THE MELTING POINT OF WORLD ECONOMY

THE TROUBLOUS WAVES ARE RISING
by B. E. Ajibola

The United States of America has beeen regarded as the melting point of world economy as such, when the bubble burst in this God's own country the ripples is felt all across the globe. Last yeat (2008) witnessed the beginning of economic recession which started like a child's play in that the economic experts and beneficials of the Wall Street business empires want us to believe that all is well until the the clouds could no more cover the sunshine of economic doom which heat is now being felt across the globe. Despite the much noise and publicity given to the economic down trend, the dollars continue to gain strenght against other world currencies.
Definitely the United States of America is the melting point of the world economy.
The IMF has revealed that the financial markets remain under stress and the global economy has taken a sharp turn for worse.
It also reveals that world economic growth in 2009 will be the lowest since 1945 with the U.K. fairing worst among advanced nations. We should ask the question, if this is happening to the green trees, what will become of the dry trees?
What will happen if things take a dimension that nobody, even the experts do not envisage. Who can then bail us out. Right now, the party politics is still raising its ugly head in the United Sate Congress. The Economic Stimulus Package just sailed through the Congress without the support of any of the Republicans. President Obama may not be able to do much if this trend continues.
If in actual fact the United States is the melting point of world economy, then Obama should be given every cooperation that he needs to move the United States forward so that we can all move forward.
According to the ILO,as many as 51million jobs world wide could be lost this year because of global economic crisis.




US House passes economic package

Mr Obama's package was passed by 244 votes to 188
The US House of Representatives has passed President Barack Obama's $825bn (£576bn) economic stimulus package.

Passed by 244 votes to 188, no Republicans backed the plan, saying it was too expensive and would not work.

It must now be approved by the Senate, where it could face stiff opposition as the Democrats have a slimmer majority.

After the vote, Mr Obama urged members of Congress not to "drag our feet or allow the same partisan differences to get in our way".

The president has said his package, which he hopes to sign into law next month, would help create a favourable climate for American business to thrive.

The bill would cut taxes for people and businesses by $275bn, while pumping more than $540bn into a range of initiatives including road and bridge repair, increased unemployment benefits, investment in new technology and renovations to 10,000 schools.

Heated debate

Mr Obama has pledged to try to end partisan division in Washington, but the debate on how best to kick start the US economy has devolved into a bitter squabble along party lines, says the BBC's Richard Lister in Washington.


President Obama said the economy can be turned around
In a heated debate, a succession of Republicans in Congress have condemned the stimulus package as a wasteful government spending exercise that will do little to create jobs.

They promoted their own bill, focussing more on tax cuts, which they said would create more jobs for half the investment.

But this was a battle they could not win in the House, where Democrats have a large majority.

It is slimmer in the Senate where Republicans could slow the bill's progress, but Democrats are confident they can get the measure through there, and they have set a target for mid-February to have the bill on Mr Obama's desk to be signed into law.

Failing to attract significant Republican support for the bill, our correspondent says, is a blow to Mr Obama's hopes of forging a new consensus in Washington, at this time of economic crisis.

Greater accountability

Mr Obama said earlier workers were looking for "bold and swift" action from leaders, and called on businesses to play their part in economic recovery by creating jobs in a "favourable climate" started by government. OBAMA PLAN: KEY POINTS
Expand Medicaid: $87bn
Help state governments: $79bn
Help school districts: $41bn
Higher unemployment benefits: $36bn
Rebuild roads: $30bn
Computerise medical records: $20bn
Green electricity grid: $11bn
Source: House Appropriations Committee

"I am confident that we are going to get it passed," Mr Obama said.

The US "cannot afford inaction or delay", he said after meeting business leaders at the White House.

Laying the blame for the economic crisis partially on a "sense of irresponsibility" on Wall Street and the government in Washington DC, he said corporate America had to take responsibility for its workers, but that Washington needed to provide leadership with the stimulus plan.

The president has said most of the money in his package would be used "immediately", creating as many as 4m jobs - the vast majority in the private sector - and that there would be a greater measure of accountability.

Treasury Secretary Timothy Geithner, who was sworn in on Monday, has the task of trying to get the US economy back in shape.

Meanwhile, Mr Obama attended his first Pentagon session with the joint chiefs of staff on Wednesday, telling them the military had carried out its missions under enormous pressure, and pledging his support to the troops.

Mr Obama, who campaigned on a promise to end the war in Iraq responsibly and withdraw troops next year, said his administration faces tough decisions on Iraq and Afghanistan.