Obama sees signs of progress on economic crisis, urges patience
The Economic Times, March 26, 2009, Page 9
Insists Dollar Is ‘Extraordinarily Strong’ & There Is No Need For A Single Global Currency
Reuters WASHINGTON
PRESIDENT Barack Obama said on Tuesday he was seeing signs of progress in his drive to lead the United States out of economic crisis as he sought to reassure recession-weary Americans he was on the right track.
"We're moving in the right direction," Obama said at his second prime-time White House news conference since taking office on January 20.
Knocked off stride by public anger over hefty corporate bonuses and facing skepticism about his massive budget plan, Obama moved to regain his political footing and refocus attention on his broader economic agenda. He made his case to the American people the same day he pressed for coordinated action among the world's major economies, and just a day after unveiling a trillion-dollar plan to soak up toxic bank assets at the root of the global financial meltdown.
Obama took the podium after US stocks slid while investors paused to reassess the government's latest effort to clean up bank balance sheets. Initial euphoria over the plan had driven stocks sharply higher on Monday.
Though the economy was in the spotlight, Obama's news conference also gave him a chance to lay some groundwork a week before he makes his debut on the world stage with his first major presidential trip overseas. Brushing aside suggestions the G20 summit of major economies in London on April 2 would find him at odds with European partners, Obama said he expected leaders to share common goals of boosting growth and updating antiquated financial regulations while avoiding trade protectionism.
Focusing on the economy, Obama said, "We've put in place a comprehensive strategy designed to attack this crisis on all fronts. It's a strategy to create jobs, to help responsible homeowners, to restart lending, and to grow our economy over the long-term. And we are beginning to see signs of progress."
The administration has recently cited glimmers of improvement in the devastated housing market, but most key economic indicators remain under extreme stress.
Mindful of the challenges he faces, Obama tempered his economic outlook. "There are no quick fixes and there are no silver bullets," he said. He insisted that despite US economic troubles, the dollar was "extraordinarily strong" due to confidence in America's economic prospects and said there was no need for a single global currency — a suggestion recently put forth by China and Russia.
Obama kept a serious demeanor during the back-and-forth with reporters but became testy when pressed on the AIG scandal. Asked why he delayed his own condemnation of the AIG payouts, the president, who has cultivated a ‘No-drama Obama image, said tersely, "It took us a couple of days because I like to know what I'm talking about before I speak."
US economic plans ‘a way to hell’: EU presidency
A TOP European Union politician on Wednesday slammed US plans to spend its way out of recession as "a way to hell". Czech Prime Minister Mirek Topolanek, whose country currently holds the EU presidency, told the European Parliament that President Barack Obama's massive stimulus package and banking bailout "will undermine the stability of the global financial market."
A day after his government collapsed because of a parliamentary vote of noconfidence, Topolanek took the EU presidency on a collision course with Washington over how to deal with the global economic recession.
Most European leaders favour tighter financial regulation, while the US has been pushing for larger economic stimulus plans.
Topolanek's comments are the strongest criticism so far from a European leader as the 27-nation bloc bristles from recent US criticism that it is not spending enough to stimulate demand. Topolanek bluntly said that "the United States did not take the right path".
He slammed the US' widening budget deficit and protectionist trade measures — such as the "Buy America" — and said that "all of these steps, these combinations and permanency is the way to hell."
"Americans will need liquidity to finance all their measures and they will balance this with the sale of their bonds but this will undermine the stability of the global financial market," said Topolanek. — AP/Strasbourg
The Economic Times, March 26, 2009, Page 9
Insists Dollar Is ‘Extraordinarily Strong’ & There Is No Need For A Single Global Currency
Reuters WASHINGTON
PRESIDENT Barack Obama said on Tuesday he was seeing signs of progress in his drive to lead the United States out of economic crisis as he sought to reassure recession-weary Americans he was on the right track.
"We're moving in the right direction," Obama said at his second prime-time White House news conference since taking office on January 20.
Knocked off stride by public anger over hefty corporate bonuses and facing skepticism about his massive budget plan, Obama moved to regain his political footing and refocus attention on his broader economic agenda. He made his case to the American people the same day he pressed for coordinated action among the world's major economies, and just a day after unveiling a trillion-dollar plan to soak up toxic bank assets at the root of the global financial meltdown.
Obama took the podium after US stocks slid while investors paused to reassess the government's latest effort to clean up bank balance sheets. Initial euphoria over the plan had driven stocks sharply higher on Monday.
Though the economy was in the spotlight, Obama's news conference also gave him a chance to lay some groundwork a week before he makes his debut on the world stage with his first major presidential trip overseas. Brushing aside suggestions the G20 summit of major economies in London on April 2 would find him at odds with European partners, Obama said he expected leaders to share common goals of boosting growth and updating antiquated financial regulations while avoiding trade protectionism.
Focusing on the economy, Obama said, "We've put in place a comprehensive strategy designed to attack this crisis on all fronts. It's a strategy to create jobs, to help responsible homeowners, to restart lending, and to grow our economy over the long-term. And we are beginning to see signs of progress."
The administration has recently cited glimmers of improvement in the devastated housing market, but most key economic indicators remain under extreme stress.
Mindful of the challenges he faces, Obama tempered his economic outlook. "There are no quick fixes and there are no silver bullets," he said. He insisted that despite US economic troubles, the dollar was "extraordinarily strong" due to confidence in America's economic prospects and said there was no need for a single global currency — a suggestion recently put forth by China and Russia.
Obama kept a serious demeanor during the back-and-forth with reporters but became testy when pressed on the AIG scandal. Asked why he delayed his own condemnation of the AIG payouts, the president, who has cultivated a ‘No-drama Obama image, said tersely, "It took us a couple of days because I like to know what I'm talking about before I speak."
US economic plans ‘a way to hell’: EU presidency
A TOP European Union politician on Wednesday slammed US plans to spend its way out of recession as "a way to hell". Czech Prime Minister Mirek Topolanek, whose country currently holds the EU presidency, told the European Parliament that President Barack Obama's massive stimulus package and banking bailout "will undermine the stability of the global financial market."
A day after his government collapsed because of a parliamentary vote of noconfidence, Topolanek took the EU presidency on a collision course with Washington over how to deal with the global economic recession.
Most European leaders favour tighter financial regulation, while the US has been pushing for larger economic stimulus plans.
Topolanek's comments are the strongest criticism so far from a European leader as the 27-nation bloc bristles from recent US criticism that it is not spending enough to stimulate demand. Topolanek bluntly said that "the United States did not take the right path".
He slammed the US' widening budget deficit and protectionist trade measures — such as the "Buy America" — and said that "all of these steps, these combinations and permanency is the way to hell."
"Americans will need liquidity to finance all their measures and they will balance this with the sale of their bonds but this will undermine the stability of the global financial market," said Topolanek. — AP/Strasbourg
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