From the other side of the pond
From our UK edition
I’ll be live blogging tonight’s crucial Republican debate in Florida over on Ameircano.
James Forsyth is former political editor of The Spectator.
From our UK edition
I’ll be live blogging tonight’s crucial Republican debate in Florida over on Ameircano.
From our UK edition
A quick check on the health of a party is whether there is more talent on the back benches than the front bench. Labour are close to that tipping point with Charles Clarke, Jon Cruddas, Alan Milburn, Stephen Byers, Denis MacShane, David Blunkett and Frank Field all out of the front line. Any of these would have added heft to the cabinet and all are more impressive figures than Caroline Flint and Yvette Cooper. If Brown had appointed Milburn to the Department of Work and Pensions he would have shown that he has moved on from the Blairite Brownite fights of the past and would have put someone in place who could have given the Tories a fight over welfare reform.
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Columbia, South Carolina As the 2008 presidential primaries enter their decisive phase, we’ve launched a new blog to keep you up to date with all the latest developments. “Americano” will be giving you our take on what is going on from now until election day on November 4th. I’m out in South Carolina at the moment where the issue of race is dominating campaign coverage. South Carolina is the first contested state on the Democratic side with a large African American population, 29% of South Carolinians are black and the vast majority of them vote Democratic.
From our UK edition
David Cameron is understandably eager not to allow Gordon Brown to present the Tories as slash n’ burn merchants intent on starving schools and hospitals of funding. However, unfair it was the £35bn of Tory cuts jibe at the last election hit home—as the IFS points out, by Brown’s own logic he will have cut spending by £9bn by the next election—and the current Tory pledge to match Labour spending commitments until 2011 is probably a necessary act of reassurance. But the danger is that Labour box the Tories in by projecting their spending plans further and further into the future.
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The Federal Reserve cut rates by 0.75 points even before the markets opened in New York in what looks worryingly like a panic move. (At the very least, it will convince the markets that if they scream loudly enough, the Fed will always give them what they want.) Meanwhile, in Britain Harriet Harman has taken it upon herself to reassure us all that we’re not heading into recession. On a more serious note, it will be interesting to see how the tense relationship between King and Brown and Darling plays out as the Bank of England and the government scramble to respond to this crisis.
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If you had told most people in the Westminster Village a year ago that the economy would hit choppy waters, then most people would have thought that this would actually strengthen Gordon Brown’s electoral position. The logic behind this was that Labour’s advantage on the economic competence question was so deep set that the public would prefer Brown’s experienced hand at the tiller rather than the untested Cameron and Osborne combination. This is what played out after the run on Northern Rock. Populus recorded that Labour’s lead over the Tories on who was trusted to deal with economic problems actually rose, climbing from 31 points to 38.
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Jacqui Smith’s comment about why she doesn’t walk around at night sums up what is wrong with the establishment attitude to crime. Here’s the exchange between the Home Secretary and Isabel Oakeshott: IO: Would you feel safe, walking round, say, Hackney, at midnight on your own? JS: Well, no, but I don’t think I’d ever have done. You know, I would never have done that, at any point during my life. IO: Why not? JS: Well, I just don’t think that’s a thing that people do, is it, really? Implicit in Smith’s answer is the belief that crime is inevitable and that if you don’t want to be mugged you don’t go out late at night. As the reduction in crime in New York shows, it doesn’t have to be this way.
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One would have thought that being Chairman of Northern Rock at the moment was an all consuming task. But Bryan Sanderson, the stricken bank’s chairman, has clearly had enough time to read the document formerly known as the EU Constitution in depth as he has come out and endorsed it in an open letter released by Business for a New Europe. Seeing as Northern Rock shareholders look like having about as much choice about what happens to the bank as voters do about whether or not the Lisbon Treaty is ratified, this is all rather ironic. Then again, what’s sauce for the goose is sauce for the gander.
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The details of the government’s latest scheme for Northern Rock shows just how long the taxpayer will be left supporting the stricken bank. The government will guarantee £25bn plus of bonds designed to cover both the loans given by the Bank of England and the bank’s need for cash to cover its operations with these bonds taking five years to repay. Rock shareholders are being increasingly sidelined. The BBC reports that once business plans re submitted by February 4th, it will be the Chancellor Alistair Darling who decides which bid to accept with the greatest emphasis being on which would allow taxpayer backing to be withdrawn soonest.
From our UK edition
John McCain’s victory in the South Carolina primary makes him the Republican front-runner. It is an amazing turn-around for a man whose campaign was left for dead last summer but this new designation carries with it dangers for McCain. First, it puts a bulls-eye on his back. Rudy Giuliani, who must beat McCain in Florida, is already dinging him on taxes and the worry for McCain is that the other candidates all go after him on issues where he is vulnerable with the Republican base. Secondly, McCain has never seemed comfortable as the front-runner preferring to fight as the scrappy underdog. Next Tuesday’s contest in Florida is crucial for McCain.
