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Obama "Knife" Employment 300 Billion Rescue &Nbsp; Save The President Or Save The United States

2011/9/9 9:07:00 30

Federal Reserve

The report published in the brown leather book showed that only 5 of the 12 local federal reserve areas had a slight expansion in their economic activities, while others indicated that the economic recovery was weak.

This is a cold water for us president Obama, who is actively preparing for the 2012 general election.

In order to warm up their votes ahead of time, foreign media reported yesterday that Obama would launch a total employment plan of about $300 billion.

According to the insiders, Obama's direct approach to the weakest employment market in the United States is the last card for the us to save the economy. If it fails, the US economy will be in the shadow for a long time.

Bad brown leather book

Beijing time on the morning of September 8th, the Fed released the latest Brown book report shows that the U.S. economy continues to slow recovery momentum, most areas of the economic downturn.

The expansion of industrial production in many jurisdictions has weakened, the real estate market is still weak and the employment market is generally stable.

The report shows that only 5 of the 12 Federal Reserve Areas of the United States have a slight expansion of their economic activities, while others say the economic recovery is weak.

The expansion of industrial production in many jurisdictions has weakened; residential real estate and commercial real estate markets are still weak; credit demand in most jurisdictions is stable, credit demand in some jurisdictions is showing signs of decline; the price pressures of manufacturers across the United States have declined; the employment market is generally stable, and the employment market in some jurisdictions has been improved to a certain extent, and there are shortages of skilled workers in some jurisdictions.

In addition, consumer spending increased slightly in most jurisdictions, but there was no increase in retail sales of auto parts in some jurisdictions.

The report also shows that, given the minimal wage pressure in most jurisdictions, most Fed officials expect inflation to remain at a controllable level.

The United States shows the United States.

Weak from fatigue

The current economic situation makes the market again speculate that the time of the Federal Reserve's introduction of QE3 is getting closer.

In this regard, the industry believes that the upcoming September 20th to September 21st Meeting of the Fed interest rate meeting will be caught in a dilemma.

Because according to the current public information, the Fed's internal monetary policy divergence is greater.

Tang Yunfei, chief macroeconomic strategist of 6.23,0.00,0.00%, predicted that "at the end of this month, the Fed may not launch QE3, but after entering October, the situation in the euro area is likely to deteriorate sharply, and the possibility of QE3 will be greater."

Obama's "knife" employment

Facing the United States toward the economy

recovery

The more difficult the situation is, the more difficult it is for us president Obama, who is actively preparing for the 2012 general election.

Beijing time on September 8th, foreign media reported that people familiar with the matter said President Obama would launch a total employment plan of about $300 billion.

Obama plans to injecting more than $300 billion into the US economy next year through tax cuts, infrastructure spending and direct subsidies to state and local governments.

It is reported that tax cuts are still the most important part of the new employment stimulus plan, and tax cuts may include extending the payroll tax cut scheme of 2%, which will expire in December 31st this year.

In response, the white house refused to disclose further details of the stimulus plan.

The market response is optimistic for Obama's untasked job stimulus plan.

Investors are returning to the stock market and commodity markets. Some investors choose to sell risky assets like gold and buy risky assets.

Us time September 7th, the three largest U.S. stock index rose, the most active December gold futures settlement price fell 3%.

Qin Xiangdong, an associate professor of economics and finance at Antai Institute of management, Shanghai Jiao Tong University, said in an interview with the international finance daily, "the key to the US presidential election in 2012 is the economic problems of the United States. If Obama wants to be re elected, unless there are some new positive actions in dealing with the national economic problems, the chances of being elected will be greatly reduced."

For the new employment stimulus plan, Qin Xiangdong believes that "the US government will continue to create employment opportunities by means of expanding infrastructure.

The content is nothing more than continuing repairs to roads, bridges and schools. The cost of this part is estimated to exceed US $100 billion.

Therefore, Qin Xiangdong expects that the input of the whole economic revitalization plan should be far more than 300 billion US dollars, estimated to reach US $600 billion.

Plan or shrink

President Obama is expected to propose the employment stimulus plan in a speech Thursday night.

In this regard, Cheviot Asset Management partner David Miller said Obama in his speech difficult to maintain balance, to prevent the market to bear more pressure, but also to avoid "too extreme" and frightened investors.

However, it is worth noting that at present, the Congress of the United States is controlled by the Republican Party, and whether Obama's plan will pass smoothly is worth noticing.

Tang Yunfei predicted, "the plan is expected to be obstructed by the Republicans, and even in the end.

shrink

Maybe. "

Qin Xiangdong also thought, "Republicans for their own party interests, generally do not face conflict with Obama, but the Republican Party for Obama's employment stimulus plan will not be fully accepted.

Therefore, the final plan is a compromise plan, the final size will exceed 300 billion yuan, but it may not reach 600 billion yuan.

In terms of specific details, Qin Xiangdong expects the Republicans to approve tax cuts in the stimulus package, but the investment in large-scale infrastructure construction may eventually shrink.

At the same time, when Obama launched the stimulus plan, he will also face a problem of raising money.

Qin Xiangdong pointed out that "there must be corresponding supporting measures of the Federal Reserve.

QE3 may be a choice, but the consequences of QE3 are very serious. At present, the Federal Reserve has not formed a complete agreement.

Therefore, it is more likely that the Fed will clear the plan for keeping interest rates low in the next three years.

"The key now is to boost the confidence of American consumers. If consumption fails, then the US economy will not get out of the mire."

Qin Xiangdong stressed, "the US government's employment stimulus plan can be said to be the last card. If the card still can not enhance consumer confidence, the US economy will have problems for a long time in the future, which will have a great impact on the global economy."