This is an excellent, MUST READ article in the NYT. Check it out!
President Obama is having a tough time these days. Firstly, President Putin has stolen the initiative on Syria. Yesterday, Larry Summers, Obama’s favored candidate withdrew his name from the list to be chair of the Fed. Thirdly, Obama is once again facing a Congress hostile to increase US debt.
We could potentially be seeing huge movements in financial markets ahead of yet another round of deadlock in the US Congress. This will affect peoples’ savings around the World, directly impact on jobs and the global recovery.
Let me turn this to an open question:
How should President Obama avoid another deadlock in Congress over the US borrowing level, with risk of global repercussions?