What does China’s new currency policy mean in terms of efforts in Congress to pass an anti-China currency bill? Here is some of what some smart people told me. First Gary Hufbauer of the Peterson Institute for International Economics:
A Reuters Breakingviews column:
Europe’s newish cult of austerity may have some converts in Washington. The U.S. Senate is having surprising trouble passing a routine spending bill that grows the budget gap. Bipartisan resistance could hint that deficit hawks are starting to gain the upper hand in Congress.
Liberal pundits and economists such as Paul Krugman have no use for the White House “Summer Recovery” PR tour. (Note that it isn’t called the “Prosperity Tour.”) They continue to attack the Obama administration for worrying too much about the budget deficit and too little about high unemployment. The White House response has been three-fold.
U.S. financial reform keeps getting tougher on big banks — so they need to take friends wherever they can find them. Right now, that means Massachusetts Democrat Barney Frank, the liberal chairman of the House Financial Services Committee.
A good piece on financial regulatory reform over at VoxEu:
Furthermore, the bill does not address the risk of political capture. The same politicians calling now for stricter lending standards called for extended home ownership only a few years ago. The future roles of Fannie Mae and Freddie Mac are notably absent from this Bill, and neither is the issue of mortgage subsidisation being addressed. And there seems to be rather more political oversight than less. While accountability of regulators is important, the line between accountability and capture is a thin one.
The United States needs a long-term change in its energy policy. Right now, it needs oil to stop gushing from the broken BP well into the Gulf of Mexico. Barack Obama tried to tie long and short together in his first Oval Office address. But the White House will struggle to get Americans to focus on the future as long as the spill continues.
“Hope” wasn’t just a major theme of Barack Obama’s 2008 presidential campaign. It also might be a one-word summation of the 2010 midterm campaign strategy devised by the White House and Democrats on Capitol Hill. They hope voters get more comfortable with healthcare reform. They hope voters really care about the technocratic bank bill. And, most importantly, they hope voters begin to sense some impact of a slowly recovering economy on their personal financial situation.