The US will overcome the financial crisis

 

The US was the starting point of the current financial crisis in the world; but it would certainly overcome this crisis. The amount of the credit in circulation in the US is really high. At the same time, the US president has injected 700 billion dollars to banks and financial institutions in order to control the crisis. After vast researches and scientific calculations, the US prominent economists have advised the government in order to save the country from the current financial crisis. The head of the US Federal Reserve does deserve the Noble prize for his achievements and decisions in this regard.  

The current crises and fluctuations are periodic phenomena inherent in capitalist economy. Many experts believe that the current economic crisis of the world has been unprecedented in the past 50 years. But the truth is that the world has witnessed similar cases of such crises in Latin America, East Asia and Russia. The noticeable point in such crises was that the US was never involved in them.

The United States of America has set its footprints on different parts of the world. That is why the US huge debts –and their annual growth- is not something to worry about.  The reason is that 65 percent of the global exchanges are done with US dollar; and this currency is always in demand. So the US can print its own currency in order to buy stuff from other countries and pay its debts. In such situation, the US would not even feel damaged from the outcomes of domestic liquidity increase.

The advanced technology and technique offered by the US has led the country to have 28 percent of the world’s GDP. So the US economy is powerful and influential. The statements and slogans saying "the stronger would fall harder" are not true about the US economy; because a strong and dynamic economy can repel even the hardest hits.

George Bush-the US president- injected 700 billion dollars to US banks and financial institutions; and this action decreased the damage of the crisis to the US economy.  The truth is that the injection of such a huge sum of money is not possible for other countries and governments. So one should have a realistic view to this issue and avoid political judgments on it.

At the same time, one should notice the fact that the European countries are also able to tackle the economic crisis; but their solutions are certainly different from those of the US. The European Union is a unified institution in which the members can exploit collective solutions to avoid the damages imposed by the financial crisis.

With the introduction of Barack Obama’s economic leadership team, some voices have been raised, saying that Obama’s policies and his economic team are representatives of a socialist viewpoint. But the truth is that Obama’s proposed policy is the best way to tackle the economic crisis. The reason behind the current economic crisis was the west’s ignorance to the original principles of Capitalism. From 1973 on, the Keynesian economic policies were somehow forgotten. During the time of the Keynesian policies’ execution, the fluctuations of the Capitalist system were calmed down with stabilization policies; and the crises were not as deep as today’s.

With the injection of 700 billion dollars to the banks and financial institutions, and the continuity of state aids to the economic structure, the US is coming back to Keynesian policies. What we now witness in the US are Keynesian policies, not socialist ones. According to such an approach, the state stabilization policies would calm down the economic fluctuations.

The Keynesian thinking is something between the capitalist and socialist policies. Those who think Obama’s economic policies are emanating from socialism should know that this economic thinking is dead.