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Posts Tagged ‘Darling’

Bank airs double-dip recession fears

• Deputy governor Charles Bean says base rate must not rise too soon
• US treasury secretary Tim Geithner warns of challenges ahead on road to recovery

The deputy governor of the Bank of England pledged tonight to remove Britain’s emergency economic policy boost slowly after a warning from the US treasury secretary, Tim Geithner, that the global economy was still at risk of a double-dip downturn.

Charles Bean, one of two deputies at Threadneedle Street, said a time would come when the Bank’s monetary policy committee would need to push up interest rates from 0.5% and reverse the programme of quantitative easing, which boosts the cash available for lenders.

“But we don’t want to do it too early and nip the recovery in the bud,” Bean said, speaking in Yorkshire as part of a nationwide tour to explain the Bank’s approach to monetary policy.

The deputy governor expressed optimism that the economy would be on the mend by early next year – sentiments echoed by the chancellor, Alistair Darling, and Geithner, after a meeting in London today today to discuss the next steps in fighting the two-year global crisis.

Geithner expressed confidence that President Obama’s $800bn (£500bn) stimulus package would boost recovery prospects in the second half of this year.

“We have a very powerful set of policies in place, coming on stream,” he said. “I think there is a very good chance we will see the US economy and the world economy get back to recovery, get growing again, over the next few quarters.”

Darling said: “In this country we are coming through the severest downturn in 60 years. The measures we have taken are having an effect. I am confident growth will return at the turn of the year.”

Geithner said measures adopted so far had helped provide a base for recovery: “Policy has been effective in arresting and mitigating the force of the storm.”

The US treasury secretary was speaking after meetings with Gordon Brown, Darling, Mervyn King, the governor of the Bank of England, and Lord Turner, the chairman of the Financial Services Authority, to discuss the agenda for the G20 summit in Pittsburgh in September.

Asked whether there was a possibility of a double-dip recession, Geithner added: “In my view there are still significant risks and challenges ahead.”

He said that reform of the financial sector had to ensure that institutions took a more conservative approach to risk-taking; that the regulatory framework was broadened to include sectors currently unregulated; and that consumers and investors were protected against “manipulation and fraud”.

Despite what Geithner called a “remarkably strong consensus” on elements of a reform package, the Pittsburgh summit is likely to outline broad principles rather than introduce specific new measures to tighten up regulation and supervision.

A report published by the British Retail Consortium (BRC), showing that spending in shops rose 1.4% on a like-for-like basis in the year to June, will come as welcome news to the chancellor.

“June’s sunshine gave overall sales a much-needed boost,” said Stephen Robertson, director general of the BRC. “The heatwave helped food retailers and got customers buying outdoor goods, such as garden furniture, pools and picnic ware.

“Clothing clearance sales coincided nicely with the upsurge in demand for summer wear. But the sun knocked sales of furniture and homewares, as people focused on the outdoors. Given the uncertainty about jobs, customers are still nervous about spending on non-essentials.”

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds


Cameron: helicopter deficit is scandal

Conservative leader’s comments come as poll reveals backing for British involvement in war has grown

David Cameron today said it was a “scandal” that the British army did not have enough helicopters to transport troops around Afghanistan.

Speaking as a new poll suggested that the growing British casualty rate had not increased public hostility to the conflict, the Conservative leader said the government should deal with the helicopter problem “as a matter of urgency”.

Cameron will have the chance to challenge Gordon Brown on the issue when the prime minister makes a statement to the Commons, which will cover the latest deaths in Afghanistan, later today.

In a speech on international aid today, the Tory leader said the government should supply British troops with more equipment.

“Of course we must do that – it is a scandal in particular that they still lack enough helicopters to move around in Afghanistan,” he added.

“The government must deal with that issue as a matter of extreme urgency.”

Research carried out as news broke of the deaths of eight soldiers in 24 hours – taking the British death toll in Afghanistan to more than that in Iraq – revealed support for the war remained firm and backing for British involvement had grown.

