement hit an impasse this week when both sides offered their "bottom line" positions that included major concessions -- but remained a few hundred billion dollars apart.

With his alternative plan torpedoed by his own party, Boehner said it now is time for Obama and Senate Democrats to come up with a solution.

Boehner also denied a reporter's suggestion that he is walking away from further talks, but he offered no timetable or mechanism for resuming discussions.

In the Senate, Reid said all House measures on the fiscal cliff so far have failed to meet the minimum demands of Obama, such as wealthy Americans paying more to prevent an increased burden on middle-class families.

"I like John Boehner, but gee whiz, this is a pretty big political battering that he has taken," Reid said, calling on the speaker to allow a vote on the Senate-passed Obama plan. "It will pass. Democrats will vote for it. Some Republicans will vote for it. That is what we are supposed to do."

On Thursday night, the House passed a measure that would reduce the impact of the fiscal cliff's automatic spending cuts on the military.

However, the chamber then went into recess when it was clear Boehner lacked the votes for his separate tax plan that maintained cut rates on income up to $1 million.

Conservatives opposed to any kind of increase in tax rates refused to sign on, and with Democrats unified in their opposition, the measure had no chance of passing.

Fallout from fiscal cliff inaction

"There was a perception created that that vote last night was going to increase taxes. I disagree with that characterization," Boehner said Friday by way of explanation, adding that "the perception was out there, and a lot of our members did not want to have to deal with it."

Reid had said the Senate would spurn the Boehner plan if it passed the House, and Obama promised to veto it if it reached his desk. According to Republican sources, the zero chance for Boehner's Plan B to actually become law influenced some wavering House members to reject it.

Obama campaigned for re-election on extending the tax cuts that date back to his predecessor's administration on income up to $250,000 for families, but returning to higher rates on amounts above that threshold.

Some House Republicans have said they would join Democrats in supporting the president's proposal in hopes of moving past the volatile issue to focus on the spending cuts and entitlement reforms they seek.

The Plan B was significant because Republican leaders previously insisted they wouldn't raise rates on anyone.

Boehner had complained Thursday that in making that concession, he expected but never got significant concessions from Obama.

He elaborated on the negotiations Friday, saying he told Obama that his latest proposal made over the weekend was his bottom line. Boehner said Obama told him the White House counterproposal Monday was the president's bottom line.

Boehner also repeated his complaint that Obama and Democrats were unwilling to address the spending cuts and entitlement reforms that he considers necessary to properly address the nation's chronic federal deficits and debt.

"What the president has proposed so far simply won't do anything to solve our spending problems," Boehner said, noting that "because of the political divide in the country, because of the divide here in Washington, trying to bridge these differences has been difficult."

CNN Poll: Are GOP policies too extreme?

In his statement Friday, Obama said he had compromised at least halfway on major issues, and that both sides have to accept they will not get all they want.

The possibility of a fiscal cliff was set in motion over the past two years as a way to force action on mounting government debt.

Now legislators risk looking politically cynical by seeking to weaken the measures enacted to try to force them to confront tough questions regarding deficit reduction, such as reforms to popular entitlement programs such as Social Security, Medicare and Medicaid.

Polling has consistently shown most Americans back the president, who insists wealthy Americans must pay more, rather than Boehner and his Republican colleagues, who have balked at tax rate hikes and demanded spending cuts and entitlement program reforms.

A new CNN/ORC International survey released Thursday showed that just over half of respondents believe Republicans should give up more in any solution and consider the party's policies too extreme.

Opinion: Boehner leading GOP to the apocalypse

The two sides seemingly had made progress earlier this week on forging a $2 trillion deficit reduction deal that included new revenue sought by Obama and spending cuts and entitlement changes desired by Boehner.

The president's latest offer set $400,000 as the income threshold for a tax rate increase, up from his original plan of $250,000. It also included a new formula for the consumer price index applied to some entitlement benefits, much to the chagrin of liberals.

Called chained CPI, the new formula includes assumptions on consumer habits in response to rising prices, such as seeking cheaper alternatives, and would result in smaller benefit increases in future years.

Statistics supplied by opponents say the change would mean Social Security recipients would get $6,000 less in benefits over the first 15 years of chained CPI.

