Earn IMF leads global push for euro zone to boost firewall

Earn IMF leads global push for euro zone to boost firewall The head of the International Monetary Fund (IMF) Christine Lagarde attends a session at the World Economic Forum (WEF) in Davos, January 28, 2012. REUTERS/Christian Hartmann The head of the International Monetary Fund (IMF) Christine Lagarde attends a session at the World Economic Forum (WEF) in Davos, January 28, 2012. REUTERS/Christian Hartmann By Paul Carrel and Emma Thomasson DAVOS, Switzerland (Reuters) - International Monetary Fund chief Christine Lagarde led a global push on Saturday for the euro zone to boost its financial firewall, saying 'if it is big enough it will not get used.' Lagarde, supported by the British finance minister, George Osborne, said the IMF could boost its support for the euro zone but pressed its leaders to act first. Some attendees at the Davos Forum still doubted the viability of the currency union. Countries beyond the 17-country bloc want to see its members stump up more money before they commit additional resources to the IMF, which this month requested an additional 500 billion euros ($650 billion) in funding. 'Now is the time - there has been a lot of pressure building in order to see a solution come about,' Lagarde told a Forum panel discussion on the economic outlook from which euro zone leaders - most notably Germany - were conspicuously absent. 'It is critical that the euro zone members develop a clear, simple firewall that can operate both to limit the contagion and to provide this sort of act of trust in the euro zone, so that the financing needs of that zone can actually be met,' she said. Lagarde's comments rounded out a crescendo of calls at the Davos Forum for the euro zone to boost its financial defenses. The annual five-day conference began with German Chancellor Angela Merkel deflecting pressure to do so. In a carefully worded keynote address, Merkel suggested doubling or even tripling the size of the fund may convince markets for a time, but warned that if Germany made a promise that could not be kept, 'then Europe is really vulnerable.' On Friday, U.S. Treasury Secretary Timothy Geithner pressed Europe to make a 'bigger commitment' to boosting its firewall. Two bankers who attended meetings with Geithner at the Forum said on Friday the United States was looking for the euro zone to roughly double the size of its firewall to 1.5 trillion euros. There was no immediate comment from the U.S. Treasury. Osborne said the currency bloc must beef up its firewall before other countries increase their funding to the IMF. 'I think the euro zone leaders understand that,' said Osborne, the only European minister on Saturday's panel discussion on the global economic outlook in 2012. 'There are not going to be further contributions from G20 countries, Britain included, unless we see the color of their money,' he added, calling for the euro zone 'to provide a significant increase in available resources.' MORE OPTIMISM...FOR SOME Japanese Economics Minister Motohisa Furukawa echoed Osborne's comments, saying: 'Without the firm action of Europe, I don't think the developing countries like China or others are willing to pay more money for the IMF.' On condition that the euro zone boosts its own defenses, he said Japan and other countries were willing to additional support via the IMF. Lagarde said, however, that if the international lender's resources were boosted sufficiently, this would raise confidence to such a degree that they would not be needed. 'If it is big enough, it will not get used. And the same applies to the euro firewall for that matter,' she added. Japanese Prime Minister Yoshihiko Noda, speaking to the Forum by video link from Tokyo, said Japan was working with South Korea and India to reduce the risk of the euro zone crisis spreading to Asia. 'Japan stands ready to support the euro zone as much as possible,' he added. Mexico's central bank chief, Agustin Carstens, said on Friday he believed a consensus was building on boosting the IMF's resources to help European countries and others that might need aid from the global lender. There has been a palpable sense of hope at the Davos Forum that the euro zone is pulling back from the brink of catastrophe, though business leaders are equally worried that Europe's woes will hold back a global recovery. Osborne saw some signs of optimism. 'People have commented on the mood of this conference being quite somber but having been here for a couple of days people have also pointed out that actually people are slightly more optimistic at the end of the week than the beginning,' he said. However, Davos 2011 also ended on upbeat note about the euro zone and a feeling that worst of the crisis was over - only for the situation to deteriorate and financial markets to turn their fire on Italy, the bloc's third biggest economy. 'The euro zone is a slow-motion train wreck,' said economist Nouriel Roubini, made famous by predictions of the 2008-09 global banking crisis. He expected Greece, and possibly Portugal, to exit the bloc within the next 12 months and believed there is a 50 percent chance of the bloc breaking up completely in the next 3-5 years. Hong Kong's Chief Executive, Donald Tsang, said no matter how strong the euro zone's firewall is, the market will look at the nature of the economies it is protecting. 'If it is protecting insolvent economies...no matter how strong the firewall is, it won't survive,' he said. (Additional reporting by Ben Hirschler; Editing by Jon Boyle)

