Obama Inherits a Country on the Brink of Bankruptcy

America has elected by an unprecedented overwhelming majority Barack Hussein Obama as President of the United States. For the first time in its history, the US will have a black President at the White House, the son of a Black Muslim father and a white Christian mother.

Americans have therefore shown to the world their capacity to change behaviours, their ability to change attitudes and finally the power of their democracy.

The world hails the U.S. achievement and America recovers its capital sympathy abroad particularly in the Arab world and poor countries.

Backed by the press, Hollywood, universities, bobos (upper middle classes) and Wall Street, Barack Obama has demonstrated his talent by stressing the need for change.

As Obama, the President elect, underlined in his victory speech: it has been approved that everything is possible in America, and that the American dream is not a utopia.

Having said that, let’s be aware of the illusions that such a victory may arouse. U.S. foreign policy will not change significantly. A small change may happen, but not a radical one. The package will be different but the guidelines will remain the same. Like his predecessors, Obama will have to defend his country’s interests. Yet, these interests have not changed.

In Iraq, there is not too much to decide. The withdrawal of a large part of troops is already planned and will be hard to modify. In Afghanistan, war goes on and obviously a great effort by allies will be required in this “crusade.”

Regarding Iran, attempts of direct talks have already taken place for a long time. Efforts in this regard will be strengthened but the political line will remain without change: no nukes for Mullahs.

During his campaign, Obama promised contrary things for the Middle East. Jerusalem will not be divided and efforts must be carried out to come up with a satisfactory agreement for both parties.

Expectations are numerous and wide-ranging following Obama’s election and due to the diversity of the American population.

Nevertheless, reality constraints compounded by the economic slowdown do not give too much space to the president elect. The risk of disappointment is up to the hopes placed in him.

Having to protect jobs, fight against relocation and defend “made in U.S.,” the isolationist withdrawal risk is great.

These elections mark the end of “Reaganism” – less state-owned economy, deregulated markets and the image of a triumphant America.

Obama has a lot to do for a U.S. economy in crisis. Huge external deficit, mountains of household debts, the World’s richest economy is in the red vis-à-vis the rest of the world. Americans are living beyond their means and pumping global savings.

The country’s external debt has unreasonably enabled US families to live on credits. Between 2000 and 2007, household debt shifted from 85 percent to 116 percent of annual GDP. Today, private debt amounts to $16.820 trillion, i.e. an average of $56,000 for every American.

These are imbalances that the new President of the United States will have to face and to which he will have to find and implement appropriate solutions.

Never before in U.S. history a new president was confronted to as many political, social and international challenges.

Obama will need a long grace period in trying to bring solutions, if God grants him life.