Bernanke backs a new stimulus bill
WASHINGTON, Oct. 20 (UPI) -- U.S. Federal Reserve Chairman Ben Bernanke said Monday he supports a new economic stimulus package to improve the availability of credit.
In a prepared testimony for the House Budget Committee, Bernanke said "consideration of a fiscal package by the Congress at this juncture seems appropriate."
But, Bernanke said timing the spending to a "period in which economic activity would otherwise be expected to be weak," would get the most effect for the dollars spent.
"Any fiscal package should be well-targeted," he said. The program should also be designed "to limit longer-term effects on the federal government's structural budget deficit," he said.
A fiscal stimulus package should be targeted "to help improve access to credit by consumers, homebuyers, businesses and other borrowers," he said.
"Such actions might be particularly effective at promoting economic growth and job creation," Bernanke said.
Obama says Powell would have role in D.C.
WASHINGTON, Oct. 20 (UPI) -- Former Secretary of State Colin Powell would have a role in an Obama administration, the Democratic U.S. presidential candidate said Monday.
"He will have a role as one of my advisers," Barack Obama said during NBC's "Today Show." "Whether he wants to take a formal role, whether there's something that's a good fit for him, I think is something that he and I would have to discuss."
Powell, a prominent Republican who also is a former Joint Chiefs of Staff chairman and one-time national security adviser, announced his endorsement of Obama during NBC's "Meet the Press." Obama said on the "Today Show" he and Powell did not speak until after Sunday's political talk show.
Obama said he asked Powell if he would campaign for the Illinois senator.
"And I think that, you know, this is an example of why General Powell ... is admired. He said, 'Look, I'm not a politician. And I don't want to go out there and hit the stump. That's just not what I do. I think it's best for you and John McCain to duke it out.'"
Of course, if Powell wanted to attend a campaign event, "he's going to have an open invitation," Obama said.
McCain, Palin hint Obama plan is socialist
ST. CHARLES, Mo., Oct. 20 (UPI) -- John McCain and Sarah Palin pressed their attacks on Barack Obama's tax plan Monday, both saying it would "spread the wealth" of U.S. taxpayers.
At a campaign event in St. Charles, Mo., McCain said his Democratic presidential opponent believes in "redistributing wealth -- not in policies that grow our economy and create jobs and opportunities for all Americans," CNN reported.
Palin also criticized Obama's tax plan last weekend and Monday in Colorado Springs, Colo.
"Barack Obama calls it spreading the wealth, Joe Biden calls higher taxes patriotic. Joe the Plumber said it sounded to him like socialism. And now is not the time to experiment with that," the Republican presidential contender said.
Joe "the Plumber" Wurzelbacher gained national notoriety during the presidential debate in which both candidates used him to make their points on tax rates for small businesses.
During the weekend, Palin and Sen. Mel Martinez, R-Fla., a Cuban-American, called Obama's plan socialism with Martinez comparing Obama's plan to the tax structure in communist Cuba, CNN reported.
Obama's tax plan calls for tax relief for 95 percent of U.S. workers and their families. Non-partisan tax policy organizations said 40 percent of Americans don't pay income tax, many of them lower-income wage-earners who file payroll taxes through their employers.
He noted the references to socialism while on the stump.
"Lately, (Senator McCain) and (Alaska) Governor Palin have actually accused me of -- get this -- socialism," Obama said. "It's kind of hard to figure how (millionaire) Warren Buffett endorsed me; (former Joint Chiefs of Staff chairman) Colin Powell endorsed me; and John McCain thinks I'm socialist."
Dion giving up Liberal Party post
OTTAWA, Oct. 20 (UPI) -- Canadians Liberal Party leader Stephane Dion said Monday afternoon he will give up the post once a successor is picked at a leadership convention.
The Liberals have a policy convention scheduled for early May in Vancouver but that is expected to be moved up.
"Politics has its ups and downs," Dion said in announcing his intentions. "I'm happy to be able to say I have enjoyed many more ups than downs."
Dion's decision came after last week's national election in which the Liberals not only lost 19 seats in Parliament but also saw their share of the popular vote slip significantly.
However, rather than appoint an interim party chief, Dion said he informed the party's president he intends to stay on until a new party leader is named, Canwest News Service reported.
"I will not be a candidate for the leadership of my party at that convention," Dion said. "I will remain as leader in order to ensure a smooth and successful transition."
Canwest said the list of potential replacements include: Michael Ignateiff, Bob Rae, Gerard Kennedy, Frank McKenna, Scott Brison, Dominic LeBlanc, Ruby Dhalla and Martha Hall Findlay. All are members of Parliament except McKenna, a banker and former New Brunswick premier and former ambassador to the United States.
More deaths in Afghan violence
KABUL, Afghanistan, Oct. 20 (UPI) -- A suicide bomber struck a German military convoy in northern Afghanistan Monday, killing two German soldiers and five children, NATO officials report.
The bomber was traveling on a bicycle when he detonated his explosives near Kunduz, Germany's Deutsche Welle reported.
The German broadcaster said the Taliban has taken responsibility for the attack in a statement posted on its Web site.
"Acts such as this, which offer nothing but violence and death, will not deter us in our commitment to create a better Afghanistan," said Brig. Gen. Richard Blanchette, a spokesman for NATO-led forces.
Taliban militants have been relying heavily on suicide and roadside bombings recently as part of their campaign against the Afghan government and international forces.
NATO troops said 20 insurgents were killed during two days of fighting in Afghanistan's Wardak province, CNN reported Monday.
Also Monday, gunmen on a motorbike killed a South African air worker on her way to Kabul.
