Brown leads the way
The PM's successful Congress address looks set to propel Brown to the forefront of economic revival, with the London Summit looming
I HATE to say it. But just for record, and because I believe in owning up to errors of judgement: Gordon Brown is teetering on the edge of greatness.
Well there it is. An opinion that less than three months ago seemed implausible. What has changed for Brown is luck. Since taking over from Blair he has had none of it; now that is suddenly starting to change.
Brown's transformation from loser to the world's supreme statesman will be sealed at the London Summit 2009, on April 2.
The event, to be attended by the world's most powerful men and women, follows his speech to the houses of the US Congress on March 4. Brown met Obama for a one-on-one meeting in the White House the day before, the first European leader to be received since inauguration in January.
Only the fifth British PM to address both the lower and upper houses, Brown urged the world to work alongside the US and UK to overcome the global financial crisis. It was pure theatre.
Addressing members of Congress in Washington, he called on world leaders to "seize this moment". "Never before have I seen a world so willing to come together so much," he said. "Never before has that been more needed. And never before have the benefits of cooperation been so far-reaching."
There was hardly a dry eye in the house. Brown played an audience desperate for remedy to a recession that many Americans now believe will be worse than the Great Depression. He told them exactly what they wanted to hear.
Obama on the other hand may represent an optimistic future, but he is still dealing with the reality of here and now. More than four million jobs have vanished since the downturn took hold, and it is not getting any better.
Latest figures show the world's largest economy shed more than a half million workers for the fourth month running in February.
Just over twelve million Americans are now unemployed and 2.6 million have lost jobs during the last four months, the highest rate since 1983.
More jobs were lost in December than any month since October 1949.
Economists fear an even worse than anticipated drop in US gross domestic product during the first quarter of 2009.
Jobs concerns in the UK are of course a worry, but things generally are beginning to look up. The most significant turn around is that banks are at last starting to lend more, largely due to Government pressure.
The level of loans to small businesses rose by £235mn to £54.2bn in January, the British Bankers' Association revealed on March 5.
There was more good news with the Bank of England's announcement of its quantitative easing programme. UK government bonds have soared this week after the BoE revealed plans to buy billions of pounds of assets to inject liquidity into the economy.
Speculators have rushed to buy government bonds, before the programme's launch on Wednesday. The level of demand suggest asset purchases, estimated at £75bn over the next three months, will have the desired effect of lifting the UK economy, with another £75bn to follow.
Interest rates will remain at 0.5 per cent for some time, helping home owners and businesses further.
Leaders of the world's major economies, including Obama, will attend the London Summit to reach international agreement on reviving the world economy.
Lucky Brown will again take centre stage, increasing further the likelihood of more good press. Watch out for those recovery signs in time for a General Election later this year. You read it here first.
