The Fed May Play the Roles of the Ministry of Finance and Central Bank
Democrats defeated in the mid-term elections, public opinion to blame Obama’s failure of government policies. Therefore, after the Republicans regain control of the House of Representatives is bound to some of the early Obama obstruct implementation of the policy, will bear the brunt of health care reform policy, financial regulatory policy and fiscal policy.
U.S. mid-term election is a foregone conclusion, the Republicans will regain control of the House of Representatives, and the Democrats keep the Senate narrowly Zeyi control of Congress in U.S. politics will again divide and conquer situation. China Economic Times reporters to accept the expert analysis, Congress is likely to partition into the Obama administration will not contribute much to the distress, Obama had a number of policies, including health care reform, financial regulation, fiscal policy, and future policy plans will therefore change.
Stagnation or retrogression in previous policy
Democrats defeated in the mid-term elections, public opinion to blame Obama’s failure of government policies. Therefore, after the Republicans regain control of the House of Representatives is bound to some of the early Obama obstruct implementation of the policy.
Obama health care reform bill the Government has invested enormous political capital, wanted to win votes, no one thought, the voters of this bill seem to be more dissatisfied than grateful. U.S. Cable News International, according to the latest poll by the Democratic Party for many years as a long-cherished wish of the medical insurance system reform, 60% of people want to be repealed. Health care reform bill had been all through and even some conservative Republican members of the opposition Democrats, and when the Republicans regain the House of Representatives, the health care reform will increase the implementation of the policy difficult.
According to the British newspaper “Independent” reported on November 3, said Obama push through health care reform law may face the fate of slow death, control of the House of Representatives, Republicans hold back the implementation of the law only required funds are not put, it is possible many of the important provisions of this law, “starved to death.”
Second, the U.S. financial regulatory policies will also be divided by Congress, which has changed. Financial regulatory reform bill actually touched the interests of the U.S. financial monopoly capital, and the Republican Party is the representative of the interests of the group, so in the future to promote the implementation of the Act is very difficult.
Obama the Government’s financial regulatory reform bill although to a certain extent, increased regulation of financial speculation and protect the interests of small investors and consumers, but also to a certain level, the Fed increased the monetary control of the initiative actually increased the imbalance in the allocation of resources.
Governing the performance of two years from the Obama point of view, Obama has been trying to “change” in trying to stimulate the economy, expand exports, create jobs, but did not grasp the structural imbalances in the vital U.S. economic problems, leading to poor economic situation has not substantially changed.
In addition, Obama’s future will be the Republican fiscal policy constraint. China Institute of Contemporary International Relations, Research Associate, American Institute of money Liwei when interviewed in the analysis, Obama to compromise the future economic policy adjustment, the first to do is cut the deficit. This is the Republican Party has repeatedly made, and it is of concern to voters. Obama introduced the ability of large-scale fiscal expenditure policy will be restricted.
Daiwa Securities (excluding Japan) Basu, chief economist for Asia, the election results came in Tuesday before the published studies report that the United States if the “political deadlock”, then the next two years the U.S. fiscal expansion can be ruled out.
2008 Nobel laureate in economics, Paul Krugman is worried that the Republicans regain the House, the deficit will be hidden or refused to take measures to stimulate the economy, while the irresponsible tax cuts to increase the long-term deficit, making the United States face a double blow.
If the Republican-controlled U.S. House of Representatives, will likely take more conducive to business tax policy for oil and gas industry, nuclear industry and automobile manufacturing, aviation and financial services companies will also increase the intensity of subsidies. In addition the Republican agenda, the most important one will be implemented during the Bush recovery, including high-income, including tax cuts, while Obama called for annual income of less than 20 million registered individuals and all the years of low-income 25 million households it should continue to enjoy this policy.
In response, the Obama administration’s fiscal policy is limited, this situation will increase the delivery of monetary policy to hedge the impact of fiscal policy space is limited. The Fed is likely to play a dual role of the Ministry of Finance and central bank, the pressure increased.
Author Bio: I am a professional editor from China Suppliers, and my work is to promote a free online trade platform. http://www.frbiz.com/ contain a great deal of information about neck foam pillow,permanent resident card,harley screaming eagle, welcome to visit!
Category: Business Management
Keywords: neck foam pillow,permanent resident card,harley screaming eagle,