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Summary US defence Department considers cutting $ 800 billion over the period of 10 years.
This amount is twice the size of the cut that President Obama had propoed. UK news agency has reported that Obama’s nominated Army chief has warned against these cuts. While briefing the Armed Forces Committeee of the Senate the chief of staff said that policy makers should not repeat the past in this regard, as it may jeopardize the future and invite threats.The committee members agreed with the apprehensions of the army chief of staff while saying the cut was a compulsion owing to economic restraints. They observed the US debt has also become a a security concern. Maenwhile, US Secretary of State Hillary Clinton said Monday she was confident lawmakers would reach a deal to avert a debt default, addressing business leaders in Hong Kong towards the end of an Asian tour.The political wrangling in Washington is intense right now, she said, as the White House and top lawmakers scrambled to avert a disastrous default on the countrys debt. I am confident that Congress will do the right thing and secure a deal on the debt ceiling and work with President Obama to take steps to improve our long-term fiscal outlook, the top US diplomat said.Democrats and Republicans have been sparring over a measure to raise the $14.3 trillion US debt ceiling, allowing Washington to pay its bills past an August 2 deadline, while cutting $2.7 trillion in spending over 10 years.Obama has warned of economic Armageddon if talks fail, sparking a debt default -- though analysts said they believed an agreement would be reached.Markets in Asia fell Monday in reaction to the impasse, although losses were muted on expectations of an eventual agreement.Clinton also said she was optimistic about Asias future but urged the region to adopt open, free, transparent and fair competition, as Beijing and Washington continue to lock horns over their increasing economic integration.The United States has led calls for China to boost the value of its currency, the yuan, which critics say is artificially undervalued to make Chinas exports cheaper.
