Money and finances

The U.S. president-elect believes that America is facing the biggest economic challenges in her history. Barack Obama met in Chicago with economic advisers, which was the first meeting since the election press conference.
The future U.S. president said that the United States needed a rescue plan for the middle class, which would create new jobs and bring relief to families whose entire life savings had melt during the last recession. It should also provide extension of unemployment benefits. Barack Obama wants to revise the plan to rescue the economy presented a few weeks ago by President George Bush. The plan, however, should not only help the victims of the economic crisis, but also stimulate the economy.

Obama warned that the repair of the American economy will be a very difficult and arduous task. He stressed the immensity of the tasks that lie ahead. The President-elect pointed out that he had already undertaken some steps, but climbing out of the economic slump would be neither quick nor easy. The U.S. President-elect wants the package passed as soon as possible.

Energy independence is synonymous with homegrown biofuels, specifically corn-based ethanol. The US senators voted on “Iowa farmers versus Saudi oil ministers”. The US Congress mandated that 7.5 billion gallons of ethanol to be blended into the fuel stocks by 2012. Last year, Congress increased the mandate to 15 billion gallons by 2015.
Proponents and opponents of ethanol are waging a war in Washington over whether biofuels have a future.
Ethanol has always been opposed by oil industry executives who are fearful of competition at the pump.

Inflation remains a primary point of concern. Americans “were pinched by rising energy and food prices”. Many Americans are delaying big purchases like cars and household appliances. Sales of automobiles, particularly trucks and sport utility vehicles, also fare falling.

Retailers report pressures to hike prices on popular consumer products, but many say they will have trouble passing higher costs on to their customers.

The U.S. trade deficit widened in April 2008 as the surge in oil prices spurred imports to a record, overshadowing the biggest gain in exports in four years.

“The gap grew 7.8% to $60.9 billion, more than forecast and the most since March 2007,” stated the US Commerce Department. Except for petroleum, the shortfall was little changed.