Oil Greece, creditors laboriously piece together debt deal

Oil Greece, creditors laboriously piece together debt deal ReutersReuters – 1 hour 26 minutes ago Companies: Thomson Reuters Corporation RELATED QUOTES Symbol Price Change TRI 27.82 -0.10 By Renee Maltezou and Lefteris Papadimas ATHENS (Reuters) - Greece and its private creditors head back to the negotiating table on Saturday to put together the final pieces of a long-awaited debt swap agreement needed to avert an unruly default. After weeks of muddling through round after round of inconclusive talks, the negotiations appear to be in their final phase, with both sides hoping to secure a preliminary deal before Monday's European Union summit. Prime Minister Lucas Papademos was expected to meet bankers' chief negotiator Charles Dallara at around 1330 GMT (8:30 a.m. EST) on Saturday, before meeting inspectors from the 'troika' of foreign lenders pressing Athens to step up painful reforms. 'Today will be another tough day,' said George Karatzaferis, leader of the far-right LAOS party, one of three parties in Papademos's emergency coalition government. 'We will see whether we can bear the burden that lies ahead.' The debt swap, in which private creditors are to take a 50 percent cut in the nominal value of their Greek bond holdings in exchange for cash and new bonds, is a prerequisite for the country to secure a 130-billion-euro rescue package. Papademos told Reuters in an interview on Friday he expected the debt talks to be concluded within days. 'We made significant progress over the last few weeks and in the last few days in particular. We are trying to conclude the discussions as quickly as possible. I am quite optimistic an agreement will be reached in the coming days,' he said. But concern has grown that the deal may not do enough to get the country's debt reduction plan back on track, and that Greece's European partners will be forced to stump up funds to cover the shortfall. The German news magazine Der Spiegel reported on Saturday that Greece's international lenders thought Athens would need 145 billion euros of public money from the euro zone for its second bailout rather than the planned 130 billion euros. The magazine said the extra money was needed because of the deteriorating economic situation in Greece, echoing a Reuters report on Thursday. Athens also faces problematic talks with the 'troika' of foreign lenders - the European Commission, IMF and European Central Bank - who have warned it needs to do more to drive through painful reforms before they dole out any more money. 'It's all very dense, difficult and crucial,' a Greek finance ministry official said. 'There is optimism because the country needs to survive and we need to protect its citizens because they have suffered a lot.' Athens and its creditors have broadly agreed that new bonds under the swap would probably have a 30-year maturity and a progressive interest rate. The deal is aimed at chopping 100 billion euros off Greece's crushing 350-billion-euro debt load. But they have wrangled for weeks over the interest rate Greece must pay on the new bonds and pressure has grown in recent days on the European Central Bank and other public creditors to accept a cut in the value of their Greek bond holdings like the private sector creditors. A debt deal must be sealed in about three weeks as Greece has to repay 14.5 billion euros of debt on March 20. Otherwise Greece will sink into an uncontrolled default that might spread turmoil across the euro zone. Papademos promised on Friday this would not happen. 'Greece will not default,' he said. International Monetary Fund Managing Director Christine Lagarde said on Saturday that euro zone members were making progress to overcome their crisis but must do more to strengthen their financial firewall, adding that the IMF was ready to help. 'There is progress as we see it,' Lagarde told a panel discussion at the World Economic Forum in Davos. 'But it is critical that the euro zone members actually develop a clear, simple, firewall that can operate both to limit the contagion and to provide this sort of act of trust in the euro zone so that the financing needs of that zone can actually be met.' Senior euro zone officials have expressed optimism on the Greek debt deal, though previous predictions of an imminent agreement have failed to become reality. Greece is in its fifth year of recession, and hopes of an end to the crisis in the near term have virtually gone, because of the combination of squabbling politicians, rising social anger and its inability to get its debt load under control. Germany is pushing for Greece to relinquish control over its budget policy to European institutions as part of discussions over a second rescue package, a European source told Reuters on Friday. Greece said such a move was out of the question, adding that a similar proposal had been made in the past by a Dutch minister without getting anywhere. 'There is no way we would accept such a thing,' a Greek government official told Reuters. (Additional reporting by Renee Maltezou, Writing by Deepa Babington; editing by Tim Pearce)

