Since signing the newly passed debt plan, President Obama has publicly vowed that creating jobs would be his number one priority. But can he keep this promise?
A number of political watchdog organizations believe that Obama and Federal Reserve Chairman Ben Bernanke are virtually out of options on ways to create more jobs.
James Thurber of American University’s Center for Congressional and Presidential Studies believes that Obama has lost much of his political clout in Washington after yielding so much to the Republicans on the debt plan.
John Makin, economist at the American Enterprise Institute in Washington said:
“It seems we’ve thrown everything at it. We’ve had QE1 and QE2, Stimulus 1 and Stimulus 2, and the unemployment rate is still 9.2 percent. Maybe there are just not many options here at this point,”
QE1 and QE2 refer to the Quantitative Easing policies of the Federal Reserve.
Without an increase in jobs in the US, the economy seems to be on the path to another recession. Former Obama advisor Lawrence Summer believes the chances of another US recession are 1 in 3.
World financial markets also seem to be preparing for a US recession as markets globally have been declining in conjunction with what is happening here in the US.
So what are Obama’s options to spur growth in both jobs and the economy? Many are doubting that he has any viable options left and that another recession is unavoidable.
It’s time to hang on to all the gold and silver you can get and fasten the seat belts as it promises to be a bumpy ride for the next few years.