Obama sees signs of economic turnaround

Obama sees signs of economic turnaround
He urges patience as full-fledged recovery is months away

(WASHINGTON) US President Barack Obama says his aggressive campaign to lead the United States out of its worst economic crisis in 70 years is showing signs of progress and declared that despite obstacles ahead, the US is 'moving in the right direction'.

Prime time message: 'The dollar is extraordinarily strong right now' and 'I don't believe that there is a need for a global currency', said Mr Obama, who is enjoying 63 per cent approval rating
The nationally broadcast evening news conference on Tuesday came at a pivotal moment in Mr Obama's young presidency.

On Monday, his administration presented its plan to revive the US financial system. Last month, Mr Obama signed into law a US$787 billion economic stimulus plan.

Mr Obama's budget has ignited a firestorm in Congress, with Republicans assailing it for record spending and budget deficits.

Senate Republican leader Mitch McConnell cast Mr Obama's proposed budget as an over-spending, over-taxing disaster. An analysis by the nonpartisan Congressional Budget Office released last Friday estimates Mr Obama's budget would generate deficits totalling US$9.3 trillion over the next decade. 'If these plans are carried out, we run the risk of looking like a Third World country,' Mr McConnell said.

Democrats in the US House of Representatives yesterday proposed slimming down his fiscal 2010 budget proposal to US$3.45 trillion from US$3.55 trillion amid bipartisan concerns.

The House Budget Committee Democrats' proposal includes instructions aimed at overhauling healthcare and making changes to education. Their budget plan projects deficit of US$1.2 trillion for fiscal 2010 and US$3.95 trillion from 2010 to 2014.

Meanwhile, Mr Obama is preparing for a European trip next week that includes a London summit on the global economic crisis, while, away from the economy, an announcement is expected by tomorrow on a revamped US strategy for Afghanistan and Pakistan.

At Tuesday's news conference, Mr Obama defended the US dollar in the wake of China's suggestion for a universal currency, saying: 'The dollar is extraordinarily strong right now,' and 'I don't believe that there is a need for a global currency.'

Mr Obama, just 64 days in office, urged patience with his presidency, not only in trying to lift the United States out of the recession, but also in seeking peace between Israel and Palestinians and in preventing Iran from developing nuclear weapons.

'This is a big ocean liner. It's not a speedboat. It doesn't turn around immediately,' he said.

Mr Obama remains widely popular, but has passed through some tumultuous weeks. The news has been dominated by outrage over bonuses to executives at bailed-out insurance giant AIG. Republicans have attacked Mr Obama's spending plans as wasteful and too costly. And some key congressional Democrats have resisted Mr Obama's calls for middle-class tax cuts and a 'cap-and-trade' programme to fight global warming.

Mr Obama defended cap-and-trade as the best way to move toward cleaner energy, but noted 'there are a lot of technical issues that are going to have to be sorted through'.

On the economy, Mr Obama defended the steps his administration has taken to counter the recession and the unprecedented credit crisis.

He said teachers and others have jobs today because of the economic stimulus measure, and the United States is 'beginning to see signs of increased sales and stabilised housing prices for the first time in a long time'. But he said full-fledged recovery is months away, and he added: 'It will take patience.' At the same time, he said: 'We're in a better place because of the decisions that we made.'

Mr Obama's job approval rating is 63 per cent, according to the Gallup polling organisation. That number has been relatively stable recently, down from the 68 per cent when the president took office mostly on a loss of support among Republicans.

At the Tuesday news conference, Mr Obama said the American people are assessing his ability on his skills and work, not the colour of his skin. He said there was justifiable pride in January, when he was inaugurated as the first black president. -- AP, Reuters

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Business Times