Obama Challenges

Elected U.s. President Barack Obama is facing a long list of challenges that deep consequences not only for his country but for the whole world. To combat these tasks, Obama needed courage, insight, and above all things, the cooperation of the Republicans.

The biggest challenge facing Obama is the American economy back on track. World's largest national economy is currently reeling under enormous public debt. The mountain of debt has topped US 16 trillion and continues to grow as a result of the persistent budget deficit. Last year, the Government budget deficit swelled $ 1.3 trillion.

To quell the snowballing debt, Obama and Congress agreed in linear cuts $ 1.2 trillion last year. These cuts, along with a number of tax hikes, should enter into force next year. But the problem is that these austerity measures could lead to another recession if carried out as planned.

It's not just the us that can not afford another recession. The world can not both. So is the most urgent task for Obama a way to prevent a reduction of abrupt $ 600 billion in fiscal spending, a situation which is referred to below as a "fiscal cliff".

If you want to delete the recession threat, Obama must negotiate with the Republicans, who have maintained their control of the Chamber of representatives in this election. It behooves Obama and the Republicans to reach agreement on a new deficit reduction plan to prevent a disaster.

Another important challenge for Obama is employment. He owes his re-election partly to the improvement in unemployment in recent months. The rate fell below the psychologically important level of 8 percent in September and October. It should be further reduced to help the economy grow faster.

To an acceleration of economic growth, the Federal Reserve has an ultra-loose monetary policy, called quantitative easing. It has its pumps tens of billions of dollars in financial markets each month to stimulate the labour market.

The Fed actions can the American labour market and improve the economy. But the problem is that they push down the value of the dollar, making other currencies to appreciate. Countries such as Japan followed to prevent their currencies rising too much. As a result, was an international currency war reignited.

The Fed has promised to continue the controversial monetary policy until unemployment improves significantly. It must surely understand that its policy consequences for the rest of the world.

On the geopolitical front, Obama the highest priority will be to expand us economic, military and diplomatic activity in the Asia-Pacific region as the center of gravity is shifting to this part of the world.

Obama of "pivot to Asia," but expected China's attempt to collide with the hegemony, in this region. China has sought to project itself as an undisputed regional power based on the growing economic muscle and rapid military build-up.

Beijing has recently activated the territorial disputes with Southeast Asian countries by claiming that most of the South China Sea. To weaker Southeast Asian countries to the heel, the threatened to use violence against them.

The Obama administration is expected to intervene in these disputes to China's ambitions against to go and protect and promote our national interests in the Asia-Pacific region. Washington must still not trying to contain China; It must be rather a relationship based on competition and cooperation.

A leadership change In China is underway. The line-up of the fifth generation leaders will next week unveilled. The leaders of the two most powerful countries should try to their relations in a way that promotes peace and stability in the region and beyond.

How they reset their relationship will also have a significant impact on the future of North Korea. They must strengthen their cooperation in persuading the North to give up his nuclear weapons and opening its economy.

The Obama re-election means that there would be no major change in policy from Washington to Seoul. The intimate bilateral relationship can still undergo some change, such as South Korea will soon choose a new president.

Who is chosen as the next president of South Korea, maintaining a strong security alliance with Washington should be the highest priority.