Systems Engineering for Managers - Essay Example

The dollars thus flowed to such countries as the country's good and services flows to the US. Another major cause of the weakening dollar and the US economy is the petering out of the information technology boom. This is a situation which can not be fixed by even good economic policies. It has been worsened by monetary and multinational fiscal stimulus. The US needs to offer cooperative monetary as well as fiscal stimulus to their own economies without interference with the international trade.

Such policies that lower the interest rates would induce investment. There is need for provision of an expansionary fiscal policy government substitution of deficit in spending for the drying private sector. There is also need to cut down the tax that is inequitable as well as inefficient in provision of such stimulus. In the past patients used to have their teeth whitened whenever they wanted, but now they are rethinking the action. They are worried that they might have their income dropping as they are trying to become more prudent with the financial resources they are having.

Several citizens in the United States are monitoring their spending behaviors much more closely and are also whitening down their credit card balances as well as their debts regarding other obligations such as education. Such as situation led to a pullback in spending hence the inflation. Thus the weak US dollar did not have the power to purchase another country's strong dollar. According to Tonelson, (2003) the weakening dollar has been pushed harder to the corner by the National association of manufactures that indicates that as the greenback has become too expensive in relation to the other currencies. Thus U.S made products would be priced out of the foreign market as foreign products have gained a cost advantage in the country's market.

The increase in crude oil would alter the world's economy as well. Most of other countries' currencies will rise against the dollar. This in return would save the exporting countries against increase in crude oil prices. It is not the case with the US as they will have to pay this crude oil in dollars hence inflation would start in the country. In order to combat such a situation, the US government might need to employ their superpower status and fight any country which is producing such crude oil.

Retail sales have generally were sluggish and occasionally below expectations in spite of the substantial discounting on a wide range of the consumer products. Manufacturing sector after being considered as the worst hit by the situation has continued to suffer the widening softness which had adversely affected the US economy. Its sustained weakness has been spilled over to other sectors as several of these have indicated declines in demand for change (People's Daily, 2001). Through out the country there have been ever growing signs which indicates that most consumers have been worried because of the country's weakening economy that is likely to slip into recession.

CDIC (2010) indicates that the economic signals of late have been flashing yellow signals indicating that the citizens have to be cautious. As the situation moves from bad to worse jobs have been harder to get and the mortgage industry has been having crisis that has made it very difficulty for admiring home owners who wish to