Signals AAPL was story of the day

Signals

Market continues to act well. The underlying buying pressure is good. There was little bit of profit taking on AAPL. AAPL has rallied after missing earnings in anticipation of new products. Prior to the launch there is some nervousness and profit taking. AAPL being such a big component of Nasdaq 100, it had effect on that index.

Now all eyes are on Fed and that will be next big catalyst for the market.

On the ETF front one of the ETF worth looking at is UGAZ . It is trying to bounce back after a pullback. The natural gas futures were up 5% yesterday. If it gets going it might take out previous high near 40.

Signals SEC probes exchanges and electronic trading firms ties

Signals SEC probes exchanges and electronic trading firms ties (Reuters) - The U.S. Securities and Exchange Commission has launched a probe into the ties between stock exchanges and certain electronic trading firms, the Wall Street Journal reported on Saturday, citing people familiar with the matter. BATS Global Markets Inc, a U.S. exchange operator that is planning an initial public offering, said in a government filing cited by the Journal that it got a request from the U.S. regulator's enforcement division for information on the use of order types and its communications with certain market participants. The SEC also asked BATS for details about its information technology systems and trading strategies, the filing said. The inquiry also was examining communications BATS has with certain members affiliated with certain stockholders and directors, the paper reported. (Reporting By Debra Sherman in Chicago; Editing by Eric Beech)

Oil PPLT had a big eversal

Oil

After spending many days going sideways, the indexes had a breakout to upside. The Nasdaq 100 continues to lead. Small caps had 2 nice up days.

One of the better looking ETF setup was on PPLT, which is a Platinum ETF. It had a big reversal after being in downtrend for sometime. 

Earn BlackRock to Buy ETF firm Claymore

Earn BlackRock to Buy ETF firm Claymore RELATED QUOTES Symbol Price Change FII 17.45 +0.08 BLK 184.09 +0.22 BlackRock Inc. (NYSE:BLK - News) has agreed to buy Claymore Canada from Guggenheim Partners LLC. The announcement came out yesterday and it was said that both parties have entered into a definitive agreement in this context. With this deal, BlackRock would be able to expand its exchange-traded fund (AMEX:ETF - News) business in Canada. Claymore is based in Toronto and acts as an independent Canadian subsidiary of Guggenheim Funds Services Group, a subsidiary of Guggenheim Partners, LLC. BlackRock, the leading asset manager in the world, currently manages $3.3 trillion in assets worldwide. The deal will result in addition of 34 ETFs and two closed-end funds, representing C$7.0 billion in asset under management. As of December 31, 2011, BlackRock offered 48 ETFs in Canada under the iShares brand, representing C$29.0 billion in assets under management. The deal, which is subject to regulatory approvals and customary closing conditions, is likely to be accomplished by the end of the first quarter of 2012. The deal, whose terms are still undisclosed, is expected to be neutral-to-modestly accretive to BlackRock's 2012 earnings. We believe that the acquisition of Claymore will provide BlackRock with competitive edge to grab market share in the Canadian ETF market and hence, is a strategic fit for the company. BlackRock currently retains a Zacks #3 Rank, which translates into a short-term 'Hold' rating. Among its peers Federated Investors Inc. (NYSE:FII - News) also shares the same Zacks rank. Zacks Investment Research

Oil End of day fade

Oil

For 2 days in a row we had end of day fades . That is not a good sign.

