Debt pile could fuel double-dip recession: Obama
19 Nov 2009, 0346 hrs , REUTERS
BEIJING: US president Barack Obama gave his sternest warning yet about the need to
contain rising US deficits, saying on Wednesday that if government debt were to pile up
too much, it could lead to a double-dip recession.
With the US unemployment rate at 10.2 per cent, Obama said in a TV interview his administration faces a delicate balance of trying to boost the economy and spur job creation while putting the economy on a path toward long-term deficit reduction.
His administration was considering ways to accelerate economic growth, with tax measures among the options to give companies incentives to hire, Obama said.
“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 way that could actually lead to a double-dip recession,” he said in the interview, a transcript of which was released today.
“Our first job was to get the economy to recover. And we're now seeing that,” Obama told a news channel.
“We've seen economic growth (in the third quarter). We anticipate economic growth next quarter as well. I always said the job growth would lag behind economic growth. The question now is how can we accelerate it.”
Meanwhile, Chinese premier Wen Jiabao told President Obama that his nation does not seek a trade surplus with the US and wants to balance flows, striking a conciliatory note but avoiding public comment on currency rifts.
“Lively global trade and investment will help to overcome the international financial crisis and accelerate global economic recovery,” said the Chinese premier, also urging both countries to “together oppose trade and investment
protectionism”.
In an interview , Obama said "there are a whole range of ideas out there" about how to kick-start hiring by businesses starting to invest and show profits again. "We've examined a lot of them but one of the benefits of convening this group is it gives us a chance to talk directly to small businesses, medium-size businesses, the main drivers of employment to find out what exactly is going on."
.
19 Nov 2009, 0346 hrs , REUTERS
BEIJING: US president Barack Obama gave his sternest warning yet about the need to
contain rising US deficits, saying on Wednesday that if government debt were to pile up
too much, it could lead to a double-dip recession.
With the US unemployment rate at 10.2 per cent, Obama said in a TV interview his administration faces a delicate balance of trying to boost the economy and spur job creation while putting the economy on a path toward long-term deficit reduction.
His administration was considering ways to accelerate economic growth, with tax measures among the options to give companies incentives to hire, Obama said.
“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 way that could actually lead to a double-dip recession,” he said in the interview, a transcript of which was released today.
“Our first job was to get the economy to recover. And we're now seeing that,” Obama told a news channel.
“We've seen economic growth (in the third quarter). We anticipate economic growth next quarter as well. I always said the job growth would lag behind economic growth. The question now is how can we accelerate it.”
Meanwhile, Chinese premier Wen Jiabao told President Obama that his nation does not seek a trade surplus with the US and wants to balance flows, striking a conciliatory note but avoiding public comment on currency rifts.
“Lively global trade and investment will help to overcome the international financial crisis and accelerate global economic recovery,” said the Chinese premier, also urging both countries to “together oppose trade and investment
protectionism”.
In an interview , Obama said "there are a whole range of ideas out there" about how to kick-start hiring by businesses starting to invest and show profits again. "We've examined a lot of them but one of the benefits of convening this group is it gives us a chance to talk directly to small businesses, medium-size businesses, the main drivers of employment to find out what exactly is going on."
.
