Obama Gives Reassurances on U.S. Debt

President Obama reassured China and other countries on Saturday that their investments in United States government debt were safe as he seeks to finance record deficit spending to pull the American economy out of its deep recession.

“There’s a reason why even in the midst of this economic crisis, you’ve seen actual increases in investment flows here into the United States,” Mr. Obama told reporters. “I think it’s a recognition that the stability not only of our economic system but our political system is extraordinary.”

He added, “Not just the Chinese government, but every investor can have absolute confidence in the soundness of investments in the United States.”

Mr. Obama’s comments came a day after China’s prime minister, Wen Jiabao, expressed worries about the safety of Beijing’s $1 trillion investment in American debt. Mr. Obama needs foreign investors to finance a projected $1.75 trillion budget deficit this year, pumped up by stimulus spending and bank bailouts, and none is more critical than China, the largest overseas holder of United States government bonds.

Mr. Obama offered his assurances after a meeting with Brazil’s president, Luiz Inácio Lula da Silva. They discussed energy cooperation and the economic crisis, trying to coordinate ideas before upcoming summit meetings.

Mr. da Silva pressed Mr. Obama to help reopen global trade talks known as the Doha Round and to lower tariffs that keep Brazilian biofuels out of the American market. Mr. Obama said they had a “wonderful meeting of the minds” and expressed interest in making progress on trade, but he indicated no tariff changes were afoot anytime soon.

Mr. da Silva’s early visit to the White House suggested that Mr. Obama planned to pick up where President George W. Bush left off in trying to make Brazil a key to United States policy in Latin America. David Fleischer, a political science professor at the University of Brasília, said the meeting “reinforces Brazil’s growing leadership in the region.”

Mr. da Silva has been a leading voice in urging the United States to moderate its dealings in Latin America.

He has also made a point of linking himself with Mr. Obama, citing similarities between their origins and the challenges they overcame to lead their countries. Sitting next to him in the Oval Office, Mr. da Silva said he prayed more for Mr. Obama than he did for himself and, with all the troubles confronting him, would not want to be in the American president’s shoes.

Mr. Obama smiled and replied, “You sound like you’ve been talking to my wife.”