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Opinion / Chen Weihua

No tidings of joy from US politicians

By Chen Weihua (China Daily) Updated: 2012-12-28 07:28

An analysis by the UN Economic and Social Commission for Asia and the Pacific shows that the downward pressure on the global economy and slack demand from the US caused by the "fiscal cliff" will have repercussions in Asia. The growth of some economies, such as Singapore, could decline by up to 2.2 percent.

China's credit rating agency, Dagong, this week put the US sovereign rating on its negative watch list, citing the impasse in budget negotiations, government debt that is growing faster than fiscal revenue and a likely recession in the US in 2013 as reasons.

While the world is looking for leadership to fight years of economic recession, the US president and lawmakers have chosen to play chicken to gain advantage for their own parties, instead of for the American people and people in other parts of the world.

A Pew Center survey shows that 49 percent of the US public do not anticipate a deal to be struck before the end of the year, while 40 percent do expect an agreement. Meanwhile, a Gallup poll reveals that 68 percent of Americans believe that "fiscal cliff" measures would have a negative impact on their personal financial situation.

There has also been an outcry from the defense industry. There has been much hype about how sequestration from the "fiscal cliff" would cause a national security threat, despite the fact that the US military budget dwarfs the next 10 biggest spenders combined. The US spends six times more on defense than China, according to IHS Jane's Defense Budgets.

It is the irresponsibility of the US president and lawmakers that truly threatens the US standing in this world. By continuing their ugly fight to the very end of the year, they seem to be simply sending "Unhappy New Year" greetings to Americans and people in other parts of the world.

The author, based in New York, is deputy editor of China Daily USA. E-mail: chenweihua@chinadaily.com.cn

(China Daily 12/28/2012 page8)

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