Evy Hambro, Economist: Possible End In Sight For Global Economic Crisis

A UK economist specialising in China says that the economic stimulus package implemented by the Chinese government earlier this year could have positive impacts on world growth and save the global economy from a deep recession.

"I do think we are starting to see the green shoots of recovery and also confidence coming back with regards to people's outlook for the Chinese economy," BlackRock portfolio manager Evy Hambro said during a teleconference

Mr Hambro said industrialisation of the world's emerging nations was still taking place and would continue to be a "significant" driver of commodity demand over the next 10 to 15 years.
"We believe we're going through a short-term dip in what is at the end of the day a very long-term trend," Mr Hambro said.

"Demand at the end of the day will recover.
"These are not luxury goods these are essential goods people need to run their lives and you can't live without oil, you can't live without energy and many metals."

Via: SMH

Change.Gov : Barack Obama First Internet Address to US.

President-elect Barack Obama first ever weekly internet-radio address to the American people.

US President-elect Barack Obama has outlined his plans for America in an unprecedented address using YouTube, outside of the traditional use of the radio waves for a weekly Democratic party address to the nation.

In the video uploaded to YouTube late on Friday the 22nd of November, Obama outlined his plans for the creation of 2.5 million jobs by January 2011, exactly two years after he is expected to take office as President.

We'll be working out the details in the weeks ahead, but it will be a two-year, nationwide effort to jump start job creation in America and lay the foundation for a strong and growing economy," Obama said in his weekly Internet/radio address.

His announcement came two days after government data showed that new jobless claims had surged to a 16-year high, in a new sign that the world's largest economy appeared to be sliding into a deep recession, press reported.

Obama is also expected to officially announce his entire cabinet within the week. Obama is set to introduce Senator Hillary Clinton as his Secretary of State, and as we predicted Timothy Geithner as Secretary of Treasury.

Obama has also launched a website set to keep Americans up to speed with the President-elects administration, Change.gov.

Full 'weekly' Barack Obama Internet and radio address:

As We Predicted: Timothy Geithner Will Be Obama Treasury Secretary

Current New York Federal Reserve Bank President Timothy Geithner is set to be named US Treasury Secretary Monday, giving markets a much needed boost of confidence.

As we predicted earlier this month, Timothy Geithner will almost certainly become the all important Treasury Secretary in a Obama Whitehouse this January, reports say.

Despite the media focusing much of its attention on other likely candidates, it seemed very likely indeed that Tim Geithner was going to be selected for Treasury given his inside knowledge and experience with managing financial and economic crisis, and his Obama like affinity with international issues, pragmatism, age, family and general world view.

NBC news reported sources Friday afternoon New York Time that Timothy Geithner (pronounced GITE-ner) would be tapped by Obama for the position. Stocks on the NYSE soured with the news and gave a boost of confidence to an otherwise depressed financial market.

Major indices were up more than 6 percent, Reuters-Thompson reported. The Dow Jones industrial average closed above 8,000.

Via Reuters

NBC News said Obama was expected to announce Geithner and other members of his economic team on Monday to try to calm U.S. financial markets that have sunk like a stone all week before Friday's surge.

"A fantastic choice to help lead the financial markets out of the wilderness," said Chris Rupkey, economist at Bank of Tokyo-Mitsubishi in New York. He called Geithner a "crisis manager par excellence" who would hit the ground running.

If confirmed by the Senate, Geithner would be at the helm of efforts to stem the worst financial crisis since the Great Depression.

US Jobs Market Worst Since Bush 1.0

The jobs market in the United States is at its worst point since when George H.W Bush was leaving power.

Reuters Business News: The number of U.S. workers filing new claims for jobless benefits rose by a larger than expected 27,000 last week to their highest level in 16 years, Labor Department data showed on Thursday, as a harsh economic environment forces employers to cut back on hiring.
Continuing claims were 4.012 million in the week ended November 8, the latest data available, up from 3.903 million the prior week and the highest since December 1982.

What a mess Barack Obama has left to clean up.....What a mess!

Bush Asks Clinton How to Handle Obama

Outgoing President George W. Bush has revealed that he reached out to former President Bill Clinton for advise on how to handle his meeting with incoming US President Barack Obama.

In an interview with CNN, Bush said that he rang Bill Clinton the day before Obama and his wife arrived at the White house for ideas on guidance on handling the new kid on the block.

"'Bill, I'm getting ready to meet with the new president and I remember how gracious you were to me. And I hope I can be as gracious to president-elect Obama as you were to me,"' Bush told CNN today in a description of the call.

"To the extent that he asked my advice and he may want to ask it again, and the best way to make sure he feels comfortable asking it again is for me not to tell you in the first place what I advised him," he said.

Bush also said one of his biggest regrets as President was the infamous "mission accomplished" banner

"I regret saying some thing I shouldn't have said, like dead of alive....I was trying to convey a message and I probably should have conveyed it more artfully"

"I regret that that sign (Mission Accomplished) was there," Bush said.

Piroska Nagy Affair: IMF Chief Dominique Strauss-Kahn

Former IMF economist Piroska Nagy seen at a meeting in 2002.

The Chief of the International Monetary Fund, one of the most important financial organizations in the world, has been cleared of any wrong doing by the executive board of the organization after a scandal involving his extramarital relationship with a subordinate, economist Piroska Nagy.

Dominique Strauss-Kahn was investigated for favouritism and abuse of authority, but the IMF board released a statement early Sunday indicating that DSK was clear to continue his job. The IMF is currently at the centre of a number of international rescue plans for ailing world economies such as the Ukraine, Iceland and Pakistan.

The scandal threatened to distract the IMF and world leaders from the difficult task of negotiating a solution to the current Global Financial meltdown seen across the world.

Dominique Strauss-Kahn, who admitted to having an affair with subordinate Piroska Nagy, was cleared of any wrongdoing in connection with his relationship with a female employee while faulting him for a ``serious error of judgment.''

From Bloomberg:

An investigation by the fund's board ``concluded that there was no harassment, favoritism, or any other abuse of authority,'' a statement by the Washington-based agency said yesterday. ``Nevertheless, the Executive Board noted that the incident was regrettable and reflected a serious error of judgment on the part of the managing director.''

The report said Strauss-Kahn made ``initial contact'' with a female staff member, who wasn't identified, concerning ``legitimate IMF business.'' There followed ``a two-week-long exchange of consensual and very personal messages.'' In early January the two engaged in a ``consensual physical relationship of short duration.''

The scandal came about a year after a similar situation developed at the other major Bretton Woods born Washington DC organization, involving former Bush White house official Paul Wolfowitz, at the World Bank.