Let me first make these clear, am not an economist expert, Am only sharing my opinion on what I thought contributed to the Global downturn and what the solutions might be.

I don't want to blame the Bush Administration for fail policies. "War Against Terrorism" passed the congress by a majority of 354/66 by 2001. So most senators from both parties who voted on these are part of the failed policy.

However, had it be his surge on Iraq & Afghan succeeded in hunting down Osama Bin Laden & his members, he would've been a crowned Hero of our time. None of the members of congress of all people vouch against the irresponsibility and damages the de-regulation process would cost the Americans (Except Sen. Obama & few others).

And yes, it was the beginning of American financial instability.... where by goods, services, Net investment incomes begin to shrink down to ground zero.

The current deficit means Americans has been importing more than they are exporting. The rate of dollar printing became much faster than the rate of Products.

Now on Pres. Obama stimulus package. Sentence like the following defines what's happening, on 10th Feb, 2009, the house of Senate passed the bill of President Obama  plan to print more money, they negotiated on $789b...

Pres. Obama stimulus plan is not the optimal solution to recovering American financial deficits credit balance.

Making a sweeping judgment that government intervention is always inefficient, is as foolhardy as to say that government intervention always improves economic welfare. The desirability of government intervention depends on many factors.

What area is the government spending. Is it an industry with positive externalizes under-consumed in a free market?

How effectively are the government bodies monitored for quality and efficiency of spending?

Divisible issues are at stake. Before the American went into financial black-out, it's long been in coma.

They fail to pay there external credit because they don´t have enough revenues income to balance there creditors.

So they have to print fiscal cash to pay off there debts, which is not worth the value of money to match with the interest rate there creditors will accept.

e.g

Assume there creditors takes the money and when they tries to spend it they finds out it is not worth as much as the money they loaned the U.S government. This is because there is now more money in circulation than there was when they loaned the money to the U.S government. Due to printing more money, than re-regulating the financial systems.

A simple idea.

Suppose there are five people living on an island and each has $5. This means there is $25 of purchasing power on the island. But suppose one person decides to print some money and spend it. Soon the other four people find that their five dollars does not buy as much as it used to. With hundreds of dollars on the island a dollar is not worth as much as it used to be. To take the example to the extreme, imagine the man with the printing press printed thousands of dollars and they were everywhere. He will purchase every thing he lays his hands on, he is living on other people's industrious lives, cheating on them in a sense. Just like the Americans are cheating on the world economy. What would be the worth of the original five dollars of each inhabitant? Very little. With abundance of it the dollars become worth less. They are easier to get and they buy less. The Islanders are experiencing INFLATION. This is what happens whenever money is printed in quantities that exceed its value.

In other words you can't eat your cake and still have them, except in two places, In suzlon wind energy(an Advertisement on CNN) or American economy, American has eat there cakes again and again and again and again and again and again and still have them. Presently, Americans has a public debt of over $10 trillion, and still the strength of dollars remains as strong as it were, cheating on the world exchange market.

Today the United States government finds itself facing a credit and is blaming such red herrings as "predator" lenders, mismanaged banks and the greed of lenders.  They are only pointing the finger at others because they want to divert the attention for their part in the creation of the crisis.

Second issue that contribute on the American financial knock-out is the war on terror.

Billions of dollars if not trillions of dollars used to mobilize the war in Iraq & Afghanistan, has exited the country, though legally but has a money-laundry effect on the economy.

The negative effects of money laundering on economic development are difficult to quantify, yet it is clear that such activity damages the financial-sector institutions that are critical to economic growth. Reduces productivity in the economy's real sector by diverting resources and encouraging crime and corruption, which slows economic growth, and can distort the economy's external-sector international-trade and capital flows-to the detriment of long-term economic development.

This leaves the American on total financial black-out, so dark that Pres. Barack Obama can't find his way out these crisis,the way his going. With a very Dias situation and only few options to remedy it. Since the government cannot borrow its way out of debt or tax its way out of debt or print its way out of debt. Though Pres. Barrack Obama is proposing accumulating more debt with promised programs that will have to be financed by printing even more money and creating more inflation/recession.

His strategies can only create temporary counterfeit jobs for many, and later fall back even worst from the present situation.

where are the economy experts, must I be the one to spell these out,with all due respect Mr. President, It Isn't right!

THE ROAD TO RECOVERY

Let me brief us the problem we are facing here, Excess print of money, less productive, money-laundry (war against terrorism).

Stopping the war not only at Iraq but also in Afghan is an effective anti-money-laundering policy, on the other hand, reinforce a variety of good governance, good management. Circulation of valuable currency to catalyze domestic industriousness and the economy rapid growth.

American have to return to the gold standard where money will be worth a tangible versus the intangible "PUBLIC DEBTS" that deteriorates with deficit spending.

These will awaken the true American spirit of competitiveness, being more productive than consuming. Setting up factories and industries that will produce affordable goods for the developed countries and the third worlds.

The most challenging figure Americans have in the world market today are the Chinese, they remain unbeatable on prize.

Liquidity should be in play, making investors to regain confidence to invest, rest assured there money won't get stocked.

In these face, no needs for job cuts, laying-off responsible parents and guidance to ground at home. What we will experience is salary cuts instead. The government will have prize control than putting prize control on credit. Every item at the market will hit the rock bottom. Nothing to worry about, the car is cheap, the house is cheap, the bills are cheap, fueling your car is cheap. You could imagine when your salary $10,000 is cut down to $1,200 but still can buy all that you need as usual plus more (more valuable than $10,000). Millions of workers laid-off will be called back to work, because fame's has more than enough to spend and sustain there fame's.

American is the leading role model int he world financial-system and will continue to be, the case is sensitive & delicate, and should be dealt with discreetly.

This is a drastic measure, but drastic times call for drastic measures.

Once the American apply the method, the rest of the world will adopt it, and dollars will always be 'legally tender for all public debts'.

It is either work toward that which can be shown to be stable and true or keep trying the failures that will only make the corrections more drastic and painful. Printing our money into worthless paper. Who's to blame Pres. Robert of Zimbabwe, Printing more money and ignoring the consequences.It is the future of yourself , your family, & your country.

It's simple, Economy meanings management, and what we facing here is mismanagement, the right words to use for these crisis is downturn, or recession, the typical meaning of recession is what we're going with, and that's the solution. The answer to our problem is mention on the news network like every day, yet we can't figure it out... read my lips R E C E S S I O N...ceding back to the former process, tangible equals the intangible. Each gold eagle coin is legal tender of the US government and made of real gold.   This beautiful series of coins began in 1986.

The transition from worthless to one Nuevo Peso to one U.S. dollar was done in three years from January 1, 1993 to January 1, 1996. The word "nuevo" was removed from the currency and it returned to be called "peso". Now it is 2009 and what appears to be looming.

Change of plan, instead of paying $5,000 to citizens for there health insurance, he can grant the citizen free medical health care, since he's refurbishing the whole medical center into 21th century standard. Less a reference note is issued to a none governmental hospital my the Medical doctors, then federal government can claim responsibility on the bills.