Obama boosts global collaboration to conquer US economic crisis
Posted by Stephen Cline on November 17th, 2010
The US global economic crisis and the financial system are expected to be the topic of discussion at a meeting of the G20 in South Korea. There is an anticipated war between China and USA regarding currency and trade imbalances that can rejuvenate during the summit in Seoul.
The US president has requested the leaders to work together to facilitate the global economic resurgence.
Barack Obama has also planned to give a financial aid of $600 billion to those countries that have a huge amount of debt burden that can’t be resolved through consolidation. This step was taken to boost the financial recovery sooner and help them in getting out of debt.
According to President Obama, there were huge imbalances that had developed within the economies of various countries and this had led to the global economic crisis. But there should be a global encouragement that will boost the growth as well as economic recovery. There must be a prudent and a stable way that makes sure that the home rates in the US and abroad.
The pact that was agreed between South Korea and the US did not have a positive conclusion after the main G20 meeting. All the countries that were a part of the meeting agreed that the detailed financial issues could not be resolved within a short time and that they needed more time to arrive at a deal that was mutually acceptable. However the positive efforts of Barack Obama to rejuvenate the US economy, the critics argue that America’s new venture of creating money to go for quantitative easing could be also be their own way of currency manipulation.
Obama demands a strong recovery that will create more job openings as the income and the expenditure in the US is the most crucial contribution in the USA that can facilitate the global recovery. As the strength of the dollar ultimately rests on the strength of the US economy, it has to start its way of bolstering the global economic recovery.
Due to economic crisis and soaring debt and the deficit, the United States has already lost its status as the superpower of the global financial system. To add more bad news, the soaring cost of health, social security nearing bankruptcy, high unemployment add more bad news to current economic woes of the American society. Bad decisions, bad policy combined with flawed decision-making process have practically killed/destroyed the foundations of Capitalism in America. But even considering all of the economic data & factors, we’re somehow still addicted to spending and some political “heavyweights” advocate even more borrowing & spending by the government. We’ve got to stop and realize that at some point we need to pay the debt, the younger generation of Americans will need to pay the debt, probably next generations as well… So what we are really doing now is taking liability and spreading slowly over next generations, so that they can deal at a later time? How about actually cutting/freezing all spending, conducting audits of all government spending & programs and start slowly and painstakingly cutting to save and to be a bit more fiscally realistic (and responsible?).