Obama, his approval rate sliding on stimulus spending, vows to create 600,000 new jobs. Is friction in his economic team to blame?

Economics guru Larry Summers, who was shown the door as Harvard University's president after he alienated much of the faculty there, has since returning to Washington managed to clash with almost every other member of the Obama economic team.

According to the New York Times, Summers "forcefully debated" Treasury Secretary Timothy Geithner over what to do with troubled banks, clashed with Budget Director Peter R. Orszag and Council of Economic Advisers Chairwoman Christina Romer over health issues, and collided with economist Austan Goolsbee over whether to rescue Chrysler.

Team Obama is downplaying the story, arguing that President Obama is a great navigator who never lets dissension delay decision but welcomes rigorous debate.

“You can’t assemble a group of really brilliant people, and deal with some of the most complex problems in our lifetimes and not have disagreements,” said senior political guru David Axelrod.

And frankly, the White House has bigger problems now. Unemployment just hit 9.4%. Republican critics like Senate Minority Leader Mitch McConnell are arguing that the president's massive $787 billion stimulus package is just not working. And the latest Gallup Poll shows that only 45% of Americans now approve of Obama's handling of federal spending, and 46% approve of his handling of the federal budget deficit.

So, ever sensitive to shifts in public opinion, the White House is moving into action.

This morning, Obama and Vice President Biden announced that money from the stimulus package -- so far trickling out of Washington in a sluggish way -- would be speeded up to create 600,000 new jobs over the next 100 days on everything from improvements in national parks to youth summer jobs.

"We have a long way to go on our road to recovery but we are going the right way," Obama said in a statement, just before meeting with his Cabinet. "Our measure of progress is the progress the American people see in their own lives. And until that progress is steady and solid; we're going to keep moving forward. We will not grow complacent or rest. Surely and steadily, we will turn this economy around."

Under the plans detailed today, 1,129 health centers would expand their services, the Interior Department would begin work on 107 national parks, the Labor Department would create 125,000 summer youth jobs and improvements would be undertaken at 90 veterans medical centers.

Plus 5,000 law enforcement officers would be hired, while the Department of Agriculture would start 200 new waste and water systems in rural areas and the Environmental Protection Agency would begin or accelerate cleanup at 20 hazardous waste sites.

As he repeated for the cameras his line that, "We have a long way to go," Obama pounded on the desk.

-- Johanna Neuman

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Photo credit:  Chip Somodevilla / Getty Images, of Obama's first Cabinet meeting April 20.

Comments

[JOSE LUIS REVILLA ESCUDERO]

LEHMAN down, GM down, Citi, Chrysler ... Is AMERICA really hurt ?

PONTIAC, BUICK, CHEVROLET... the "American dreamt" brands, the symbol of an era in America.
The wish of many teenagers that then became great personalities around the globe.

But, this was a forecasted end. TOYOTA has been for many years, the real revolution in the american auto industry. Together with NISSAN, both japanese manufacturers, leaded the auto sales market for many years in a row.

Afterwards, came the korean cars... the asian conquer of the american auto corporations.

Is this the sign of an hegemony change ?... Is AMERICA really that hurt ?
Is competitiveness the key crack-down factor for this consequences ?

The US will always mean marketing, show, branding, globality, with its own values and essence. But, is this enough to keep US sovereignity in the planet ??

AMERICA has voted for a change. Barack Obama, the first black president, meant a new change era and a barn of hopes for many americans. But is it enough with a good carisma and beautiful words ??

USA is now playing a tough game. The game of competitiveness, the game of innovation, the new rules of capitalism...

Can AMERICA workers compete with the 24-hour turns of japanese or chinese workers ?
Can AMERICA export more than import ?
Can AMERICA reissue the huge external debt owned by CHINA now ?

Does anyone know that the main owner of the USA is CHINA ?

Yes, the main owners of US debt is CHINA. If CHINA decides to do it, US Dollar can dissapear.

Nowadays, CHINA has lived of US imports. Therefore, CHINA has accumulated vast deposits of T-bonds and US Dollars. This has been the reason for the dollar stability.
Once CHINA develops their internal consumer rates, or begin diversifying their exports, CHINA will be in position to change US dollars for other currencies. Then, US Dollar will be dead.

