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Canada rallies to a new type of leader

Jack Layton’s New Democrats have come from nowhere to challenge the ruling Conservatives There is a buzz, even in the rainswept air along Danforth Avenue, as lunchtime

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Greece: ‘Only tourism can save us’

With debts of €340bn, Greece is turning to its cultural heritage to attract a better class of visitor and make tourism the engine of the Greek economy You come to Delos by way of its ancient harbour. This, one suspects, is just as Apollo would have wished. For it is here, under the shade of a palm, that they say the god of light was born. Far removed from the merry-go-round that is Athens – or the fears over Greece’s economic plight that have reached fever pitch – the uninhabited isle is afforded a reverence that few others know. But for those braving the wind-swept seas on a Delos-bound ferry from Mykonos last week, there was no escaping the realisation that that crisis has also reached these hallowed parts. With litter bobbing on a film of filth off its beaches, its museum shop flooded and closed, and treasures – including the island’s famous lions – consigned to a building blighted by cracks, cobwebs and rusty scaffolding, the signs were hard to ignore. Lack of staff meant most of the gems had been roped off. “What can I say?” spluttered Fani Iosifidou, one of three employees guarding the site’s myriad, poppy-strewn temples, mosaics and statues. “The culture ministry was meant to dispatch more personnel at the beginning of the season but we’re still waiting. There are simply not enough of us here. If we don’t close off that space,” she said, pointing to the lions, “people go and sit on them. It’s a terrible thing.” The economic crisis that has engulfed Europe’s periphery – peaking with reports, flatly denied by the government, that Athens was poised to exit the eurozone and reinstate the drachma as its currency – is hitting at the heart of the debt-stricken country where it first erupted. A year to the week after receiving rescue loans worth €110bn, the biggest bailout in western history, austerity-plagued Greece is still struggling to stave off economic collapse. Amid frenzied speculation that it will soon have no choice but to restructure a debt load estimated at €340bn and climbing, eurozone finance ministers announced that they would meet to discuss whether Athens needs even more aid – a scenario bound to send further tensions through the EU. But for the Greeks, who have dismissed the suggestion of a euro exit as a “joke”, the answer lies closer to home – in tourism, a sector that accounts for one out of five jobs and 18% of GDP. Even as places like Delos struggle to make the best of their antiquities and museums, there is a growing recognition that economic recovery lies with a sector that for far too long has relied on tour operators and cheap mass travel. And in order to lure visitors, there is a sense for the first time that the nation must tap into its immense cultural wealth – a heritage too often neglected – as well as its natural beauty. “Tourism can be the star of development … a model for economic development,” said the socialist prime minister, George Papandreou, in a keynote speech to industry figures. “The reputation of our country is strengthened when the wealth of our monuments is displayed and when it is associated with myth, history, tradition, Greek produce and Greek

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Greece: ‘Only tourism can save us’

