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Obama: Economy Will Get Worse

by: David Espo  |  Visit article original @ The Associated Press

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On "Meet the Press," Obama said the economy will get worse before it gets better. (Photo: Reuters)

    Washington - President-elect Barack Obama said Sunday the economy will get worse before it gets better, pledged a recovery plan "equal to the task" and warned lawmakers that the days of pork barrel spending are over.

    Less than six weeks before his inauguration, Obama declined to say how large an economic stimulus plan he envisions. He said his blueprint for recovery will include help for homeowners facing foreclosure on their mortgages if President George W. Bush has not acted by Inauguration Day, Jan. 20.

    "We've got to provide a blood infusion to the patient right now to make sure that the patient is stabilized. And that means that we can't worry short term about the deficit. We've got to make sure that the economic stimulus plan is large enough to get the economy moving," he said.

    Obama made his comments on NBC's "Meet the Press," in his most extensive interview since winning the White House more than a month ago, and later at a news conference in Chicago.

    The president-elect said it is important that domestic carmakers survive the current crisis, although he accused the industry's executives of taking a "head in the sand approach" that has prevented their companies from becoming more competitive.

    "Congress is doing the exact right thing by asking for a conditions-based assistance package that holds the industry's feet to the fire and gives the industry some short-term assistance," he said.

    In addition to the policy issues, Obama avoided a direct answer when asked whether he has quit cigarettes as he prepares to move into a no-smoking White House.

    "I have done a terrific job, under the circumstances, of making myself much healthier. And I think that you will not see any violations of these rules in the White House," he said.

    Obama called the news conference to introduce retired Gen. Eric Shinseki as his choice to head the Veterans Affairs Department. Shinseki, who was a four-star general, was forced into retirement five years ago by the Bush administration after saying the president's plans to invade Iraq required more troops.

    Shinseki pledged to build a "smooth, error-free, no-fail benefits-assured transition" back to civilian life for veterans.

    Twice in the opening moments of the NBC interview, the president-elect said the economic situation "is going to get worse before it gets better," an unspoken plea with voters to have patience as the incoming administration tries to grapple with the issue.

    He announced plans Saturday for the largest public works spending program since the creation of the interstate highway system a half-century ago, although he said aides are still debating among themselves how much it should cost.

    "What we need to do is examine, what are the projects where we're going to get the most bang for the buck? How are we going to make sure taxpayers are protected? You know, the days of just pork coming out of Congress as a strategy, those days are over," he said.

    Some lawmakers have mentioned an economic aid plan in the range of $500 billion or higher, and Democratic leaders say they hope to have legislation ready soon after Jan. 20.

    The economic indicators have darkened since Obama's election, and Friday's report that 533,000 jobs were lost in November was the worst performance in more than 30 years. Unemployment stands at 6.7 percent, retailers are reporting weak holiday sales and the credit markets have yet to recover from the freeze that led Congress to approve a $700 billion bailout before the election.

    Turning to foreign policy, the president-elect sidestepped a question about the pace of a troop withdrawal from Iraq, saying he would direct U.S. generals to come up with a plan "for a responsible drawdown." He said in the campaign he wanted most U.S. troops withdrawn within 16 months, but did not say then, nor has he now, how large a deployment should be left behind.

    "We are going to maintain a large enough force in the region to assure that our civilian troops or our civilian personnel and our embassies are protected, to make sure that we can ferret out any remaining terrorist activity in the region" and providing training support for Iraqi personnel.

    He did not respond directly when asked whether he believes India should have the right to pursue terrorist targets inside Pakistan in the wake of the deadly attacks in Mumbai. He also said he wants to "reset U.S.-Russian relations" following the Bush era.

    "They are increasingly assertive and when it comes to Georgia and their threats against their neighboring countries I think they've been acting in a way that's contrary to international norms," he said of Kremlin leaders.

    The president-elect declined to comment on the possible appointment of Caroline Kennedy to New York Sen. Hillary Rodham Clinton's seat in the Senate. Obama tapped Clinton recently as his secretary of state.

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    Associated Press writers Stephen Ohlemacher in Washington and Philip Elliott in Chicago contributed to this report.

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I´m guardedly optimistic

I´m guardedly optimistic about him but you have to say it's day and night from the other schnook. The O guy seems ready to take the heat rather than just turn up the AC. But what a weight he has on his shoulders not just the USA but frankly the whole civilized world. Godspeed, he'll need it.

"the president-elect said

"the president-elect said the economic situation "is going to get worse before it gets better," an unspoken plea with voters to have patience as the incoming administration tries to grapple with the issue." Are we so used to lies, sugar coating, PR BS, secrecy, and all other manner of deception that we cannot understand an honest statement of how someone sees our rather dire situation without a journalistic gloss? And why should we buy this "interpretation" when so few journalists bothered to gloss the crap we've been fed for the past thirty years? No thanks, I'll take my O straight.

is , in essence, the Obama

is , in essence, the Obama plan, just as it was Bush's plan in the initial "bailouts." I am curious as to what part of "you cannot spend your way out of debt" do they not understand? No empire in history has ever succeeded in debasing the currency as a means to financial growth. Ginning up more fake dollars to shore up the economic depression just does not work for very long. Eventually, the ruse is up and the currency goes into free fall. Maybe this is why we don't like to read history -- it rubs our noses in the fate of all empires.

Obamanomics: Why the

Obamanomics: Why the Stimulus Plan Will Not Revive the Economy By Arun Gupta, The Indypendent Shortly after his Jan. 20 inauguration, if all goes according to plan, President Barack Obama will submit an economic stimulus plan to Congress. The plan will be of such historic proportions that the media will compare it incessantly to the New Deal; it will probably come with an eye-popping price tag of more than $500 billion; free-market ideologues will wail about the end of capitalism but will be almost powerless to stop it; Congress will jockey to lard it with pet projects as the price of approval. To read more, visit www.indypendent.org/2008/12/12/obamanomics/

I think Obama is right on

I think Obama is right on this one. He is presenting the problem as the cure. I don't believe we got where we are because the government isn't spending enough money. And, I don't believe massive government spending is going to be anything other then a disaster making the economy worse. His cabinet picks also reflect he isn't concerned with encouraging business activity. He's right, things are going to get worse. It make take decades to recover from his approach.

We should all know that It's

We should all know that It's going to get worse. We are living in the last days, and everything that is going on in the world today is in the bible. I don't need to watch the news to know that times are hard. All we need to worry about is where our hearts are. Have you excepted Jesus Christ as your Lord and Savior? If you have done that then are are saved, and you have nothing to fear. I pray that you all find that personal relationship with Jesus Christ. President elect Obama nor anyone else can save us. Only Jesus Christ has the power to keep us safe. God Bless all of you!

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