VZCZCXYZ0003
RR RUEHWEB

DE RUEHIN #0859 1970709
ZNR UUUUU ZZH
R 160709Z JUL 09
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 1954
INFO RUEHBJ/AMEMBASSY BEIJING 9288
RUEHHK/AMCONSUL HONG KONG 0721

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