One trillion U.S. dollars by pushing a new economic stimulus plan U.S. President-elect Barack Obama, had to face a difficult financial situation. Local time on the 7th, the White House Budget Office warned that the U.S. budget deficit in 2009 will reach nearly 1.2 trillion U.S. dollars, far exceeding last year's 455 billion U.S. dollars, reaching the highest since World War II record deficit.
Rogers economists believe that, if measured by GDP, then it is this year's deficit will account for 7 percent of GDP, in 1983 set a record of 6 percent.
In response, Obama said that the next few years the face of the trillion-dollar budget deficit, will be unable to avoid the fact that "We are all aware of the economic recovery should continue to intensify planning and investment."
Setting up a new post of "Chief Performance Officer"
Obama on the 7th to accept the U.S. National Broadcasting Corporation in an interview confirmed that the new government will soon introduce economic stimulus plan to scale in the 800-1300 billion US dollars between. The day of the U.S. House of Representatives Speaker Nancy Pelosi said Congress must be in by mid-February through large-scale economic stimulus plan, otherwise the U.S. will face an economic crisis exacerbated the situation to deteriorate and unemployment situation. Democrats hope that the elected president January 20 inauguration will be prepared the day of its signing of the plan submitted.
For the fiscal deficit and the pressure on Obama on the same day at a press conference on the nomination of a former assistant secretary of the Ministry of Finance奇勒夫for the White House, "chief performance officer" to monitor the operation of funds in order to reduce waste and improve the performance of the Government. Principal Officer will be responsible for the performance of the work include: government-related innovation and ensure that the financial order, and to establish performance standards to ensure that the federal unit in charge of the work progress.
奇勒夫is a management consultant for McKinsey & Company director; she had tenure in the Clinton administration as assistant secretary of the Ministry of Finance.奇勒夫said, will do its utmost to enhance the operation of the government. She said: "Today, most of the operational problems faced by the Government for decades, and it takes time to resolve, but now have to deal with the urgency of this issue."
The market has emerged between the Government and the tendency of mutual distrust, Obama said the two sides to restore the trust of each other, it will be very important work. He said, "I want to explain to them, my plan is what in the end, and I will also give advice."
China out of U.S. treasury bonds to buy
Apart from the large fiscal deficit, or even Omar worry is that nearly two weeks of China's official figures show that China has a lot of unwillingness to "borrowing" money to the U.S..
"New York Times" yesterday reported that "With the financial crisis, the Chinese government is tightening its purse more grasping the", and this change so that like to borrow money through the treasury of the United States, days become constraints up.
Reported that Chinese policy makers the past two weeks are signs that China is gradually fading out of the purchase of U.S. Treasury bonds, which will soon be published official figures will soon prove the judge.
Under normal circumstances, China is the most active U.S. Treasury buyers, but also a fight to save the market USA No worries. Over the past 5 years, China has used its own production capacity of one-seventh of the economy to buy bonds in other countries, most of which are U.S. Treasury bonds. In September last year, China surpassed Japan to become the largest holder of U.S. treasuries States.
The world economy after the financial crisis, the Chinese government also launched a large-scale economic stimulus plan and a slowdown in overseas bond purchases.
For Obama, China's indifference to buy will have a direct impact to his economic stimulus plan. "New York Times" said the author, as the largest foreign exchange reserves held by the country, in addition to China, the debt-ridden U.S. government can no longer foot the bill can not find a better person.