Investors should have "absolute confidence" in money placed with the United States, President Barack Obama said during an appearance with Brazilian President Luiz Inacio Lula da Silva at the White House today.
Obama was asked about Chinese Prime Minister Wen Jiabao's expression of concern Friday that the Chinese investment of approximately $1 trillion in U.S. Treasury bills could be losing value.
"I think that not just the Chinese government, but every investor can have absolute confidence in the soundness of investments in the United States, and that it is not just in U.S.-issued Treasury notes but also in the private sector and the commerce and the industry that has made this the most dynamic economy in the world," Obama said.
With these bailouts, stimulus packages, trillion dollar deficits, and a 10 trillion debt, I can understand the concern about the T-Bonds.
Now as for Obama's "vote of confidence," this guy just recently said that the economy wasn't that bad. Before he said that, he said this was a crisis and the only possible solution according to him, was this massive spending package and a budget that is has a deficit four times higher than the worst of the Bush budgets (2008).
One thing politicians love is a good panic. They can load up radical and pork laden bills to push through when there is a crisis. These wouldn't pass 99% of the year because they are bad policy and bad politics alike. However, when things get rough, it has to be passed in the name of the "economic crisis", "war on poverty", "war on terror", "war on drugs." These bad bills are always the "only solution" that can be considered.
Lastly, this Obama "vote of confidence" reminds me of sports. How often are there public statements and "votes of confidence" in the coaches are followed by a firing?
From the ESPN archives
With three games remaining in another disappointing season, Michigan State has decided that John L. Smith will not return to coach the 2007 season.
Smith has been under pressure at Michigan State. School officials gave him a vote of confidence after last season's losing campaign, but were looking for better results in 2006.
At least John L Smith for all his faults at MSU was a competent coach at other schools until he got to an elite conference in the Big Ten and slapped himself in the face. Obama hasn't shown that he's competent in anything outside of giving a speech using a teleprompter. Obama can help matters to some degree by keeping his mouth shut (or resigning, but that isn't going to happen).