Liberal groups sought to mount a pressure campaign against including the chained CPI after news emerged this week that Obama was willing to include it, calling the plan a betrayal of senior citizens who had contributed throughout their lives for their benefits.

Poll: Americans view economy as poor, split on future

CNN's Greg Botelho, Jessica Yellin and Ted Barrett contributed to this report.

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NRA: Guns in schools would protect students

Updated: 6:44 p.m. ET

In a press conference reflecting on last week's massacre in Newtown, Conn., the National Rifle Association's Wayne LaPierre today called on Congress to put armed law enforcement agents in every American school, insisting that guns in schools -- not tougher gun laws -- would most effectively protect children from school shootings.

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A "good guy with a gun" in every school?

LaPierre, who did not take any questions and whose remarks were interrupted twice by pro-gun control protesters, disdained the notion that stricter gun laws could have prevented "monsters" like Adam Lanza from committing mass shootings, and wondered why students, unlike banks, don't have the protection of armed officials. He also called for a "national database of the mentally ill."

"The only thing that stops a bad guy with a gun is a good guy with a gun," he said.

Twenty first-grade students were gunned down at their Connecticut elementary school last Friday, when 20-year-old Lanza reportedly opened fire in the school. Six adult faculty members were killed in his rampage, and Lanza also took his own life. Shortly before entering Sandy Hook Elementary School, Lanza is believed to have killed his mother, Nancy Lanza, in her bed. In the aftermath of the shootings, there has been much speculation as to the state of Adam Lanza's mental health, but no concrete evidence has been established that he was mentally ill.

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60 Minutes archives: Understanding the NRA

In the aftermath of the shooting, the NRA stayed largely silent, making only a brief comment earlier this week when announcing today's press conference. In his remarks today, however, LaPierre vehemently defended the pro-gun agency against critics and offered up a solution of his own.

"We must speak for the safety of our nation's children," said LaPierre. "We care about our money, so we protect our banks with armed guards. American airports, office buildings, power plants, courthouses, even sports stadiums, are all protected by armed security. We care about our president, so we protect him with armed Secret Service agents. Members of Congress works in offices surrounded by Capitol police officers, yet when it comes to our most beloved innocent and vulnerable members of the American family -- our children -- we as a society leave them every day utterly defenseless. And the monsters and the predators of the world know it and exploit it."

"That must change now," argued LaPierre, moments before being interrupted by a protester carrying a large pink sign proclaiming that the "NRA is killing our kids." "The truth is that our society is populated by an unknown number of genuine monsters -- people so deranged, so evil, so possessed by voices and driven by demons that no sane person can possibly ever comprehend them. They walk among us every day. And does anybody really believe that the next Adam Lanza isn't planning his attack on a school he's already identified at this very moment?"

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60 Minutes archives: The anti-gun lobby

Alternately criticizing politicians, the media, and the entertainment industry, LaPierre argued that "the press and political class here in Washington [are] so consumed by fear and hatred of the NRA and America's gun owners" that they overlook what he claims is the real solution to the nation's recent surge in mass shootings -- and what, he said, could have saved lives last week.

"What if, when Adam Lanza started shooting his way into Sandy Hook Elementary School last Friday, he had been confronted by qualified, armed security?" he asked. "Will you at least admit it's possible that 26 innocent lives might have been spared? Is that so abhorrent to you that you would rather continue to risk the alternative?"

LaPierre called on Congress to put a police officer in every school in America, which according to a Slate analysis would cost the nation at least $5.4 billion. LaPierre recognized that local budgets are "strained," but urged lawmakers "to act immediately, to appropriate whatever is necessary to put armed police officers in every school." He offered up the NRA's unique "knowledge, dedication, and resources" to assist in efforts to train those forces, but made no mention of a fiscal contribution. 

Columbine High School employed an armed guard, Neil Gardner, at the time of the 1999 school shootings. According to CNN, Gardner was eating lunch in his car when violence broke out in the school, and 13 people were killed.

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Protesters disrupt NRA press conference

Gun control advocates immediately decried LaPierre's comments, and New York City Mayor Michael Bloomberg called the press conference a "shameful evasion of the crisis facing our country."

