Economic Stimulus

[drunken monkey]

A lot of foreign countries are adopting a "me-first" attitude in order to protect their own industries. It is not all to do with the weakness of the U.S but also to do with the weakness of their own country.

This isn't helped the very vocal Protectionist/Pro US/Anti Foreign goods voices.

[03cavPA]

Case in point:

http://www.foxnews.com/politics/firs...ico-truck-ban/

Obama Faces First Trade War With Mexico Over Truck Ban


FOXNews.com

Tuesday, March 17, 2009


President Obama is facing his first trade war after Mexico slapped import tariffs on $2.4 billion in U.S. goods in retaliation for a ban on its trucks from American roads.

Congress ignited the trade skirmish last week by killing a pilot program begun in 2007 that had allowed a few Mexican 18-wheelers to deliver goods across the border.

"Right now, these trade agreements are contracts and if either side breaks that contract, there's repercussions," said Rep. Kevin Brady, R-Texas, the top Republican on the trade subcommittee of the House Ways and Means Committee.

Economy Secretary Gerardo Ruiz Mateo imposed the tariffs Monday on about 90 U.S. products from 40 states, which will include farm goods such as rice, beef, wheat and beans.

..........................................

Now, the reason given for this action is safety concerns, but we all know there's often more to the story.

[drunken monkey]

sounds like tit for tat to me.

There is a growing concern in the UK for over protective policies being adopted that will result in countries refusing to trade with each other, thereby helping no one.
Fact is, we need global trade.

[CL8]

Originally Posted by drunken monkey

A lot of foreign countries are adopting a "me-first" attitude in order to protect their own industries. It is not all to do with the weakness of the U.S but also to do with the weakness of their own country.

This isn't helped the very vocal Protectionist/Pro US/Anti Foreign goods voices.

http://news.yahoo.com/s/ap/20090315/.../obama_economy


"Despite the new enthusiasm at the White House and on Wall Street, there was little solid evidence to suggest an end was in sight to the severe recession that has already cost 4 million American jobs, driven down home values and sent foreclosures soaring. Meanwhile, Chinese Premier Wen Jiabao said he was concerned about the safety of the estimated $1 trillion his country has invested in U.S. government debt"

It's all connected, other leaders see the folly of Obamas policies.
(And his hypocrisy)

[03cavPA]

Originally Posted by CL8

................ Meanwhile, Chinese Premier Wen Jiabao said he was concerned about the safety of the estimated $1 trillion his country has invested in U.S. government debt"

So are we.

[drunken monkey]

Originally Posted by CL8

Meanwhile, Chinese Premier Wen Jiabao said he was concerned about the safety of the estimated $1 trillion his country has invested in U.S. government debt[/b]"

I wouldn't take that at face value.
Of all the countries hit hard by the downturn, the US will recover first.
That $1 Trillion will make China money.

In fact, it concerns me a lot that China will be holding that much of the US' debt.

[CL8]

Originally Posted by drunken monkey

I wouldn't take that at face value.
Of all the countries hit hard by the downturn, the US will recover first.

unless the U.S. is at the point the old Roman Empire was at Just before it fell

That $1 Trillion will make China money.

In fact, it concerns me a lot that China will be holding that much of the US' debt.

China might just be the nation to take over the U.S.!

[drunken monkey]

I think take over is a bit strong and the rest of the world wouldn't allow it if it ever came to something that would equate to that but still, that much debt in China's hands is one hell of a bartering chip and gives China that little extra power when it wants something.

[CL8]

How about the news that Obama, while trying to force government run health care on the American pubic, proposed making the U.S. military pay their own health care costs when injured in battle!
( of all people who should have health care benefits from the government, the ones who fight to keep our nation free so we CAN have good health care!)
Fortunantly I heard today he backed off from that idea.

[BNaylor]

Originally Posted by CL8

How about the news that Obama, while trying to force government run health care on the American pubic, proposed making the U.S. military pay their own health care costs when injured in battle!
( of all people who should have health care benefits from the government, the ones who fight to keep our nation free so we CAN have good health care!)
Fortunantly I heard today he backed off from that idea.

What? Can you show me a reference or source? I'd like to see it just so I can get a good laugh. Obama is not too popular as the Commander in Chief of our Armed Forces.

[thegladhatter]

Drudge Report, March 16
The American Legion Strongly Opposed to President's Plan to Charge Wounded Heroes for Treatment
Mon Mar 16, 5:49 pm ET

Contact: Craig Roberts of The American Legion, +1-202-263-2982 Office, +1-202-406-0887 Cell

WASHINGTON, March 16 /PRNewswire-USNewswire/ -- The leader of the nation's largest veterans organization says he is "deeply disappointed and concerned" after a meeting with President Obama today to discuss a proposal to force private insurance companies to pay for the treatment of military veterans who have suffered service-connected disabilities and injuries. The Obama administration recently revealed a plan to require private insurance carriers to reimburse the Department of Veterans Affairs (VA) in such cases.


"It became apparent during our discussion today that the President intends to move forward with this unreasonable plan," said Commander David K. Rehbein of The American Legion. "He says he is looking to generate $540-million by this method, but refused to hear arguments about the moral and government-avowed obligations that would be compromised by it."


The Commander, clearly angered as he emerged from the session said, "This reimbursement plan would be inconsistent with the mandate ' to care for him who shall have borne the battle' given that the United States government sent members of the armed forces into harm's way, and not private insurance companies. I say again that The American Legion does not and will not support any plan that seeks to bill a veteran for treatment of a service connected disability at the very agency that was created to treat the unique need of America's veterans!"