With debts of €340bn, Greece is turning to its cultural heritage to attract a better class of visitor and make tourism the engine of the Greek economy You come to Delos by way of its ancient harbour. This, one suspects, is just as Apollo would have wished. For it is here, under the shade of a palm, that they say the god of light was born. Far removed from the merry-go-round that is Athens – or the fears over Greece’s economic plight that have reached fever pitch – the uninhabited isle is afforded a reverence that few others know. But for those braving the wind-swept seas on a Delos-bound ferry from Mykonos last week, there was no escaping the realisation that that crisis has also reached these hallowed parts. With litter bobbing on a film of filth off its beaches, its museum shop flooded and closed, and treasures – including the island’s famous lions – consigned to a building blighted by cracks, cobwebs and rusty scaffolding, the signs were hard to ignore. Lack of staff meant most of the gems had been roped off. “What can I say?” spluttered Fani Iosifidou, one of three employees guarding the site’s myriad, poppy-strewn temples, mosaics and statues. “The culture ministry was meant to dispatch more personnel at the beginning of the season but we’re still waiting. There are simply not enough of us here. If we don’t close off that space,” she said, pointing to the lions, “people go and sit on them. It’s a terrible thing.” The economic crisis that has engulfed Europe’s periphery – peaking with reports, flatly denied by the government, that Athens was poised to exit the eurozone and reinstate the drachma as its currency – is hitting at the heart of the debt-stricken country where it first erupted. A year to the week after receiving rescue loans worth €110bn, the biggest bailout in western history, austerity-plagued Greece is still struggling to stave off economic collapse. Amid frenzied speculation that it will soon have no choice but to restructure a debt load estimated at €340bn and climbing, eurozone finance ministers announced that they would meet to discuss whether Athens needs even more aid – a scenario bound to send further tensions through the EU. But for the Greeks, who have dismissed the suggestion of a euro exit as a “joke”, the answer lies closer to home – in tourism, a sector that accounts for one out of five jobs and 18% of GDP. Even as places like Delos struggle to make the best of their antiquities and museums, there is a growing recognition that economic recovery lies with a sector that for far too long has relied on tour operators and cheap mass travel. And in order to lure visitors, there is a sense for the first time that the nation must tap into its immense cultural wealth – a heritage too often neglected – as well as its natural beauty. “Tourism can be the star of development … a model for economic development,” said the socialist prime minister, George Papandreou, in a keynote speech to industry figures. “The reputation of our country is strengthened when the wealth of our monuments is displayed and when it is associated with myth, history, tradition, Greek produce and Greek

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Gunmen and suicide bombers hit at least five targets as insurgents aim to take control of provincial capital The Taliban launched an unprecedented, multi-pronged attack on Kandahar, with commanders claiming they aimed to “take control of the city”. The assault by gunmen and suicide bombers on at least five targets in the southern city began at midday and, according to insurgents who talked to the Observer by phone during the fighting, involved hundreds of attackers. The sustained attack on government buildings wounded at least 24 people and created chaos in the capital of a province Nato has spent the past year trying to secure. The dream of turning the city into a bulwark of security was badly tarnished, with people fleeing to their homes, shuttering shops and leaving the streets empty save for the sound of gunfire and explosions. Haji Pacha, an influential elder from the Alokozai tribe, said Kandahar was “completely empty. There is fighting still going on in at least three districts of the city and all the shops are closed, the people are completely terrified,” he said by telephone. The fighting began with an explosion outside the provincial governor’s compound, followed by gunfire from the upper levels of a five-storey shopping centre. One Taliban commander, who would not give his name but who was directing an attack on the governor’s compound, said that some civil servants, who have been the subject of a ruthless assassination campaign by insurgents, were using civilians as human shields. “They are forcing themselves into cars with civilians to try and escape because they know we don’t target civilians,” he said. The commander, who claimed that he had 40 men attacking the compound, said the plan to attack multiple targets was designed to overwhelm security forces. “We know that if we attack one place all the security people will come and surround us; this way they can’t stop us,” he said. He also claimed that Taliban fighters, many of whom had escaped from the city’s main jail last month, had managed to block major roads leading to the city. The Taliban did not link the ambitious attack to the killing of Osama bin Laden, saying the assault had been planned for weeks. An announcement on the movement’s website said the attack was part of “Operation Badar”, the name the Taliban have given to their spring offensive, and was intended to turn Kandahar city into a “scene of bloody fighting”. It said they had targeted the offices of the governor, the national security directorate, police headquarters and “a local spy agency” – an apparent reference to a US special forces base. In a separate statement, the Taliban commented at length about the death of Bin Laden for the first time. It said that the “martyrdom of Sheikh Osama … will blow a new spirit into the jihad against the occupiers”. Meanwhile, Ahmed Wali Karzai, the head of Kandahar’s provincial council, said the assault on the city was “not serious at all”, and that the situation was under control. “Everyone knows that these types of attacks, with suicide bombers and a few people hiding and shooting, are difficult to stop and can happen anywhere,” he said, adding that the attack had done nothing to undermine the security gains in the city and province in recent months. “The Taliban are desperate. They cannot do anything else but try to create news,” he said. Afghanistan Taliban Jon Boone guardian.co.uk

