Russia: To Develop Ties With West


8:32pm UK, Sunday August 31, 2008












Russian president Dmitry Medvedev wants to develop ties with the West as far as possible and does not want isolation, the Interfax news agency reports.









What a difference a month makes: Brown and Medvedev in July



But he said there is no turning back on the decision to recognise Georgia’s Abkhazia and South Ossetia as independent states and will provide military support to rebels.


Gordon Brown has threatened a “root and branch” review of relations with Russia, insisting it must not be allowed to hold the Westinter to ransom.


The Prime Minister has accused the Kremlin of “dangerous and unacceptable” behaviour, saying it is using energy resources as a “policy tool”.


EU leaders will meet in Brussels on Monday to discuss the South Ossetia crisis and Mr Brown said he had warned Mr Medvedev to expect a “determined” response.


The summit comes amid growing fears that Moscow could “turn off the taps” in order to win any showdown, potentially wreaking havoc on Western economies.


Writing in The Observer, the PM argued that in the longer term the world would need to reduce its reliance on Russia for energy, by seeking out alternative suppliers and pushing ahead with other sources such as nuclear power.


“My message to Russia is simple,” he insisted. “If you want to be welcome at the top table of organisations such as the G8, OECD and WTO, you must accept that with rights come responsibilities.


“We want Russia to be a good partner in the G8 and other organisations, but it cannot pick and choose which rules to adhere to.


“That is why I will argue tomorrow that Russia should accept Georgia’s territorial integrity and international mechanisms for addressing these conflicts, and withdraw troops to their previous positions.


“And, in the light of Russian actions, the EU should review - root and branch - our relationship with Russia.


“We should continue to strengthen the transatlantic relationship and may need to meet more regularly as the G7.


“We are also reflecting on the Nato response. We must re-evaluate the alliance’s relationship with Russia, and intensify our support to Georgia and others who may face Russian aggression.”


Shadow foreign secretary William Hague has agreed with Mr Brown, telling Sky News: “It is very important for the EU now to reassess its relationship with Russia and send a very clear message.


“I do not think the measures looked at tomorrow should be cheap or quick. This requires clear and united and patient firmness over a sustained period of time.”


Mr Brown highlighted the fact that Britain is set to import two-thirds of its gas and almost half its oil by 2020, as prices for the resources soar.


He insisted that the EU could not risk sleepwalking into an energy dependence on less stable or reliable partners, especially when states such as Russia were “increasingly using their energy resources as policy tools”.


“Tomorrow’s summit must add urgency to the work on Europe’s energy agenda. We must more rapidly build relationships with other producers of oil and gas,” Mr Brown wrote.


“I will also be pressing European leaders to increase funding for a project to allow us to source energy from the Caspian Sea, reducing our dependence on Russia.


“I will encourage European partners to use our collective bargaining power rather than seek separate energy deals with Russia.”


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Obama on “60 Minutes”: Biden Pick, Reaction to Palin

Barack Obama and Joe Biden sat down with 60 Minutes correspondent Steve Kroft Friday night in Pittsburgh for an interview to be broadcast on this Sunday, Aug. 31, at 7 p.m. ET/PT.

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Republicans propose borrowing, cuts to balance California budget

SACRAMENTO —
Republican lawmakers, who are blocking plans by the governor and Democrats to raise taxes, proposed Saturday to balance the state budget instead with borrowing and deeper spending cuts.

Their plan, released 61 days into the new fiscal year, is the first complete budget offered by the Republicans. A vote on the proposal is not expected for days.

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GOP Veepstakes: How We Missed It

ST. PAUL — When The Fix’s final GOP Veepstakes Line came out, Alaska Gov. Sarah Palin wasn’t even on it.

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GOP Is Watching Hurricane Closely

ST. PAUL, Minn., Aug. 30 — With Hurricane Gustav gaining power as it nears the Gulf Coast, Republicans scrambled Saturday to make contingency plans for changing the tone of their national convention, worried that televised images of a lavish celebration would provide a jarring contrast to scenes of disaster and mass evacuations.

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McCain and Palin team up as Gustav looms

ST LOUIS (Reuters) - White House hopeful John McCain and running mate Sarah Palin hit the campaign trail as a team on Saturday, seeking to build on the momentum of her surprise addition to the Republican ticket even as Hurricane Gustav threatened to overshadow next week’s party convention.

