The Likely US Financial Road to its Economic Revival

After desperate months of wreaking failures to the US economy, 2009 will witness the occasional rise of the moribund economic giant amidst the likely recession in the global financial market.

First, bailout programs of the US government to major private financial institutions were seen as an effort to consolidate its financial arm from collapsing and thus, trying to maintain its virtual financial influence in global sphere. As cash-rich China and the petrol-dollars of the oil Sheiks are slowly spreading its control around the world, the US financial system will end up piling its chest for cash to negate the rising competition.

Second, major banks and financial lending companies that were saved by the government will give its utmost cooperation and will focus its renewed resources in the recovery programs of the US government. Pump priming the economy will be the top priority. Infrastructure projects will be encouraged to pool workers who were retrenched by the recession. But it will be perceived that the vast military industrial complex will have the tremendous part of the government’s pie. The reasons are that, 1) military hardware and its huge ready to sell arsenals hardly depreciate and will generate huge profits, 2) can also re-employed thousands of workers, and 3) will add strength to the US military forces spread around strategic economic and political points in the world.

Lastly, to finance exports of goods and services will be the second priority. This strategy will have a positive effect to the US economy. The revenues in the export sector will help balance effects caused by the weaker sectors of the economy. And accordingly, even if the US is the primary sponsor of trade globalization, the tendency to protect its economy from export flooding from other countries by utilizing tax barriers and quotas is highly possible.

This three-pronged financial approach of the US government can be possibly detected in the near future.