The poll of 1,000 showed that people appear reluctant to turn against a conflict while soldiers are fighting and dying on the front line, and the increasingly high-profile nature of the war appears to have strengthened public backing.

Opposition to the war, at 47%, is just ahead of support, at 46%, according to the ICM poll for the Guardian and the BBC’s Newsnight.

Backing for Britain’s role in the conflict has grown since the last time an ICM poll was conducted on the subject in 2006.

It is up 15 points from 31%, while opposition has fallen over the same period by six points from 53%.

The poll also showed that 42% are in favour of the immediate withdrawal of British troops, and a further 14% want them home by the end of the year. These figures are almost identical to the results in 2006.

A further 36% want troops to stay as long as they are needed – again a similar proportion to 2006, when British casualties were lower.

The findings came as ministers drew up plans to devote more troops and resources to Afghanistan after dismissing repeated requests from defence chiefs for reinforcements.

The shift in approach follows the rising death toll, outspoken criticism from opposition politicians and the prospect of a long period of intense fighting against the Taliban.

Gordon Brown will today confirm that the number of British troops is increasing to 9,000 from a base of 8,300.

One favoured option, which has not been agreed, is for the number of troops to be kept at 9,000 after the next general election.

Today, Miliband told GMTV the government’s strategy in Afghanistan was clear.

“This is a mission that’s been developed with a very clear strategy: above all, to make us safer here because we know these areas of Afghanistan and its neighbour Pakistan are used to launch terrorism around the world,” he said. “So the mission for us is clear.”

Miliband admitted there had been a “terrible casualty toll” and paid tribute to those who were killed, but added that more helicopters alone were not the answer.

John Maples, the Tory deputy chairman, yesterday told the Guardian: “Increasingly, people are starting to ask whether this war is winnable and whether our military objectives are sensible given the number of troops and the amount of equipment we are prepared to commit.”

Lord Ashdown, the former Liberal Democrat leader who almost became the UN special representative in Afghanistan last year, was scathing about British and US conduct.

“The army were persuaded, for political reasons, to follow a Beau Geste strategy – putting our people out in forward forts largely because the politicians were persuaded by [Afghan president Hamid] Karzai that this was where his supporters and family lived,” he said.

“It led to a military error of major proportions. The army’s job in a war is to find and kill the enemy.”

After previously blocking requests by the chiefs of staff for 2,000 more troops to be deployed in southern Afghanistan, Brown has said in a letter to senior Commons committee chairmen: “We will of course continue to review our force levels based on the advice of commanders and discussions with our allies.”

The Treasury has previously blocked the defence chiefs’ request on the grounds of cost.

However, the chancellor, Alistair Darling, said over the weekend: “If [British troops] need equipment, whatever it is, to support them in the frontline then of course the government, through the Treasury, is ready to help.”

He told the BBC: “You can’t send troops into the frontline and not be prepared to see it through in terms of the … resources they need.”

Significantly, given the government’s past decisions to cap resources for Afghanistan, Darling added: “You’ve got to listen to what the chiefs of staff tell us.”

Commanders on the ground have made no secret of the fact that they want more helicopters and more British troops.

General Sir Richard Dannatt, the head of the army, was yesterday reported to have told a private dinner of MPs that too few troops and helicopters were available.

In an interview with the British Forces Broadcasting Service on Saturday, Brown paid tribute to the “sacrifice” of the 15 troops who have died since the start of the month in the bloodiest fighting Britain has seen in the Afghan campaign.

“I know that this has been a difficult summer – it is going to be a difficult summer,” he said.

The prime minister said he had been assured, in a lengthy briefing by commanders, that Operation Panther’s Claw to drive the Taliban from central Helmand province was making “considerable progress”.

Bob Ainsworth, the defence secretary, said troops were “attacking the Taliban in one of their heartland areas”.

“The reason they are standing and fighting is they know that what we are doing potentially hurts them seriously and strategically,” he said.

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds


Don McNay: Powerball Jack, Michael Jackson, and Uncontrolled Wealth

Stop! the love you save may be your own. Darling, take it slow Or some day you’ll be all alone. -Jackson Five July 5,…