Obama: Have 'Absolute Confidence' in T-Bills
President seeks to reassures jittery markets, investors after China PM's remarks
March 14, 2009 -- Investors should have "absolute confidence" in money placed with the United States, President Barack Obama said during an appearance with Brazilian President Luiz Inacio Lula da Silva at the White House today.
Obama and Lula da Silva held a private meeting for more than an hour before taking questions from reporters.
Obama was asked about Chinese Prime Minister Wen Jiabao's expression of concern Friday that the Chinese investment of approximately $1 trillion in U.S. Treasury bills could be losing value.
"I think that not just the Chinese government, but every investor can have absolute confidence in the soundness of investments in the United States, and that it is not just in U.S.-issued Treasury notes but also in the private sector and the commerce and the industry that has made this the most dynamic economy in the world," Obama said.
The president dismissed reports of disagreement at the G-20 conference of finance ministers this weekend over whether regulation or fiscal stimulus would best to reboot the global economy.
"I don't know where this notion has emerged that there are sides with respect to the G-20," Obama said. "This is not a either-or question, this is a both-and question. We do believe that it is important for all countries around the world to step in and figure out how we can ensure that we are compensating for the drastic contraction in global demand."
Obama said a "whole range of approaches" on fixing the economy are possible.
"Fiscal stimulus is only one leg in the stool," he said. "We have to do financial regulation, and nobody is going to be a more vigorous promoter of the need for a reform of our financial systems. I think most of those initiatives are going to be taking place in individual countries, but there's going to need to be coordination between the various countries."
The two leaders were expected to discuss a range of issues, including U.S. ethanol imports from Brazil, which have been a source of disagreement for the competition they pose to U.S. producers. Obama said that "tension can get resolved" over time.
Lula da Silva invited the president to try out a flex-fuel car when he visits Brazil.
"I actually had a flex-fuel vehicle," Obama replied. "But one of the problems here in the United States is, is that we don't have enough gas stations that have biofuels in them. So that's one of the areas that we need to change our distribution networks here in the United States."