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Peter Hain has been cleared of breaching the Ministerial Code and many in Westminster think the furore over his failure to declare all the donations to his deputy leadership campaign will now die down. But Rosa Prince points out over at the Three Line Whip yesterday’s decision actually raises huge questions about Hain’s version of events and whether he can carry on as a minister. Hain has been cleared because he told his permanent secretary of the donations to his campaign including one from the GMB union of £10,000—which was not declared until last week—who he was negotiating with in his ministerial capacity at the time.
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News has emerged from the PM’s trip to China that Alistair Darling will make a Commons statement about Northern Rock on Monday. On Boulton and Co, Jonathan Levy reports that the word is that Goldman Sachs has advised the government to bundle up the money that is being using to support the stricken bank and sell it off as government bonds. The thinking is that this scheme would allow the taxpayer to recover their money and make the bank a more attractive proposition to private buyers. The BBC is saying that Virgin is now in pole position to take over the bank. Apparently, shareholder objections to the Virgin bid will be overcome through the threat of nationalisation.
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Rudy Giuliani’s presidential campaign has, to date, been a damp squid. Despite dangling his toe in the water in Iowa he still finished an embarrassing sixth behind the fringe candidate Ron Paul. In New Hampshire, Giuliani came in outside the medal positions despite having tried to move his numbers with a series of TV ads. He isn’t really playing in South Carolina having accepted that another state his campaign once thought was promising for him won’t go for him. But amazingly, Giuliani still has a chance of winning the nomination. If John McCain wins in South Carolina tomorrow, he’ll probably be the nominee. If not, things could break Rudy’s way.
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How disciplined Conservative MPs are in responding to two issues coming up in the next few weeks will tell us a lot about how determined they really are to return to government. First, there’s the question of Parliamentarians pay. With Gordon Brown taking a tough-line, the Tories are obliged to do the same or open themselves up to a politically damaging line of attack. Iain Martin reports that the leadership has made the vote for a below inflation raise a three line whip and if a sizable number of MPs rebel then it will be a major embarrassment. Remember that it was the issue of MPs pay that gave Tony Blair one of his most devastating sound bites against John Major: “I lead my party, you follow yours.
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Camila Batmanghelidj of the estimable Kids Company writes in the Telegraph this morning about how we have got into a situation where children kick a man to death. Batmanghelidj’s argument that those who have grown up in a brutal environment are more likely to behave brutally makes perfect sense to me. As she puts it, “they know how to kick because they have been kicked, they know how to stab because they have been stabbed, they know how to torment and humiliate because they have experienced the same.” The extent to which we as a society fail these children is brought home by the fact that as, Batmanghelidj notes, 570,000 children a year are referred to child protection services but only 37,200 of them are actually offered help.
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The news that Paddy Ashdown is going to be a reconstruction supremo in Afghanistan, coordinating the military and development work, seems to be announced every few weeks. But it has never been officially confirmed that he will go and do the job. Now, Michael White reports that there is a danger that the appointment might get dragged into the row between Britain and Russia over the Litvinenko assassination. Michael White reports on his blog that, “The foreign secretary is anxious that the row doesn't spill over to Iran or Kosovo, policy areas where we need Russian cooperation. One casualty could be Paddy Ashdown's Afghan appointment by the UN on Monday. He was furious that the deal leaked out of the UN this week when it has yet to be ratified.
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The Lib Dems are deeply split on the question of whether there should be a referendum on the European Constitution, as they promised in their manifesto. As Fraser explains in this week’s magazine, Ming Campbelll came to a compromise with the pro-referendum forces in the party where the Lib Dems committed themselves to a referendum but not on the constitution, or as we are now meant to call it the Lisbon Treaty, but the whole question of whether or not Britain should stay in the EU. Nick Clegg has decided to stick with this position as he has no desire to disturb the uneasy calm in the Parliamentary party over the deal. But the clerks in the Commons have thrown a major spanner in the work.
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Iain Martin’s column this morning on the political dangers to Gordon Brown of nationalising Northern Rock is essential reading. As Iain argues, the danger for Brown is that Northern Rock could destroy his reputation for economic competence and set in the public mind the idea that he—unlike that nice Mr. Blair—is too left wing for modern Britain. One senior shadow cabinet minister tells Iain that: "It's very him,"...” It’s what people think he came into politics to do all along: nationalise banks." In The Independent, Steve Richards points out that neither Blair nor Brown have ever really grappled with the issue of ownership fearing that the whole issue was all too reminiscent of the era of the old left.
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Mitt Romney’s win in the Michigan Republican primary makes this Saturday’s Republican vote in South Carolina all the more important. If John McCain wins there, he should—barring disasters—end up as the Republican nominee. If he doesn’t, the race becomes wide open and Rudy Giuliani’s much criticised late state strategy could end up paying off. Politics is a dirty business in South Carolina and in 2000 John McCain was defeated in one of the nastiest campaigns ever conducted. No blow was too low. It was claimed that been turned while a prisoner of war in Vietnam and was really a Communist sleeper agent and that his adopted Bangladeshi baby was really an illegitimate child from an affair with a black woman.
From our UK edition
Sam Coates over at the Red Box has news that suggests Lord Digby Jones has been less than forthcoming about the business interests he retains.