This is pretty incredible. A very unpopular Wall Street Bail out, a defocused and ineffective Stimulus and now warns on the deficit.
US President Barack Obama warned that the US economy could head into a “double-dip recession” unless urgent steps were taken to rein in mounting public debt.
The US president’s remarks – in an interview with Fox News in Beijing on Wednesday, towards the end of his eight-day tour of Asia – marked his strongest language yet on the necessity of putting public finances back on a sound footing.
“It is important though to recognise if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the US economy in a double-dip recession,” said Mr Obama.
Frankly first, they made it and second the focus has been dead wrong. We need jobs and we need jobs right now. If they want to tackle the deficit, they need to remember employed people pay taxes. A full economy pays taxes.
Obama has it wrong, the real threat to a double-dip recession is the unemployment rate and until they focus on jobs, jobs, jobs, even if that means more government spending odds are we will have a double dip.
Now Obama is talking about tax cuts (where have we heard this before) or tax incentives for small businesses to hire.
That's it? What about bringing back jobs from Federal and State contracts that have been offshore outsourced? What about a direct jobs program? How about some serious infrastructure projects? What about reforming trade?
I hope this was just placating the Fox News audience.