The United States reduces unemployment to cheer its citizens by reaching 103,000 jobs in September.
Despite the dark predictions about further negative impacts of recession on American economy, Obama administration can boast to defy all by this added employment. However, the addition in jobs has not changed the current unemployment rate, which remains on its August level– 9.1 percent.
The US economy is going through severe financial crisis since 2008 following the fall of two major US banks Lehman Brothers and Merill Lynch.
Meanwhile President Obama is trying hard to pass the jobs bill. According to the Labor Department, the Democrat’s are likely to face tough time with expectations to improve US economy in the midst of aggravating recession.
The country has gained 55,000 new jobs altogather in September. Following this the Labor Department has revised its statistics of zero job growth to a gain of 57,000 jobs since August.
Addressing a conference, President Obama called on Congress to cooperate in improving national economy and prevent job losses. He also urged diplomats to not bring politics in the way of job bill for national interests.
Congress woman on the platform of Democrat party has criticized President Obama on job situation in the country. The law maker advised the president to go down to the state and local levels to see the pains and sufferings the people are going through as a result of job situation in the country.
The congress woman was speaking when she observed thousands of job seekers line up in the heat at job fair that was organized at a technical college in Atlanta. It was the congressional black caucus that planned the job fair.
Speaking on the unemployment situation in the country Democrat Rep Maxine Walters of California said he was stunned by number of people that attended the job fair. He said that he was expecting about five hundred people to the fair but it turned out that thousand of job seekers graced the occasion.
The congresswoman told reporters that black voters have given her the permission to criticize president Barak Obama administration’s policy on job creation. She said that she is not just criticizing the president but that she tries to engage more people to help the president to have a clear understanding of the pain people are going through as a result of job situation in the country.
The United States is failing to break through its debt deadlock. The US Federal Reserve is now gearing up to provide new guidelines to American banks to save themselves through resurging recession.In case the country fails to revamp its borrowing capacity, all the banks would face hard time to survive through tough waters.
Fed spokeswoman Barbara Hagenbaugh revealed on Thursday that the Federal Reserve is hopeful to provide proper guidelines for an operational financial planning.
The US Treasury has clarified that it would not be able to fetch more loans if the Congress fails to raise the debt ceiling from $14.3 trillion. This would also bring the possibilities of fall of Obama government eventually.
A debt default will also make the American economy succumb to severe financial crisis. The officer did not, however reveal anything about the measures of contingency plans being thought over by the authorities.
Officials also showed optimism that the US economy may survive this crisis provided Obama administration comes up with a hard solution before August 2 deadline.
Experts, however, predict severe results of debt default over US financial market and economy. The officials have also indicated of the possibilities of need for reevaluation of alternative strategies for US banks to be able to use emergency loans.
The banking sector in the United States of America has been given account of their financial position for the first quarter of 2011. This hint was dropped by the federal Insurance Deposit Corporation.
It reported that the first quarter of this year marked a new beginning in the banking sector as the banks reported the highest margin of gains since the financial crises started. It reported that the net income earned by those banks stood at $29b.
This is about 60% more than what the banks have been earning. The corporation gave a growing picture of banking industry in US saying the rate of bank failures has minimised but complaints against some personalities are on the increase.
The corporation revealed there was a drop of the interest rate income which according to the corporation dropped to about 3% to what it was in the year 2010. The situation prevailed through out last year despite so much hype of economic recovery in the United States.
This also represents the first time since 1989 there was a quarterly decline in interest rate income. The corporation threw more light on the decline in interest rate income. It said that the six biggest banks are the most affected but it cuts across all the banks.
Job situation in America has improved last month in majority of the states in America. This was revealed by the Department of Labour which disclosed that in more than three quarters of the states of the country the employment situation has improved last month.
The statement said that there is improvement in employment situation from March adding that about 34 states of the country reported of improvement in job positions. This report was released by Labour department on Friday.
Generally there is an improvement in employment generation throughout the country. Private sector also gave positive report of job increase with about 250,000 added every month. The current rate of employment generation in the country is the highest ever recorded in the last five years.
The level of unemployment started dropping in the country since last November. Some of the states that had recorded drop in the unemployment include the state of New York. The unemployment has dropped while 45,700 jobs were created. The state of New York is the highest in the level of job creation it is followed by Texas which has created 32,900 jobs and the third is Pennsylvanian which has created 23,700 jobs. However Michigan has the largest decline in job with 10,200 jobs.
Asian continent is preparing to have a greater role in the activities of the International Monetary Fund IMF. This was disclosed in Beijing China.
The ongoing crises in the world number one monetary institution seemed to have reawakened the consciousness of the Asian continent for greater involvement in the affairs of the fund. Recently the controversy surrounding the sexual harassment leveled against the immediate past head of the fund Mr. Strauss Kahn has consumed his career in the organization as he has thrown in the towel as the chief executive of the fund. Already he is facing a legal prosecution over the matter.
