Uncertainty looms large over end to US crisis

October 16, 2013

US_crisis

Washington, Oct 16: The US is appearing to be headed towards a financial default, which economist warned will have cascading impact on the global economy, as the Congress failed to make a headway in impasse over raising the country's debt ceiling before the deadline of October 17.

Less than 50 hours left before the US has any money to pay its bill, a glommy picture of default looms over the horizon of US history, but for a last minute compromise between the stubborn Republicans leadership and a determined US President Barack Obama, who is not going to give way to what he claims “ransom from the opposition lawmakers”.

“The idea that we're going to send a signal to the world that it's an acceptable proposition – this is what some Republicans on Capitol Hill seem to be conveying – that we can cross that threshold and just hope that we can resolve this before we have to delay a payment, already, once you get to that deadline, you've entered territory that we've never entered before.

“And that sends a signal I think globally that there is uncertainty about the fidelity here in the United States to the principle that we always pay our bills on time,” the White House Press Secretary, Jay Carney, said.

“That is why this line has never been crossed, why administration after administration, both Democratic and Republican, has taken the position that we should never cross this line.

“It's why businessmen and women, CEOs who understand the impact that this would have on what they do and on the American economy have called on Congress to quit even flirting with the prospect of default,” he argued.

Craney said the US is the largest economy in the world and it has a lot of obligations which exceeds its income.

“And that is why we have to ensure that Treasury is able to borrow in order to pay our bills,” he said while justifying the massive borrowing by the US Government.

“We're still optimistic that there is a path to lift the debt ceiling in time. We're pleased with the work done thus far. But we've heard of the bipartisan legislation being prepared in the United States Senate,” the House Democratic Leader, Nancy Pelosi, told reporters after a group of Democratic lawmakers met Obama at the White House.

“We're disappointed that the House Republicans decided to sabotage or at least delay what was happening there, but are hopeful – everybody knows that time is of the essence and that if the Republicans want to put up a bill, they should do it soon.

“But they have to know if it is as it has been described, that they'll have to do that with 100 per cent Republican votes,” she said.

“We now have forty-eight hours to make sure that our country remains solvent and paying its debts – and to make sure that our workers get back to work on behalf of the American people,” said the House Democratic Whip Steny Hoyer.

Meanwhile, late yesterday night the House Republicans withdrew their latest bill to raise the debt ceiling and reopen the government because of objections from rank-and-file conservatives.

As this happened, the Senate Majority Leader Harry Reid and the Senate Minority Leader Mitch McConnell resumed negotiating on a new deal to avert a debt default and reopen the government. Media reports said they were nearing the deal.

But this needs to be approved by the House.

Under the plan, a $986 billion government funding bill would reopen federal agencies until January 15, and the debt ceiling would be lifted until February 7.

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Agencies
August 1,2020

Mexico City, Aug 1: The number of people, who have died of COVID-19 in Mexico, has risen by 688 to 46,688 within the past 24 hours, Deputy Health Minister Hugo Lopez-Gatell said.

The number of victims in Mexico is now higher than in the United Kingdom, where 46,119 people have died of the disease. The largest number of fatalities - 153,311 - has been recorded in the United States, while Brazil comes second with 92,475 deaths.

Lopez-Gatell also said on late Friday that the number of confirmed coronavirus cases had increased by 8,458 to 424,637 over the past day.

A day earlier, the Latin American nation recorded 7,730 new cases of the coronavirus, with 639 fatalities.

The World Health Organisation (WHO) declared the COVID-19 outbreak a pandemic on March 11. To date, over 17.5 million people have been infected with the coronavirus worldwide, with over 677,000 fatalities, according to Johns Hopkins University.

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News Network
April 24,2020

Paris, Apr 24: The worldwide death toll from the coronavirus pandemic crossed 190,000 on Friday, with nearly two-thirds of the fatalities in Europe, according to an AFP tally compiled from official sources at 0740 GMT.

A total of 190,089 people have died and 2,698,733 been infected since the virus emerged in China in December. The hardest hit continent is Europe, with 116,221 deaths and 1,296,248 cases.

The country with the most deaths is the United States with 49,963, followed by Italy with 25,549, Spain with 22,157, France with 21,856 and Britain 18,738.

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Agencies
May 4,2020

Washington, May 4: Anxious for an economic recovery, President Donald Trump fielded Americans' questions about decisions by some states to allow nonessential businesses to reopen while other states are on virtual lockdown due to the coronavirus.

After more than a month of being cooped up at the White House, Trump returned from a weekend at the Camp David presidential retreat in Maryland and participated in a “virtual” town hall, hosted Sunday night by Fox News Channel, from inside the Lincoln Memorial.

