The recovery is not full till all jobs come back says Obama. The US president on Thursday announced to economic report to congress. The countries recovery will happen only when citizens will find their jobs back.
The economy will increase when US will borrow less money from other countries. In election year Obama made top priority to jobs and new jobs for those who lost their jobs budget deficit. We are lost till all the jobs are backing Obama announced on 11 February. The democrat had also appealed the republican opposition to come out with new ideas to help.
Obama requested that putting back the differences the republican opposition help the present government to craft new jobs and hiring. Lots of projects are going on to create more jobs and lessen the unemployment rate. The projects also focus on the business tax breaks. Many bill which needs to be passed is paralyzed due to the snowstorm in Washington.
The Iranian President used the occasion of 31st anniversary celebrations, to declare the country as a nuclear state. He said that Iran can now produce nuclear weapon grade uranium and also can produce bombs. The statement was anyway expected by the Western world, who are now hell bent upon getting more sanctions against Iran.
Iran might well be left out of the global economic recovery once again, if it continues to be adamant. It is indeed shocking to see most of the Iranians living at less than 50% of their friends and relatives in other Middle East countries. Iran is the second largest natural gas source for the world, but it does import 40% of the petrol and diesel even today.
The PIGS are continuing to haunt the European zone. The four troubled member nations of Europe zone, are Portugal, Ireland, Greece and Spain. All these countries have been living on borrowed money for the last several years, and now are unable to get new loans.
The combined loan commitments of these countries run over 40 billion dollars and Germany and France cannot afford to commit their taxpayer money for bailing out these countries. Greece is the worst hit amongst the four countries and it has the potential to pull down the entire European zone, and it is good for the entire world, if Greece is let out of the European zone.
The Indian city of Pune, near Mumbai city, was hit by terrorist bombing few days back. At least ten people have been killed of which two are said to be foreigners. Also nearly 50 people have been injured in the blast, which occurred out of a bag consisting of RDX bombs. The terrorists seem to have planted the bomb just an hour before schedule and conducted the blast with the target of foreigners.
The investigations are on, and the Indian authorities are even checking out the speeches of fundamental leaders inside Pakistan for further clues.
Argentina’s central bank chief Martin Redrado has resigned following a bitter public row with President Cristina Fernandez de Kirchner.
Mr Redrado said he could do no more to protect the independent institution of the bank from the president’s efforts to control its dollar reserves.
He had blocked the president’s attempt to use $6.6bn (£4bn) in the bank reserves to service Argentina’s debt.
The president says the country will benefit from her proposed move.
Mrs Fernandez de Kirchner says it will bolster Argentina’s standing in international markets.
Argentina has $13bn of international debt that matures this year, and a hole in its budget of between $2bn and $7bn.
The banking trouble for the US economy is only getting complicated with every passing month. In the last one year alone, the US FDIC has closed down over 125 banks which were not meeting the capital adequacy requirements, but even after that the number of problem banks is not coming down.\
On the contrary, the number of problem banks has gone up to 552 banks with over 345 billion dollars of assets at stake, as of September 2009. The US FDIC has also seen the entire reserve money vanish due to the costly closure of over 120 banks in the last 11 months. The rising unemployment is only expected to add more bad debts to the banking system for few more quarters, as per experts.
The third quarter of 2009 has turned out to be better for the Malaysian economy with the GDP going down only by 1.2% versus 3.9% in the second quarter. The Malaysian government has been spending billions of dollars in infrastructure and tax breaks in the last three quarters to reverse the negative effects of the global slowdown on the Malaysian economy.
Japan has a very large aged population that is not revenue generating and has been a big drain on the economy for the last decade. And the global economic crisis in the last two years has only aggravated the situation and Japan has been forced to keep the interest rates at record low levels. In fact the abnormally low funding by Japan has lead to an asset bubble across the globe in the last five years, that lead to the global economic crisis.
Now Deflation is once again haunting the Japanese economy, which will force the government to continue with the costly stimulus measures for some more time. By the next two or three months, many countries across the globe might pull back the stimulus measures, and may even start increasing the interest rates.
But Japan might continue with the liberal bank funding which may delay the economic recovery of the country.
The unemployment in US is rising to record high levels when it hit 10.2% in the month of October 2009. That is having a direct impact on the bad debt and doubtful debt level of banks and mortgage firms. Yes the percentage of delinquent mortgage loans has reached a record high of 9.64% as of third quarter end, up from the 9.24% recorded in the second quarter.
This is in spite of special efforts by the Obama government to reverse the fortunes of millions of jobless Americans and also the efforts in pushing up the ailing housing sector.
The US government has done the first decisive step to give the full power to regulatory authorities to break the so called “Too big to fall” companies. A US house panel has voted in favor of the bill and now it will be taken up by the US senate and the house of representatives.
They are also expected to vote in favor of the bill, which might be used as a strong tool by the government to break too big sized companies well before they become dangerous. The financial meltdown has been caused by the collapse of the top five firms in US and the Obama administration does not want to allow a repeat of the episode again.
