MEDIA REACTION: OBAMA AND U.S. ECONOMY

UNCLAS AIT TAIPEI 000859 SIPDIS DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/P, EAP/PD - NIDA EMMONS DEPARTMENT PASS AIT/WASHINGTON E.O. 12958: N/A TAGS: OPRC KMDR KPAO TW SUBJECT: MEDIA REACTION: OBAMA AND U.S. ECONOMY Summary: Taiwan's major Chinese-language dailies focused news coverage July 16 on the 2009 World Games, which begins in Kaohsiung the evening of the 16th; and on the crash of an F-5F fighter jet in the sea off Penghu Island Wednesday, killing two pilots. In terms of editorials and commentaries, an editorial in the conservative, pro-unification, English-language "China Post" discussed the global economic recession and U.S. President Barack Obama's efforts to stabilize the U.S. economy. The article concluded by saying that "the world is entering uncharted territory" now and the "global stabilizing role that the United States played for many years seems to be coming to a close." End summary. "Tough Problems Leading U.S. into Uncharted Territory" The conservative, pro-unification, English-language "China Post" [circulation: 30,000] editorialized (7/16): "U.S. President Obama is, by most accounts, doing a commendable job thus far. He is making the right moves in stabilizing the U.S. economy while simultaneously re-building America's international brand image. Add two wars in Iraq and Afghanistan and it's fair to say that the new U.S. leader is juggling a lot of balls right now with reasonable success. And while experts are divided over how deep the current global recession is and how far we have to go before we pull out of it, there is optimism among many that things may improve soon. Unfortunately, the reasons for optimism are few and the negative things are many. America, and by extension the world, is likely in for a much rougher ride than most think. ... "Unfortunately, America did not save for a storm and quickly spent the surplus on controversial tax cuts and a hugely expensive war in Iraq. Today, quite simply put, America is broke. News came this week that the United States has now amassed a deficit of one trillion dollars, and it's expected to break two trillion later this year. ... If America's problems were only financial, there might be less reason for pessimism. America has been in financial holes before and each time the nation has rallied and rebounded. This time though, America may not have the skills necessary to quickly rebound. ... "For his part, Obama is beginning to dampen expectations that America is going to quickly return to prosperity. Speaking at his weekly radio address, Obama asked for Americans' patience and announced that recovery will 'take years, not months.' After decades of rivalry with the former USSR, America spent close to two decades sitting pretty as the planet's sole superpower. Today, the world is entering uncharted territory. The global stabilizing role that the United States played for many years seems to be coming to a close. Who or what will replace it?" WANG