“An economic crisis of historic proportions”

Obama.jpgPresident-elect Obama has become the latest world leader to “get it”, as his wife Michelle once remarked. For far long, politicians seemed to believe their platitudes about the “underlying strength” of their national economies. This meant their proposed remedies were reactive, and usually unworkable.

More recently, the blog has also worried that the USA faced a policy vacuum, with Bush still President and Obama in ‘hands-off’ mode. Obama’s recognition yesterday that we are in “an economic crisis of historic proportions” is therefore very welcome. The blog strongly supports his analysis of the need for the US to “act swiftly and boldly”, to avoid a “vicious cycle” developing between Main St and Wall St, in which “folks consume less” and deepen the “problems in our financial markets”.

The USA is the world’s only economic super-power. Whatever protocol suggests, it is essential that Obama now takes the reins quickly, before his official inauguration. Effective action cannot wait until after 20 January.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.


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