The European sovereign debt crisis is compounded by a faltering U.S. economy, making the implementation of an EU-wide federal budget and coordination of nation-state budgets necessary to preserve the single currency, says economist Jacques Attali.
While a last-minute deal was able to raise the U.S. debt ceiling ahead of default, global investors are frustrated by the unnecessary brush with crisis and by the culture of U.S. political brinkmanship. The long-term impact on U.S. treasuries is unclear.
David S. Abraham and Meredith Ludlow argue, "...Congress' implication that the United States may not repay its debt unless the government restructures domestic spending is undermining American interests in Asia."
The U.S. debt ceiling and deficit debate has led to challenges on foreign aid spending, but while aid could be leaner and more effective, CFR's Stewart Patrick argues Congress should look to consolidate programs rather than simply cut them.
A new proposal by the bipartisan "Gang of Six" to reduce deficits by nearly $4 trillion could gain traction among House Republicans, with polls showing greater public support for raising the debt ceiling as the August 2 deadline approaches, says CFR's Sebastian Mallaby.
President Obama today used his bully pulpit to press Republicans for a deal on raising the U.S. debt ceiling but both sides appear set to take their dispute to the final moments, as financial markets watch anxiously, writes CFR's James Lindsay.
In light of a recent slowdown in China's economic growth, a coterie of China commentators at the New York Times discusses the question of whether massive public spending is contributing to an incipient debt crisis.
The Economist argues that the Republicans are playing a cynical political game with hugely high economic stakes as they cling to the position that not a single cent of deficit reduction must come from a higher tax take.
The Council on Foreign Relations' David Rockefeller Studies Program—CFR's "think tank"—is home to more than seventy full-time, adjunct, and visiting scholars and practitioners (called "fellows"). Their expertise covers the world's major regions as well as the critical issues shaping today's global agenda. Download the printable CFR Experts Guide.
The authors argue that it is essential to begin working now to expand and establish rules and norms governing armed drones, thereby creating standards of behavior that other countries will be more likely to follow.
The author examines Pakistan's complex role in U.S. foreign policy and advocates for a two-pronged approach that works to quarantine threats while integrating Pakistan into the broader U.S. agenda in Asia.