Brown and Obama deny G20 splits as protesters scuffle with police

Anti-capitalist protesters scuffled with police outside the Bank of England today as Gordon Brown received a series of world leaders in Downing Street to prepare for tomorrow's G20 summit.

First up was Barack Obama, making his first trip outside North America since his inauguration, The US President and his wife, Michelle, received a rare round of applause from staff at No 10 as they arrived for a breakfast meeting this morning.

Mr Obama's outsized motorcade was just the first in a series of armoured convoys due to pass through the Downing Street gates. The Prime Minister was also holding talks with President Medvedev of Russia, President Hu of China, the Indian Prime Minister, Manmohan Singh and Taro Aso, Prime Minister of Japan.

But the two leaders who most threaten to upset Mr Brown's plans for the G20 are not due at No 10 until this evening when all the G20 heads of state and government meet for a pre-summit dinner.

Mr Sarkozy and Angela Merkel, the German Chancellor, have already scuppered UK attempts to have the meeting endorse a massive and coordinated fiscal stimulus. They are now pushing for the summit to make clear progress on tighter regulation of financial markets to replace the "light-touch" Anglo-Saxon model blamed for the current crisis.

Asked on Europe 1 this morning about a Times report that he would be prepared to walk out of the summit if he does not agree with its conclusions, Mr Sarkozy replied: "I will not associate myself with a summit that would end with a communiqué made of false compromises that would not tackle the issues that concern us."

He went on: "As of today, there is no firm agreement in place. The conversation is going forward, there are projects on the table. As things stand at the moment, these projects do not suit France or Germany."

At a joint press conference with Mr Brown, Mr Obama denied that there was any real disagreement on the need for governments to boost their economies, just normal discussions as to how best to do it.

"The truth is that that's just arguing at the margins," he said. "The core notion that government has to take some steps to deal with a contracting market place and to restore growth is not in dispute."

Mr Brown also did his best to laugh off Mr Sarkozy's walk-out threat. "I'm confident that President Sarkozy will be here not just for the first course of our dinner but will still be here when we complete our dinner this evening," he said.

The Metropolitan Police said that around 4,000 protesters had gathered in the City for a protest outside the Bank of England and a "Meltdown Carnival" headlined by the left-wing rock singer Billy Bragg.

Mixing in with them were City workers who had deliberately "dressed down" – on police advice – to avoid being the targets of protesters.

In clear spring sunshine, the protests were initially good-natured, but isolated scuffles soon saw police retreat behind their barriers. By 1pm, the violence was worsening, with police using their batons to push back the crowds.

Even before the protest began, 11 people were arrested as they drove an armoured personnel carrier - painted blue with the words "riot police" in capital letters – towards Bishopsgate. All 11 were arrested for being in possession of police uniforms.

More than 30 forces have provided specialist officers for the days around the summit when there will be unprecedented levels of protests and 40 diplomatic delegations requiring security.

While hopes of a new co-ordinated international stimulus of the world economy have faded, negotiations are proceeding on rules to curb excessive bonuses, control tax havens, extend regulation to hedge funds, introduce greater co-operation between national regulators and draw up fresh mechanisms to stop protectionism.

The summit at the ExCeL centre in Docklands comes as the World Bank said that the global economy would shrink by 1.7 per cent this year and the Organisation for Economic Co-operation and Development predicted a 2.7 per cent contraction, the worst since the Second World War.

But while Mr Brown pointed out that G20 governments had already agreed fiscal stimulus packages totalling more than $2 trillion, Mr Obama warned that the rest of the world could not simply rely on "voracious" American consumers to drive the global recovery.

"If there is to be new growth, it cannot just be the United States as the engine," he said. "Everyone is going to have to pick up the pace."

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G20 Protests turn violent

Protesters break into RBS building

from the Times Online

April 1, 2009

Anti-capitalist protesters are believed to have broken into a branch of the Royal Bank of Scotland in the centre of London today after smashing windows with a volley of missiles.

With police on horseback unable to maintain control and being forced back, a series of windows at the building were broken, graffiti was daubed on the walls and there were reports that some protesters had broken into the branch.

Hundreds of protesters were seen to converge on the bank, on the corner of Threadneedle Street and Bartholomew Lane, as a total of 4,000 demonstrated outside the Bank of England nearby.

As police on horseback and in riot gear proved unable to protect the building, which was thought to be empty, officers with dogs charged at the crowd in an attempt to force them back. The crowd were heard to chant: "Shame on you" as officers drove them away from the door.

