Republicans

The United States will inevitably default when the debt ceiling deadline on August 2 comes, noted David Murrin, chief investment officer at Emergent Asset Management.

"It's inevitable that the US will default - it's essentially an empire which is overextended and in decline - and that its financial system will go with it.

“The question is: does it default when it is forced to by the outside world, probably the Chinese, or does it take the option to default on its own terms in such a way that it may have a strategic advantage," he said.

This week the US top communications regulator addressed the Congressional hearing saying that antitrust laws were not enough to preserve the openness of the Internet and to allow innovation to flourish

"Antitrust enforcement is expensive to pursue, takes a long time and kicks in only after damage is done," Federal Communications Commission Chairman Julius Genachowski told.

Barack Obama and leaders from both parties in Congress face a new chain of disputes and fights over the US budget as the state has escaped a potential government shutdown.

As Obama is to offer a long-term plan for deficit reduction on Wednesday, the White House and Congress start fighting over the 2012 fiscal year budget and raising the $14.3 trillion limit on government borrowing authority.

The fights are expected to dominate the political agenda overshadowing Friday's 11th-hour deal to cut $38 billion in spending for the final six months of this fiscal year.

Implementing immediate, deep budget cuts would hurt the fragile US economic recovery, warned the US President Barack Obama while Republicans pressed to reduce spending and expressed no interest to consider job loss concerns.

Obama’s budget for 2012 was strongly criticized by Republicans who demanded cuts now in areas such as education and space exploration. While Obama promised $1.1 trillion in deficit reduction over 10 years he still wants to invest in areas such as high speed rail and energy efficiency to boost U.S. competitiveness.

In a move to whitewash his not more efficient policy than of his predecessors the US President Barack Obama will be holding a number of economic initiatives this week aimed at generating some desperately needed U.S. job growth and limiting predicted Democratic losses in November 2 congressional elections. Obama will use his appearances to persuade Americans that his economic policies are working.

In light of the forthcoming elections in November members of the US Congress are actively considering policies to cut the double-digit unemployment rate as they themselves may lose their posts. With the jobless percentage highest in 25 years job creation becomes the main focus of Democrats.

"Americans have a lot of angst, a lot of anger, a lot of fear," said House Democratic leader Steny Hoyer. "Whether you are a Democrat or a Republican or an independent, all polls show that jobs are the major issue."