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Obama, Merkel agree to boost global economy

The Local · 28 Aug 2011, 08:39

Published: 28 Aug 2011 08:39 GMT+02:00

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The two leaders also agreed to continue working on a statement by the Middle East Quartet group that could provide a basis for a resumption of direct talks between Israel and the Palestinians, a White House statement said.

"The two leaders agreed on the importance of concerted action, including through the G20, to address current economic challenges and to spur growth and job creation in the global economy," the statement said.

The statement did not however specify what kind of action the leaders would

recommend to spur growth.

Obama, enduring one of the roughest patches of his presidency, is preparing a speech on jobs and the deficit in September which supporters hope will contain measures to cut high unemployment and revive the recovery.

There is also concern in the United States that the Eurozone crisis could harm global economic growth and create more headwinds for the US recovery.

US central bank chief Ben Bernanke however said on Friday he was confident

European authorities had a good grip on their problems.

Financial stress "has been and continues to be a significant drag on the

recovery" both in the United States and Europe, he told an audience of central

bankers in Jackson Hole, Wyoming.

"Bouts of sharp volatility and risk aversion in markets have recently re-emerged in reaction to concerns about both European sovereign debts and developments related to the US fiscal situation," he said.

Bernanke also pushed political leaders in the United States to take action to bolster growth by generating more jobs and stimulating the housing market.

Obama and Merkel discussed the Middle East less than a month before the

Story continues below…

Palestinians are due to formally submit their request for statehood to UN chief Ban Ki-moon.

The move comes after direct peace talks with Israel foundered late last year over a dispute over Jewish settlement construction on occupied Palestinian land.

Israel is strongly opposed to such a move, saying negotiations are the only way to resolve the conflict and establish a Palestinian state -- a position backed by Washington, which has announced its intention to block the request.

The Middle East Quartet is made up of the European Union, Russia, the United States and the United Nations.


The Local (news@thelocal.de)

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Your comments about this article

10:42 August 28, 2011 by Celeon
Shouldn't Merkel rather phone Wen Jiabao on the global trade matter?

China and Germany plan to more than double their current trade volume in the coming five years as part of the "new silk road" project which will connected Central and Western Asia with Europe and end in Germany on the others side.

Germany already has a share in more than 7000 chinese companies.

A targeted trade volume of 280 billion u.s dollars between both countries by 2016.... THATs the stuff that really boosts the global economy.
14:03 August 28, 2011 by Loth
If President Obama wants jobs he needs to fix free trade agreements. Trading products not just giving away Americas good paying jobs. Stimulus can not produce jobs in America,it can make more jobs in China and India. China needs to keep raising their interest rates to cool off their economy while America can't even afford to raise the interest rates to the detriment to ordinary savers. Free trade stinks and hurts the people who live in America with that giant sucking sound of good jobs going overseas.
14:28 August 28, 2011 by n230099
0bama's now beyond impotent. His now legendary failure has caused a stagnation and malaise heretofore unknown. It's had to know what Merkel is thinking here. As noted above, China is where she should look for a trigger to grow.
15:12 August 28, 2011 by catjones
n230099....Barack has consistently said he is open to constructive solutions. What are yours?
15:17 August 28, 2011 by jbaker
Merkel should consult the Easter Bunny first. Obama the Carnival Barker is an actor that has lost his edge. Reagan and Clinton showed better acting skills than this Placebo. Can Merkel become a better actor?
15:21 August 28, 2011 by jmclewis

You are so sad teaming with Obama is like making a blue movie with a 40 year old virgin man! So the US should do more stimulus spending..... the new debt reduction plan is like buying a new car and skipping leather seats.

Obama has better odds of being the next Grand Wizard of the Ku Klux Klan plan than being reelected!

You know this of course so this was just letting people think you have some leadership and are the chancellor!
15:23 August 28, 2011 by voidplay

When poor, less educated people move up the value chain they become more productive and increase the value of the economy. Developed countries which are already functioning at their peak can not add value easily, that too with the slow pace of misdirected innovations we are making. It is a mystery that most developed countries even have a positive growth.

Countries in Europe are used to one way trade, import cheap raw materials and export high priced goods. So much so that it would be a rare moment to see EU countries giving out state funded contracts to other EU countries. And what was their backyard growth markets in Africa, S.A., M.E. and Asia, is facing increased competition from emerging economies, which were until recently isolated from international trade.

America unfortunately can not follow the same route as the many small countries in the EU because of its big population and it would have only brought in the crisis earlier.

