Economics 2008 Nobel Prize Paul Krugman said the United States is heading along a path of stagnation and deflation similar to that of Japan 18 years ago given the critical economic situation and the uncertain political scenario following the recent mid term elections that brought to Congress diehard Republicans.
The Federal Reserve has cut its 2011 growth forecast for the US economy, newly released minutes of its last policy committee meeting reveal. The Fed expects growth of 3-3.6% next year, down from its previous 3.5-4.2% estimate. It also forecasts higher unemployment and lower inflation than before.
US economy grew faster than previously estimated in the third quarter, government data showed, but still not enough to address stubbornly high unemployment. GDP growth was revised up to an annualized rate of 2.5% from 2% as exports together with consumer and government spending were stronger than initially thought.
Bolivian President Evo Morales delivered a blunt reply on Monday to visiting US Secretary of Defence Robert Gates's warning about dealings with Iran, saying Bolivia will ally with whomever it wants.
European Union leaders and President Barack Obama over the weekend made a point of stressing EU/US close ties after a low-key summit in Lisbon ended with a pledge to push for a deal in the Doha trade negotiation next year.
The United States Department of Commerce says the number of international visitors to the country is rising fast.
The United States central bank chairman Ben Bernanke has criticised countries like China that run large trade surpluses. He said that by buying dollars, these countries were hurting the US recovery and the global economy with it.
Inflation in the US slowed further in October, with core inflation - which excludes volatile food and fuel prices - up only 0.6% on a year ago. It is the lowest year-on-year increase on record, with core prices remaining unchanged for three months running.
The “dangerous behaviour” of the presidents of Venezuela, Nicaragua, Bolivia and Ecuador shows “an undeniable link between the decline of democratic freedoms and human rights and the increase of tangible risks to the security of our region,” said US Congresswoman Ileana Ros-Lehtinen (R-Fl), a Cuban-American lawmaker.
The Argentine government admitted that a confidential communication channel with the US on financial operations was interrupted mid 2009 following Washington’s suspicions that data sent to Buenos Aires was used for political purposes.