US to print more dollars
The US government has already exhausted all the available tools to prop up their sagging economy, over the last one year. Tax rates have been cut drastically, duties and levies for critical industries have been reduced, social spending by the government has been accelerated to record levels, and bank interest rates have been reduced to decade low levels.
The government has also pumped in billions and billions of dollars directly into sinking Banks and Insurance companies and automobile companies to thwart mass unemployment problems.
With all these measures, the US economy is continuing to weaken further with over 6% crash in GDP in Q4 of 2008.
This has now forced the new US Administration to push for new currency printing, worth nearly a trillion dollar over the coming months. This additional pumping in could lead to lot of bad assets of banks being brought by the government at fancy prices.
But if this measure also fails, then we can expect a depression like situation across the Globe before the end of 2009. More panic could set in the minds of US citizens who might stop spending more than bare necessities. That could put further strain on the US economy and the entire world. So let us all pray for the recovery of US economy at the earliest.
