Senator Mitch McConnell, the Republican leader, had a little political advice last week for President Obama and the Democrats: Don’t pass the president’s health care legislation because you would risk losing in the midterm elections.

Mr. Obama laughed about it afterward. “I generally wouldn’t take advice about what’s good for Democrats” from Mr. McConnell, he told an audience in Pennsylvania. But he conceded that “that’s what members of Congress are hearing right now on the cable shows and in sort of the gossip columns in Washington.” He went on to argue that the issue should be what’s right, not the politics.

But this is Washington and politics are never far from the surface, especially at a decisive moment like this. If the schedule being mapped last week holds ”“ and Mr. Obama’s senior adviser, David Axelrod, said on Sunday that it would ”” the fate of the president’s health care plan should be decided within the week. “I believe we will have” the votes, Mr. Axelrod said on ABC’s “This Week,” though Republicans and even some Democrats have questioned whether the votes are there now.

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Senator Mitch McConnell, the Republican leader, had a little political advice last week for President Obama and the Democrats: Don’t pass the president’s health care legislation because you would risk losing in the midterm elections.

Mr. Obama laughed about it afterward. “I generally wouldn’t take advice about what’s good for Democrats” from Mr. McConnell, he told an audience in Pennsylvania. But he conceded that “that’s what members of Congress are hearing right now on the cable shows and in sort of the gossip columns in Washington.” He went on to argue that the issue should be what’s right, not the politics.

But this is Washington and politics are never far from the surface, especially at a decisive moment like this. If the schedule being mapped last week holds ”“ and Mr. Obama’s senior adviser, David Axelrod, said on Sunday that it would ”” the fate of the president’s health care plan should be decided within the week. “I believe we will have” the votes, Mr. Axelrod said on ABC’s “This Week,” though Republicans and even some Democrats have questioned whether the votes are there now.

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There is a chance to introduce a tax that will recognise both the massive expansion of the financial services industry in recent years and the fact that taxation has never kept up with this ”“ but also a tax that will generate really substantial resources to deal with the urgent global needs that can’t wait for some miraculous turnaround in the economy. If we are serious about wanting to tackle real poverty at home or abroad, would we prefer to see an increased burden on domestic taxpayers or an innovative approach that looks for help to the enormous revenues of the financial world? There certainly is a profound connection between poverty and the banking crisis ”“ we all know the new pressures on jobs and the poor at home ”“ and the World Bank has estimated that two million more children could die as a result of the downturn.

The plan is to tax certain transactions between financial institutions ”“ not burdening the High Street banks or the private currency transactions of holidaymakers, but targeting the hundreds of billions that flow between the big players in the financial industry. A tax of an average of 0.05% on these transactions ”“ 50p in every £1000 ”“ could generate something like £250 billion per annum.

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There is a chance to introduce a tax that will recognise both the massive expansion of the financial services industry in recent years and the fact that taxation has never kept up with this ”“ but also a tax that will generate really substantial resources to deal with the urgent global needs that can’t wait for some miraculous turnaround in the economy. If we are serious about wanting to tackle real poverty at home or abroad, would we prefer to see an increased burden on domestic taxpayers or an innovative approach that looks for help to the enormous revenues of the financial world? There certainly is a profound connection between poverty and the banking crisis ”“ we all know the new pressures on jobs and the poor at home ”“ and the World Bank has estimated that two million more children could die as a result of the downturn.

The plan is to tax certain transactions between financial institutions ”“ not burdening the High Street banks or the private currency transactions of holidaymakers, but targeting the hundreds of billions that flow between the big players in the financial industry. A tax of an average of 0.05% on these transactions ”“ 50p in every £1000 ”“ could generate something like £250 billion per annum.

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We need to demand an immediate release of the e-mails, phone records, and meeting notes from the NY Fed and key Lehman principals regarding the NY Fed’s review of Lehman’s solvency. If, as things appear now, Lehman was allowed by the Fed’s inaction to remain in business, when the Fed should have insisted on a wind-down (and the failed Barclay’s said this was not infeasible: even an orderly bankruptcy would have been preferrable, as Harvey Miller, who handled the Lehman BK filing has made clear; a good bank/bad bank structure, with a Fed backstop of the bad bank, would have been an option if the Fed’s justification for inaction was systemic risk), the NY Fed at a minimum helped perpetuate a fraud on investors and counterparties.

This pattern further suggests the Fed, which by its charter is tasked to promote the safety and soundness of the banking system, instead, via its collusion with Lehman management, operated to protect particular actors to the detriment of the public at large.

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We need to demand an immediate release of the e-mails, phone records, and meeting notes from the NY Fed and key Lehman principals regarding the NY Fed’s review of Lehman’s solvency. If, as things appear now, Lehman was allowed by the Fed’s inaction to remain in business, when the Fed should have insisted on a wind-down (and the failed Barclay’s said this was not infeasible: even an orderly bankruptcy would have been preferrable, as Harvey Miller, who handled the Lehman BK filing has made clear; a good bank/bad bank structure, with a Fed backstop of the bad bank, would have been an option if the Fed’s justification for inaction was systemic risk), the NY Fed at a minimum helped perpetuate a fraud on investors and counterparties.

This pattern further suggests the Fed, which by its charter is tasked to promote the safety and soundness of the banking system, instead, via its collusion with Lehman management, operated to protect particular actors to the detriment of the public at large.

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Eslewhere in the world, Europe is widely regarded as a continent whose economy is rigid and sclerotic, whose people are work-shy and welfare-dependent, and whose industrial base is antiquated and declining””the broken cogs and levers that condemn the old world to a gloomy future. As with most clichés, there is some truth in it. Yet as our special report in this week’s issue shows, the achievements of Germany, Europe’s biggest economy, tell a rather different story.

A decade ago Germany was the sick man of Europe, plagued by slow growth and high unemployment, with big manufacturers moving out in a desperate search for lower costs. Now, despite the recession, unemployment is lower than it was five years ago. Although Germany recently ceded its place as the world’s biggest exporter to China, its exporting prowess remains undimmed. As a share of GDP, its current-account surplus this year will be bigger than China’s.

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Eslewhere in the world, Europe is widely regarded as a continent whose economy is rigid and sclerotic, whose people are work-shy and welfare-dependent, and whose industrial base is antiquated and declining””the broken cogs and levers that condemn the old world to a gloomy future. As with most clichés, there is some truth in it. Yet as our special report in this week’s issue shows, the achievements of Germany, Europe’s biggest economy, tell a rather different story.

A decade ago Germany was the sick man of Europe, plagued by slow growth and high unemployment, with big manufacturers moving out in a desperate search for lower costs. Now, despite the recession, unemployment is lower than it was five years ago. Although Germany recently ceded its place as the world’s biggest exporter to China, its exporting prowess remains undimmed. As a share of GDP, its current-account surplus this year will be bigger than China’s.

Read it all.