USA Today: At the center of states-system - Essay Example

This paper reflects the U.S. current economic position. In year 1998 is the year of great depression for the U.S. in financial matters. At that times U.S. export is at its lowest level. Developments in export are always been a challenging for U.S. in the year 2007-2009 U.S. once again witnessed worst financial crisis. After the multiyear of efforts U.S. export position improves as national export initiatives marks one year. There is need of U.S. leadership, as it is the strongest economy state in the global economy, to support the goal of increasing economy.

In both collective and distributive power the USA today stands at the centre of the states-system In the global community, U.S has successfully gained the excrescence place in the economy. U.S has bulge market value but it is weak as a supplier. Declination in the global market share of U.S. has not influenced the country's international activities. This shows that the economy of U.S. is the world's largest national economy. The nominal gross domestic product (GDP) of U.S. is approximately a quarter of nominal global GDP.

Current international trade position of U.S In the second quarter of the year 1998, U.S. observed a decline in exports. This left U.S. export at their lowest level. At the same time the U.S. imports continued their steady increase. As a result, the trade deficit widened remarkably. There is a need to improve the export rate. Also in the year 2007-2009 U.S. witnessed the worst financial crises which resulted in a remarkable increase in the federal budget deficit. It also had a profound impact on the U.S. and the global banking system. In U.S.

, there came increase in capital flow to financial sector and provision of credits to U.S. workers because of low rate of profit in the U.S. economy and wide economic inequalities. As a result the real income of U.S. workers also declined. There are major causes of this financial crisis. This financial crisis occurred in 2006 when the housing market turned. These crises affected millions of Americans. There major causes are the: Market instability The housing market declination Well dried up of the credit.

The first and main reason of this crisis was largely unforeseen by conventional 'neoclassical' economists (Baker, 2009 Hobsbawm, 2009). Secondly, there are unconcluded debates among the scholars and political left about the reasons of crises (Choonara, 2009 McNally, 2009). "Obama administration has rescued the economy from the worst recession ever"(Ben Bernanke). This statement was a controversial one when Glenn claimed that he didn't see 'green shoots' or long term stability for America right now.

On September 18, 2007 Dow Jones industrial average was at 13,403. At that time the employment was 4.6%. Now current situation is different. The Doe Jones Industrial Average stands at 9093. The official unemployment rises to 9.5%. Many non-government economists are argue that this rate increases to 205 when half million Americans are claiming jobless in a week. Between the first and the second quarter of this year, Well FARGO reported 69% jump in non-performing commercial loan. As a result, trillion dollar commercial real estate market is facing tough times.

From their 2007 peak, commercial real estate prices lowered to 35%. California has been paying its bills that are so worthless that even our insolvent banks are not accepting them. The political leadership has put their faith in money and not to people at the national level. President Obama is trying to build a friendly atmosphere to dialogue with their enemy countries including Iran. Venezuela is building its military power by increasing the number of tanks. Expenditure on the battalions and armed equipments, it purchases from Russia.

It is using these military powers to assist Iran and Hezbollah operations in South America. There is a need of fundamental change so temporarily build the period of