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Gunmen and suicide bombers hit at least five targets as insurgents aim to take control of provincial capital The Taliban launched an unprecedented, multi-pronged attack on Kandahar, with commanders claiming they aimed to “take control of the city”. The assault by gunmen and suicide bombers on at least five targets in the southern city began at midday and, according to insurgents who talked to the Observer by phone during the fighting, involved hundreds of attackers. The sustained attack on government buildings wounded at least 24 people and created chaos in the capital of a province Nato has spent the past year trying to secure. The dream of turning the city into a bulwark of security was badly tarnished, with people fleeing to their homes, shuttering shops and leaving the streets empty save for the sound of gunfire and explosions. Haji Pacha, an influential elder from the Alokozai tribe, said Kandahar was “completely empty. There is fighting still going on in at least three districts of the city and all the shops are closed, the people are completely terrified,” he said by telephone. The fighting began with an explosion outside the provincial governor’s compound, followed by gunfire from the upper levels of a five-storey shopping centre. One Taliban commander, who would not give his name but who was directing an attack on the governor’s compound, said that some civil servants, who have been the subject of a ruthless assassination campaign by insurgents, were using civilians as human shields. “They are forcing themselves into cars with civilians to try and escape because they know we don’t target civilians,” he said. The commander, who claimed that he had 40 men attacking the compound, said the plan to attack multiple targets was designed to overwhelm security forces. “We know that if we attack one place all the security people will come and surround us; this way they can’t stop us,” he said. He also claimed that Taliban fighters, many of whom had escaped from the city’s main jail last month, had managed to block major roads leading to the city. The Taliban did not link the ambitious attack to the killing of Osama bin Laden, saying the assault had been planned for weeks. An announcement on the movement’s website said the attack was part of “Operation Badar”, the name the Taliban have given to their spring offensive, and was intended to turn Kandahar city into a “scene of bloody fighting”. It said they had targeted the offices of the governor, the national security directorate, police headquarters and “a local spy agency” – an apparent reference to a US special forces base. In a separate statement, the Taliban commented at length about the death of Bin Laden for the first time. It said that the “martyrdom of Sheikh Osama … will blow a new spirit into the jihad against the occupiers”. Meanwhile, Ahmed Wali Karzai, the head of Kandahar’s provincial council, said the assault on the city was “not serious at all”, and that the situation was under control. “Everyone knows that these types of attacks, with suicide bombers and a few people hiding and shooting, are difficult to stop and can happen anywhere,” he said, adding that the attack had done nothing to undermine the security gains in the city and province in recent months. “The Taliban are desperate. They cannot do anything else but try to create news,” he said. Afghanistan Taliban Jon Boone guardian.co.uk

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Cue the waaaahmbulance: Brent Bozell whines that Bush didn’t get any credit for getting Bin Laden — or ‘winning the Iraq war’