The underlying breadth is good , but a little more conviction is needed. The action on individual stocks looks attractive. Number of them are breaking out on good volume. The oil and gas stocks have had best month or so .

The international market ETF have found a bid and many of them had huge moves in last 5 days. 

Oil LDSI - Turning Higher?

Oil

LDSI has been in a tremendous tailspin the last two months.  The stock has seen a bevy of selling bring the stock to fresh new lows for the year.

However the last two trading session reveal a stock that may be starting to turn higher.  Today and Friday the stock was able to over comb selling pressure and post gains.  Today we had strong buying volume and the stock looks poised to break out of its two month slump.

The stock was over $.07 last month and closed today at $.0031.  We could see a sharp rally out of these oversold conditions.

Backstage Vibe(TM) Testing Features and Functionality

Marketwire   'Press Releases'
NEW YORK, NY -- (Marketwire) -- 08/20/12 --
Backstage Vibe™ (PINKSHEETS: LDSI) has created an incredibly creative and groundbreaking web platform for artists, their adoring fans, music promoters and producers. The company is currently testing all of the features and functionality to ensure that customers can't resist coming back after their initial experience.



Backstage Vibe™ promises the ultimate social music experience and has provided screenshots to showcase the streamlined and powerful functionality. The online store enables artists, music labels, and others to present and sell their products and services. The web platform provides artists with an option to create their own personal store open to the community that then feeds into a larger store open to the public.



Another exciting feature is the incorporation of SoundCloud, which will serve as an incredible resource for music integration and critical feedback, facilitate collaboration and provide ease of sales. Backstage Vibe™ will also offer a file sharing feature that will accommodate professional audio software file formats (such as ProTools files) to further optimize artists' and bands' ability to collaborate at a professional level.



These are but a few of the features and functionality already built into the web platform. As you can see from the screenshots, Backstage Vibe™ is providing artists the tools to chart their own course, whether it's promoting their art, collaborating with other artists or selling their music, goods and services.



Artists, producers, promoters, fans, and music aficionados can pre-register for the innovative social music site at www.BackstageVibes.com. Pre-registrants will receive 2 months of the service FREE when the full site goes live.



About Life Design Station International, Inc.

Life Design Station International, Inc. (LDSI) is a music-inspired corporation. The Company empowers artists, producers and other music professionals to reach millions of potential customers. Life Design Station International, through its Internet-based division, develops and directs an innovative global social platform allowing artists from the U.S. and the world to interface collaboratively in order to promote, produce and sell their musical artistry. LDSI's Backstage Vibe™ provides a leading-edge, secure and user-friendly environment for the sale, distribution and securing of world talent from one source.



Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2070780

CONTACT:
Life Design Station International, Inc.
info@backstagevibes.com

Source: Life Design Station International, Inc.

Oil UYMG Issues Impressive News Today

Oil UYMG is a stock I posted last week as a bounce candidate.  Today's news could help bolster investor sentiment.  After posting some strong revenue numbers the president of UYMG stated:

'Our authorized share count has risen this year to account for our transition into On Track Technology becoming our main subsidiary. We will not be raising the Authorized share count any further while we control/own UYMG,' said Michael Oliver president of Unity Management group Inc. He went on to add that our valuation or market capitalization is very low for the nature of what we are trying to accomplish. Our valuation is that of many OTC Market shell companies at this time. We are not a shell and have many results, announcements, and filings coming, that will yield a higher value immediately as traders and investors participate in the trading of our stock. We are looking for millions of dollars of value and business here, not 10s of thousands or hundreds of thousands.

Might not be a bad time to take a closer look at UYMG.  I think the stock heads back over $.002 this week... but what do I know?



On Track Technology Begins Work On Production Leases In Navarro County
EAST HANOVER, N.J., Sept. 4, 2012 /PRNewswire via COMTEX/ -- Unity Management Group (OTC Pink: UYMG), a business resource and service company, is pleased to announce its wholly owned subsidiary, On Track Technology Solutions Inc. (OTT), and their consulting firms have entered into a farm out agreement to begin work to establish production on a group of contiguous leases in Navarro County. There are approximately 52 wellbores with 6 being State approved injection wells; wellbores identified at the Texas Railroad Commission as lease numbers 01689, 02032, 02033, 02216 and 02503.

