What the U.S. needs is a Republican President as the next occupant of the White House.
The experiment with the current Democratic President has been disastrous, and the U.S. has lost its economic and moral position even amongst the developing nations of the world, forget the emerging super powers like China and India.
Increasingly, China is ignoring the U.S. in its global calculations, be it in the economic arena, Yuan exchange rate, or building a mighty navy, ignoring U.S. protestations.
The U.S. budget deficit is mounting, the latest estimate for FY 2011 works out to USD 1.066 Trillion, some 7% of the U.S. GDP. By 2015, the U.S. debt will double to USD 20 Trillion, probably much higher than the GDP by then. The U.S. is living off foreign creditors, notably China and Japan. The U.S. trade deficit was USD 497.8 Billion in 2010.
The large trade deficit of the U.S. combined with its budget deficit cannot continue forever without inflicting major pain on the government to curb spending and imposing heavier taxes on its citizens.
While the world’s mightiest and largest economy is in no danger of a default or a collapse, the current government is not prudent in its approach towards spending, yielding to the traditional pressures from various democratic constituencies. A government has to first govern, and balance its budget, which is the basis of achieving operational stability. Lofty ideals can wait. How is the current government going to achieve any kind of balance, when the economy seems to demand additional funding stimuli ?
So, what the U.S. needs are tough governance and spending controls, and that can only be provided by a traditional Republican President. This is my opinion, and is supported by the past performance of Republican Presidents. Compounded by Foreign Policy misjudgements, the current Democratic Party Government in the U.S. is digging a hole for itself with its inability to handle multiple global crises and domestic pressures.
The U.S. needs a better President, period.
20th February 2011