Sunday, November 9, 2008

Obama to act on financial crisis 'head on'




PRESIDENT-ELECT Barack Obama called early yesterday for urgent action to prop up the flagging US economy and stop the hemorrhage of jobs, arguing that there was not "a moment to lose".

In his first weekly radio address since his decisive election victory last Tuesday, the Illinois Democrat said he wanted to reassure Americans that his administration would "hit the ground running on January 20th because we don't have a moment to lose".

He argued that while the administration of President George W Bush and Congress had taken steps to prop up the struggling financial sector and other parts of the economy, the United States "will need further actions during this transition and subsequent months".

"First, we need a rescue plan for the middle class that invests in immediate efforts to create jobs and provides relief to families that are watching their paychecks shrink and their life savings disappear," the president-elect said.

Obama pointed out the government will then need to address the spreading impact of the financial crisis on other sectors of the economy and to ensure that the rescue plan that passed Congress is working to stabilise financial markets while protecting taxpayers and helping homeowners.

"Finally, we will move forward with a set of policies that will grow our middle-class and strengthen our economy in the long-term," Obama promised. He said he did not underestimate the enormity of the task ahead.

"Some of those choices will be difficult, but America is a strong and resilient country," he noted. "I know that we will succeed if we put aside partisanship and work together as one nation."

On Friday, Obama met with his economic advisers to discuss the economic situation and chart his administration's future course.

The meeting came on another brutal day for the US economy. Official figures showed the US unemployment rate rose to its highest level since 1994 in October, 6.5 per cent.

The Labour Department said 240,000 jobs had been cut in October, the 10th straight month of job losses, and new revisions meant that a whopping 651,000 workers have lost their livelihoods in the past three months alone.

Speaking at a press conference here Friday, Obama also confirmed that he had been sent a letter from Iranian President Mahmoud Ahmadinejad following his victory over Republican John McCain on Tuesday. "I am aware that the letter was sent," he said. "I will be reviewing the letter from President Ahmadinejad and we will respond appropriately."

However he said that Iran's development of nuclear weapons was "unacceptable" and the Islamic Republic must end its "support of terrorist organisations."

Obama said during his campaign that he would explore the possibility of direct talks with US foes like Iran, North Korea and Cuba as president.

Known for his gifted oratory on the campaign trail, Obama started the day with a parent-teacher meeting at his two daughters' school. AFP

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