Click here to view this media Sean Hannity was busy all week flogging the torture-apologist line, claiming (falsely) that the torture of Khalid Sheikh Mohammad produced the intel that led to the raid that killed Osama bin Laden. Last night he had on his buddy Brent Bozell of the wingnut Media Research Center to continue flogging this line: HANNITY: And none of it would have happened but for George W. Bush, enhanced interrogation, rednition, black sites — they don’t touch it! They don’t mention it, Brent Bozell. Why? BOZELL: Think about this, Sean, what Barbara Walters just said. ‘But it was Obama who had the courage and the guts and the coolness.’ Oh, George Bush didn’t have courage and guts and coolness? You know — even Bill Clinton! He didn’t have courage and guts. Only Osama bin Laden — I mean, [giggles], Barack Obama — had the courage and the guts and the coolness? Look, you want to praise the man for — the president for what he did? I’m all for that. He did a great job. But my God, where were they when George Bush won us the war in Iraq? Where were they praising him? And why can’t they — why can’t they give him the most minimal praise? It is because of this man’s techniques — that they condemned all these years — it’s because of those techniques that that man is dead today. Ah, yes, the “Bush deserves credit” line that Fox & Friends trotted out on Monday. Actually, Bozell was quick to jump on that bandwagon, complaining earlier this week that Obama himself snubbed President Bush in his speech announcing the raid: Unfortunately, while the president spoke for the whole country in remembering the pain of 9/11, his remarks left a gaping hole. He made no generous bow to all the efforts of his predecessor George W. Bush as well as his team. My one regret is that Bush 43 didn’t get this scalp. He deserved it more than anyone. Instead, Obama played subtle and wholly undignified games. He underlined that Osama had “avoided capture” under Bush and “continued to operate” during his tenure. But “I directed” CIA director Leon Panetta to make getting Osama the “top priority” (as opposed to?), and “I” gave the go-ahead to the final mission. Obama also avoided Bush in a Medal of Honor ceremony on Monday afternoon. Even in a Monday night “bipartisan” event at the White House, Obama honored the “military and counter-terrorism professionals” and “the members of Congress from both parties” who offered support to the mission….but no credit for Bush. If the roles had been reversed, you know Bush would have been more generous. It’s what Bushes do. Oh, we remember what Bushes do, all right. The last one ran the presidency like a hung-over, coked-out spoiled preppie out careering through the skies in a Texas Air National Guard F-102, half asleep at the wheel. And when he eventually had to unceremoniously bail out just as he crashed the economy, he and his conservative apologists somehow managed to blame it on minority lending practices. [Later in this Hannity episode, Bozell adds that "the far left is not happy that Osama bin Laden is dead." Oh really, Brent? Do you have any evidence of that?] But there’s a problem: Bush really deserves very little credit at all for the success of this operation — because the death of Bin Laden, as every serious foreign-policy person understands, is a direct result of Obama’s decision to adopt a completely new strategy against Al Qaeda: Behind Obama’s takedown of the Qaida leader this week lies a profound discontinuity between administrations—a major strategic shift in how to deal with terrorists. From his first great public moment when, as a state senator, he called Iraq a “dumb war,” Obama indicated that he thought that George W. Bush had badly misconceived the challenge of 9/11. And very quickly upon taking office as president, Obama reoriented the war back to where, in the view of many experts, it always belonged. He discarded the idea of a “global war on terror” that conflated all terror threats from al-Qaida to Hamas to Hezbollah. Obama replaced it with a covert, laserlike focus on al-Qaida and its spawn. This reorientation was part of Obama’s reset of America’s relations with the world. Bush, having gradually expanded his definition of the war to include all Islamic “extremists,” had condemned the United States to a kind of permanent war, one that Americans had to fight all but alone because no one else agreed on such a broadly defined enemy. (Hez­bollah and Hamas, for