With the demonstrations - carried out by a combination of anarchists, anti-war protesters, environmentalists and others - rapidly heating up, Scotland Yard said cordons had been put up all around the surrounding area in response to "increasing levels of violence". The marchers had made their way to the bank using four different routes - from Moorgate, Cannon Street, Liverpool Street and London Bridge.

A Met Police spokesman said: "There have been a number of missiles thrown at officers and a number of surges at the police cordons, and increasing levels of violence towards police. Cordons have been put in place to maintain safety and control the crowd."

Police confirmed earlier that 11 people had been arrested for impersonating police officers as they travelled towards Bishopsgate in uniform in a fake armoured personnel carrier.

Their vehicle was escorted to Wapping, in east London, where it was taken off the road and later driven away by a police officer.

Speaking to The Times as the van was being driven away, a protester calling himself Greenman said he organised the stunt along with other members of a group calling itself Spacehijackers.

He said it was designed to highlight how Britain was increasingly becoming a police state.

"Terrorism laws are always encroaching on our freedoms and discouraging dissent," he said.

At the Bank of England, marchers confronted police standing on the building's steps. Several police helmets were grabbed and thrown in the air as dozens of protesters surged forward and forced officers to retreat on to higher plinths at the base of the building.

A red smoke canister was set off, leaving at least one officer covered in bright red powder.

One senior officer was overheard telling colleagues to watch out for people with paint spray cans attempting to write on their backs. Many protesters were dressed colourfully, and claimed that they represented a host of causes.

Among them were campaigners from War on Want, who carried a giant toy canary on a stretcher after setting off from Moorgate station for the Bank of England. Attached to the makeshift stretcher was a placard which read "RIP Canary Wharf 1990-2009". It also listed banks including RBS, HSBC, NatWest, Abbey and LloydsTSB.

Many of the protesters chanted as they walked towards the Bank of England. Chants included "Revolution" and "Palestine will be free".

Other demonstrators, carrying placards such as "Bring on decent decision making" and "0% interest in others", then began to make their way to the Bank of England.

Several individuals, some wearing masks and hoods to cover their faces, were involved in minor scuffles with officers as they were shepherded onwards.

Among those spotted among the crowd was the comedian Russell Brand, who said he was accompanying the marchers because he was interested to see why the protest was taking place.

As the demonstrations kicked into gear, many City workers reported for duty dressed down or in jeans, attempting to avoid any trouble

Jeremy Batstone-Carr, head of research at stockbrokers Charles Stanley, based in the heart of the City, said they were "preparing for the worst, but hoping for the best".

His firm has extra security on the door, while workers were "aggressively" dressed down.

"It’s a strange atmosphere around the City and everyone seems somewhat apprehensive - everyone that should be in the office is in, but we’re not taking any chances," he said.

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G20 - A Group too diverse to succeed?

Group of 20 too diverse to succeed

Wednesday, April 1, 2009
By KEVIN RAFFERTY
Special to The Japan Times

HONG KONG — Amid great fanfare, pestered by a rainbow alliance of protesters, and protected by almost blanket security costing $30 million for a mere seven hours of meetings and making London a virtual no-go area, the leaders of the Group of 20 (G20) countries meet this week, promising to restore hope and prosperity to a world battered and bruised by financial and economic crises.

Unfortunately, there are too many doctors already squabbling over the diagnosis and which medicines to take, vitamins or antibiotics, starvation or a rich diet, energy boosters or that new but expensive wonder drug that might have damaging side effects; moreover, the doctors are going to have to take some of their own medicine, and they don't like that at all.

There are many good reasons for the world's top economic powers to come together, not least because the global economy has fallen off the proverbial cliff edge. In October, Dominique Strauss-Kahn, the managing director of the International Monetary Fund (IMF), was more pessimistic than his own economists, but all scorned the idea that the world as a whole would fall into recession. Indeed, the economists expected positive growth of 3 percent, thanks to rapidly growing developing countries like China and India.

There has been a rude awakening. Robert Zoellick, president of the World Bank predicted, that global growth this year will be minus 2 percent, the first time since the end of World War II that there has been negative global growth.

The IMF is slightly less pessimistic, expecting only minus 0.5 percent. But there are plenty of ominously gloomy signs. World trade, the main engine of growth, has spluttered and fallen by 9 percent. Protectionism is growing from the United States and Russia, to China and India. The U.S., France, Germany and Japan are looking for ways to protect their carmakers.

Jobs are being lost in the thousands, adding up globally to tens of millions. The U.S. and China are being noticed most because of the large numbers involved, but every country is suffering except perhaps North Korea (the harder-hit victim of its own isolation). The idea that rapidly growing developing countries had their own momentum and would be immune to global trends has been found wanting: The poorest countries are faring relatively worst, with children being taken out of school to try to earn pennies for their families.

