Opinion

The Great Debate

Global rebalancing to weaken dollar, quietly

– Neal Kimberley is an FX market analyst for Reuters. The opinions expressed are his own –forex

Twenty-four years ago, major nations called for depreciation of the dollar to rebalance the global economy. Now, as another effort at rebalancing looms, the dollar will again bear the brunt — though officials will try to ensure its fall is less dramatic this time.

That’s the implication of President Barack Obama’s announcement this week that he will push world leaders for a new global “framework” in which the United States would cut its huge trade and budget deficits.

Agreeing on this framework would be politically difficult, since it would require policy changes by many countries — China, for example, would probably have to rein in its explosive export-led growth.

But as the euro’s climb to a new one-year high versus the dollar this morning shows, markets are starting to think the rebalancing process may start as soon as this week’s Pittsburgh summit of leaders from the Group of 20 nations.

from Commentaries:

Shelved missile shield tests NATO unity

foghAfter just six weeks as NATO secretary-general, Anders Fogh Rasmussen has his first crisis. The alliance may be slowly bleeding in an intractable war in Afghanistan, but the immediate cause is the U.S. administration's decision to shelve a planned missile shield due to have been built in Poland and the Czech Republic.

The shield, energetically promoted by former President George W. Bush, was designed to intercept a small number of missiles fired by Iran or some other "rogue state". But Russia saw it as a threat to its own nuclear deterrent and NATO's new east European members saw it as a useful deterrent against Russian bullying, by putting U.S. strategic assets on their soil.

President Barack Obama's decision to drop plans to install it on Polish and Czech territory leaves those former Soviet satellites feeling betrayed -- because they expended political capital to win parliamentary support -- and more exposed to a resurgent Russia, especially after its use of force against Georgia last year.

Obama’s Afghan war – a race against time

Bernd Debusmann(Bernd Debusmann is a Reuters columnist. The opinions expressed are his own)

By making the war in Afghanistan his own, declaring it a war of necessity and sending more troops, President Barack Obama has entered a race against time. The outcome is far from certain.

To win it, the new strategy being put into place has to show convincing results before public disenchantment with the war saps Obama’s credibility and throws question marks over his judgment. Already, according to public opinion polls in August, a majority of Americans say the war is not worth fighting. Almost two thirds think the United States will eventually withdraw without winning.

There are similar feelings in Britain, which fields the second-largest contingent of combat troops in Afghanistan after the United States. A poll published in London this week showed that 69 percent of those questioned thought British troops should not be fighting in Afghanistan.

Michael Bloomberg and America’s guns

Bernd Debusmann— Bernd Debusmann is a Reuters columnist. The opinions are his own —

New York’s billionaire mayor, Michael Bloomberg, is stepping in where President Barack Obama fears to tread — confronting America’s powerful gun lobby. In the country that holds a commanding global lead in civilian gun ownership, it promises to be a hard fight.

No matter how it goes, America’s position at the top of the list of gun-owning nations looks secure. Up to 280 million guns are estimated to be in private hands and the arsenal is growing year by year. On a guns-per-capita basis, the United States (90 guns per 100 residents) is way ahead of second-ranked Yemen (61 per 100), according to the authoritative Small Arms Survey issued by the Graduate Institute of International Studies in Geneva.

Obama has been a sore disappointment for advocates of tighter gun controls, and a boon to gun manufacturers and dealers. Predictions that his administration would swiftly work towards greater restrictions helped spark a huge run on firearms after his election. The National Rifle Association (NRA), the country’s biggest gun lobby, said its members reported widespread shortages of ammunition.

Europe loves Obama. Does it matter?

Bernd Debusmann- Bernd Debusmann is a Reuters columnist. The opinions expressed are his own –

Barack Obama’s star may be fading slightly at home but it is still so bright in Europe that  he outshines the leaders of Germany and France in their own  countries, according to a poll that shows a remarkable global  shift in attitudes towards the U.S. since he took office.

The question is: does it matter?

First, the statistics. The latest Pew Global Attitudes  Project, a widely-respected survey that has tracked  anti-Americanism around the world since 2002, polled 26,397  people in 25 nations in May and June and found that the image of  the United States had improved in all but one (Israel),  reflecting, it said, “global confidence in Barack Obama.”

Where the healthcare debate seems bizarre

healthcare-globalpost

global_post_logoMichael Goldfarb serves as a GlobalPost correspondent in the United Kingdom, where this article first appeared.

In America, the health care debate is about to come to a boil. President Barack Obama has put pressure on both houses of Congress to pass versions of his flagship domestic legislative program prior to their August recess.

Good luck.

Opponents are filling the airwaves with the usual litany of lies, damned lies and statistics about socialized medicine and the twin nightmare of bureaucratically rationed health care and high taxes amongst allies like Britain, France and Germany. So here is a brief overview of health care in some of Europe’s biggest economies: Britain’s National Health Service is paid for out of a social security tax. Services are free at the point of provision. No co-pay, no reimbursement. The budget last year was 90 billion pounds (about $148 billion). That makes the average cost per person about 1,500 pounds ($2,463).

The three urban myths of healthcare reform

Peter Pitts– Peter J. Pitts is president of the Center for Medicine in the Public Interest and a former FDA associate commissioner. The views expressed are his own. –

When it comes to healthcare reform, as Aldous Huxley said, “Facts do not cease to exist because they are ignored.”

Three of the most common “urban myths” of American healthcare are that:
1. The lower life expectancy in the U.S. “proves” the total inadequacy of our system;
2. There are 47 million uninsured Americans — proving the inequity of our system; and
3. We spend “too much” on health care — proving the wastefulness of our system.

Is America ready for single payer healthcare?

diana-furchtgottroth–- Diana Furchtgott-Roth, former chief economist at the U.S. Department of Labor, is a senior fellow at the Hudson Institute. The views expressed are her own. –-

President Barack Obama has repeatedly said “First of all, if you’ve got health insurance, you like your doctors, you like your plan, you can keep your doctor, you can keep your plan. Nobody is talking about taking that away from you.”

But America’s Affordable Health Choices Act of 2009, the bill under discussion in the House of Representatives, would result in the demise of private health insurance in America.

How will the U.S. pay for healthcare reform?

James Pethokoukis – James Pethokoukis is a Reuters columnist. The views expressed are his own —

You have to admire the confidence. “Don’t bet against us,” said President Barack Obama on Monday about the chances for healthcare reform. “We are going to get it done.” Not only that, Obama repeated his pledge that his plan “will not add to the deficit over the next decade.”

Sunny optimism may reign at the White House, but things are a bit gloomier over on Capitol Hill. An August deadline to get a bill passed looks likely to be broken. More delays mean lost momentum and rising odds that debate over the bill could linger into the tumult of the 2010 congressional election year.

Obama healthcare playbook getting thin

James Pethokoukis – James Pethokoukis is a Reuters columnist. The views expressed are his own —

The playbook is getting pretty thin for the Obama White House and congressional Democrats. One big idea they had to pay for healthcare reform was by capping itemized tax deductions for upper-income taxpayers. But the charities and nonprofits who benefit from these deductions screamed to Capitol Hill, so that approach was shelved. Time for Plan B.

Then congressional Democrats considered removing or capping the tax-advantaged status of job-based healthcare benefits. These untaxed benefits mean workers pay very little of their healthcare expenses out of their own pockets, which, in turn, means they aren’t motivated to act like true, cost-conscious consumers.

  •