Brother Bush, Can You Spare A Dime?

As Bush's $700 billion bail-out bombed and stock markets took a dive, Democrats and Republicans were quick to point the finger of blame at each other. 

With an election round the corner, few want to get too close to Bush and his years of letting the Wall Street fat cats get away with it. And no-one wants to hand Bush and his treasury secretary a blank cheque.

Both Republicans and Democrats have been inundated with outraged voters telling them bluntly, they don't want the cash going straight into the pockets of Wall Street.

Bush's bail-out strikes deep at the heart of the elections, with both sides making political capital out of Capitol Hill.

It must be hard for the Republicans to change the habit of a lifetime. But voters know Bush lied over Iraq, so why should they trust him over this.

And this is America - the Land of the Free - Enterprise. If you can make a fast buck you are a hero. If you screw up, brother Bush, then no one will spare you a dime.

Democrats can sit pretty. It's not their fault. They're in opposition and knocking the administration is their job. The stock market may crumble, Wall Street may tumble but as long as Main Street doesn't squeal too much, they're happy to let Bush sweat.

Ever since US treasury secretary, Hank Paulson, unveiled the bill, as a 'rescue package' it helped buoy financial markets. But it was quickly seen as a bail-out and that would go against the grain with an unprecedented government intervention in the private sector.

And all sorts of deals, buy-outs and fundings have been earmarked in the bill, to give political advantage. 

House Republicans blamed the bail-out failure on Democrat House Speaker, Nancy Pelosi, accusing Pelosi of being too partisan and “poisoning” the Republicans in a pre-vote floor speech, where she blamed the economic crisis on years of Republican economic policies, saying: "It has created not jobs, not capital; it has created chaos."

As the House of Representatives sent the historic bill packing, the stock market went into a tailspin and added to fears that the US will nose-dive into recession, unless the legislation is revived.

But this is one show that could run and run until everyone has had their two cents worth.

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Cabinet Throws Its Toys Out Of The Pram

Brown's cabinet cry babies are threatening to throw their toys out of the pram, if he tries it on with a cabinet shuffle. Faced with a botched-up job on the Bradford & Bingley buy-out and the Blairites in open revolt, it seems Brown has been outmanoeuvred and nowhere left to turn. 

The Daily Mail reports that Brown's plans to shuffle the pack were "in turmoil last night as senior ministers threatened to resign if he tries to move them."

"Sources said they expect the Prime Minister to put off a major reshuffle amid fears it could prompt all-out war at the top of the Government."

The list is growing longer by the day, after Kelly jumped ship or was thrown overboard and then promptly nailed her Miliband colours to the mast. 

Hoon says he doesn't was to go to Brussels. Miliband and Johnson want to stay in their job, or have Brown's job. Purnell and Darling reckon they are quite comfy. 

What a smug, arrogant lot they are. 

The move comes as news of the government's B&B buy-out was leaked to the BBC's Robert Preston. A double edged sword.

In the heady days of Brown's big moment, he tried to scupper the Tory conference with an election that never was and a troop withdrawal from Iraq that never was. 

The timing of the B&B buy-out wrong-footed the Conservatives and left Cameron and Osborne  frantically having to rearrange their notes and speeches. 

And for the Blarites, any whiff of a major reshuffle now would look like closing the door after the economic horse has bolted. 

Now it could be a tinkering round the edges but a reshuffle that never was. In the cunning world of Brown anything is possible - it just takes him a little while to get round to it.

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Borrowing Brown's B&B Botch-Up

The government's decision to buy Bradford and Bingley's dodgy mortgage side of the business, leaves taxpayers saddled with the debt, the country more bankrupt than it was before and Brown's economic policy in tatters. 

The deal adds another staggering amount to the government deficit and busts Brown's own golden rules on borrowing. 

But eleven years of smug arrogance has left the government doing what it wants, when it wants. 

Bush's much-vaunted $700 billion bail-out deal, using taxpayers cash to pay off greedy banks and executives, caused outrage in the US. 

Here, the government ignored the taxpayer's voice. Where was the assurances and checks to make sure it was the right thing to do? 

Taxpayers wouldn't stomach another Northern Rock. So the buy-up was leaked to the BBC as a done deal. 

Government deficit will balloon. The government will need to try to borrow more, which will destroy confidence in the UK economy. 

But will anyone want to continue to lend to the government under such circumstances? Who wants to throw good money after bad? 

Predatory Spanish banker, Santander, takes over B&B's savings business and branch network and £21 billion deposit book for £612m.

