Democrats and Republicans are busy in a power tussle
over the condition to drop/sustain President Obama’s healthcare reforms in the
shape of Obamacare. The ultimate sufferers are not just the 800,000 employees
out of the total 2.8 million government employees but the whole nation.
Smithsonian Institutions (19 museums, 9 research centres, National Zoo and
National Parks) are closed in the wake of this financial crisis engulfing, the
otherwise prosperous nation. Fortunately the Federal Reserve, Department of
Defense, Air traffic control, Department of Homeland Security and Justice
Department are among the many exceptional sections that will see no disruptions.
According to the Goldman Sachs report, a three week
shutdown could shave as much as 0.9% of the US GDP this year. Now, certainly
this is a cause of concern which cannot be avoided irrespective of the struggle
to show off the dominance by both the political parties in the Congress to each
other.
October 17 – The deadline which if crossed, would lead
to the financial risk of default in debt payment by the US Government. This
implies that the upcoming days are not the good days for the world economy to
enjoy sunshine on the beach of ‘return on investment’ ocean. The dark clouds of
financial risks have engulfed the city of ‘World Economy’ from the western
direction. Weathermen (world economists) are keeping a close look at the
possible storm, forming in the western coast of the city. The storm may cool
down a little if the ceiling limit of the debt by the US Government is raised
before the deadline.
Investors around the globe, who were smiling
incessantly over the last few months when the outgoing Fed Reserve Chairman- ‘Ben
Bernanke’ assured higher rate of returns through their investment in the gilt-edged
securities (US Treasury Bonds) are now on a verge of shedding tears as their
investments will be at risk. These include countries like Japan, China and
India who are possessing nearly $1.135 trillion, $1.277 trillion and $59.1
billion US Treasury bonds respectively.
On the diplomatic front too, United States is getting
harmed, as in the wake of the shutdown, President Obama had to cancel two
important Asian visits (Philippines and Malaysia), that gave a strong prospect to
the Chinese President Xi Jinping to avail the benefits of the geopolitically
important Southeast Asia Summit in Malaysia. Chinese President is the star of
the summit now which Obama would have been, if there was no financial crisis at
home.
There are some serious questions being raised in hush
voices over the ability of United States to lead the world from front, if it
cannot even pass a budget bill of their own country. There is not even a single
year since 1997, in which there was a smooth passage of the budget. Who is at
fault - the presidential style democratic system of the country or the
dominance of political interests over national interests by the two political
parties of the country?
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