"Instead of offering solutions to a problem they have helped create, they offered a paranoid, dystopian vision of a more dangerous and violent America where everyone is armed and no place is safe," he said. "Leadership is about taking responsibility, especially in times of crisis. Today the NRA's lobbyists blamed everyone but themselves for the crisis of gun violence."

On Twitter, Senator-elect Chris Murphy, D-Ct., called LaPierre's comments "the most revolting, tone-deaf statement I've ever seen."

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Obama Still an 'Optimist' on Cliff Deal

Mandel Ngan/AFP/Getty Images

WASHINGTON D.C. – Ten days remain before the mandatory spending cuts and tax increases known as the “fiscal cliff” take effect, but President Obama said he is still a “hopeless optimist” that a federal budget deal can be reached before the year-end deadline that economists agree might plunge the country back into recession.

“Even though Democrats and Republicans are arguing about whether those rates should go up for the wealthiest individuals, all of us – every single one of us -agrees that tax rates shouldn’t go up for the other 98 percent of Americans, which includes 97 percent of small businesses,” he said.

He added that there was “no reason” not to move forward on that aspect, and that it was “within our capacity” to resolve.

The question of whether to raise taxes on incomes over $250,000 remains at an impasse, but is only one element of nuanced legislative wrangling that has left the parties at odds.

For ABC News’ breakdown of the rhetoric versus the reality, click here.

At the White House news conference this evening, the president confirmed he had spoken today to Senate Majority Leader Harry Reid, D-Nev., and House Speaker John Boehner, R-Ohio, although no details of the conversations were disclosed.

The talks came the same day Speaker Boehner admitted “God only knows” the solution to the gridlock, and a day after mounting pressure from within his own Republican Party forced him to pull his alternative proposal from a prospective House vote. That proposal, ”Plan B,” called for extending current tax rates for Americans making up to $1 million a year, a far wealthier threshold than Democrats have advocated.

Boehner acknowledged that even the conservative-leaning “Plan B” did not have the support necessary to pass in the Republican-dominated House, leaving a resolution to the fiscal cliff in doubt.

“In the next few days, I’ve asked leaders of Congress to work towards a package that prevents a tax hike on middle-class Americans, protects unemployment insurance for 2 million Americans, and lays the groundwork for further work on both growth and deficit reduction,” Obama said. ”That’s an achievable goal.  That can get done in 10 days.”

Complicating matters: The halls of Congress are silent tonight. The House of Representatives began its holiday recess Thursday and Senate followed this evening.

Meanwhile, the president has his own vacation to contend with. Tonight, he was embarking for Hawaii and what is typically several weeks of Christmas vacation.

However, during the press conference the president said he would see his congressional colleagues “next week” to continue negotiations, leaving uncertain how long Obama plans to remain in the Aloha State.

The president said he hoped the time off would give leaders “some perspective.”

“Everybody can cool off; everybody can drink some eggnog, have some Christmas cookies, sing some Christmas carols, enjoy the company of loved ones,” he said. “And then I’d ask every member of Congress, while they’re back home, to think about that.  Think about the obligations we have to the people who sent us here.

“This is not simply a contest between parties in terms of who looks good and who doesn’t,” he added later. “There are real-world consequences to what we do here.”

Obama concluded by reiterating that neither side could walk away with “100 percent” of its demands, and that it negotiations couldn’t remain “a contest between parties in terms of who looks good and who doesn’t.”

Boehner’s office reacted quickly to the remarks, continuing recent Republican statements that presidential leadership was at fault for the ongoing gridlock.

“Though the president has failed to offer any solution that passes the test of balance, we remain hopeful he is finally ready to get serious about averting the fiscal cliff,” Boehner said. “The House has already acted to stop all of the looming tax hikes and replace the automatic defense cuts. It is time for the Democratic-run Senate to act, and that is what the speaker told the president tonight.”

The speaker’s office said Boehner “will return to Washington following the holiday, ready to find a solution that can pass both houses of Congress.”

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Goodbye, U.S. Postal Service?

This Christmas could be the Post Office's last, says John Avlon.