However, government control of the bank's £50 billion in mortgages and loans means taxpayers are now more exposed to B&B's mortgage debts.

B&B relied on the buy-to-let market and self-certified mortgages to make fat profits and is just the latest casualty of the false economic boom. The buy-up is the latest in a string of government measures to dig itself out of a hole.

When the cash to prop up the toxic debt side of the business dried up, the bank looked to its pals in government to help it out, leaving the government and the taxpayers with the toxic 'bundled' bad debt side and the defaulters.

Board members are entitled to a pay-off equivalent to their annual salary. And with greedy City slickers and arse lickers - that's a lot of cash. Northern Rock chief executive Adam Applegarth left with more than £1.1m.

Yesterday it was asked here just how far is this government prepared to go, to mask its economic incompetence and keep its pals in the City sweet? 

Government borrowing is at a record high. Official figures showed the budget deficit soared to £24.4 billion in the three months to June, its highest level since records began.

Brown will have to borrowing billions more as the economy faces a housing slump, soaring inflation, record unemployment and recession.

Brown set himself the golden borrowing rules way back in 1997 as a guarantee to the City that he would not overspend and overborrow, preventing its total debt mountain climbing above 40 per cent of gross domestic product (GDP). 

But with crafty PFI deals to mask the true cost of borrowing, public finances are in a mess and, forced to nationalise Northern Rock, those rules are being ditched. 

The B&B fiasco shows time has run out on the UK economy. It is bankrupt. It will need to rely on the charity of the International Monetary Fund (IMF). But the IMF will demand the government cuts expenditure. 

Brown has sat back and allowed both consumers and his own government to borrow much more than they can afford. 

When we face mounting debt, the only answer is to cut back. So too with government. A wind of terrible change will have to blow through the economy. That is the price of reckless borrowing. We can weather the economic storm, but not with borrowing Brown and his New Labour gang at the helm.

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Taxpayers Saddled With B&B's Bad Bits

Taxpayers look set to be saddled with Bradford & Bingley's bad debts, as it emerged the government is planning to nationalise the ailing bank. B&B is just the latest casualty of the false economic boom, relying on the buy-to-let market and self-certified mortgages to make a fat profit. 

Now the cash to prop up the toxic debt side of the business has dried up, the bank is looking to its pals in government to help it out. 

With no chance of anyone buying up all the whole of bank, bad debts and all, the cunning plan would be to use billions of pounds of taxpayers cash to buy up the bank, then sell off the profitable savings side of the business to a predatory buyer. 

That leaves the government and the taxpayers with the toxic 'bundled' bad debt side and the defaulters.

The BBC's Robert Peston, who seems to be moonlighting for the treasury these days, reports that the bank will be nationalised using special legislation the Treasury put through when it took Northern Rock into public ownership earlier this year.

But the public have no appetite for another Northern Rock which made huge profits during the good times, leaving customers saddled with debt. Taxpayers won't stomach taking on the liability of Bradford & Bingley as well as the Rock.

In the US, Bush's much-vaunted $700 billion bail-out deal hit the rocks when voters reacted violently to the thought of their tax cash being used to bail-out bank shareholders and executives, while millions suffer under the sub-prime housing misery. 

Few would begrudge the government for protecting the savings part of the business and cushioning the blow for lenders faced with unrealistic debt. 

But the buy-up move is the latest in a string of government measures to dig itself out of a hole, after creating the false 'booming' economy. 

Buying up B&B and just selling off the best bits will leave people asking just how far is this government prepared to go, to mask its economic incompetence and keep its pals in the City sweet. 

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Cameron Must Come Up With Hard Policies

Is it a bird, is it a plane? No, it's Tory saviour, Supercam, who has flown into Brum, needing a few hard policies in his pocket if he's to convince the public he's ready to govern. 

As top dogs and lapdogs lap it up at the conference jolly, don't expect much meat on the bone and Brown's attack-pack could be plotting to rain on the parade. 

For Cameron's Conservatives, the task isn't as easy as last year, when he wowed the crowds. Now voters and the Party faithful, buoyed up by the polls but now starting to slip, are looking for some meat to get their teeth into. 

There'll be something to try to grab a headline, a sound-bite and a nice picture but this is probably neither the time nor the place for a detailed manifesto. 

For too long, the Conservatives been happy to sit on the sidelines and watch the government self-destruct. Recently, they changed tactics, to expose the misleading spin of government announcements. That will continue - after all, it is a public service. 