So instead of complaining about third world countries, be content that they are the ones fueling your growth and pray that "free markets" stay to let you participate in their growth.
15:35 August 28, 2011 by storymann
The economies of China ,India and Brazil put together are less than the US economy.

The silk road is only silk from it's origin to China,the road from China to it's destination is a road of inferior quality and regenerated goods,often at the expense of the developer with a very lop sided balance sheet.

The Walmart big ship Emma Maersk holds 15,000 containers and travels at a speed of 31 knots, travels to China almost empty and often is ,returns fully loaded.USA exports 91 billion in 2010 to China and imported 364 billion. Great for China.

The 280 billion dollar goal by 2016 is pie in the sky for Germany and all silk for China.
16:41 August 28, 2011 by marimay
They don't really want to fix the problem. Just make more bubbles.

Americans need to embrace labor driven jobs again. Everyone thinks its their destiny to go to college and become someone who makes $100,000 a year at least. This is not realistic. Most people are not smart enough anyway. (sorry its true) I am scared of the level of education kids are graduating with these days. It shouldn't count for anything. People need to take pride in jobs they have decided are beneath them and are happy to see illegal immigrants do. There is nothing wrong with good honest work, but there is something wrong with thinking collecting a government check is better than working at McDonalds or working in some strawberry fields. Imagine if we could keep all that money in the country instead of being sent to mexico and south america.

We need to bring manufacturing jobs back. We need to bring a lot of jobs back from China and who knows where. It was funny, the other day I came across some old baby shoes of mine from the 80's. Made in the USA. I wonder if that exists anymore? I doubt it...

Also, start investing in renewable energy. FOR REAL THIS TIME.
18:24 August 28, 2011 by derExDeutsche
Constructive Solutions? Obama doesn't want constructive solutions. he want redistributive solutions.

End the Fed. Go back to the Gold Standard, get Barack Obama and the rest of the liberal debt monkeys the hell out of Office = Problem solved
18:38 August 28, 2011 by marimay

You would be mad to think that it were only the liberals that caused this mess. And that one president, left or right, could fix it in one term.

You really think republicans other than Ron Paul want to abolish the fed? They are in bed with the fed. Most politicians are, left or right.

The problem is, Americans are too obsessed with being right or left. Guess what? There is no such thing anymore, and hasn't been for a long time.
03:06 August 29, 2011 by Texas_to_GE
Biggest problems is like the Romans, America is slow to realize that the party is over and is slowly becoming the Flintstones!
06:41 August 29, 2011 by smackdye

"Obama has better odds of being the next Grand Wizard of the Ku Klux Klan plan than being reelected!"

Actually he has a great chance


"Everyone thinks its their destiny to go to college and become someone who makes $100,000 a year at least. This is not realistic. Most people are not smart enough anyway. (sorry its true)"

Americans? or just people in the world in general


End the Fed. Go back to the Gold Standard, get Barack Obama and the rest of the liberal debt monkeys the hell out of Office = Problem solved

So you think only "Liberals" are the ones that is bringing America down? What is/was/ and has brought America down way the 2 party system..it does not work...has not never worked..and will continue to not work, go back to the gold standard? impossible..there is more paper money in circulation now that all of the gold that has ever been mined...gold prices would skyrocket...making it almost impossible to obtain except for the wealthy

Gold Standard was partially to blame for the Great Depression...

Actually that sounds like a very Conservative plan


"Biggest problems is like the Romans, America is slow to realize that the party is over and is slowly becoming the Flintstones!"

No im pretty sure us Americans have known the " party is over" for a very long time.. say ohhh... 2000

the party isnt over what is over is the government..over spending, over taxing etc etc...

kill the free trade, or..TAX big business that trys to skate by with paying very low taxes by taking their business out of the country.. Why am i getting 24% out of my checks when a big business gets 12% tax?

kill the 2 party system, flat tax on everybody by using a national sales tax. rich people buy more than poor people....people who make money under the table also would be paying taxes. this would make everyone pay their fair share.. stop the wars just walk away.. it is pointless, stop funding other country's until American can get back on it's feet..raise the standard of living in America and life will get golden. = problem solved
17:09 August 29, 2011 by derExDeutsche
@ MArimay and smakdye

Republicans? F'the Republicans. Its a new day in the USA. find out come 2012. 3rd Party is here.
17:50 August 29, 2011 by marimay
You should work on your reading comprehension, derExDeutsche. No where did i imply I was pro republican or any party.
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