US at Front to Pull off themselves from Existing Troubles

Wednesday, October 14, 2009

It’s true that the US economy is retaining back to its growing track as the media and some Forex experts have declared that the recession phase has come to an end.

Still it’s not the time to relax for the US officials because they are well informed of the fact that the economy is recovering but not with the desired pace.

The US economic recovery does not indicate any sign of employment generation so that they can delay the trillion-dollar relief program to safeguard the interests of the citizens.

Right now, US have two self-created problems in front of them seeking fast resolution. These are the coming election of 2010 and meeting the Federal Reserve Debt limit of 12.1$ trillion as soon as possible.

Both these situations are forming a vicious circle around the US government officials because foe conducting elections government require financial support in big amounts and the hands of the US are tied up in limits.

They have restricted resources to borrow and expend on elections because the more they borrow the more will be the debt pressure on the economy.

If the employment opportunities do not increases or if further drop takes place in the jobless claims that will bring the victory of US Democratic Party in question in the upcoming elections due to decline in the number of voters.

The problem is that employment generation require funds and funds will be arranged only when the economy is stabilized.

What are the plans of US government to deal with this kind of situation are still unclosed. There is no clear way visualizing to get out of these interconnected troubles.

The officials are trying every option to find the best possible trading option that can lift the value of the weakening USD.

The economic data suggests that the US economy has recovered with 3.2% of growing speed in the last 3Q. However, that will be more speedy then long-term trading trends that will add on the public investments, further weakens the USD and increase the inflation rate.

There is a need to consider the long-term results of each action, as the US government has to control the increasing Federal deficit, inflation rate and maintaining the USD value against all the major currencies to survive at the Forex trading platform.


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