* Advises Obama provides the U.S. will grow again in a year

* is expected next week to rescue banks and regulatory announcements

USA * Measures

observed closely for a G20 summit

* Congress begins work on proposed budget

By John O #39; Callaghan

WASHINGTON (Reuters) – The government of the U.S. president, Barack Obama, was incredibly confident that the economy will recover within a year, said Sunday in a the principal adviser to the president.

Statements by the counselor Christina Romer are shared with a week-door key to efforts to define and promote the presidential program of recovery.

We’ll see signs that the economy is recovering, Romer said the program Fox News Sunday, head of the Council of Economic Advisers in the White House.

In an appearance on the program State of the Union from CNN, Romer said he had every expectation, just like private analysts, fund that will play this year and actually be growing again by year-end.

Obama steps to reverse a deep recession and restructuring of the damaged U.S. financial system have implications globally. In early April he will meet with leaders of major industrialized and developing countries at a summit of G20.

But the reform plans of Obama and the high expenditure planned to restart the greatest the world economy and clean up at least $ 1 trillion in assets, toxic balance sheets of the obstacles faced by some in Congress and corporate boards.

Two key parts of the agenda, it is expected that the Treasury secretary, Timothy Geithner, will meet on Monday to the long-awaited details of its bank bailout plan and then to deepen the reform proposals of financial regulation in a parliamentary hearing.

An objective of the three-part strategy for cleaning up the financial system will attract private investment with abundant and generous terms for loans to buy bad mortgages and other toxic assets, Reuters said on Sunday a source close to the plan.

Obama, whose high approval levels will be tested in his third month as president at the increase in anger at the enormous public bonds issued by financial firms rescued, will discuss their efforts in a press conference on Tuesday in primetime. 

BOND ISSUES AND THE BUDGET BATTLE

Geithner has been criticized for its inability to stop having bonds andalusia least $ 165 million and possibly up to some 218 million paid to its employees by the insurer American International Group (AIG) was rescued with some 180,000 million dollars of taxpayers’ money.

Obama came to the defense of Geithner, including some Republican demands to resign, saying on the CBS program 60 Minutes that it would not accept the resignation of his secretary of the Treasury.

The new White House team, which inherited the crisis from the government of George W. Bush also is trying to win support from high-cost items in the budget record of $ 3.5 trillion of Obama for the fiscal year 2010, not very welcome among the Republicans in Congress.

It is planning for our economic future, a vision of the United States where the growth is not based on real estate bubbles or leveraged banks, but on firm foundations of investment in energy, education and health that will lead to a real and lasting prosperity, said Obama Saturday in his weekly radio appearance.

The budget committees of the Senate and House are ready to begin shaping their projects this week.

Republican Senator Judd Gregg was ready to fight Obama on the budget projected losses of 1.75 trillion U.S. dollars this year and 1.17 billion dollars for the next fiscal year.

If we keep the proposals in this budget during the period covering 10 years, this country will go bankrupt, he exclaimed on CNN. People do not buy our consolidation debt  loans. Our dollar is devalued, he said.

The president of the Senate’s budget committee said he agreed with increased spending in the short term, but that fiscal discipline is critical to long term.

(Additional Reporting by Philip Barbara and Eric Beech, Deborah Charles, Emily Kaiser, David Lawd and Tabassum Zakaria; Edited by Marion Giraldo in Spanish)