Obama presents a budget for the squeeze

Obama promised to substantially reduce the deficit.A draft federal budget for the fiscal year 2012, which aims to reduce the deficit this year will reach history linked 1 650 billion, nearly a tenth of the U.S. economy, the White House submitted Monday to Congress for review.

To make the presentation, President Barack Obama highlighted the proposed reductions that allow lead figure to little more than 1,000 billion, mainly thanks to the freezing of government current expenditure and cuts in the Department of Defense.

Despite the fact that the Republican party is calling on the Government save their initial reactions some opposition spokesman said that presidential words do not meet the need to balance public accounts.

Democrats and Republicans recognize the Federal State should "live within the limits of the possibilities", but the big difference seems to lie in how do, which can be cut and what does not.

Executive for 2012 Project provides reductions of $ 1 trillion in the next decade, economic growth of 3.6% and a decline of unemployment in the current 9.3% 8.6%, still high EA.UU.

In total, the Government considers that certain 3.729 billion, a reduction of 90,000 million 2011 budget expenditures in 2012.

Some programs of aid schemes Pentagon and State Department will be reduced or eliminated, although that is not intended for Israel or Egypt.

The proposal of the White House had no recommendation made in December Presidential Commission, which has been tasked to study how to reduce the budget.

A bipartisan Commission presented proposals to reduce public spending.

On this occasion, the Committee presented a plan which would save 4 billion for the next ten years, changing the network of social security by a general reform of taxation, two politically sensitive issues.

However, on the side Republican redimensionaran aspirarían social benefits such as the health plans, to feel responsible for most of the hollow US Attorney

General economic specialists and market operators consider that this presidential proposal is a step in the right direction to reduce the deficit, but remember that it is now a political debate rather than technical, which will take months to concrete results.

"The budget presented by the President often isn't an important document because the Congress tends to go in a different direction", said Michael Moran, Daiwa Securities Chief Economist, a New York Investment Bank.

The budget key point is that it is a political document, I think therefore that the numbers are relatively insignificant

Ward McCarthy, investment financial Chief Jefferies

"The key point in the budget, it is that it is a document of policy, I think therefore that the numbers are relatively insignificant and aren't a conviction for President Obama, is simply how things tend to be," said Ward McCarthy, Jefferies financial investment banking head.

At the moment both sides face the Congress by the increase of the ceiling of the level of indebtedness authorizing the Government to borrow.

The current ceiling is $ 14.7 billion and the Executive hopes that, despite the reluctance of the Republican Congress raise by March, to avoid a possible suspension of payments, which would have serious effects on the global economy.

Debt discussion and debate on the nascent budget suggests that Republicans will use financial responsibility as theme of 2012 campaign when President Obama his re-election.

Click to read: the U.S. economy.UU. develops, but not enough

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