Is AMERICA ready for this era ?
Does Barack Obama has a real plan to put a brake on this dynamic ?

Huge challenges ahead. But, for sure, the only opportunity for AMERICA is not to lose their essence. The AMERICAN DREAMT must be on, but politicians and decisions makers must also help on this.

One advice for Mr Obama:
Capitalism has not failed, it has been the lack of regulation in the financial markets.

It is very important to keep this clear, because around this point, the US must build their next future generations.

Jose Luis Revilla Escudero
Chairman&CEO
WWShares, Inc
-Global Wealth Management-
www.worldwideshares.blogspot.com

[JOSE LUIS REVILLA ESCUDERO]

CHINA, ready to lead...?

I have spent the last month travelling around ASIA to try to find an answer to this question. Just now, when we are in the middle of a global crisis, with almost all foundations of economy in danger, I wanted to answer myself about the role that each country is going to take to lead the world out of this recession period.

I travelled to Hong Kong, Shanghai, Taipei and Seoul. I spent a certain time reading the local press, involving myself with their domestic issues, and watching and asking about the role of Hong Kong, China, Taiwan and South Korea in the future recovery process.

China latests are focused on the opening of Shanghai Stock exchange listings to foreign companies, but still with the limitation of doing it only with yuan currency, and still being not convertible.
Hong Kong, who belongs to China, but with a S.A.R. ( special administrative regime ) is deciding now its own future, since Shanghai and itself must now compete to become the financial centre of the "new" China.

Taipei celebrates that for the first time in six decades, a mainland company, China Mobile is due to acquire a 20% stake in a local communications carrier, breaking with this step, the so long disputes among these 2 asian states. Nevertheless, some old nationalists from Taiwan see into this movement from mainland, the challenge of a new adhesion process, similar to the one carried with Hong Kong.

And finally, Seoul is focused on recovery the way they best know. That is, working tough and smart to become again what two years ago it really was... an still unknown, but highly effective and productive capitalist economy.

So, the answer to my question was not easy, but I think I can clarify some things that really matters to a global economy world.

China strategy along the years has been to manufacture goods at a low work labour cost, and sell them mainly to the US and Europe. Now, with 1,3 billion people living in the mainland, they realise that their real market may be inside, may be domestic. But to go along with this change in the way exports are handled, is not an easy task... but you can see already some interesting movements, such as the recently signed collaboration with India, to get a chunk into the OUTSOURCING market, as well as, the already mentioned opening of Shanghai Stock index to foreign companies.
So the path seems to be built ahead, but still with critical issues such as if yuan will become the reference currency, if it will be flexible against other international currencies, or even maybe, if China and its allies decide to launch a takeover bid against dollar and euro world supremacy.

My opinion resides on the idea that in a not so long future, we will start looking at Shanghai index closings the same way we do it with Wall Street now.

If China converges into a more open performance, USA supremacy as the first economy in the world may be in danger.

China will try to joint Hong Kong current power and international presence, with Shanghai newest challenges. At the same time, it will break old and stupid disputes with Taiwan and even South Korea, to walk along a new asian world, capable of assuming the role of leading it.

India will have to decide if it goes alone in this new era, with its 1,1 billion people and therefore, their impressive economic and social potential... or decides to take part with the US or with CHINA. That decision is going to become critical for India in the very near future.

But, for sure, we do not expect China president to become a worldwide "prime time TV star" the same way the US does with its presidents. We will never know if China president has bought a dog called "Bob" to his daughters... we even won´t know if he has kids at home,... or if his wife is dating another men ...

We must expect a new role, focused on discretion, hard work, no discussions, but highly effective and consumer oriented strategies.

If the US unveils its secret CIA files, ... China will continue with its secrecy in domestic critical matters.
If the US continues fighting muslims in Afghanistan, China will stretch its ties in a peaceful way with its long time disputed neighbors, trying to consolidate its presence in Asia.
If the US continues with prime time interviews, China will present only specific topics of its politicians activities.

This does not mean OPEN economies vs CLOSED ones, but it means, to be focused on real issues and leave marketing or branding for others.

Jose Luis Revilla Escudero
President
WW Shares, Inc
-Global Wealth Mmanagement-
www.worldwideshares.blogspot.com