America has been warned it faces more money worries if it does not put its economic house in order. President Obama told politicians, unions and business leaders he intends to halve the ballooning US budget deficit over the next four years. He said that if nothing is done, America risks another financial meltdown in the future.
“This will not be easy,” the president said. “It will require us to make difficult decisions and face challenges we have long neglected, but I refuse to leave our children with a debt that we cannot repay. And that means taking responsibility right now, in this administation, for getting our spending under control.” Winding down the war in Iraq will help, as will ending tax cuts for those on more than a quarter of a million dollars a year. But health care reform is high on the list: it was one of his campaign promises, he announced a special summit next week, and said politicians on all sides had agreed something must be done this year. But the President is facing continuing doubters in the financial world. The Dow Jones fell to a 12-year low as traders remained sceptical his stimulus plans will work.