2011/1/6

U.S. Republicans facing a serious challenge Obama in the White House

Local 5, the opening of the new U.S. Congress. As the U.S. Republican Party official in the White House, Obama is also facing severe challenges.

 Last November the U.S. Congress in the mid-term elections, Democrats lost the House majority, which means that the U.S. government will enter a new era of divided opinion within.

 Former House Republican leader John Boehner, Ohio Republican was elected Speaker of the House. Boehner said that government spending has been increasing, government debt will have a serious impact on the U.S. economy, Congress can not continue dragging it out. Some analysts said the Republican leadership of the Democratic Party, Barack Obama will fight side by side, in order to avoid possible within the next few months, "U.S."debt crisis.

 It is learned that Republicans are sharpening, Obama's policy plans for new attacks. From 7 day, the House will proceed to discuss the abolition of Obama's health care reform bill. In addition, the Republicans will be to cut government spending and control the budget deficit on the offensive. Boehner intends to cut spending to 2008 levels, which means that during the remainder of this fiscal year the U.S. government will cut more than 60 billion U.S. dollars in debt. But analysts said that this goal difficult to achieve.

 Some analysts said that while the Democratic Party still has control of the Senate, but the unemployment rate and the government in the context of high deficits, the U.S. state and local government debt issues have surfaced, debt reduction is imperative.

 Pacific Investment Management Company (PIMCO) Gross, co-chief investment officer, said increasing government spending could lead to rising U.S. inflation and a weaker dollar, as soon as possible if the U.S. government does not fulfill the commitment to cut government spending, the U.S. would lose "AAA" sovereign credit Rating. Investors should buy bonds and emerging market sovereign bonds.