The economic crisis in the United States: The United States has the political leadership has failed to control

World Economy we know is falling

As the economic collapse of 2007 gathers pace, it's time to take a critical look at U.S. action leaders national policy to meet some of their most basic responsibilities. It's time to face the fact of a serious violation during the last quarter century.

Meanwhile, leaders of both political parties and major institutions like the Federal Reserve presided over the abandonment of some of the most solemn obligations of constitutional government. They have to take a full agenda supports the financial, corporate and government elites.

On January 20, 1981, a generation ago, President Ronald Reagan said in his first inaugural address, "Government is not a solution to our problem, government is the problem."

Reagan was both right and wrong.

The problem in the U.S. facing then was the collapse of the nation through a recession manufacturing base happened when the Federal Reserve raised interest rates more than twenty per cent level. It has been nearly a decade after President Richard Nixon removed PEG gold for dollars, leading to inflation 1970s when our currency flooded world markets through trade in oil.

Reagan statement "The government is the problem" was correct insofar as the failure of financial policies and actions outside the control of a Federal Reserve under the tutelage of private financial interests combined in the worst economic crisis since the Great Depression to wreck the world's largest industrial power.

But he was mistaken in believing the solution was deregulation of the economy, particularly deregulation of financial institutions and investment firms that took place during his two mandates. The result was an enormous growth in the power and influence of Wall Street and big banks in the rest of the economy. The era of leveraged mergers, acquisitions, Depreciation and is the ancestor of today's disasters with the fiasco of social capital development, hedge funds and derivatives in the process of collapse.

After Reagan undertaken by President George HW Bush. At the end of its mandate, the loss of manufacturing jobs have produced a new recession. In a few years after the election of Bill Clinton in 1992, the adoption of measures by Treasury Secretary Robert Rubin to strengthen the dollar attracted enough foreign investment to create the dot.com bubble.

Clinton then cut the federal budget enough to reduce federal employment was able to achieve a budget surplus. This reduced the debt burden on the national economy Reagan had left behind his tax cuts and multibillion-dollar military buildup. But the dot.com bubble burst with more debt than the fall Bag 2000, leaving us in recession again.

Enter President George W. Bush. Despite the "realization" of the Federal Reserve, Alan Greenspan, chairman of the creation of another housing bubble big enough to float the U.S. economy for four consecutive years from 2002-2005, economic fundamentals today are horrendous. We live in an economy that has begun to hit the Fed, the Treasury Department and Congress tinker rescue of a different nature they expect the law that is obviously a sinking ship.

We can only hope to succeed to some extent, because it would be cruel to wish disaster who most suffer the consequences of greed and stupidity of the powerful, namely the ordinary people who work to earn an honest living and trying to raise their families and maintain a decent standard of living. But life is very difficult for most Americans who were the first victims of our economic policies monetary failures and the last three decades.

About the Author

By; kamran Yaqoob (iqra university)
programe MBA

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