It is not likely that an Asian would be appointed to replace him in office as the position is exclusively meant for a European to occupy. The official from china can only be appointed the deputy managing director of the fund and not the managing director. Although since the post would be contested by interested European countries it is likely that china and indeed the other Asian countries would play the power broker role in deciding whoever emerges as the next head of the international monetary fund.
It would be expected that a new chief executive would be appointed for the fund in no distant time as the resignation of the former chief has created a vacuum in the administration of the fund. Already the IMF has been asked to look in the direction of Europe for the new chief.
Obama pledges to struggle with budget deficit
The US Congress is geared up to deal with the economic crisis, however there is still a load of federal debt lagging behind and hampering all welfare programs.
David Plouffe, White House senior adviser stated in an interview that the US president plans to decrease the federal deficit and is formulating stategy for it.
However, there is a contrary concern among Americans over this as in order to reduce budget deficit, the US government may impose new taxes and other burdens over people.
Plouffe, who played a prominent role in the election campaign for Obama in 2008, further added that Obama would reveal his stand over how to deal with reduction in budget deficit. Plouffe stated this during a TV show. Plouffe said that the president believed that deficit reduction can help US economy to grow. However, by cutting student loans or funds for medical research works etc won’t do any good to the economy.
Obama’s main thrust would be on reducing tax cuts for the wealthiest Americans which goes in reverse to Bush era economic strategies.Plouffe stressed on that the US president did not refer to the middle class Americans to be included under this term.The government hopes to cover domestic and defense expenditure along the health care and federal deficit as well as the long-term debt of $14 trillion.
US President stresses on long term energy policy
Barack Obama expressed that the US military actions in Libya, Middle East political crisis and the looming nuclear disaster in Japan has put a toll over the psychology of people of the United States.
The already slackening American economy has received severe jerks from these phenomena, Obama stated. He said that the American economy heavily depended upon oil and the Middle East fiasco led to huge rise in prices.
The current crisis that has originated from political instability in the Middle East and Japanese earthquake and tsunami has once again made it evident that the United States has yet not been able to find some alternative means to safeguard their economy from global crises.
There has been no alternative energy program envisaged by the US government so far. The US president called for reviving an strategy to install alternative energy programs in the United States to save the nation from oil fluctuations. Obama stated while addressing people at Georgetown University in Washington that at the time when he joined as US president, America consumed 11 million barrels per day, however, the consumption has decreased almost by 30 percent till now.
Obama stressed on promoting alternative energy sources like natural gas, electric vehicles, biofuels, wind and solar power as well as vehicles and tools that are more fuel-efficient. He reiterated emphasis on developing nuclear power as an alternative to crude oil despite the Japanese nuclear crisis that toppled the entire world’s race for harnessing nuclear energy.
Adding that nuclear energy constitutes almost 20 percent of the total energy consumed in the United States, he stated that it was much safer in terms of keeping a clean environment with no carbon emissions.
Despite the thrust on deficit reduction President Obama is keen on investment on research and technology. To forward his high-tech and education agenda he made quick tour of the West Coast. He toured a semiconductor plant at Oregon and before that dined with head honchos of the Silicon Valley.
While Republicans have asked for budget cuts, Obama has championed for more investment in education, high speed Internet, green technologies and other high tech concepts. He feels that investment on future cannot be sacrificed for anything. According to him, “If we want the next technological breakthrough that leads to the next Intel to happen here in the United States, not in China, not in Germany, then we have to invest in America’s research and technology, in the work of our scientists and engineers.”
A proof of Obama’s eagerness in this direction is the fact that his Democratic government now has extended research and development tax credit to tech firms. Intel and many tech companies benefit from this legislative move. Intel’s CEO Paul Otellini has reciprocated by announcing the setting up of a $5 billion manufacturing facility in Phoenix, a suburb of Chandler.
The highlight of this type effort is that on crucial matters Obama tries to rope in not only supporters but also those who disagree with him on other issues. Otellini of Intel funded Republican John McCain’s 2008 election campaign and has been a critic of many of Obama’s policies. But Obama managed to rope him in for his investment efforts in education and high technology agenda.
Washington: President Barack Obama on Saturday asked U.S business and finance groups to improve on the economic status of the country by increasing the labour force and investments.
There is an increased responsibility of the Country to improve the rate at which business is done through improving education putting in place what will encourage creativity and framework development.
He said the businesses have a responsibility also to increase their labor force if America is made a place suitable for businesses to operate.
Obama received much resentment from influential corporate business factions in his first two years against his plans to improve Wall Street operating guidelines and also to refurbish the healthcare sector. In a move to improve things, the white house sought out to make a former executive of JP Morgan Chase the new Chief of staff.
Obama would however make the challenge by giving his first statement to chamber members and promised to address the members of the chambers that both the government and business have joint obligations.
In his recent travels around the nation, he’s been trying to sell around initiatives to improve wireless access.
We want to move ahead and the best way is what we did by giving tax credits.