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This economic crisis a days is not due to a unique reason but in a complex facts appeared simultaneously. The crisis starting point was USA and this crisis were propagated as a chain to all other countries. I believe that principally President Bush administration is to blame for many erros done and some more others for the following reasons.
1. The long years US army in Iraq has charged the goverment trillions of $. Indirectly this has played a big role in the overall US economy. USA pays now the price of execring the role of world police policy.
2. The American real estate crisis which had as consequence people losing their houses. The consequence was that people had no money for surviving (buy food. pay bills or buy new cars and handy phones or other products).
3. The bio energy which uses the agricultural products for producing fuel instead of using to feed people. Prices of many food products go higher.
4. the petroil barel increase last months up to 148 $US per barel has as consequence to increase energy costs, car fuel costs increase, etc.. thus people had less money to buy for driving or warming.
5. The win mania of certain huge companies who since years and for years increased their products and services;
All these had as consequence that :
1. All other companies over Europe, Russia, Japan, China, etc.. decreased their wins seen the decrease of exportation of products so much that they some arrived to the borders of bankrott; There was no market anymore as people had no money to buy; Specially starting from USA.
2. This had as impact to that companies (saling also to USA) had to send away 1000s of their workers who lost their jobs and become poor in once any where, where these companies had their products manifacturing chains; These companies to keep going on and keep workers working need a days govermental financial help; Ex. Vehicles manifacturers, phone and other production companies. etc..
3. Banks fearing the incoming crisis, to avoid bankrott, INCREASE interest rates for credit and debit cardholders; More people went into difficulties to survive and pay their credits and mortgages. More people lose their properties gone in auctions by the financial institutes.
4. Also food manifacturers to avoid eventual difficulties and bankrott has increased their products prices in the markets; People have then more difficulties to buy and survive;
Result is that:
1. More companies have no more potential buyers. decrease their productions, decrease their win and have difficulties to pay their workers. This makes more unemployed people;
we are in a crisis cercle which will become more and more bigger as a chain reaction till that economical chaos worst than that of 1930 will araise. And the simple civils are the victims who see thei energy prices, food prices, and other product prices increase. They have no mopre money to pay their property mortrgages and lose their houses. They have not enough money to feed their children and no house. Tht's the end'!!!
What is now to be done?
There is lot to do but principally must all companies and institues (Energy, Banks etc. companies and goverment) show a public sensibility and help the situation decreasing their prices or adopting new measures to avoid further increases. Important now is to: help people to have enough money to buy food in normal prices, have less taxes, and be able to pay their mortgages.
1. Decrease unemployement. This can be done by helping, SME and other companies in difficulties, financially to avoid further increase of unemployed people.
2. Goverment must offer financial help at the Banks to increase their capability to offer new mortgages and help families with credits at obligatory low interest rates. This will help to save their house or buy a new for those who lost it);
3. Banks must apply new rules to help unemployed or in difficulties people to pay their mortgages; Decrease (under govermental control) their interest rates; stop the payment rates for one year (or some time) till they find a new job;
4. Limiting uncontrolled increases of products and services of companies (such as energy, fuel, food, etc..) who want to become rich quickly; Apply strict penalties to those companies who does it. Apply sales taxes reduction for companies in general. View the petroil price reduction to 51 $ per barel fuel producers and sellers must reduce their prices under govermental control. BP is a company who has benefitted of this crisis to make huge wins in some months.
5. Goverment must apply taxes reduction for properties, energy consumption, cars purchase for the consumers.
6. Increase the salaries and pensions ; help unemployed people increasing their material help money;
7. Banks provide credits to SMEs (with low interest rates) to help fight the competitivity.
8. A healthy health insurance system for everybody with low costs insurance contribution;
These measures will help to ri-animate market movement thus companies will make again win, they will re-emply people seen their sales increase. Such measures applied seriously and strictly will stop crisis in a short time and will re-establisgh the normal economy standards, will re-establish importation and exportation, and will stop the general economic chaos on the planet. This article and other interesting articles you may read at the blog http://www.gooblogg.com
About the Author
Dipl-Mechanical Electrical Engineer specialised in Automatic control systems has wriitten lot of publications in software development on various topics, technical and scientific publications, and others. Actually i am managing some advanced technolofy websites based on video streaming (www.gooclip.net), Google Maps Api applications (www.world-discovery.net), Contest Management Systems (CMS - www.worldiscoveries.com), Blogs (www.gooblogg.com),etc..
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