OTT President, Eddie Schilb said, 'On Track is working with an area Geologist, and a Chemical firm to develop a confidential completion, and chemical Huff & Puff treatment using Co2, Nitrogen or a combination of the two. Based on conversations with one Petroleum Engineer we believe a potential of 89 BOPD may be achievable upon a successful implantation, and successful results of treatment, installation of proper production equipment, and pressurization of certain/specific wellbores within the leases. While the price of oil varies daily we used $86.08 per barrel (todays price although most 5 year forecast is $101.07 Per Barrel); upon successful implementation 89 BOPD would add approximately $186,318 per month or $2,235,821 annually.

On Track Vice President and Staff Engineer Ayo Odetunmibi commented that this property fits nicely with our other properties. 'We are looking forward to testing these wells; it is an exciting time and I am excited about the potential in this field. Eventually we want to test the possibility of other profitable formations on this acreage.'

'Our authorized share count has risen this year to account for our transition into On Track Technology becoming our main subsidiary. We will not be raising the Authorized share count any further while we control/own UYMG,' said Michael Oliver president of Unity Management group Inc. He went on to add that our valuation or market capitalization is very low for the nature of what we are trying to accomplish. Our valuation is that of many OTC Market shell companies at this time. We are not a shell and have many results, announcements, and filings coming, that will yield a higher value immediately as traders and investors participate in the trading of our stock. We are looking for millions of dollars of value and business here, not 10s of thousands or hundreds of thousands.

Earn BBDA Hits New Highs - Continues its 2 Month Long Rally

Earn

I don't like to revisit a stock on a daily basis, but BBDA continues to give me a reason to write about them.  The stock sat at $.0003 a little over two months ago (its 52 week low) and hit a high today of .0172 today.  If you bought $1,000 of BBDA stock at the $.0003 price,  today those shares were worth $57,333 at the high.  If you bought $1,000 of BBDA stock when I alerted it my subscribers at $.0003/.0004,  they were worth $43,000 at the high today.  Just a great rally and just when you think its going to stop, it picks right back up and heads to new highs.

http://pennystockgurus.blogspot.com/2012/08/bbda-stock-soars-from-00030004-to-0144.html

http://pennystockgurus.blogspot.com/2012/08/bbda-stock-hits-01-share.html

http://pennystockgurus.blogspot.com/2012/08/bbda-hit-0119-share-from-0003-alert.html

Earn Utilities to see profit increases in 2012

Earn NEW YORK (AP) -- Shares of power companies appear to be attractive investments this year as the industry invests in new power plants and other infrastructure projects to meet new environmental standards, a Baird analyst said Friday. Analyst David Parker said he expects the industry will spend $750 billion over the next decade to maintain the electrical grid, meet stronger environmental standards and satisfy expanding or changing customer needs. New building projects are a key driver for power company profits because state regulators typically allow utilities to raise power rates and earn a greater return on their investments. Parker favors stocks from NorthWestern Corp. and Allete Inc. Both are expected to lead the industry in profitability in coming years. Northwestern, which delivers electricity and natural gas in Montana, South Dakota and Nebraska, is planning about $2 billion-$3 billion in future projects, including $550-$850 million in near-term opportunities. The near-term projects alone could boost profits by 75 cents to $1.20 per share, Parker said. If its entire project portfolio comes to fruition, it could increase profits by 6 percent-8 percent per year. Allete, which owns and maintains transmission lines in parts of Wisconsin, Michigan, Minnesota and Illinois, also is expected to benefit from new infrastructure growth. Parker expects ALLETE profits to increase by 8 percent-9 percent per year over the next three to five years. Share values for many utilities already have been rising on anticipation of these profit increases. Parker downgraded Alliant Energy Corp., Wisconsin Energy Corp., Hawaiian Electric Industries and UIL Holdings Corp. to 'Neutral' from 'Outperform,' saying their shares have risen to the point that they're now fairly valued. In morning trading, shares of NorthWestern fell by 40 cents to $35 and Allete fell by 15 cents to $40.94. Shares of Alliant fell by 24 cents to $42.68, Wisconsin Energy shares dipped by 25 cents to $34.09, Hawaiian Electric shares fell by 22 cents to $25.73 and UIL Holdings shares dropped by 46 cents to $34.27.

