Biggest problem is the effect on our fragile economy

Despite pledges to curb government spending and the huge U.S. budget deficit, Republicans are expected to address anxiety over unemployment and flagging growth by pushing hardest for an extension of the income tax cuts for everyone, including the rich that were passed during the presidency of George W. Bush — a move that would add to the deficit and, by extension, further weaken the U.S. dollar.

“The rest of the world, including Asia, is looking at the United States and seeing no real effective policy measures in bringing the economy back on track,” said Bart Van Ark, the chief economist at the Conference Board, which measures U.S. economic indicators. “That is making the U.S. lose its legitimacy in the global economic community as a leader in terms of providing solutions.”