STORY HIGHLIGHTS

• The U.S. Postal Service is bleeding money and heading toward insolvency


• John Avlon: Congress can save the postal service in deal on the fiscal cliff


• He says the urgency is clear, let's hope for a Christmas miracle


• Avlon: But be prepared that Washington dysfunction can doom the postal service

Editor's note: John Avlon is a CNN contributor and senior political columnist for Newsweek and The Daily Beast. He is co-editor of the book "Deadline Artists: America's Greatest Newspaper Columns." He is a regular contributor to "Erin Burnett OutFront" and is a member of the OutFront Political Strike Team. For more political analysis, tune in to "Erin Burnett OutFront" at 7 ET weeknights.

(CNN) -- It's the time of year for dashing through the snow to the crowded post office, with arms full of holiday gifts for family and friends.

Not to break the atmosphere of holiday cheer, but this Christmas could be the last for the U.S. Postal Service. It is losing $25 million dollars a day and staring down insolvency -- unless Congress steps in to pass a reform package that reduces its costs.

With just a few days left in the congressional calendar, there is still some small hope for a Christmas miracle -- maybe the Postal Service can be saved as part of a deal on the fiscal cliff. But with even Hurricane Sandy relief stalled, skepticism is growing.

John Avlon

The real question is, what's taken them so long? After all, back in April the Senate passed an imperfect but bipartisan bill by 62-37. It would have saved some $20 billion, cut some 100 distribution centers, and reduced head count by an additional 100,000 through incentives for early retirement, while reducing red tape to encourage entrepreneurialism and keeping Saturday delivery in place for at least another two years. At the time, Sen. Tom Carper of Delaware said, "The situation is not hopeless; the situation is dire. My hope is that our friends over in the U.S. House, given the bipartisan steps we took this week, will feel a sense of urgency."

To which the House might as well have replied, "Not so much."

In August, the Postal Service defaulted for the first time, unable to make a $5.5 billion payment to fund future retirees' health benefits. The headline in Government Executive magazine said it all: "Postal Service defaults, Congress does nothing."

The usual suspects were at fault -- hyperpartisan politics and the ideological arrogance that always makes the perfect the enemy of the good.

House Oversight Committee Chairman Darrell Issa greeted the news of the Senate bill by calling it a "taxpayer-funded bailout." His primary complaint was that the Senate bill did not go far enough. He was not alone -- Postmaster General Patrick Donahoe also expressed disappointment at the scope of the Senate bill, saying that it fell "far short of the Postal Service's plan."

But Issa's alternative couldn't even get to a vote in the Republican-controlled House. And so nothing happened. Even after the USPS defaulted on a second $5.5 billion payment, the response was crickets.

Washington insiders said that action would be taken after the election, when lawmakers would be free to make potentially unpopular decisions. But despite a series of closed-door meetings, nothing has been done.

It's possible that the nearly $20 billion in savings could be part of a fiscal cliff deal. Sen. Joseph Lieberman has suggested that ending Saturday delivery, except for packages, could be part of a compromise that could save big bucks down the road. Another aspect of a savings plan could be suspending the USPS' onerous obligation to fully fund its pension costs upfront, a requirement that would push many businesses into bankruptcy. And last fiscal year, the post office posted a record $15.9 billion loss.

"As the nation creeps toward the 'fiscal cliff,' the U.S. Postal Service is clearly marching toward a financial collapse of its own," says Carper. "The Postal Service's financial crisis is growing worse, not better. It is imperative that Congress get to work on this issue and find a solution immediately. ... Recently key House and Senate leaders on postal reform have had productive discussions on a path forward, and while there may be some differences of opinion in some of the policy approaches needed to save the Postal Service, there is broad agreement that reform needs to happen -- the sooner the better."

The urgency couldn't be clearer -- but even at this yuletide 11th hour, signs of progress are slim to none. If Congress fails to pass a bill, we'll be back to square one in the new year, with the Senate needing to pass a new bill which will then have to be ratified by the House. There is just no rational reason to think that lift will be any easier in the next Congress than in the current lame duck Congress, where our elected officials are supposedly more free to do the right thing, freed from electoral consequences.

So as you crowd your local post office this holiday season, look around and realize that the clock is ticking. The Postal Service is fighting for its life. And Congress seems determined to ignore its cries for help.

"Neither rain nor snow nor sleet nor gloom of night" can stop the U.S. Postal Service from making its appointed rounds -- but congressional division and dysfunction apparently can.

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The opinions expressed in this commentary are solely those of John Avlon.

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