I.M.F. Urges U.S. and Europe

A three day meeting in Tokyo brought officials from the I.M.F. to urge the European and U.S. to take quick and aggressive action to clean up their financial stance.  The economy of the richer nations was down and only bringing the poorer nations down more.  The impact of the U.S. and Europe were having a negative effect on the more economically challenged countries who rely on exporting their goods to help lift them out of poverty.  Asia was noted as the one who is carrying most of the weight, and wouldn't be able to keep this up.  Although not all news was negative, there were signs of the financial crisis decreasing, but still was not moving up into positive numbers and effects.  One of the largest topics was about the Obama administration needing to come to a quick agreement on raising taxes and cutting spending in order to counteract this "fiscal cliff" that the nation was following due to the 2008 crisis.  U.S. is the largest economic nation and it's actions will effect all.

In the European Union, the French have signed agreements to follow a budget deficit treaty.  While the leader of France was originally against this treaty in his campaign, he has recently decided to back this treaty, because of the positive effects that it will have on Europe.  France is the second largest economy in the Euro Zone and it is important for them to lead in the right direction for economies like Germany.  This country is taking the steps needed to follow the suggestions from the I.M.F. and turn the Euro economy in the right direction.  "The treaty obliges the 25 members of the European Unionwho signed it in March to limit their deficits to prevent further debt crises. Countries are supposed to keep their budget deficits to 3 percent of gross domestic product, and countries with high debt must keep their structural deficits below 0.5 percent of gross domestic product. Only Britain and the Czech Republic refused to sign."http://www.nytimes.com/2012/10/10/world/europe/french-assembly-approves-european-budget-discipline-treaty.html

Obama's plans for the new term has been to reduce the spending especially on military funding.  His ideas are to use the money to go toward funding schools, R&D and clean energy.  These proposals come with a huge savings to the U.S., as much as 476 billion dollars.  Not only is this saving money on war efforts to go to much more needed causes, but it is bringing families home, to the U.S.  "President Obama’s final budget request of his term amounts to his agenda for a desired second term, with tax increases on the affluent and cuts in spending, especially from the military, both to reduce deficits and to pay for priorities like education, public works, research and clean energy." "he budget would use projected military savings — a gimmick, Republicans say — to help pay for a six-year, $476 billion program to modernize the nation’s transportation network." http://www.nytimes.com/2012/02/14/us/politics/obama-budget-raises-taxes-on-the-rich-to-spend-on-jobs.html

http://www.nytimes.com/2012/10/14/business/global/imf-urges-us-and-europe-to-act-decisively-on-debt.html?ref=europe&_r=0