The Week
Blair Wins by a Hair
British Prime Minister Tony Blair last week won a historic third term, but it was a bruising battle that left his ruling Labor Party hobbled. It lost dozens of seats in the 646-member House of Commons, which could make it tough for the American-style pol to push through big, new initiatives. Blair, 52, ran on Britain's strong economy. The main opposition, the Conservative Party, picked up about three dozen seats, and the third-party Liberal Democrats made gains by turning the race into a referendum on Blair's character and support for the Iraq war--unpopular among most Brits. The Lib Dems, who opposed the war, hit Blair for his kinship with President Bush, accusing him of lying about the reasons for the war. Still, Blair, who says this is his last bid, managed to eke out the win because most Brits believe they're better off today. And so, America's closest ally is safe: Blair and Bush, BFF (Best Friends Forever).
The Road to Hell Is Paved With Good...
The pictures of Pfc. Lynndie England in Abu Ghraib--leading one naked prisoner by a leash and standing over another with a cigarette dangling from her mouth--made her the face of the prison-abuse scandal. A plea deal in place last week would have sent her to prison, probably for less than the 10-year sentence handed to ringleader Pvt. Charles Graner. But a military judge threw out the plea after Graner, called by the defense, testified that England, 22, didn't know that what she was doing was wrong. Graner, believed to be the father of England's baby, was apparently trying to help. Instead, he ended up sinking the deal. The reason: Military rules preclude people from pleading guilty if they didn't know at the time that their actions were wrong. "[Y]ou can't plead guilty and then say you're not," said the judge, Col. James Pohl. FYI: England seemed to harbor less charitable feelings toward Graner--now married to another soldier implicated in the Abu Ghraib scandal--suggesting that a courtroom artist add horns and a goatee to his picture. The case now goes back to square one; charges will probably be refiled and a new investigation launched.
Meantime, the Pentagon last week demoted Brig. Gen. Janis Karpinski, the officer in charge at Abu Ghraib, to the rank of colonel. Karpinski, the highest-ranking soldier punished in the scandal, was cited for dereliction of duty and for an unrelated charge of shoplifting a $22 bottle of perfume in 2002.
Many, Many Happy (Tax) Returns
No economist worth his salt is predicting a surplus, but the latest federal budget numbers do give at least a glimmer of hope that the nation's massive deficit is narrowing. The Treasury Department announced last week that it will repay $42 billion in federal debt for the April-to-June quarter instead of borrowing $12 billion--thanks in large part to higher-than-expected individual tax payments to Uncle Sam. "It's certainly good news," says Scott Brown, chief economist at Raymond James in St. Petersburg, Fla. "We've had good growth in the housing market, so some of this may be capital gains from home sales." But relying on capital gains to balance the budget is risky business. Brown notes that a dip in capital-gains receipts after the stock market sank earlier this decade contributed to current budget problems. Similarly, a cooling-off in the sizzling housing market could add to today's fiscal woes.
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