Posted on March 12, 2010.
International Economic Crisis: Who is to blame and measures taken to save consumers! The economic crisis of today is not due to a single reason, but in a complex set of facts have emerged simultaneously. The crisis has been the starting point for the United States and the crisis have been propagated as a chain to all other countries. I think that President Bush administration is primarily responsible for many erros made and some other more for the following reasons.
1. The long years of the U.S. military in Iraq has charged the government $ trillions. Indirectly, it has played a major role in the overall economy of the United States. United States is now paying the price execring the role of the political police of the world.
2. The U.S. housing crisis which has resulted in people losing their homes. The consequence has been that people had no money to survive (to buy food. Pay bills or buy new cars and wireless phones or other products).
3. The bio energy using agricultural products to produce fuel instead of feeding people. Prices of many commodities go higher.
4. increase Barel petroil months to $ 148 U.S. per Barel result of increasing energy costs, car fuel cost increase, etc.. people had less money to buy him or warming.
5. The mania win some huge corporations that for years and years increased their products and services;
All this has meant that:
1. All other companies in Europe, Russia, Japan, China, etc.. lowered their earnings given the decline in export products as they arrived at the borders of some Bankrott, there was no market more than people had no money to buy; especially after USA.
2. This has had the impact for companies (Saling also the U.S.) had to return their 1000 workers who lost their jobs and become poor again anywhere, if those companies had their products manifacturing chains; these companies to continue and keep the workers are working day of the government financial support; Ex manifacturers vehicles, telephone and other production companies. etc..
3. Banks fearing the incoming crisis to avoid Bankrott, interest rates increase for holders of credit cards and debit cards, most people went to the difficulties to survive and pay their loans and mortgages. More people lose their properties went to auction sales by financial institutions.
4. manifacturers food also avoids the potential difficulties and Bankrott increased their product prices on the markets, so people have more difficulty buying and survive;
The result is that:
1. More firms are no more potential buyers. decrease their production, reducing their victory and have difficulty paying their workers. This makes people more unemployed;
We are in a circle of crisis will become more and more like a chain reaction until the economic chaos worse than that of 1930 will Arais. And the simple Civilians are the victims who see energy prices Thei, food prices, and other prices rise. They have no money to pay their property MOPR mortrgages and losing their homes. They have not enough money to feed their children and no house. Tht of the end "!
What is now to do?
There is much to do but also has all the companies and institutes (energy, banking and corporate governance, etc.) show a public awareness and help the situation by lowering their prices or introduce new measures to prevent further increases. Important now is to help people to have enough money to buy food at normal prices, less taxes, and be able to pay their mortgages.
1. Decrease of unemployment. This can be done by helping SMEs and other firms in difficulty, financially to avoid further increase in unemployment.
2. The government should offer financial him.