example, arguably had legitimate political aims that al-Qaida did not, which is one reason they distanced themselves from bin Laden.) In Obama’s view, only by focusing narrowly on true transnational terrorism, and winning back all of the natural allies that the United States had lost over the previous decade, could he achieve America’s goal of uniting the world around the goal of extinguishing al-Qaida. Bush had also portrayed al-Qaida and terrorism in general as a millennial threat; he and his top aides especially liked to compare the conflict to the Cold War. “This is the great ideological struggle of the 21st century—and it is the calling of our generation,” Bush said in 2006, in a dramatic rendezvous-with-destiny speech timed to the fifth anniversary of 9/11. “Freedom is once again contending with the forces of darkness and tyranny”—the terrorists who would seek to impose what he called a “totalitarian Islamic empire.” But the comparisons to the Cold War or the fight against fascism in the 1940s were silly. Al-Qaida, even in its best days, never represented anything like the ideological threat from the Soviet Union or the hegemonic threat of Hitler’s Germany. As Wall Street Journal reporter Alan Cullison wrote in a little-noted article in The Atlantic in September 2004, on the eve of 9/11, al-Qaida was a small, fractious group whose members could not even agree among themselves what its goal was. Quoting a remarkable series of letters he found on Ayman al-Zawahiri’s old computer in Afghanistan, Cullison wrote that jihadis who were members of Zawahiri’s Egyptian Islamic Jihad—the biggest component of al-Qaida—still wanted to make Egypt the main enemy. They wanted to focus on the jihadis’ old adversary, the “near enemy” of the repressive Arab regimes, rather than endorse bin Laden’s rather grandiose effort to take on the “far enemy,” the United States. By invading Iraq, the Bush administration resolved the debate for al-Qaida, turning America into the “near enemy.” Years of relief followed for al-Qaida in Afghanistan and Pakistan as Bush dealt with the Iraqi insurgents, lumping them together with the “terrorists” of 9/11 as though one static group of global bad guys existed whom Americans would be fighting at home if they weren’t in Iraq. The 43rd president, in effect, concocted a new war in the middle of a half-finished one, sapping our military, our credibility, our economy, our morale, and our moral standing; alienating much of the world; and diverting our attention from destroying the chief culprit of 9/11. The Bush approach remained scattershot throughout his two terms in office and was conceived “piece by piece,” in the words of one European diplomat in Washington. There is no evidence that Bush ever held a grand strategy session with his principals, in which all of the variables were laid on the table: the price of the global war on terrorism, the strategic goal, and the real costs, in dollars and lives, of an Iraq invasion. The lack of clarity in strategic conception led directly to the imbroglio in Afghanistan and Pakistan today. There is no longer any question that the diversion of U.S. troops and, in particular, intelligence assets and special forces to Iraq in 2002 and 2003 produced a Taliban and Qaida resurgence in South Asia. It also made the Pakistanis—who even in the best of times were playing a double game—hedge about their own strategic shift away from support for jihadis as a counterweight to India. In 2007, Mahmud Ali Durrani, Pakistan’s ambassador to the United States at the time, suggested that this was when Washington began to lose some of his country’s support. After 9/11 mastermind Khalid Shaikh Mohammed was captured in Rawalpindi in March 2003—just as Bush was invading Iraq—“al-Qaida was almost destroyed in an operational sense,” Durrani told me. “But then al-Qaida got a vacuum in Afghanistan. And they got a motivational area in Iraq. Al-Qaida rejuvenated.” Fortunately for the United States, Osama bin Laden made his share of mistakes in the past decade as well. And now, at long last, with America’s focus once again back where it belonged, he has paid for them. Former Defense Secretary Donald Rumsfeld once famously lamented that “we lack metrics to know if we are winning or losing the global war on terror.” Neither he nor other senior members of the Bush administration ever developed those “metrics.” But by any metric, Barack Obama has just tallied a major victory.

