On Jan 20, Mr Obama will take the oath of office. As he does so, the 44th President will finally have to decide on how best to manage the unique confluence of currents that took him to the White House: No other US president-

in-waiting has come to office with such a wealth of goodwill domestically and internationally, and very few others have entered the White House in such turbulent times.

The collapsing US economy awaits him - and his promise to create at least three millions jobs over the next two years. He has given broad brush strokes of his rescue plan in the preceding months, such as the pledge to pump money into the country's rickety infrastructure and to create new growth areas through development of alternative energy resources.

How he ensures that the funds will be put to the best use will be watched closely. The same goes for his efforts to throw a lifeline to the housing and auto sectors.

And all eyes are sure to be on him as he sets about putting an end to the seemingly endless crises in the financial sector.

In the past year, the Federal Reserve has slashed interest rates till it is almost out of ammunition, and the US Treasury has little to show for its bailout plans.

Next year, Mr Obama will have to start filling in his pencil sketches. And the first lines will likely come in his much anticipated fiscal stimulus package.

Fortunately for him, the usual American squeamishness with big government spending is not an issue - the US$700 billion (S$1trillion) coughed up to prop up the financial sector set a benchmark of sorts.

But it is not simply a matter of throwing money at a problem. How he re-engineers the American auto industry - now on life support - will be another early test of his presidency. Mr Obama's 'solution' will show more clearly where his administration stands on industrial policy and labour relations.

As the details are inked in, and assessments made of his responses to bolts from the blue - such as a Madoff-type scandal - confidence will rise or fall.

And confidence is key to many things: to the performance of the stock and money markets; to the ability of governments elsewhere caught in the maelstrom of America's troubles and likewise fighting to keep their economies afloat; to millions of people whose livelihoods depend on bankers and investors willing to unlock funds and take a bet that this administration can be trusted to make sound decisions.

And it is not just decisions on money matters. The financial upheavals are just one symptom of a broader crisis of confidence in the last year of the Bush administration.

Next year, signals are eagerly awaited on how the Obama White House will tackle matters as diverse as the nuclear ambitions of Iran and North Korea, the Somalian pirates, the pullout from Iraq and the unfinished business with Al-Qaeda and the Taleban.

Will the American public have the stomach for more bloody battles in the mountains of Afghanistan?

And what of the Israeli-Palestinian conflict that has defeated all peacemaking efforts by his predecessors, and has just flared anew with shocking intensity?

As with many things, the Middle East's road map to peace awaits Mr Obama to chart a new course.

bhagya@sphcom.sg.