Pearly's Hot Button Questions:- Money, Banks, & the Economy

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Brown stands firm on finances

http://www.ananova.com/news/story/sm_1149473.html?menu=

Chancellor Gordon Brown has faced down critics in the City and the trade unions by insisting he would not relax financial disciplines in response to threatened strikes and soaring oil prices.

Economists have warned that Mr Brown is in danger of breaking his "golden rule" because of worsening Treasury finances.

And he faces the prospect of 300,000 civil servants walking out on November 5 in protest at plans to cut around 100,000 jobs.

But he insists: "We will do nothing that puts at risk the short term or long term stability of the economy. There will be no relaxation of our discipline."

Speaking to a conference of the left-of-centre thinktank Compass, Mr Brown made clear that he wants a "progressive" Labour manifesto for the upcoming General Election, with radical policies to extend skills training and childcare, reinvigorate local government and complete the reform of the House of Lords.

And - in what may have been a shot across the bows of Labour campaign co-ordinator Alan Milburn - he sent out a warning about the limitations of the market, which he said would always prove both less equitable and more expensive than the public sector in delivering essential services.

Mr Brown told the London conference that he had taken a succession of "tough choices" since 1997 and could not afford to be less strict now, given the fragile state of the world economy.

Some City experts have suggested he will have to abandon his golden rule of borrowing only for investment over the economic cycle.

But Mr Brown said: "With oil prices at over 50 dollars a barrel, having doubled in two years, and a slowdown in growth in all the major countries, I will continue to take the necessary action to entrench stability and promote the conditions for growth.

"We will meet our fiscal rules in this cycle and the next. There will be no return to inflationary wage demands."

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The prime minister has promised the troops will be home by Christmas.

During WW1, they said the "war would be over by Christmas" too in 1914..

http://news.bbc.co.uk/1/hi/uk/3764912.stm

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UK troops prepare for Iraq move


The Black Watch is on its second tour in Iraq
Hundreds of British troops are getting ready to go to central Iraq in response to a US request for assistance.
It is thought 500 Black Watch soldiers and 350 support personnel will move to the province of Babil, south of Baghdad

Defence Secretary Geoff Hoon told MPs the deployment would last "weeks rather than months", and that the troops would stay under British command.

A military spokesman said the troops were relieved a decision had been made and wanted to "get on with the job".


The United States has welcomed the decision, saying it "demonstrates once again the role Britain is prepared to play".

They just want to get on with their work, get up there and get on with the job

Major Charles Mayo
British Army spokesman
Preparations for the redeployment have been under way at the Black Watch's base in Basra, in southern Iraq, for several days.

The regiment's Warrior armoured fighting vehicles have been reinforced to provide better protection against possible insurgent attacks.

British Army spokesman Major Charles Mayo acknowledged the troops had a tough few weeks ahead, but added that morale within the unit was high.

"There's just relief. They've been waiting for a decision, we've now got it. They just want to get on with their work, get up there and get on with the job," he said.

BBC correspondent in Basra Ben Brown said the Black Watch soldiers viewed the new deployment as an "exciting challenge" and were "up for it".

British command

BRITISH REDEPLOYMENT

500 Black Watch soldiers with up to 50 Warrior armoured vehicles
100 Royal Dragoon Guards with 12 Scimitar armoured vehicles
50 Royal Marines light infantry from 40 Commando
300 support personnel such as engineers, logisticians, signallers and medics


Hoon statement in full
Profile: The Black Watch

He said the military would use ground and air surveillance to ensure the safety of the troops during the move north, which will take in hundreds of miles of potentially hostile terrain.

The BBC's defence correspondent Paul Adams said 100 members of the Queen's Dragoon Guards and 50 Royal Marines would join the Black Watch group, along with around 300 other personnel including logistics officers and engineers.

"It'll be under the tactical control of an American Marine unit, but still under overall British command, with British rules of engagement," he said.

He said the battlegroup could be headquartered in Iskandariya.

Major Tim Collins, former commander of the Royal Irish Regiment said the area had a tradition of insurgency.

"The danger above all is that the insurgents will seek to create British casualties pretty early on," he said.

'Compelling justification'

The redeployment was announced by Mr Hoon in Parliament, after ministers decided to agree to the US request, based on a recommendation from the Chief of the Defence Staff, General Sir Michael Walker.

"After careful evaluation, the chiefs of staff have advised me that UK forces are able to undertake the proposed operation, that there is a compelling military operational justification for doing so, and that it entails a militarily acceptable level of risk for UK forces," he told MPs.

The Liberal Democrats' Paul Keetch accepted Britain had a "responsibility to the people of Iraq", but did not back the move.

Redeploying UK soldiers to an area south-west of the Iraqi capital will free US troops for an anticipated assault on insurgent-held Falluja.

Sir Michael said there was a 30-day limit attached to the deployment.

"If time limit is breached, there will need to be a unit to replace the Black Watch," the general said.

The prime minister has promised the troops will be home by Christmas.

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Testing 1,2,3..

http://www.mises.org/