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Obama Defeated in Debt Limit

In an attempt to raise the US debt limit to help “restore growth” to his country’s economy, President Barack Obama probably left feeling somewhat beaten.  In an article in Reuters, it was reported that “the outcome of the debt battle dismayed Obama’s liberal base just when he needs them for 2012 fundraising and support, and emboldened his Republican adversaries who forced him to accept more spending cuts than he wanted.”

Re-election Worries

Of course, Obama is working hard for this in the hope of boosting his re-election chances.  But the fact that his major challenge wasn’t helped (America’s 9.2 percent jobless rate) spelled even more bad news for the Premier.  According to the Reuters article, it made it even worse by “ratchet[ing] up the bar by generating so much uncertainty that businesses sharply cut back investing and hiring.”  It is imperative Obama makes some moves on dealing with the country’s severe unemployment problems.

Obama’s future plans will probably be doing whatever it takes to ensure the economy doesn’t drop back into recession such as extending a payroll tax cut and “approval of stalled trade deals with Panama, Colombia and South Korea.”

It is believed, that such moves – along with time – “could help him overcome the damage from the debt debate” and may even be “a blip on the screen as voters consider Obama against a field of Republican candidates that many analysts see as weak.”

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