Oil Fitch cuts Italy, Spain, other euro zone ratings

Oil Fitch cuts Italy, Spain, other euro zone ratings RELATED QUOTES Symbol Price Change TRI 27.82 -0.10 Related Content People wait to enter a government job centre in Malaga, southern Spain, January 27, 2012. REUTERS/Jon Nazca People wait to enter a government job centre in Malaga, southern Spain, January 27, 2012. REUTERS/Jon Nazca NEW YORK (Reuters) - Fitch downgraded the sovereign credit ratings of Belgium, Cyprus, Italy, Slovenia and Spain on Friday, indicating there was a 1-in-2 chance of further cuts in the next two years. In a statement, the ratings agency said the affected countries were vulnerable in the near-term to monetary and financial shocks. 'Consequently, these sovereigns do not, in Fitch's view, accrue the full benefits of the euro's reserve currency status,' it said. Fitch cut Italy's rating to A-minus from A-plus; Spain to A from AA-minus; Belgium to AA from AA-plus; Slovenia to A from AA-minus and Cyprus to BBB-minus from BBB, leaving the small island nation just one notch above junk status. Ireland's rating of BBB-plus was affirmed. All of the ratings were given negative outlooks. Fitch said it had weighed up a worsening economic outlook in much of the euro zone against the European Central Bank's December move to flood the banking sector with cheap three-year money and austerity efforts by governments to curb their debts. 'Overall, today's rating actions balance the marked deterioration in the economic outlook with both the substantive policy initiatives at the national level to address macro-financial and fiscal imbalances, and the initial success of the ECB's three-year Long-Term Refinancing Operation in easing near-term sovereign and bank funding pressures,' Fitch said. Two weeks ago, Standard & Poor's downgraded the credit ratings of nine euro zone countries, stripping France and Austria of their coveted triple-A status but not EU paymaster Germany, and pushing struggling Portugal into junk territory. With nearly half a trillion euros of ECB liquidity coursing through the financial system, some of which has apparently gone into euro zone government bonds, and with hopes of a deal to write down a slab of Greece's mountainous debt, even that sweeping ratings action had little market impact. The euro briefly pared gains against the dollar after Fitch cut the five euro zone sovereigns but soon jumped to a session high of $1.3208, according to Reuters data, its highest since December 13. Italy is widely seen as the tipping point for the euro zone. If it slid towards default, the whole currency project would be threatened. Italian Prime Minister Mario Monti, a technocrat who has won plaudits for his economic reform drive, said he reacted to Fitch's downgrade of Italy with 'detached serenity.' 'They signal things that are not particularly new, for example, that Italy has a very high debt as a percentage of GDP and they signal that the way the euro zone is governed as a whole is not perfect and we knew that too,' he said during a live interview on Italian television. 'They also say things that give a positive view of what is being done in Italy because there is much appreciation for policies of this government and this parliament,' he said. Fitch said of Italy: 'A more severe rating action was forestalled by the strong commitment of the Italian government to reducing the budget deficit and to implementing structural reform as well as the significant easing of near-term financing risks as a result of the ECB's 3-year Longer-term Refinancing Operation.' (Reporting by Rodrigo Campos, Daniel Bases, Philip Pullela and Pam Niimi, writing by Mike Peacock, Editing by James Dalgleish)

