By Xinhua Writer Liu Chang
BEIJING, Oct. 17 (Xinhua) -- Long-term remedy to cure the stubborn and chronic U.S. fiscal illness remains absent despite a last-minute yet still temporary bill that finally cleared the U.S. Congress late Wednesday.
That means politicians in Washington have done nothing substantial but postponing once again the final bankruptcy of global confidence in the U.S. financial system and the intactness of dollar investment, which has already been seriously shattered by the undying partisan struggle and the country's attested inability to fix its fiscal problems once and for all.
Such move of passing a transient bill was no more than prolonging the fuse of the U.S. debt bomb one inch longer.
Just as what recent history has taught us that it is expected the shenanigans and dramatic political infighting are definitively going to be put up again when the next deadline, which has already been set in motion, comes around in a few months' time.
If the U.S. government continues with its irresponsible dilatory approach over its debt disease, there will be a day when Uncle Sam busts his borrowing limit while the groaning U.S. economy drifting far beyond redemption.
Thus, even though it seems not quite possible, it is still urged that over the coming months the beltway politicians in the White House and both chambers of Congress could set aside their partisan gridlock and petty differences, and work out a way that may comfort the trembling world financial markets seeking further rehabilitation.
Amongst the effective cures available, the U.S. government has to rethink the way it spends its money considering its gigantic military expenditure, which accounts for almost half of the world's total.
In fact, Washington was once on its way to pay down its national debt and had budget surpluses when former president Bill Clinton left the White House in 2000.
Nevertheless, the succeeding U.S. administrations squandered the capital by waging wars in Afghanistan and Iraq, returning the country to fiscal quagmire and damaging its moral credibility worldwide.
With the protracted U.S. fiscal failure hanging high up there as a Sword of Damocles, the international financial stability and the lackluster global economic recovery are locked in an egregiously dangerous situation as the clock ticks.
While there is hardly any anticipated esperance for the recurring U.S. fiscal crisis to be terminated in a responsible and long-term fashion, it again prompts the international community to revisit the deficiencies perplexing the current global financial and monetary system with reigning greenbacks.
As for China, it is perhaps an opportunity to move faster and more resolutely on the track of internationalizing its RMB currency, so that it could move gradually away from the dangers posing by a troubling U.S. fiscal mechanism.
Great harm has already been done to the world economy despite an expedient reached between the Democrats and the Republicans, and the United States has to know that it is not doing the world a favor by solving its fiscal conundrums. In fact, self-salvation lies within.
China trusts U.S. to quickly solve debt crisis
BEIJING, Oct. 17 (Xinhua) -- China Ministry of Commerce spokesman Shen Danyang said Thursday that China hopes and believes the U.S. government can solve its debt crisis in a timely manner and boost the recovery and stability of global financial markets.
The spokesman made the remarks in response to questions at the ministry's monthly press conference held in Beijing.
"As the world's largest economy, a debt default would not only affect the United States' reputation, but also drag down the recovery process of the global economy," Shen said. Full story
U.S. Congress passes bill to reopen government, raise debt limit
WASHINGTON, Oct. 16 (Xinhua) -- U.S. House of Representatives Wednesday night approved a deal to raise the debt ceiling and reopen the federal government, clearing final hurdle of the legislation in the Congress.
The House voted 285-144 in favor of the bill, which funds the government through Jan. 15 and raises the debt ceiling until Feb.7. The Senate overwhelmingly approved the deal earlier Wednesday night.Full story
U.S. Senate leader announces bipartisan budget deal
WASHINGTON, Oct. 16 (Xinhua) -- U.S. Senate leader said on Wednesday that a bipartisan deal is reached to raise the debt ceiling and reopen the federal government.
"This compromise we reached will provide our economy with the stability it desperately needs," said Senate Majority Leader Harry Reid on the Senate floor. Full story
Backgrounder: U.S. debt ceiling, default risks
WASHINGTON, Oct. 16 (Xinhua)-- U.S. Congress has been racing against time to strike a bipartisan deal to raise debt limit and reopen the government by the deadline of Thursday.
The debt limit is the total amount of money that the United States government is authorized to borrow to meet its existing legal obligations, including Social Security and Medicare benefits, military paychecks, interest on the national debt, tax refunds, and other payments. Failing to increase the debt limit would cause the government to default on its legal obligations.Full story