But now the public will want to see evidence of a government-in-waiting. The Conservatives will have to come up with some hard-headed policies that will strike a chord with voters and let them know where they stand.

The slogan is: "Plan For Change", similar to Obama's campaign message but it's fraught with danger. Sure it rips the government even further but people are wary of change, it makes them feel uneasy and insecure. 

As Obama is finding out, it also begs the question - change to what? 

For the old guard, there'll be something on law and order, defence and school discipline. For the newbies, something to show the caring Conservative side, along with a fudge on green credentials and a move to wrong-foot LibDems over tax cuts. 

What is clear is that the economy must and will take centre stage. People will be looking for something more than knocking the government for the economic mess. They want evidence of a sound economic recovery plan and assurances to reign in the banks and the City and that will be down to Osborne tomorrow.

Cameron has already told the Shropshire Star he'll bring forward a “comprehensive plan” based on “good housekeeping” at the conference to help cure the economic ills.

Meanwhile, Brown and the selfish band of New Labour opportunists, who are a dab hand at spoilers, could try to scupper the Tories.

Last year Brown put the nation on tenterhooks with the election that never was and popped up in Iraq to announce a troop withdrawal that never was. He could try a cabinet reshuffle and another relaunch that never was. But more likely is a major economic or financial move, to steal the show.

The hardest task falls on Cameron on wednesday to try to pull it all together. He can't try the speaking without notes routine again, getting his wife to introduce him has been done before and, the economy aside, he won't want to be pinned down too much on detail. 

Most politicians prefer to speak with forked tongues - it gives them wriggle room for later on. The Conservatives are no different. Even if there isn't much meat on the bone, success will depend on whether voters in England like and, more importantly trust, what they see and hear.

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McCain Wins On Points In Meaty Clash

In one of the most meaty presidential debates ever seen on TV, presentation and policies dominated the contest, with Obama scoring well on domestic issues and McCain on foreign policy. Professional pragmatism versus smooth-talking idealism and McCain won on points. 

The media is already spinning away to contact and convince voters that their man won but away from the biased reporting, the consensus seems to be that McCain had the edge. 

It's all a far cry from the time when stubble-faced Nixon sweated it out with cool kid Kennedy. Now the US is facing the biggest economic meltdown since the 1930s while fighting two wars. Voters are worried about their homes and jobs. Paranoia about global Islamic terrorism takes centre stage. 

Obama came across as just too rehearsed. McCain was right at home with a folksy style, talking about foreign policy. Several times Obama seemed to agree with McCain.

Obama constantly looked back, blaming Bush and McCain for everything that’s ever been wrong in the world.

McCain will not convince the die-hard Obama supporters but he held his ground and that’s what the American people are looking for.

He was cool, informed and forceful. In these hard times voters just want a strong commander-in-chief and a trusted hand on the economic tiller. 

Where Obama did score better was on the domestic front, where he tried  to link McCain to Bush's  failed "economic philosophy". 

But Obama did little to convince voters that he’s experienced enough to handle foreign affairs and defence.  

Political bloggers are having a field day but in the Main stream media it's hard to get an unbiased opinion. Perhaps only the Wall Street Journal can be relied on, noting that both won in their comfort zones:

"The first Presidential debate last night was notable for playing to type. Neither candidate broke from talking points, neither one made a gaffe, and both men won on the grounds where they are most comfortable -- John McCain on foreign policy, and Barack Obama on domestic issues."

McCain needs something to lift his spirits and bounce back in his flagging polls after painful Palin's disaster of a TV interview. And last night's first set-piece TV debate may just swing it. 

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Kelly Nails Miliband Colours To Her Mast

The mystery whether transport secretary, Ruth Kelly, jumped ship or was thrown overboard soon after Brown's conference speech, is clearer today, in a frank interview in which she fears a "drift to the Left" and heaped praise on Blair-boy Miliband. The "family reasons" excuse doesn't hold water. 

Kelly told the London Evening Standard: "The danger is very clear. The centre ground was forged for Labour by Blair and Brown in the run-up to 1997. Now there are people who see an opportunity to row back on that."

With a leadership challenge to Brown from the selfish opportunists in the Blairite Progress group, Kelly is in no doubt that heir-to-Blair Miliband is the best man for the job.

"He is one of the great talents the Cabinet - a star of the future, a real asset and a good friend," she said. 