He pushed for an economic reopening, one his advisers believe will be essential for his reelection chances this November.

“We have to get it back open safely but as quickly as possible," Trump said.

The president acknowledged fear on both sides of the issue, some Americans worried about getting sick while others are concerned about losing jobs.

Though the administration's handling of the pandemic, particularly its ability to conduct widespread testing, has come under fierce scrutiny, the president defended the response and said the nation was ready to begin reopening.

“I'll tell you one thing. We did the right thing and I really believe we saved a million and a half lives,” the president said.

But he also broke with the assessment of his senior adviser and son-in-law, Jared Kushner, saying it was “too soon to say" if the federal government was overseeing a “success story."

Trump's impatience also flashed. While noting that states would go at their own pace in returning to normal, with ones harder hit by the coronavirus going slower, he said that “some states frankly I think aren't going fast enough" and singled out Virginia, which has a Democratic governor and legislature.

And he urged the nation's schools and universities to return to classes this fall.

But many public health experts believe that cannot be done safely until a vaccine is developed.

Trump declared Sunday that he believed one could be available by year's end although his own pandemic task force has predicated it could be another 18 months.

Federal guidelines that encouraged people to stay at home and practice social distancing expired late last week.

Debate continued over moves by governors to start reopening state economies that tanked after shopping malls, salons and other nonessential businesses were ordered closed in attempt to slow a virus that has killed more than 66,000 Americans, according to a tally of reported deaths by Johns Hopkins University.

The U.S. economy has suffered, shrinking at a 4.8 per cent annual rate from January through March, the government estimated last week. It was the sharpest quarterly drop since the 2008 financial crisis.

Roughly 30.3 million people have filed for unemployment aid in the six weeks since the outbreak forced employers to shut down and slash their workforces. It was the worst string of layoffs on record.

Larry Kudlow, Trump's top economic adviser, on Sunday predicted a “spectacular 2021” — with “the right set of policies” — on top of a rebound from July through December of this year.

He said on CNN's "State of the Union" that the administration would "pause” to review the effectiveness of trillions in economic relief spending before making any decision on whether additional aid is needed.

House Speaker Nancy Pelosi, D-Calif., said Thursday that state and local governments are seeking up to USD 1 trillion for coronavirus costs, The Senate planned to reopen Monday, despite the Washington area's continued status as a virus hot spot and with the region still under stay-at-home orders.

The House remains shuttered. The pandemic is forcing big changes at the tradition-bound Supreme Court: The justices will hear arguments, beginning Monday, by telephone for the first time since Alexander Graham Bell patented his invention in 1876.

Congressional Republicans are resisting calls by Democrats for emergency spending for states and local governments whose revenue streams all but dried up in recent weeks.

The GOP is counting on the country's reopening and the rebound promised by Trump as their best hope to forestall another big round of virus aid.

The leaders of California and Michigan are among governors under public pressure over lockdowns still in effect while states such as Florida, Georgia and Ohio are reopening.

Michigan Governor Gretchen Whitmer, a Democrat, said Sunday that the armed protesters who demonstrated inside her state's Capitol “depicted some of the worst racism” and “awful parts” of US history by showing up with Confederate flags, nooses and swastikas.

Trump had tweeted “LIBERATE” and named Michigan and other states in mid-April. In a new tweet Friday, he urged Whitmer to “make a deal” with the protesters. “These are very good people, but they are angry.

They want their lives back again, safely!” Trump said.

Despite the opposition of Michigan's Republican-controlled Legislature, Whitmer has extended a state of emergency declaration and directed most businesses statewide to remain closed.

Some people participating in other public protests across the US have not kept their distance from one another and have rallied without masks, not heeding public health recommendations.

Deborah Birx, coordinator of the White House coronavirus task force, called that behavior “devastatingly worrisome.”

She said people will feel guilty for the rest of their lives if they end up infected and unwittingly spread the virus to vulnerable family members.

“We need to protect each other at the same time we're voice our discontent,” she told CNN's “State of the Union.”

An overwhelming majority of Americans support stay-at-home orders and other efforts to slow the virus' spread, according to a recent survey from The Associated Press-NORC Center for Public Affairs Research.

Asked about states that are reopening before they meet benchmarks laid out in federal guidelines she helped write, Birx said the guidelines “are a pretty firm policy of what we think is important from a public health standpoint.”

She added that she and others have made it clear that people must continue practising social distancing, “scrupulous” hand washing and other measures to protect themselves and others.

Fox News Channel said it asked viewers to submit questions about reopening the country on the network's Twitter, Facebook and Instagram accounts for a chance to appear on the rare broadcast from the Lincoln Memorial. Trump spoke from the memorial's steps last July Fourth.

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