Europe must act fast on debt: Obama
On Friday 7 October 2011, 7:15 EST
President Barack Obama has warned Europe must "act fast" on a debt crisis threatening the fragile US recovery and accused China of gaming the global currency and trading systems.In a White House news conference on Thursday, Obama also said Republicans must pass his $US447 billion ($A464.5 billion) jobs bill as insurance against a double dip recession and warned Pakistan was hedging its bets by maintaining ties with extremists.
Sharpening economic frustration over the stagnant US recovery and the jobless crisis dominated the 75-minute session, against a backdrop of Obama's plunging approval ratings ahead of his 2012 reelection bid.
He warned that a potential European debt meltdown needed to be averted by swift action from the continent's leaders.
"They have got to act fast," Obama said.
"We have got a G20 meeting coming up in November. My strong hope is that by the time of that G20 meeting, that they have a very clear concrete plan of action that is sufficient to the task."
The president argued that the eurozone crisis made it even more important for Congress to pass his jobs plan, which he said would give a "jolt" to the sickly economy at a time of dangerous external threats.
"The problems Europe is having today could have a very real effect on our economy at a time when it's already fragile," Obama said.
"This jobs bill will help guard against another downturn if the situation in Europe gets any worse," Obama said in his first formal news conference since unveiling the plan last month.
Earlier, Vice-President Joe Biden warned of the risk of "international contagion" if Europe did not forestall its crisis soon, but acknowledged the continent's leaders faced "wrenching" political choices.
Obama also waded into the debate about China's currency policies, but stopped short of endorsing a Senate bill to punish Beijing, citing concern that it could conflict with US obligations to the World Trade Organisation.
"China has been very aggressive in gaming the trading system to its advantage and to the disadvantage of other countries, particularly the United States," Obama said.
"And currency manipulation is one example of it, or at least intervening in the currency markets in ways that have led their currency to be valued lower than the market would normally dictate," Obama said.
The president noted that Beijing had allowed the yuan to rise in value over the last year, but demanded more action.
"We have seen some improvement, some slight appreciation over the last year but it is not enough."
The president also responded to comments by Mike Mullen, the former chairman of the Joint Chiefs of Staff, who accused Pakistani intelligence before he retired last week of maintaining close links to the extremist Haqqani network.
"I think they have hedged their bets in terms of what Afghanistan would look like and part of hedging their bets is having interactions with some of the unsavoury characters who they think might end up regaining power in Afghanistan after coalition forces have left," Obama said.
He said: "There is no doubt that there's some connections the Pakistani military and intelligence services have with certain individuals that we find troubling."
Islamabad has denied any links between the Haqqanis, accused of killing US troops and plotting attacks on Kabul, and its intelligence services.
27 comments
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0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentTroy Report AbuseAny economy is cyclical, which is due to the inequality between supply and demand levels. If it was an exact science we might be able to avoid economic downturn better, but understanding and forecasting economic movements - especially on a global scale - is an artform. So after any period of bullish economic growth over and above a natural rate of inflation, we can always expect a period of recession, they come and go in waves.
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The big issue is how we deal with it, either accepting certain amounts of losses and averaging them out over a period of time, and some bankruptcies, foreclosures and market crashes, or do we panic and throw a heap of money after it down the drain in a futile attempt to save it. 9 times out of 10 you cant save it, you're only putting off the inevitable. Bad reactions to normal market recessions are what caused the Great Depression in 1929, lets not repeat it. - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentcapnjack Report Abuse
When the Chinese have bought their way into a country and begin to trade, they will end up trading among themselves, non Chinese will be starved out of existence, they don't need any other race and they know it. All you who are waiting for America to go down will go down with them. At least America has something of a social conscience, not a lot, but more than China will show. Australia has been sold off and is no more than a Chinese quarry now. Anything done by the government is going to be too late.
Replies (1) - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentPezza Report Abuse
It was the same scumbags from the 87/88 crash in the USA ,actually all over the world but this time it was the same scum bags ,a bit older now but just as greedy or worse who picked on vulnerable people to produce loans and theirfore commissions from the banks, it wasnt all Americans that did tat, a minority at that just a few greedy remnants from the 80"s who did it again but we were ok as we set up legislation , preventing what happened to them and subsequently Europe and the UK, we were lucky so my point is , do not generalise when commenting about our friends who made a boo boo, just be thankful that they would back us against anyone else, be fair about your comments and specify, its more realistic, the media hype things enough.
Reply - 1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentLUCKY Report Abuse
pezza ,,, perfect point ,,,,,,, not just usa but the western world ,,,,,,, we are GIVING ,,,,,,developing world is NOT GIVING,,,,,, WE ARE GOING DOWN ,THEY ARE GOIN UP , and we stay blind ,until it is to late , or better say ,it is to late to change ................ famine in north korea and who is feeding north koreans ? usa ,,,, yes ,usa , at same time north korea is usa bigest enemy ,,,,,
Reply - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentPezza Report Abuse
Truth is that the USA is our alaie and we should stand by her. When the Tsunami hit Indonesia one Christmas , whos Aircraft carrier supplied water and food supplies to the natives affected.. the USA, Twin Towers blown up, who tackled the A/ Hls that did that, bombing in Nigeria and Bali, USA fight our battles for us too so lets not get too smug and up them, thank you very much, do you see Russia running to help anyone, the mighty power so it be, answer is NO, Russia takes money from all in the Euro Zone with gas supplies to the UK etc but dont contribute anything, the USA during the cold war still supplied its excess bumper wheat stocks for nothing, what does China do for the world, answer nothing.. just takes, careful what you say about our friendsthe from the USA.
Replies (1) - 1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentgncorp Report Abuse
Obama worry about your own, because it was the US style recklessness that caused the debt and it was the US with the NAFTA that led to China becoming what they are today, you the US only have yourselves to blame!
Replies (1) - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentA Yahoo!7 User Report Abuse
Is Gillard off the menu?
Replies (1) - 2 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentVox Populi Report Abuse
Anthony P, you are a legend. You have summed up the situation perfectly. Obama is nothing but a snake oil salesman, and he sounds like Elmer Gantry when he gets up on his platform and starts his pointless rants. The rot started in the USA, and it will end there when the US becomes a certified member of the third world. Warmongering is the Americans' primary industry, and they have never won a war that they themselves started (as the USA). They were the prime movers in creating the PSI (Pariah State of Israel) in 1948, and thereby destabilising the Middle East forever. Now they want to do the same in Europe, but they are going to going to get a monster black eye if they try it.
Replies (1) - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentsimo Report Abuse
Obama thinks Europe must deal with its debt crisis quickly!!!!!!
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Obama should deal with his own which is much larger than the European problem - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentFrank Report Abuse
markets up this week, anybody taking bets that it will crash next week. the catagories will possibly be: weak employment figures, greeks have stuffed up again,or the odds on favourite. the big boys have taken their profit for the week, so stuff the rest of us all.
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