
While I am writing this paper, the US financial industry was too deep in problem, most of the biggest lending corporations have to fight for surviving in this extremely difficult time. This crisis has been spilled over more broadly on other areas, in both national and international. The most crises have been occurred in the modern time after the great depression in 1930s and Asia financial one during 1990s. Many predicts and expects from the efforts of federal government and US Central Bank, by lowering the fed funds rate and money supply-pumping. If the applying the lower fed funds rate tool then will boost the rising inflation but if not then keep the slow economy goes nowhere. It does not mean World-wide economy will be in depression but at least will leads to the slowdown growth in many other economies in the following months. Firstly, it is clearly that the US consumer goods spending will be decreasing, following the World’s GDP attenuation. The second matter is the weaker US dollar currency will affect to countries depending on the US market. If the Federal Reserve continues to cut interest rates to stimulate its economic market, but it may be a cause to devaluate its currency to other Euro, Japan and China dollars to create a trigger United State’s export but again it be nightmare with respect to exporters Germany, Japan and Korea, and China where these economies have deeply depend into US market high-rolling export. Third, US is not only nation been faced with the bubble housing and financial crisis markets in the last years. This phenomenon also has been occurred at countries from Asia to Europe because globalization has become a reality in the past decades. More and more we are moving towards connection in one giant, global economy-one market. World also has been facing with the imbalance of population growth among developed countries like US, Japan and developing countries as China and Brazil. As regards to the real data and statistics, it showed that most of poor economies as undeveloped and developing countries have a higher country risk, higher inflation, higher dependence on national natural resources, higher population lives under poverty line and higher GDP economic growth but have a lower GDP per capita, lower life expectation at birth, lower productivity, less technology and educational system than rich or developed countries.Finally, the most important key is now for saving the downturns of the World and US economies by know how to create and to remain a credible and healthy investment environment in which most of investors are waiting for it. The trusty has been detracted since last many corruptions. The restoration of public’s trust in business activity is a must immediately. Fiduciary crisis is under liquidity datum level caused stating buckled up and credit at Wall Street. This status also was blazing all over other financial markets in the World. Realizing that it is a flawless of domino economic theory in which national economies have been drawing along into a circle of it. This also another past decade experienced lesson likes Japan ones in 1990s. US need not only its economic and financial, fiscal reforms but US also need aboard economic partners to contribute their parts in saving US economy. US administration and economists have to realize it as a huge hole in financial crisis to find decisive solution for solving. This is not a simple issue as one or just two failure- corporations but a reflection to the whole agitated financial industry, the failure of the monetary and fiscal policies. US Central Banks itself were in difficulties could save World Economy from economic depression status’s negative impacts in the America. Presently, the capability of US Central Bank in using currency and interest rate tool to stimulate its economy is retrenched than before. World has to find best equation that can solve a thorny problem with the two answers; rising inflation and slow economic growth. The World and US’s inflation is still remains as an unsolved math.
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