One problem for the summit is where to start. The extensive agenda includes too many key issues, including: How much extra stimulus governments should pump to revive their own and the global economy and get sustainable growth going again; what new rules and regulations should be put in place to stop future financial excesses and restore confidence; how to stimulate trade and prevent the resurgence of protectionism; what special measure should be taken to help the poorest countries; what new powers and funds should be given to the IMF and World Bank; what part the two should play in a reformed international financial system.

On its Web site, the G20 boasts that its members account for 85 percent of global output. In striving for inclusiveness it has become unwieldy. Ideas of giving emerging economic mega-powers China and India a greater voice have been lost in the profusion of voices at the top table, though critically Bangladesh, Pakistan and the oil-rich Gulf, apart from Saudi Arabia, are missing.

The G20 has become the G-22 with the unaccountable admission of the Netherlands and Spain. Places also have been found for the Czech Republic, as chair of the EU, plus the president of the EU commission — how the Europeans love double and triple dipping — the heads of the IMF and World Bank, the U.N. secretary general and chairs of the African Union, ASEAN and other regional bodies, making it a "G30something" circus of more than 1,000 summiteers.

Mutual bitching has already started. A small taste greeted British Prime Minister Gordon Brown last week in Brazil where he went trying to find common cause to set the world to rights. On the same platform as the British leader, President Luiz Ignacio Lula da Silva launched a stinging attack on the "white and blue-eyed" people "who appeared to be gods of wisdom" who started the crisis that has engulfed the world.

President Barack Obama is not blue-eyed, but there are plenty of leaders who are gunning for the U.S. and American-style capitalism. There is a great gulf between the U.S. and Europe, and the leaking in Der Spiegel of a draft final communique containing plans for a $2 trillion global spending boost has been seen as a German ploy to defeat such spending.

There is a real danger that infighting among the old G7 members preoccupied by domestic politics may prevent China, India or the emerging countries being heard. Canada has already said specifically that helping the world's poorest countries is "secondary" to the need to restore global growth.
Kevin Rafferty, editor in chief of PlainWords Media, was managing editor at the World Bank.
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Tax Problems for HHS nominee Kathleen Sebelius

from Michelle Malkin.com
by Michelle Malkin
March 31, 2009

Knock me over with a feather. Another Obama nominee made “unintentional” errors, meaningless goofs, nothingburger mistakes on her tax returns.

It’s HHS nominee Kathleen Sebelius. Via Brian Montopoli of CBSNews:

Kathleen Sebelius, President Obama’s nominee to become Health and Human Services secretary, said in a letter obtained by the Associated Press that she made "unintentional errors” on her taxes and has corrected her returns from three different years.

In the letter, which was sent to senators and dated today, Sebelius wrote that she had made changes related to charitable contributions, business expenses and the sale of a home, according to the AP.

The wire service reports that she and her husband paid just over $7,000 in back taxes, along with $878 in interest, for the years 2005-2007.

Hey, where’s that stamp? Oh, yeah. There it is.

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G20 Protesters - David vs Goliath - Capitalism vs Socialism

Brave dissenters at the G20 anti-capitalist orgy
By Michelle Malkin
March 31, 2009

This is heartening: A small band of rational students is standing up to the G20 anarchist mob in defense of free markets.
Godspeed!


Capitalist-David rally versus Goliath-protests for Socialism
by Michelle Minton
March 31, 2009

During the G20 summit something like 40,000 plus protesters slated to descend upon London. Of that number, there is a small but growing and prodigiously brave group of idealists planning to throw their message and bodies into the breach. They are not there to demand government action against climate change, stricter business regulations, nor are they requesting money for the poor, hungry, or infirm. Their message is simple, but profound: Get out of our way.

This small band, comprised mostly of university students and recent graduates wants only to communicate the message to the world that capitalism is not to blame for the current economic crisis. In fact, they want people to know that interventionist policies are what got us into the mess in the first place and increased state intervention is unacceptable.

“The point must be made, essentially, that we do not live in a Capitalist system and certainly not a Laissez-Faire Capitalist system. The sectors of the economy that failed were the most regulated sectors of a ‘mixed-economy’,” said Rory Hodgson, University of York student and protest organizer.

Perhaps because those still in university and recent graduates have the most to lose that they are willing to risk physical harm in order to oppose the ever-tightening choke-hold the government has on the economy. But we should all be as worried about the future and willing to fight the increasing anti-capitalist sentiment and the vulnerability of individual liberty.
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