US will continue to be principal artery of global economy for all time
Wednesday, 26 August 2009
From Fazle Rashid
NEW YORK, Aug 25: Two very important decisions surrounding the US economy will be made today. US may concede its top position in the global economy to China but there should be no doubt in anybody's mind that Washington will continue to be the principal artery of the international economy for all time to come.
The first announcement will be about Ben Bernanke, Fed Chairman. Ben Bernanke, who was appointed by George Bush in his second term, as Chairman of the Federal Reserve will be nominated by President Obama for a second term today with President effusively praising Ben Bernanke for a great job he had done to retrieve the economy from the brink of disaster.
He had been bold and brilliant in his attempts to combat the financial crisis and deep recession, President Obama said about Bernanke. His current four-year term expires on January 31.
More important of course will be today's mid-term budget review. The Office of the Management and Budget will revise downward the projected budget deficit. It will be $250 billion less than what was estimated earlier. The money earmarked to assist troubled banks will no longer be required.
Politically explosive will be US federal debt rising to $9000 billion in the next decade. This is about 82 per cent of US's gross domestic product. The financial system which nearly collapsed last September is now in far better shape and credit markets are operating much closer to normal, New York Times (NYT) said.
NEW YORK, Aug 25: Two very important decisions surrounding the US economy will be made today. US may concede its top position in the global economy to China but there should be no doubt in anybody's mind that Washington will continue to be the principal artery of the international economy for all time to come.
The first announcement will be about Ben Bernanke, Fed Chairman. Ben Bernanke, who was appointed by George Bush in his second term, as Chairman of the Federal Reserve will be nominated by President Obama for a second term today with President effusively praising Ben Bernanke for a great job he had done to retrieve the economy from the brink of disaster.
He had been bold and brilliant in his attempts to combat the financial crisis and deep recession, President Obama said about Bernanke. His current four-year term expires on January 31.
More important of course will be today's mid-term budget review. The Office of the Management and Budget will revise downward the projected budget deficit. It will be $250 billion less than what was estimated earlier. The money earmarked to assist troubled banks will no longer be required.
Politically explosive will be US federal debt rising to $9000 billion in the next decade. This is about 82 per cent of US's gross domestic product. The financial system which nearly collapsed last September is now in far better shape and credit markets are operating much closer to normal, New York Times (NYT) said.