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McCain, Palin in Pa.; GOP convention eyes Gustav (AP)

“I would like, obviously, to keep in our thoughts and prayers the people on the Gulf Coast, especially in New Orleans, that are threatened by this terrible natural disaster of a hurricane,” McCain said, recalling the devastation New Orleans suffered after Hurricane Katrina flooded the city three years ago.

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Bush says economy on the upswing

ContentType:Spot Development; ContentElement:FullStory;
Breaking:True;

WASHINGTON (AP) - President Bush said Saturday that Americans
may have cause this Labor Day weekend to start worrying less about
the nation’s - and their families’ - economic health.

“There have been some recent signs that our economy is
beginning to improve,” Bush said in his weekly radio address.

Among the positive signs that Bush referenced was a report
Thursday that the overall economy, as measured by the gross
domestic product, rose by 3.3 percent in the April-June quarter.
This surprised analysts and was a significant rebound from growth
of just 0.9 percent in the first quarter of the year. Most credit
was given to the $93 billion in economic stimulus payments the
federal government has sent to households since May.

However, other economic news this week showed that right after
that second quarter, in July, consumer spending slowed to a crawl
and personal incomes plunged.

With few stimulus payments still to go out, some economists
worry consumer spending will continue to falter. Since it accounts
for two-thirds of economic activity, that could send economic
growth tumbling again in the second half of the year, particularly
given rising unemployment, a continuing credit crisis and the
deepest housing slump in decades.

Democrats, including presidential nominee Barack Obama, are
calling for the government to pass a second stimulus package to
guard against that.

But Bush has resisted, expressing concern about the impact on
the budget deficit and insisting the rebate payments will continue
to support the economy in coming months.

He praised the impact of the current stimulus package in
language that suggested he remains opposed to another.

“The economic stimulus package that I signed earlier this year
is having its intended effect,” the president said. “Many
Americans who received tax rebates are spending them. Businesses
are taking advantage of tax incentives to purchase new equipment
this year. And there are signs that the stimulus package will
continue to have a beneficial impact on the economy in the second
half of the year.”

Still, despite his optimistic outlook, Bush took care to express
sympathy with those grappling daily with pocketbook worries.

“There are families across our country struggling to make ends
meet,” he said. “There is an understandable concern about the
high price of gas and food. And many Americans are worried about
the health of our housing and job markets. I share these concerns
about our economy.”

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McCain’s VP surprise




















ST. PAUL, Minn. - Republican Sen. John McCain yesterday introduced first-term Alaska Gov. Sarah Palin as his vice presidential running mate, picking a government reformer he said would “help me shake up Washington.”

The choice of the 44-year-old governor stunned Republican allies and prompted many Democrats to allege that Palin did not meet McCain’s oft-stated standard that his running mate must be ready to serve as president at a moment’s notice.

Republican strategists and political analysts said that Palin, a social conservative who staunchly opposes abortion, could help energize the right wing of the GOP, which has been cool to McCain. They also said she might attract working-class voters and women who supported Sen. Hillary Rodham Clinton in the Democratic primary campaign.

“Conservatives will be thrilled with this pick,” said GOP strategist Greg Mueller. “Gov. Palin is a down-the-line mainstream conservative who will energize the base and reach across party lines, attracting women voters, independents and blue-collar Democrats.”

Indeed, James Dobson, leader of Focus on the Family, said the pick was a “good sign” for McCain’s campaign.

As she stepped onstage at a rally in Dayton, Ohio, with McCain yesterday, Palin paid homage to two Democrats: Geraldine Ferraro, the first female candidate for vice president on a major-party ticket in 1984, and Clinton.

“It was rightly noted in Denver this week that Hillary left 18 million cracks in the highest, hardest glass ceiling in America,” Palin said. “But it turns out that the women of America aren’t finished yet, and we can shatter that glass ceiling once and for all.”

The partisan GOP crowd seemed surprised at her praise of the former first lady’s “grace” and “toughness,” but it echoed the “Yes, we can” mantra made famous at the rallies of the Democratic nominee, Sen. Barack Obama. Recent polls found up to one-third of disappointed Clinton supporters might vote for McCain.

“I have found the right partner to fight those who put their privilege ahead of their responsibility, power ahead of principle,” said McCain, who turned 72 yesterday. “She knows where she comes from, and she knows who she works for. She stands up for what’s right, and she doesn’t let anyone tell her to sit down.”

Democrats called the pick panicky.

“Is this really who the Republican Party wants to be one heartbeat away from the presidency?” said Rep. Rahm Emanuel of Illinois, the House Democratic Caucus chairman, noting that Palin was until two years ago the mayor of a small town.