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Clips from the al-Qaida leader’s ‘home videos’ show him obsessively watching himself on TV news programmes Home videos of Osama bin Laden seized from the Pakistani compound where he was killed have been released by the Pentagon last night. One tape shows him preparing a video message addressed to the United States while in another Bin Laden, looking like an elderly grandfather with a cap on his head and blanket around his shoulders, holds a TV remote control in his hide-out and watches himself on television. The videos offer the world a tiny glimpse of Bin Laden’s life on the run. The most extraordinary video shows the elderly terrorist in a very different way to normal glimpses of al-Qaida’s dead leader. Gone is the gun-toting rebel or the scholarly sheikh dictating messages to

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Islamaphobia is alive and well. As is irony. Ten years ago these kind of stories were stupid but sort of understandable. Now it’s just plain stupid. Video by WBTV and write-up by WCNC Charlotte. CHARLOTTE, N.C. — Two Muslim religious leaders who were removed from a commercial airliner in Memphis say they were told it was because the pilot refused to fly with them aboard. Masudur Rahman and Mohamed Zaghloul were supposed to travel on an 8:30 a.m. Delta flight, run by a subsidiary, from Memphis, Tenn. to Charlotte. They were traveling to attend a conference of the North American Imam Federation that, ironically, intends to address prejudice against Muslims. … After the plane started taxiing, he said the pilot announced the flight was headed back to the gate. Both men were removed from the plane, and screened again. … After that security check, he said a Delta employee at the gate informed him that the pilot of the flight would not allow him on board. He says the employees in the airport were very apologetic–even angry–and said they tried repeatedly to convince the pilot that he was wrong. … Back in Charlotte, Rahman, a professor at University of Memphis, compared the incident to the story of Rosa Parks. “That history I found today in that plane, and it shouldn’t happen with any other person,” he said. Charlotte-based attorney Mo Idlibi, who accompanied the men once they arrived in Charlotte, said his clients’ would like to see more training for pilots about this sensitive issue. Idlibi continues to investigate the option of a lawsuit. Idlibi said there is precedent on this issue. U.S. Airways recently settled a lawsuit filed by six imams who were removed from a plane in Minneapolis in 2006. Those men had been traveling to the North American Imam Federation conference as well.

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Ed Miliband calls on Lib Dem MPs to quit cabinet

The Labour leader says disaffected Lib Dems should stand with him to oppose Tory policies Ed Miliband today opens the door to future co-operation with the Liberal Democrats as he calls on disaffected ministers in Nick Clegg’s party to quit the cabinet and join Labour in a fight against rightwing Tory policies. The Labour leader, whose party now faces an uphill struggle to secure a Commons majority following the collapse of its vote in Scotland, says he will “work with any Liberal Democrats” against the Conservatives and their plans on the NHS, education and the economy. Following the Lib Dems’ disastrous showing in Thursday’s council elections and the AV referendum – and amid increasing Lib Dem anger with David Cameron over campaign tactics – Miliband says it is “late, but not too late” for Clegg’s ministers to jump ship. “Do they want Tory policies or progressive ones?” he asked. “If they are in favour of new politics they should start by keeping their promises and reflecting the will of those who put them into parliament. If they are not in favour of these Tory policies they should stand up for what they believe or leave the cabinet. They can come and work with us. My door is always open.” While Miliband insists that his objective is still a majority Labour government and his immediate focus is on working with the Lib Dems against Tory policies, his overtures suggest that the party is prepared to plan for the possibility of a Lab-Lib deal after the next election. Sympathising with the Lib Dems over how the Tory-backed no campaign behaved during the referendum campaign Miliband said: “The campaign on AV was a showcase for old politics at its very worst. Lib Dems have to work out which side they are on. Do they want to be on the Conservative side, backing the Conservative-led government, or on the progressive side? It really is time for them to make up their minds.” Sources close to Clegg stressed that the Lib Dems’ central objective was now to stop the Tories winning an outright majority at the next election – and for them to have an option to team up with Labour. As the Lib Dems tried to come to terms with losing nine councils and 695 council seats, as well as burying hope of electoral reform for a generation, there were bitter recriminations over the no campaign’s targeting of Clegg. Lib Dem business secretary Vince Cable, who is known to feel closer to Labour than the Tories, said he would continue to support the coalition, but added: “Some of us never had many illusions about the Conservatives, but they have emerged as ruthless, calculating and thoroughly tribal.” Former Lib Dem leader Lord Ashdown went further: “We are bloody but unbowed. We have been here before and have always confounded the prophets of doom. But what makes this particularly hard to bear is the widespread, and in my view justified, feeling in the party that the Tories were either allowed to – or encouraged to – join a national vilification of our party leader and seem to have benefited from that.” Lib Dem peer Lord Oakeshott said it was time chief secretary to the treasury Danny Alexander rethought the political consequences of his role as number two to chancellor George Osborne. “He doesn’t need to be a royal bodyguard, throwing himself in front of every bullet heading for Osborne.” On Monday Labour will seek to expose Lib Dem discomfort within the coalition by calling on its MPs to support an opposition motion opposing the government’s NHS reforms, which are strongly opposed by Lib Dem activists. Then on Wednesday it will ask the Lib Dems to support a series of Labour amendments to Michael Gove’s education bill, including one insisting that all teachers in schools be fully qualified. Neal Lawson, chair of the centre-left thinktank Compass, said it was right for Miliband to be thinking of working with the Lib Dems. “The worry is that if Labour is flatlining when the Tories are cutting services, its support will collapse when they cut taxes before the next election. Ed Miliband knows he can’t win a two versus one election against the Tories and the Liberal Democrats. And the best he can hope for right now is a progressive coalition government with a Liberal Democrat party that has dumped Nick Clegg. He needs to prepare the ground for such a campaign and coalition now.” Writing in today’s Observer , Lib Dem president Tim Farron, seen by some as a potential successor to Clegg, calls on his party to fight its corner more assertively while keeping faith in the coalition. Yesterday the leader of the Scottish Liberal Democrats, Tavish Scott, resigned. He said: “Thursday’s Scottish general election result was disastrous and I must and do take responsibility.”Last night a senior source in the campaign for the alternative vote admitted they knew “very early on” that there was no chance of winning the referendum and that Clegg had become part of the problem: “Every time Clegg spoke about AV our polling numbers went into free-fall. We knew from very early on, before the new year, that we couldn’t win, our message wasn’t getting through and the Liberal Democrats in the whole were worse than useless. Clegg was toxic and everything [Chris] Huhne did in criticising the Tories just put the attention on the political spat – made it a Clegg versus Cameron affair. Utterly unwinnable. “We even brought in an advertising man to save us. He came up with the idea of constructing a giant pin-striped bottom to take around the country for people to throw things at as a way of illustrating that AV makes MPs work harder. It was desperate stuff. Ed Miliband AV referendum Nick Clegg Labour Liberal Democrats Conservatives Paddy Ashdown Vince Cable Toby Helm Daniel Boffey guardian.co.uk

