U.S. President Barack Obama is crafting a new government stimulus plan that he intends to present to Congress in September, according to Dan Pfeiffer, the White House communications director.
The focus of the stimulus measures will be on benefits for the long-term unemployed, according to another official in the Obama administration who wanted to remain anonymous because the measures have not yet been finalized.
Obama also will propose long-term spending reductions above the $1.5 trillion that the 12-member bipartisan “super-committee” of lawmakers has been charged with developing by late November.
In addition, Bloomberg reported that “Obama plans to propose a mix of tax cuts and infrastructure spending, including extending two measures that expire at the end of the year and which he’s been promoting on his current bus tour in the Midwest: the 2-percentage-point payroll tax cut for workers and longer unemployment insurance benefits, according to the official. The new spending and jobs proposals will go beyond those plans, the official said, without elaborating.”
“As part of his jobs package, Obama is said to be considering two sets of ideas: those that would require legislative action and steps that can be taken by the executive branch alone, without congressional approval.”
“The dollar amount of the additional long-term deficit reduction measures will exceed the cost of the short-term spending he will propose, the official said.”
This stimulus plan is the latest in a series of misguided Keynesian economic measures proposed by Obama. As his previous programs have illustrated, they may provide a short-term bounce for the economy, but have far greater negative consequences over the longer-term by adding to government deficits and shifting capital away from the private sector.
Moreover, the President appears to be trying to usurp power from Congress by sidestepping congressional approval for his jobs package, based on the claim in the Bloomberg report.
However, given that Republicans have a majority in the House of Representatives, any stimulus measures will be quite difficult to pass.
Sunridge Gold Engages Endeavour to Advance Asmara
Endeavour provided advice and assistance to Nevsun Resources (NSU.TSX, AMEX: NSU) in its evaluation of the Bisha Project, a large precious and base metal rich deposit which is now in production 150 kilometers west of Asmara, Eritrea. Full Sunridge Gold Press Release.
- The feasibility study at Sunridge’s Debarwa copper-gold-zinc deposit is substantially past the halfway point of completion and the prefeasibility study on the Asmara North copper-zinc-gold projects is also well advanced.
- Endeavour’s technical and financial advice on these different development options at this stage will be critical for Sunridge.
- Upon receipt of TSX Venture Exchange acceptance, Sunridge will issue to Endeavour 1 million share purchase warrants exercisable at a price of $1.00 for three years to vest one-third every six months from the date of the TSXV approval.