Politically, strategists in both parties said that picking Palin could nullify McCain’s strongest argument against Obama - that the first-term senator is too inexperienced to lead a nation at war and protect the United States against terrorism.

“Certainly the choice of Palin puts to rest any argument about inexperience on the Democratic team . . . her inexperience makes the thought of her assuming the presidency troubling,” Sen. Charles Schumer (D., N.Y.) said.

Democrats also argued that Palin’s opposition to abortion rights would make her a tough sell to the majority of women who voted for Clinton.

Palin said she believed the purpose of holding elected office is to “challenge the status quo and serve the common good.”

Elected in 2006 as Alaska’s youngest - and first female - governor, Palin is known as a reformer who believes in curbing government spending. In her first year, she introduced legislation cracking down on ethics abuses in government and slashed $124 million from the state budget.

Palin also has tangled with Republican party bosses, refusing, for instance, to accept federal money for the infamous “Bridge to Nowhere” sponsored by Sen. Ted Stevens (R., Alaska). She also took on the state’s powerful oil industry, pushing through a profits tax that has improved Alaska’s fiscal condition and allowed her to lower taxes on residents.

Describing herself as a “normal hockey mom,” Palin has said her favorite food is mooseburgers. She got involved in politics first as a PTA member, and then was elected to city council and as mayor of Wasilla, a city of about 8,000 residents 30 miles from Anchorage. She and her husband have five children, including an infant who was born with Down syndrome earlier this year.

Palin’s refusal to consider an abortion has made her a hero to the pro-life movement.

A star on her state championship high school basketball team - as a point guard nicknamed “Sarah Barracuda” - Palin also was a beauty queen in Wasilla. As mayor she became a persistent critic of wasteful state government spending and ethics abuses. After a narrow loss in the 2002 primary for lieutenant governor, she was appointed to the state’s oil and gas commission. Two years ago, Palin defeated an incumbent Republican who was embroiled in an ethics scandal.

President Bush, in a statement, praised Palin as a “working mother” and a “proven reformer who is a wise steward of taxpayer dollars and champion for accountability in government.”

McCain was said to be impressed with Palin’s record, despite one blemish. The Alaska Legislature is investigating her firing of the public-safety commissioner, allegedly because he refused to fire a state trooper embroiled in a divorce with Palin’s sister.

Campaign officials told reporters that McCain met Palin only six months ago and settled on her after a phone conversation Sunday and one meeting Thursday.

The Obama campaign also seemed surprised at the choice. At first, Obama spokesman Bill Burton blasted her as having “zero foreign-policy experience.”

Later, Obama and his running mate, Sen. Joseph R. Biden Jr. of Delaware, issued a statement welcoming Palin as “yet another encouraging sign that the old barriers are falling in our politics,” though they disagree with her on policy. Clinton echoed the sentiment.

 


INSIDE


A surprising

pick, but not unknown, as groups from

the left and right weigh in. A12.

Far from D.C.,

an Alaskan “hockey mom” who led ethics fight. A13.

Not long ago, Sarah Palin was mayor of Wasilla, Alaska (pop. 8,000). A mayor here tells what

it takes to

do the job. A13.


Contact staff writer Thomas Fitzgerald at 215-854-2718 or tfitzgerald@phillynews.com.

 





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Stark Warning On Economic Future


10:34pm UK, Friday August 29, 2008












Britain is facing “arguably the worst” economic downturn in 60 years, Chancellor Alistair Darling has warned.









Stark warning from Chancellor Alistair Darling



In an interview in the Guardian newspaper the Chancellor predicts the crisis will be “more profound and long-lasting” than people expect.


The stark warning follows a prediction from a Bank of England policymaker that two million people could be unemployed by Christmas.


In the interview Darling admits he had no idea how serious the credit crunch would become and says Labour is facing its toughest challenge in a generation.


He says: “And I think it’s going to be more profound and long-lasting than people thought.


“We’ve got our work cut out. This coming 12 months will be the most difficult 12 months the Labour party has had in a generation.


“We’ve got to rediscover that zeal which won three elections, and that is a huge problem for us at the moment.”


Darling also predicts there will be no leadership challenge against Gordon Brown and reveals that the prime minister has no plans to carry out an imminent cabinet reshuffle.


Darling, who speaks about how the prime minister is one of his oldest friends in politics, admits Brown has so far struggled to connect with voters.


The interview was designed to show the chancellor in a more personal light after a year in which he shouldered much of the criticism over the collapse of Northern Rock and the loss of discs containing details of half the population


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