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Watch the full episode . See more PBS NewsHour. If you saw the Oscar-winning documentary “Inside Job,” you may have been surprised to discover that so many high-powered economic academics are essentially bought off by bankers and corporations to publicly support the policies that are so bad for the rest of it, adding a thin veneer of academic respectability with bogus “white papers.” If you saw that, this may not even surprise you: Laura Tyson, the former chair of President Clinton’s Council of Economic Advisers, had a column in the NYT today urging patience in addressing the over-valuation of the dollar relative to the Chinese yuan. The heading of the piece identifies Tyson only by her role as a professor at the Haas School of Business at the University of California at Berkeley and her former position in the Clinton administration. The NYT’s identification did not mention that Ms. Tyson is also currently a member of the board of directors of Morgan Stanley . She received almost $350,000 in compensation for her work in this position last year. This is relevant to the piece because Morgan Stanley has extensive business dealings in China . It is likely that Morgan Stanley would benefit from having the dollar remain high against the Chinese yuan, since this means that its dollar assets will go further in China. In other words, the position being advocated by Ms. Tyson in this piece happens to coincide with the interests of the company on whose board she sits. It is entirely possible, that Ms. Tyson came to her views on the dollar and yuan without any consideration of its impact on Morgan Stanley. However, the NYT should have informed readers of this potential conflict of interest. As far as the substance, her argument that there is little link between the value of the dollar against the yuan and the U.S. trade deficit with China is weak. When China raised the value of its currency against the dollar in 2005, many other nations followed suit. This led to a substantial decline in the U.S. trade deficit measured as a share of GDP. (The only relevant measure.) It matters little to workers in the United States whether the improvement in the deficit came in trade with China or other countries. Also the plea for patience must be seen in a context in which tens of millions of workers are unemployed or underemployed with little hope for any improvement in sight. Deficit hawks in both political parties (including many of Ms. Tyson’s former colleagues in the Clinton administration) have closed off the option of further fiscal stimulus . The current political context also seems to offer little hope for more expansionary monetary policy.

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