China: "Hope to increase economic growth by 8%" in 2009

Minister Counsellor and Head of the Political Section for the Embassy of China, Weilin Kuang discussed "China's Development and its Role in the World," today at a Humanity Peace and Security meeting for the Korean Peninsula Issues in Washington D.C.

Weilin Kuang said in his opening remarks: "Over the last 30 years the economic progress China has made is truly remarkable…over 200 million Chinese people have been lifted out of poverty."

However, despite China's progress in the economic market, Kuang noted some challenges facing China: "Although we are the third largest economy in the world our GEP is behind the 100th largest economy in the world."

Talking about the current economic crisis, Kuang said: "China is faced with very serious economic difficulties and challenges."

Talking about China's relations with the world, Kuang said: “After 30 years of reform China's relations with the world has changed. China needs the world, and the world needs China."

Kuang stated that maintaining and building on external relations is vitally important to help China get through this economically demanding period.

Speaking of hope for China, Kuang said: “I am confident that a rising, confident and more prosperous China will make positive contributions to the world…China hopes to increase its economic growth by 8 per cent this year and I am very hopeful."

In regard to US-China relations, with the new Obama administration, he said: "We hope to see a continuation of these two dialogues…we have put our ideas to the US side, now its their turn, the ball is in their court…I am confident a formula can be formed to allow these two dialogues to continue…it is up to the United States to make a position."

"We have seen positive signs from President Obama and Secretary of State Hillary Clinton…I hope more can be done to move forward and expand talks…face-to-face talks could be very helpful to help express mutual understanding," he concluded.

McCain: "That's Not Bi-Partisanship"

Senator John McCain (R-Ariz) spoke during the Senate debate today, to discuss the compromised version of the stimulus package.

McCain said: "I don't believe things are going to get better in the
world real soon."

"We need to sit down together before the bill is written, outline the
principles, turn those principles that we share into concrete
legislation and work together, and I hope we never again have a
repetition of a bill of such enormous consequence that would pass
through both bodies with literally no Republican support.”

McCain added: "Three Senators out of 178 [Republicans] in the House and 40 here in the United States Senate. That's not bi-partisanship."  

"I hope the American people respond again by sending us the message,
they want us to address the economic woes we face, and they want us to
address them together. This legislation, in my view, is very, very bad
for the economic future of America," McCain concluded.

Federal Reserve to be more transparent about lending policies

By Kayleigh Harvey - Talk Radio News Service

Federal Reserve Board Chairman, Ben Bernanke testified before the House Financial Services Committee concerning "An Examination of the Extraordinary Efforts by the Federal Reserve Bank to provide Liquidity in the current Financial Crisis."

Chairman Barney Frank, (D-Mass) said in his opening statement: "I read before coming here, the new Treasury of the Secretary's announcement of his plans to use the TARP funds. It is very clear that the Obama administration, as did the Bush administration is using the money in the TARP program in conjunction with the lending authority of the Federal Reserve."

"There are also some important questions in the ways in which we govern ourselves. The Chairman of the Federal Reserve and indeed the Federal Reserve system, I believe were responding to the very real needs in society and people need not agree with every specific decision that the Federal Reserve made, to appreciate the sense of very important public purpose that has motivated them," Chairman Frank said.

The Trouble Assets Relief Program (TARP), was a program set up, in October 2008, by the United States government to allow them to purchase assets and equity from financial institutions to help strengthen them during the economic recession.

The Ranking Member of the Committee, Representative Spencer Bachus, (R-Ala) said: "I believe in a democracy it should be a requirement in any agreement or transaction involving the government that...in the event that our governing officials come to the decision that the commitment of public funds is necessary, if a commitment of taxpayer funds or guarantees cannot be disclosed because of the circumstances involved it cannot and should not be made."

Chairman Bernanke answered questions for over two hours to the Committee concerning the Federal Reserve’s problems in this economic crisis.

"I firmly believe that central banks be as transparent as possible both for reasons of democratic accountability and because many of our policies are likely to be more effective if they are well understood by the markets and the public...The Federal Reserve is committed to keeping the Congress and the public informed about its lending programs and its balance sheet."

"To improve public access to information concerning Federal policies and programs, Federal Reserve staff are developing a new website that will bring together a new systematic and comprehensive way to find a full range of information the Federal Reserve already makes available, supplemented by new explanations, discussions and analysis. Our goal is to have this website operational in a few weeks."

Chairman Bernanke also referred to a new committee that will revue the Federal Reserve’s current publications and disclosure policies that will relate to the Federal Reserve's balance sheet and lending policies.

Congressman's fury at economic crisis

Congressman Michael Capuano (D-MA) expresses his concerns to a representative from the FDIC about the current economic situation at a House Financial Services Committee hearing to discuss the "Hope for Homeowners" program. February 3, 2009.

The Economic Outlook and Budget Challenges

The U.S House Budget Committee held a full committee hearing on the economical outlook and budget challenges.

The discussion focused on the economical problems that are facing America today and the crucial issue of unemployment. The need to create more jobs was discussed and a solution that was presented favored lowering taxes on private business. This solution will could lead to an increase in employment.

A key point that was stressed involved investing in a long term economic strategy, to be able to increase the employment and create sustainable jobs.

Douglas W. Elmendorf, Director of the Congressional Budget Office, presented testimony regarding the state of the economy and issues in developing an effective policy response.
Elmendorf said that America must change its economical policies and make them more efficient to recover from the economical downturn it has suffered.

" The expected severity and persistence of economic weakness have led the great majority of economists to think that both large-scale fiscal stimulus and significant new financial and monetary policies are needed to generate a strong recovery in the next few years. Fiscal policies are most effective if they are timely, are cost effective and do not exacerbate the nation's long-run fiscal imbalance," Elmendorf stated.

He also referred to the difficulties in constructing a stimulus package that is economically effecient and statisfying the broader objectives. Policymakers want to know which people benefit from a policy and what society will receive in return.

Kevin Hasset, Senior Fellow and Director of Economic Policy Studies at the American Enterprise Institute, presented testimony that America's economy has been through bad times before and that the economy recoverd. Hasset also highlights the importance debt could have.

" We have not yet reached the point where skyrocketing debt levels have caused heightened concerns among investors in U.S. Treasuries. If this Committee wishes to avoid testing those waters, it should consider stimulus efforts with genuine steps toward run deficit reduction," Hasset stated.