Miliband Slips on Another Banana Skin

WEDNESDAY, JANUARY 21, 2009

Miliband Slips on Another Banana Skin

David Miliband travels the world stepping from one banana skin to another. After insulting Manmohan Singh in his own drawing room,* resulting in the worst diplomatic flap with India in living memory. The Indian PM has, Guido understands, written a frank letter to Gordon Brown conveying New Delhi's disappointment over the behaviour and comments of the "arrogant" Foreign Secretary.

Miliband gave a speech a few days ago, perhaps hoping to curry favour with the incoming administration, by dissing and disavowing the outgoing George Bush's "War on Terror". Miliband said the notion of the "War on Terror" is misleading and mistaken. That would be the "War on Terror" which British soldiers are dying fighting.

So what did Obama say about the subject yesterday? He said;

Our nation is at war, against a far-reaching network of violence and hatred.... We will not apologize for our way of life, nor will we waver in its defense, and for those who seek to advance their aims by inducing terror and slaughtering innocents, we say to you now that our spirit is stronger and cannot be broken; you cannot outlast us, and we will defeat you.

Obama will fight on, perhaps without Miliband.

*The Militwat once publicly lectured Guido on how to blog at a New Statesman event.So Guido knows how Manmohan Singh feels.

Economic Recovery Needs the Audacity of Hope

The City, home of eternal optimists, has begun to seriously price in the all too real risk of national bankruptcy. It would be the first time Britain has defaulted on the national debt since the dark ages. An historic legacy for the former chancellor who, ironically, once claimed to be prudent.

Guido had lunch with a Labour MP recently, when the conversation turned to the economy it became clear that the City and finance were a foreign place, far away, not really understood. The important thing was that there were new hospitals and schools. That the lights may go out with teachers and nurses left unpaid as result of New Labour's Peronismo policies was not contemplated.

In contrast the writers on the Telegraph have gone into apocalyptic group-think; Simon Heffer wants the IMF in immediately to deal with the insanity of Brown, horrified that £37 billion has been wasted on the banks "a sum larger than our defence budget", Iain Martin reckons history will see Gordon Brown as the Neville Chamberlain of economics, Ambrose Evans-Pritchard warns of the perilous mismatch between Britain's foreign reserves at £61 billion (less than Thailand's reserves) when our foreign liabilities are $4.4 trillion.

Clearly the dire economic situation is of an historic and epic magnitude. Brown is doing the only thing he knows, throwing taxpayer's money down the plug-hole. The opposition response has been slow to coherence, now under the slogan of sound moneythey tentatively advocate fiscal responsibility coupled with measures to boost business lending. When seeking to blame Brown for the perilous debt situation, they need to avoid being relentlessly negative, Labour will accuse them of "talking down the economy". It is a long dark tunnel, yet the opposition needs to offer some optimism and hope that there is light at the end of the tunnel.