Republican win spells more chaos for US
The American Republican Party's landslide victory in this year's mid-term elections in the United States will spell trouble for the administration of President Barack Obama.
Admitting in a news conference last night that he should be blamed for how the American voters reacted as shown in the turnout of votes, President Obama, now faces the toughest period in his presidency.
As most of the Congressional seats in the US congress will be held by Republicans, President Obama, who is a Democrat, will now face more difficulty in passing needed legislative reforms and even receive a backlash on previously passed measures that targets to improve the US economy.
Gaining a majority in the US congress would mean a reversal of President Obama and his team's proposed government policies on health care, the environment, taxes and financial reform.
Analysts said America was not yet ready for the reforms as voters yielded to the newly formed Tea Party campaign of the Republicans that attacked the mortgage debt relief and increase in government spending.
The results will bolster Republican efforts to extend some taxes propagated by then former President Bush such as the tax cuts for those earning more than $250,000 and to crush Mr. Obama's proposals to increase taxes on companies' overseas profits.
There is now doubt and question whether the Dodd-Frank Law, which targets to overhaul the financial regulations in America and created the independence of the new Consumer Financial Protection Bureau will still be implemented.
The Republicans will also object on the continuous flow of federal support for Fannie Mae and Freddie Mac, the mortgage companies taken over by the government after their losses ballooned.
According to leading economist Mr. Paul Krugman, in his daily column on the New York Times,: "Right now we very much need active policies on the part of the federal government to get us out of our economic trap. But we won't get those policies if Republicans control the House. In fact, if they get their way, we'll get the worst of both worlds: They'll refuse to do anything to boost the economy now, claiming to be worried about the deficit, while simultaneously increasing long-run deficits with irresponsible tax cuts - cuts they have already announced won't have to be offset with spending cuts.