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| Economy |
| US risks another recession: Obama |
| 2011-05-16 |
[Iran Press TV] President Barack B.O.Obama has warned that the United States may revert to another recession if Congress fails to raise the current debt ceiling. "We could have a worse recession than we already had, a worse financial crisis than we already had," unless the debt ceiling is raised before it hits its limit of $14.29 trillion in mid-May, Rooters quoted Obama as saying in a pre-recorded interview broadcast by CBS News on Sunday. Just as the White House and Congressional Republicans are at loggerheads over the debt and deficit, the US president made it clear that he does not expect either side to get everything it wants in the ongoing negotiations and that he must compromise with the Republicans. Obama, however, noted that Republicans should not associate the debt ceiling decision with the spending cuts as part of deficit-reduction measures. The debt ceiling set by Congress is a statutory limit imposed on the amount of money the US Treasury Department can borrow and if nothing is done by about August 2, there is a possibility that the government might default on its debt payment. Even though Republicans have so far refused to increase the ceiling without future spending cuts, Obama said he is confident that Congress ultimately would raise the limit. On Sunday, US Treasury Secretary Timothy Geithner added his voice to Obama's calls for Congress to raise the $14.29 trillion debt ceiling, saying failure to do so would drive up interest rates, push down household wealth and cause a double-dip recession. |
| Posted by:Fred |
| #18 the first one was "Hope". The second is "Change". BOHICA |
| Posted by: Frank G 2011-05-16 20:36 |
| #17 *Another* recession? We barely done chewed the flavor out of this one! |
| Posted by: SteveS 2011-05-16 20:04 |
| #16 And I hope he also doesn't take OBumbles word for _anything_. Fool me once shame on you - fool me twice shame on me. |
| Posted by: CrazyFool 2011-05-16 19:24 |
| #15 We've continued to raise the ceiling, harvesting the same failing results time after time. Yup Besoeker, the definition of craziness! Geithner and Obama are crying the Sky is Falling. Hope Boehner holds tough. He needs to push hard on spending cuts. Obamascare needs to be trashed but Obama is not going to get rid of his baby. |
| Posted by: JohnQC 2011-05-16 19:00 |
| #14 Glenmore, the movie reference that occurred to me was the scene in Million Dollar Baby in which Clint Eastwood offers to give Morgan Freeman money to buy news socks, but then asks if the money would be spent at the track. Morgan Freeman slyly allows that it might. There are some people you just can't trust with money, and at the moment one of them happens to be the Secretary of the Treasury of the United States of America. |
| Posted by: Matt 2011-05-16 13:41 |
| #13 "Give me more money or the world as we know it will end, Armageddon will be upon us,and the planet will explode." Reminds me of the classic Cleavon Little line from Blazing Saddles: "Hold it! Next man makes a move, the n****r gets it!" |
| Posted by: Glenmore 2011-05-16 12:43 |
| #12 Debt TEMPORARILY hides the damage to money velocity (i.e. the economy) from taxes on income (i.e. sales, employment, investment, purchase). |
| Posted by: Bright Pebbles 2011-05-16 12:07 |
| #11 The double dip is inevitable. Bumbles is just trying to set up the trunks as the fall guys. |
| Posted by: Nimble Spemble 2011-05-16 12:03 |
| #10 ...90 day wait and see. |
| Posted by: Besoeker 2011-05-16 11:58 |
| #9 I completely agree with you Matt. What would be wrong with a 90 wait-and-see approach? We've continued to raise the ceiling, harvesting the same failing results time after time. Why not try something else? |
| Posted by: Besoeker 2011-05-16 11:56 |
| #8 I understand that there are good arguments in favor of raising the debt ceiling, but I'm very tired of hearing the argument: "Give me more money or the world as we know it will end, Armageddon will be upon us,and the planet will explode." How is that different from a guy in an alley pointing a gun at me and demanding my wallet? And if this is so important, why didn't Turbo Tax Tim, BHO, and the rest of the Ivy League masters of the universe do a better job of planning for the possibility that the House would not vote to approve the increase? |
| Posted by: Matt 2011-05-16 11:50 |
| #7 A recession is inevitable when expenditure is shifted from government to the private sector. But reagonomics 101, the economy and taxes revenues then rise strongly. I think the US should default on its debts. Think of a default as a tax on all those countries that have been free-riding on the USA for many years. |
| Posted by: phil_b 2011-05-16 10:02 |
| #6 This recession will be Obama's but folks need to be careful. The only playbook the liberals have is tax more, cut defense and 'invest for the future'. All indications point to the Republicans caving and the can will be kicked a little futher down the road. |
| Posted by: airandee 2011-05-16 09:16 |
| #5 No need to associate one's budget with available income. Who knew? The advantages of Ivy League education, Besoeker. |
| Posted by: gr(o)mgoru 2011-05-16 02:07 |
| #4 ION BAMMER, MEMRI > SUDANESE SCHOLAR SHEIKH A'TIYYA MUHAMMAD SAI'DA: THE "APOSTATE OBAMA" MUST BE EXECUTED; " THE PATH OF OSAMA BIN LADEN IS OUR PATH". versus * TOPIX > AL-SHABAAB: OSAMA INSTRUMENTAL IN OUSTING [pro-US]SOMALI GOVT, back in 1993 vee OBL's role in funding, training Militants whom later fought in the infamous "BLACKHAWK DOWN" BATTLE/INCIDENT that embarassed POTUS BUSH 1 + induced US pullout from Somalia. * SAME > BIN LADEN'S DEATH + US TRIUMPHALISM GALVANIZES GLOBAL JIHAD. |
| Posted by: JosephMendiola 2011-05-16 01:25 |
| #3 IIRC Treasury Officials had advised the Congress that the US Debt Ceiling limit be formally raised by another US$2.0Triyuhn. |
| Posted by: JosephMendiola 2011-05-16 01:10 |
| #2 Obama, however, noted that Republicans should not associate the debt ceiling decision with the spending cuts as part of deficit-reduction measures. No need to associate one's budget with available income. Who knew? |
| Posted by: Besoeker 2011-05-16 01:08 |
| #1 This report is a mish mash, but not all that different from the US media. The debt ceiling will be hit TODAY. Turbo Tax Timmy will start borrowing money from federal pensions to tide US over. This may last US through August 2. The US needs to borrow an extra $4 billion a day to match its deficit spending. |
| Posted by: Anguper Hupomosing9418 2011-05-16 01:01 |