It seems that Blairite challenge is still alive and the Brownites did indeed claim their first scalp as indicted here. Kelly hinted that more may follow in a cabinet reshuffle.

The expected true Labour challenge to the leadership didn't materialise over the summer. Instead it seems the trade unions have wrung some serious concessions out of Brown in return for party funding. 

Top of that list would have been action over the City fat cats who have helped to cause the current financial crisis. But Kelly said it was essential that the goverment remained "pro-aspiration, probusiness and pro-market".

"There are those in the party who want us to raise draconian regulation and restrict City bonuses. I don't agree," she said.

Kelly, who has lent a willing ear to government lobbyists in the Heathrow expansion plan and a number of high profile government lobbies, could be carving herself out a career move in the City. 

"Of course bonuses should not be for irresponsible short-term behaviour. But it's easy to have a knee-jerk reaction and as a party, we have to be very wary. If you go down that road, you can end up drawing the wrong policy conclusions, " she said.

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Brown Comforts Bush In Bail-Out Breakdown

Bad-boy Bush is taking time out from digging himself out of his economic hole, later today, to pose with Brown for the Downing Street family album. Meanwhile, wife Sarah has already got her picture taken with the sisterhood.

Brown's aides must have called in a few favours yesterday, as it became clear no-one wanted to meet up with him, so they tried to fix up a hastily arranged photocall at the White House.

Bush is having to wriggle hard as it becomes clear the US economic meltdown was the result of years of him letting the fat cats in Wall Street trouser billions of dollars with few checks or balances.

Brown isn't even bothering to wriggle - instead he cut a lonely figure as he wandered aimlessly around the UN, talking about mosquito nets and "Millennium Development Goals". 

The Democrat-controlled Congress won't let Bush get away with it that easily and are stalling for time over the $700 billion bail-out deal to buy up the bank's 'toxic' bad debts. 

Instead they are insisting tax-payers cash doesn't go straight back into the pockets of the Wall Street executives, proper checks are in place and the cash will also be used to help out the thousands of people caught up in the sub-prime housing misery.

But no-one has stopped to ask just where did the figure of $700 billion come from? Apparently it was plucked out of thin air, because it's a really big number.

Apart from comforting each other over the economic mess they've both created, today's meeting with Bush will have another agenda. Bush could tell Brown just when he can pull troops out of Iraq and just how many more troops he's got to send to Afghanistan. 

Meanwhile wife Sarah is having a ball, having her picture taken with Sarah Palin and Wendi Deng Murdoch (Sarah B is the one on the left). What do these three fine looking gals have in common? They all have links to the Tony Blair fan club. 

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New Look For Orange Party Blog

Four months after its birth, the Orange Party political blog has had a face-lift, to give it a cleaner look and uncluttered feel.  

Unlike some newspapers which have gone for all style over substance, the aim remains the same - to inject a dose of real clear political journalism without distractions or political interference.

While focussing on English politics, the brief has expanded since the blog launched in May of this year, to take in the US presidential campaign, because the outcome affects us all. 

What wasn't expected was the huge number of visitors from the US and outside the UK. But the core reporting remains England-centric.

Under the heading "A New Beginning?", posted in May, the observations are as true now as they were then - probably more so: 

The New Labour Project is dead. In 1997, the Gang of Four hijacked the Labour Party. It was kept going by the superb showmanship of Blair, the sinister spin of Campbell, the crafty accounting of Brown and the shifty skulduggery of Mandelson. 

Brown and New Labour just don't get it. The Project only worked with a smiley face up front. Now, after 11 years, people have finally woken up to the con and won't be taken in by any more spin and hype. Soon New Labour will be just a sad and embarrassing footnote in history.

New Labour and the Political Elite will try to hang on and relaunch (again). But with no viable front person to replace Brown, they are all doomed. Eventually they will have to give up and the Party will probably go back to its true Labour roots. 

The LibDems have blown it. By electing Clegg they missed the signs of the winds of change and went for a telegenic New Labour clone. 

The Conservative just don't know where to position themselves. Is Cameron still the heir to Blair? Now no one knows. The rise in popularity of the Tories is a vote against New Labour rather than a vote for the Tories.

In Scotland, the SNP is establishing itself as the party for the people of Scotland. In Wales, the Welsh Labour Party is putting water between itself and Westminster and will eventually join with Plaid Cymru in a reformed Welsh National Party. In Northern Ireland, politicians from all parties are trying to make a peaceful solution work - in the best interests of Northern Ireland.

So what of the future? Events, dear chap, events...

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