Federal Reserve Chairman Ben Bernanke warns that Americans will need
to accept lesser entitlments in social benefits such as Social
Security and Medicare and accept higher taxes to address the nations
fiscal defecit and rising debt levels. In addition to increased
government stimulus and lower tax revenue, the growing elderly
population and shrinking younger population are straining these
government programs. This year marks the start of a Social Security
deficit that is expected to grow over the next decade and beyond. More
people are drawing from these programs while fewer people are working
and paying into them.
Treasury Secretary Tim Geithner is briefly meeting with China's Prime
Minister today to discuss, among other things, the valuation of
China's currency. Currently, China pegs it's currency to the U.S.
dollar, but at an undervalued rate. This makes Chinese goods cheaper
to import and American goods--and other countries' goods--less
competitive in the global market. Some experts believe a revaluation
of China's currency would lower the U.S.-Chinese trade deficit and
help employment in the U.S. Regardless of the accuracy of these
claims, there is a growing tension between the U.S. and China--the
countries biggest creditor--that some feel could result in a trade war
(and maybe fewer lead concerns for U.S. consumers).
Sent from my iPhone
Posts
No comments:
Post a Comment