NEW YORK, July 26: The resolution of the intensifying crisis on spending cut and raising US debt limit remaining further from sight, the International Monetary Fund (IMF) has warned of crunching global recession in case of an insolvency in America, the largest economy of the world. The drama over US borrowing has reached a " dangerous crescendo".
The IMF in its annual health check on the US economy exonerated Washington from the accusation that all the economic ills were due to the Fed Reserve's 'super loose monetary policy'.
An IMF study said loss of trust in US solvency with "global knock-out effects" would plunge the world into severe recession. The globaleconomy could face a shrinkage of 4.0 per cent.
China, Germany and Brazil have accused Fed reserve of encouraging speculative investors to borrow in dollar and invest in high yielding profits elsewhere.
President Obama is trying to use his authority of the presidency to force an agreement.
The New York Times (NYT) in an editorial today put all the blame for the present malaise on the shoulder of the Republicans, saying the Republicans have lost sight of country's welfare. It said this increasingly reckless game has pushed the nation to the brink of ruinous default.
President Obama, being disgusted with Republican obstinacy and obduracy, put the question: "I think that one of the questions that the Republican is going to have to ask itself, can they say yes to anything"?
The Republicans refuses to accept tax raise on Corporate America and cut expenditures that directly affects the poor. Healthcare for the poor has become unaffordable, the Republicans insist.
The investors are becoming increasingly concerned over "the US gridlock". They fear that the US faces the loss of its triple A rating.
The Republicans are not going to give President what it said "blank cheque".
The House Speaker Boehner said the crisis could be over in a minute if President Obama signs the Republican proposals on debt ceiling.
http://www.thefinancialexpress-bd.com/more.php?news_id=144190&date=2011-07-27
The IMF in its annual health check on the US economy exonerated Washington from the accusation that all the economic ills were due to the Fed Reserve's 'super loose monetary policy'.
An IMF study said loss of trust in US solvency with "global knock-out effects" would plunge the world into severe recession. The globaleconomy could face a shrinkage of 4.0 per cent.
China, Germany and Brazil have accused Fed reserve of encouraging speculative investors to borrow in dollar and invest in high yielding profits elsewhere.
President Obama is trying to use his authority of the presidency to force an agreement.
The New York Times (NYT) in an editorial today put all the blame for the present malaise on the shoulder of the Republicans, saying the Republicans have lost sight of country's welfare. It said this increasingly reckless game has pushed the nation to the brink of ruinous default.
President Obama, being disgusted with Republican obstinacy and obduracy, put the question: "I think that one of the questions that the Republican is going to have to ask itself, can they say yes to anything"?
The Republicans refuses to accept tax raise on Corporate America and cut expenditures that directly affects the poor. Healthcare for the poor has become unaffordable, the Republicans insist.
The investors are becoming increasingly concerned over "the US gridlock". They fear that the US faces the loss of its triple A rating.
The Republicans are not going to give President what it said "blank cheque".
The House Speaker Boehner said the crisis could be over in a minute if President Obama signs the Republican proposals on debt ceiling.
http://www.thefinancialexpress-bd.com/more.php?news_id=144190&date=2011-07-27
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