US govt firm to drive thru' reforms despite criticism
Wednesday, 16 September 2009
From Fazle Rashid
NEW YORK, Sept 15: The US government is the nation's biggest lender, insurer, automaker (with 60 per cent share in General Motors) and guarantor against risk for investors large and small, the New York Times (NYT) in a front page report the other day said. Between financial rescue missions and the economic stumulus programme, government spending accounts for 26 per cent, the biggest share of the economy than at any time since World War 11, the same paper said.
Meanwhile, the government is determined to drive through financial reforms in the face of criticism from banks, regulators and the Congress, another reputed paper said. Government's powers to seize and wind down failing financial institutions must be made law to prevent a repeat of financial crisis. The creation of the proposed Consumer Financial Protection Agency will face stiff resistance.
While the government's "intrusion" will be temporary, yet it will underpin the importance and urgency of its role in overseeing the financial system to prevent a repeat of the excesses that caused the crisis.
In another development, the world's two biggest economies the United States and China are at collision course after Washington decided to levy tariffs on Chinese tyres entering the US market. China promptly and angrily retaliated by imposing tariffs on American automotive spares and chicken meat. 'The US is shameless,' said one posting in a Chinese website while another proded China to "sell all of its huge holdings of Treasury bonds".
Obama's decision to impose a 35 per cent tariff on Chinese tyres is a " signal that he plans to deliver on his promise to labour unions that he would more strictly enforce trade laws specially against China". The US trade deficit with China is a record $268 billion in 2008.
Chen Deming, commerce minister of China condemned the US decision saying "this is a grave act of trade protectionism and added that it not only does violate WTO but contravenes commitments the US government made at the last G20 summit."
The row between China and the US has erupted less than a fortnight ahead of the scheduled G20 summit in Pittsburg and Obama's planned visit to China in November. The tyre import from China has increased from $453 million in 2004 to $1.8 billion in 2007. Four US tyre plants have been shut down and three more are likely to be closed this year.
NEW YORK, Sept 15: The US government is the nation's biggest lender, insurer, automaker (with 60 per cent share in General Motors) and guarantor against risk for investors large and small, the New York Times (NYT) in a front page report the other day said. Between financial rescue missions and the economic stumulus programme, government spending accounts for 26 per cent, the biggest share of the economy than at any time since World War 11, the same paper said.
Meanwhile, the government is determined to drive through financial reforms in the face of criticism from banks, regulators and the Congress, another reputed paper said. Government's powers to seize and wind down failing financial institutions must be made law to prevent a repeat of financial crisis. The creation of the proposed Consumer Financial Protection Agency will face stiff resistance.
While the government's "intrusion" will be temporary, yet it will underpin the importance and urgency of its role in overseeing the financial system to prevent a repeat of the excesses that caused the crisis.
In another development, the world's two biggest economies the United States and China are at collision course after Washington decided to levy tariffs on Chinese tyres entering the US market. China promptly and angrily retaliated by imposing tariffs on American automotive spares and chicken meat. 'The US is shameless,' said one posting in a Chinese website while another proded China to "sell all of its huge holdings of Treasury bonds".
Obama's decision to impose a 35 per cent tariff on Chinese tyres is a " signal that he plans to deliver on his promise to labour unions that he would more strictly enforce trade laws specially against China". The US trade deficit with China is a record $268 billion in 2008.
Chen Deming, commerce minister of China condemned the US decision saying "this is a grave act of trade protectionism and added that it not only does violate WTO but contravenes commitments the US government made at the last G20 summit."
The row between China and the US has erupted less than a fortnight ahead of the scheduled G20 summit in Pittsburg and Obama's planned visit to China in November. The tyre import from China has increased from $453 million in 2004 to $1.8 billion in 2007. Four US tyre plants have been shut down and three more are likely to be closed this year.