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Moody’s Chief Economist John Lonski on China’s role in the U.S. economy and concerns over the potential effectiveness of Obama’s jobs plan.
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Now tonight's market master Moody's chief economist -- lost his -- great to have you here.
Is this a couple of final hour reversal in the market does -- reason -- Jubilation in.
Expectations.
Much rosier -- Well we'll probably get off to a positive start to world according to futures but I don't know whether or not that's gonna prove to be a turning point of any sort of -- a lot of uncertainty out there.
The situation in Europe that has yet to be resolved.
I've yet to be resolved in -- gosh I mean to think that Italy is turning to China.
To bide their debt.
Are rather than turning to the European Union are expecting if you really cool operative response on the part of the eurozone.
-- all the money the Chinese have has to go someplace you know an -- why not always what other reasons why the Italian economies doing poorly is because of -- loss of manufacturing activity to China especially in the area textiles.
So the trade off is this jobs.
Manufacturing.
And and in return you get to borrow money from I I think that the Chinese may have come up with the ultimate economic model to argue -- very much have us cornered and if China is still officially a Communist government I think it might felt we -- Communist.
Ultimately what the Communist water that they used our our guns or ammunition my gosh I mean they take on everything they had.
And they just are that they have a plane -- according to Timothy Geithner I love the fact when we see in Obama administration official -- proceeding that.
A Bush Administration there's going to say you're not playing fair you're smarter about -- you're working harder than -- and you've got -- -- that that's not fair.
Yet and how many situations -- we encounter were business has weapons aimed at it at its best customer -- this is really a market to understand it.
Well -- Israel as we look at what is happening here we've got a president who's this -- -- that He can prevent the next recession.
If only congress will immediately and -- this must stress immediately because that's in the spirit of this administration.
Pass the jobs act.
Yet we don't know how many jobs it would create nor at what cost or precisely how it would be paid what we're getting some -- Can you believe that that we've -- government policy rise of this -- Certainty that He -- that it's.
-- well why don't we and our reserve meeting in the past and all proved to be false you know the first time we had the payroll cannot tax cut proposed.
Economist -- together we're a -- GDP forecast for 2011.
From 2.5 percent to 3.2.
Right now the same group of economists.
Projected GDP rose slightly one point 6% this year so I don't have a great deal of faith.
That this fourth or third term -- on whatever might be is gonna work.
-- and yet that.
It seems that the entire national media does say they -- -- to go about reporting what the president says war happened.
The jobs will this war current jobs will be created here.
Are there seems to be no response in the national media when the president of all things says you know we need to save teachers' jobs.
When teachers no one seems to -- -- -- extra work that's required of a journalist of note that.
Teacher employment has never been higher in the history of the United States.
I mean is what is going on -- suddenly fax no longer matter the empirical foundation.
Of reasoning government policy is irrelevant.
Hope now reigns over facts I mean that's basically what's happened.
Well I.
If I can hope dashed hope I believe that if you can't feed yourself off of hope you can't feed yourself all -- optimism.
-- you feed yourself off of new jobs.
And urging come in that's simply not growing rapidly enough.
Is there is there are is there a way forward here then to restore prosperity in the short term and the short term my to finance between now on November 6.
By 2012.
That's going to be very difficult to do think early on you've noted.
That the president wants this to be passed as soon as possible but the reality is the political process takes some time and by the time all these measures.
Finally filter their way into the economy.
It's going to be late 2000 as well for all we know.
So -- it couldn't very well might be that President Obama has to be hoping praying for some sort of miracle to turn the economy around I don't think that miracle is necessarily going to arrive in time.
For a lot of folks that.
That hope is really often expressed as a prayer because we got a million veterans in this country without jobs.
We've got six million long term unemployed Americans.
Out of work longer than six months and -- we've got fourteen million as you well.
Well out of work we have been the detached the discourage.
And those who withdrawn from the workforce hold ago.
Let's first look at you know where you do the jobs come from -- come -- small businesses now believe it or not.
A companies that have fewer than fifty employees and their payrolls account for 45%.
Of all private sector jobs fewer than 500 account for more than 80% of job of all jobs.
So it's not the S&P 500 corporations that are going to lead a recovery by employment we have to look at smaller businesses may be the president could propose.
Reductions.
In regulations that affect these small businesses to encourage them to take on more workers.
After all we don't -- a lot of fat cats working at these companies with the fewer than fifty employees.
It it seems once they've exhausted their search nations against their corporate and private jets.
That there's little room -- energizing the small business and the the energy policy right now the United States is so backwards in a way that I was -- to date at the actual your movie oil from North Dakota down to the refineries a Texas and Oklahoma.
By way of rail roads instead of pipelines which are far more efficient because of opposition to the construction of pipelines -- -- it in.
One is often left scratching one's head when it comes to certain policies particularly environmental policies energy -- all the policies go.
John laws -- our thanks for being here -- -- to -- against her pleasure.