Commander Rehbein was among a group of senior officials from veterans service organizations joining the President, White House Chief of Staff Rahm Emmanuel, Secretary of Veterans Affairs Eric Shinseki and Steven Kosiak, the overseer of defense spending at the Office of Management and Budget (OMB). The group's early afternoon conversation at The White House was precipitated by a letter of protest presented to the President earlier this month. The letter, co-signed by Commander Rehbein and the heads of ten colleague organizations, read, in part, " There is simply no logical explanation for billing a veteran's personal insurance for care that the VA has a responsibility to provide. While we understand the fiscal difficulties this country faces right now, placing the burden of those fiscal problems on the men and women who have already sacrificed a great deal for this country is unconscionable."


Commander Rehbein reiterated points made last week in testimony to both House and Senate Veterans' Affairs Committees. It was stated then that The American Legion believes that the reimbursement plan would be inconsistent with the mandate that VA treat service-connected injuries and disabilities given that the United States government sends members of the armed forces into harm's way, and not private insurance companies. The proposed requirement for these companies to reimburse the VA would not only be unfair, says the Legion, but would have an adverse impact on service-connected disabled veterans and their families. The Legion argues that, depending on the severity of the medical conditions involved, maximum insurance coverage limits could be reached through treatment of the veteran's condition alone. That would leave the rest of the family without health care benefits. The Legion also points out that many health insurance companies require deductibles to be paid before any benefits are covered. Additionally, the Legion is concerned that private insurance premiums would be elevated to cover service-connected disabled veterans and their families, especially if the veterans are self-employed or employed in small businesses unable to negotiate more favorable across-the-board insurance policy pricing. The American Legion also believes that some employers, especially small businesses, would be reluctant to hire veterans with service-connected disabilities due to the negative impact their employment might have on obtaining and financing company health care benefits.


"I got the distinct impression that the only hope of this plan not being enacted," said Commander Rehbein, "is for an alternative plan to be developed that would generate the desired $540-million in revenue. The American Legion has long advocated for Medicare reimbursement to VA for the treatment of veterans. This, we believe, would more easily meet the President's financial goal. We will present that idea in an anticipated conference call with White House Chief of Staff Rahm Emmanuel in the near future.


"I only hope the administration will really listen to us then. This matter has far more serious ramifications than the President is imagining," concluded the Commander.


SOURCE The American Legion

[HotZ28]

Originally Posted by drunken monkey

I wouldn't take that at face value.
Of all the countries hit hard by the downturn, the US will recover first.
That $1 Trillion will make China money.

In fact, it concerns me a lot that China will be holding that much of the US' debt.

China evidently does not feel safe holding that much in US Treasury debt, they are looking at other options and Obama's hand picked Treasury Secretary (who forgot, or failed to pay his own taxes,) seems to agree with their proposal. I guess anything looks good when you don't have any money! Can you imagine what would happen if China decided to cash in on that 1-trillion debt in exchange for cash?

NEW YORK -- Treasury Secretary Timothy Geithner on Wednesday said he is "quite open" to China's suggestion of moving toward a currency system linked to the International Monetary Fund's Strategic Drawing Rights.

Zhou Xiaochuan, China's central bank governor, earlier this month said the world should consider the SDR, a basket of dollars, euros, sterling and yen, as a super-sovereign reserve currency.

Geithner, responding to a question, said he hadn't read Zhou's proposal but added, "as I understand it, it's a proposal designed to increase the use of the IMF's Special Drawing Rights. I am actually quite open to that suggestion."

However, he said it should be viewed as an "evolutionary building on the current architecture rather than moving us to a global monetary union."

Source

[CL8]

[quote=thegladhatter;5938490]

Drudge Report, March 16
The American Legion Strongly Opposed to President's Plan to Charge Wounded Heroes for Treatment
Mon Mar 16, 5:49 pm ET

Thanks for posting that thegladhatter.
Is anyone else feeling a lot more anxiety since Obama became President?

[thrasher]

Interesting that this hasn't been posted yet...

Stocks surge on bank plan, rise in home sales

"It's just hard to argue that there isn't an improvement in economic activity on the horizon," said Jim Dunigan, executive vice president at PNC Wealth Management.

The market began turning around two weeks ago on news that Citigroup Inc. was operating at a profit in January and February. A spate of more upbeat economic reports helped the market build on its gains

http://finance.yahoo.com/news/Dow-up...-14720049.html

The Dow Jones Industrial Average vaulted 174.75 points (2.25 per cent) to 7,924.56 at the closing bell, extending the rally that has pushed the blue-chip index up more than 20 per cent from March 9 lows.

http://www.straitstimes.com/Breaking...ry_355231.html

So I guess this means that the markets are responding positively to the Obama administration's economic stimulus plan?

[BNaylor]

Originally Posted by thrasher

So I guess this means that the markets are responding positively to the Obama administration's economic stimulus plan?

Where did you get that notion? Where in either one of the articles you posted does it attribute the so called market optimism solely to Obama's economic stimulus plan? Recall the first bailout occurred while Bush was still in office and some of the anecdotal data alludes to the first 700 billion dollar stimulus so it is hard to say or we would be speculating at best.

FYI - One of the reasons why CitiGroup and/or Bank of America is important to investors is the fact that they hold the U.S. Government's debt in the form of credit cards. You think all those U.S. government agencies and the U.S. military do business by paying cash?

The bottom line is how will your stock, IRA and 401K Plan portfolios look at the end of the year.