Oil Swing Trade Idea: DVA

Oil

DVA breaking out of 2 month consolidation. 10 % potential

Forex Obama seeks power to merge agencies

Forex WASHINGTON (AP) -- President Barack Obama on Friday took aim at his government's own messy bureaucracy, prodding Congress to give him greater power to merge agencies and promising he would start by collapsing six major economic departments into one. Pressing Republicans on one of their own political issues, Obama said it was time for an 'effective, lean government.' Obama wants the type of reorganizational authority last held by a president when Ronald Reagan was in office. Obama's version would be a so-called consolidation authority allowing him to propose only mergers that promise to save money and shrink government. The deal would help Obama considerably by entitling him to an up-or-down vote from Congress in 90 days. Still, final say would remain with lawmakers, both on whether to grant Obama this fast-track authority and then in deciding whether to approve any of his specific ideas. 'We can do this better,' Obama declared in an event with business owners at the White House, even presenting slides to help make his case. 'So much of the argument out there all the time is up at 40,000 feet, these abstract arguments about who's conservative or who's liberal,' Obama said. 'Most Americans — and certainly most small business owners — you guys are just trying to figure out how do we make things work, how do we apply common sense. And that's what this is about.' In an election year and a political atmosphere of tighter spending, Obama's move is about more than improving a giant bureaucracy. He is attempting to directly counter Republican arguments that he has presided over the kind of government regulation, spending and debt that can undermine the economy — a dominant theme of the emerging presidential campaign. Republicans have often aligned themselves with smaller government. So politically, Obama is trying to put the onus on Republicans in the House and Senate to show why they would be against the pursuit of leaner government. From Capitol Hill, a spokesman for Sen. Mitch McConnell of Kentucky, the top Republican in the Senate, pledged Obama's plan would get a careful review. But the spokesman, Don Stewart, also said: 'After presiding over one of the largest expansions of government in history, and a year after raising the issue in his last State of the Union, it's interesting to see the president finally acknowledge that Washington is out of control.' Obama has an imperative to deliver. He made the promise to come up with a smart reorganization of the government in his last State of the Union speech last January. At the time, Obama grabbed attention by pointing out the absurdity of government inefficiency. In what he called his favorite example, Obama said: 'The Interior Department is in charge of salmon while they're in fresh water, but the Commerce Department handles them when they're in saltwater. And I hear it gets even more complicated once they're smoked.' The White House said the problem is serious for consumers who turn to their government for help and often do not know where to begin. Not in decades has the government undergone a sustained reorganization of itself. Presidents have tried from time to time, but each part of the bureaucracy has its own defenders inside and outside the government, which can make merger ideas politically impossible. That's particularly true because 'efficiency' is often another way of saying people will lose their jobs. Obama hopes to enhance his chances by getting Congress to give him the assurance of a clean, relatively speedy vote on any of his proposals. There is no clear sign that Obama would get that cooperation. He spent much of 2011 in utter gridlock with Republicans in Congress. In the meantime, Obama announced Friday that Karen Mills, the administrator of the Small Business Administration, would be elevated to Cabinet-level rank. But her job would essentially disappear if Obama has his way. If he gets the new fast-track power to propose legislation, Obama's first project would be to combine six major operations of the government that focus on business and trade. They are: the Commerce Department's core business and trade functions; the Small Business Administration; the Office of the U.S. Trade Representative; the Export-Import Bank; the Overseas Private Investment Corporation; and the Trade and Development Agency. The goal would be one agency designed to help businesses thrive. The White House says 1,000 to 2,000 jobs would be cut, but the administration would do so through attrition; that is, as people routinely leave their jobs over time. The administration said the merger would save $3 billion over 10 years by getting rid of duplicative overhead costs, human resources divisions and programs. The name and potential secretary of the new agency have not been determined. The point, the White House says, is not just making the government smaller but better by saving people time and eliminating bureaucratic nightmares. The idea for the consolidated business agency grew out of discussions with hundreds of business leaders and agency heads over the last several months. Brendan Buck, a spokesman for House Speaker John Boehner, R-Ohio, said streamlining government was always a potentially good idea but expressed wariness about whether Obama's plan would really help business. 'American small businesses are more concerned about this administration's policies than from which building in Washington they originate,' Buck said. 'We hope the president isn't simply proposing new packaging for the same burdensome approach.' According to the White House, presidents held such a reorganizational authority for about 50 years until it ran out during Reagan's presidency in 1984. Obama has a series of other ideas about consolidating departments across the government, to be rolled out later.