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A global perspective of United States "Cliff"

6th term United States President Barack Obama, when the smile has yet to fully bloom, but it also had to face to face the approaching "fiscal cliff."
the so-called "Cliff", by Federal Reserve Chairman Ben Bernanke on February 7 this year, was first proposed in a congressional hearing, refers to United States will occur on January 1 next year, while the tax increases and spending cuts. If both parties cannot reach agreement this year to avoid this situation, the tax reduction will automatically take effect next year United States will increase by $ 532 billion in tax, while reducing the $ 136 billion of government spending.
all analysts believe that once this mechanism, the stack effect will make the United States economy fell "fiscal cliff" back into recession. Meanwhile, the Congressional Budget Office report of 8th, United States fiscal austerity measures will hit United States economy, the unemployment rate could rise to 9.1%, 1.2% higher than the current level. And the recent report of the European Commission is expected, the 17-nation eurozone economy will decline this year.
it can be predicted that if the economies in Europe and the continuing downturn, the global economy will inevitably suffer.
on Obama said, election again victory is decisive of, from not need again participate in campaign, let its developed and implementation policy Shi more has initiative and freedom, can constantly to consumption he of "political capital", take relative yiqian more firm and strong of policy; and no longer like yiqian as, and Republican negotiations encountered impasse Shi, White House of position on active loose sought compromise.
9th public speech after his re-election, Obama said, he is willing to seek compromise with the Republicans, but it will not give way to tax the rich. This means Obama to repudiate the Bush era tax cuts for the rich, or even negative Republican campaign during the general election approaches. Carney 9th at the White House also said that Obama will not support any efforts aimed at the United States 2% richest tax-cut plan. All the signs indicate that, in terms of taxing the rich, opposition will be coordinated between the two parties, and even in some kind of deadlock. In my opinion, even if the two parties in this impasse, it does not mean that ultimately cannot go through "fiscal cliff", leading to United States domestic economic recession, this is either of the two parties cannot afford to take political responsibility.
for this "Cliff", we can foresee the United States even if the two parties cannot reach an agreement before January 1 next year, will be the same as last year to raise the debt ceiling, next March the final coordination are acceptable to a bipartisan solution. United States prior to the January to March next year, and through the Ministry of "technical" short-term default risk.
United States "fiscal cliff", it is clear that "Rome was not built in a day". Despite Mr Obama's ambitious, but rely on the United States itself has been unable to resolve the debt problem, United States debt crisis also has "infectious, proliferation, and global", also opted to go to other countries "risk transfer", dilute and transfer the debt crisis. Huge debts are kept for many years, which is no doubt the global economy's "sword of Damocles". This reminds all States concerned must make strategic defense planning, avoid the risk of financial instability, the devaluation of the dollar, impact of the spill.
Nixon United States Treasury Secretary Connally has pointed out: "the dollar is our currency, but your problem. "Now that the world is still in the same situation and predicament.  

 

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