by Kasandra Kessell

Created on: January 14, 2009   Last Updated: February 03, 2009

By now, we have all felt the ripple effect of our increasingly unstable economy. For many of us, we dread the sound of the opening bell on any given day as we watch our retirement savings, 401K, and investments slowly slide to the point of no return. Many banks are still in serious financial trouble and either unable or unwilling to lend. Business's of every type are closing their doors and filing for bankruptcy, bringing the United States unemployment rate to a fifteen year high of 7.2%. In December 2008 alone, unemployment rose to 632,000 leaving a total of 11.1 million Americans out of work.

Families from coast to coast are losing their homes due to foreclosure in epic proportions. Fuel prices at the pumps are now back on the rise and a trip to the grocery store can leave you in shock at the cash register. A dollar just doesn't stretch nearly as far as it used to, not even as much as it did just few months ago leaving families everywhere struggling just to make ends meet.

We are not alone in this recession. The downturn of the United States economy has made a huge impact worldwide. The US dollar is in most interests and transactions globally, therefore when the value of our dollar decreases, it can affect every nation on the planet. We trade and import commodities from countries all over the globe, and when we are not spending it creates a global ripple effect. As more and more business's and factories close their doors and an increasing number of Americans become unemployed, the need for product demand sharply declines.

There is no doubt that something needs to be done to turn our economy to the upside, and fast. President-elect Barack Obama has vowed to do everything in his power to make this country flourish once again. An end to the war in Iraq, as he has promised is definitely an excellent start, and the closing of Guantanamo Bay could prove to be another step in the right direction. I believe that Obama's new stimulus plan will work effectively to create many new jobs, boost spending by the American people, and free up frozen credit markets as long as corporal greed and unnecessary inclusions are excluded. Obama's concept of renewable energy is another key way to create employment demand and reduce spending in the longterm.

The Federal Reserve has been consistently cutting interest rates to help stimulate our economy. The current interest rate is between zero and .25%. The problem is that every time the Feds cut rates, the value of our dollar decreases as well, therefore creating havoc in the stock markets around the globe. However, if we can begin to make our own credit markets flow smoothly again and get people back to work, then spending and product demand will also begin to increase and interest rates will rise again. Banks with national interest such as those in Hong Kong, Kuwait and Japan will soon follow suit just as they did when rates were lowered and a positive ripple effect will begin.

President-elect Barack Obama has been able to overcome the most difficult challenges of any presidential candidate in history and has done so extremely well. Obama has made excellent choices in presidential cabinet members, and his administration will be one of the most diverse that we have ever seen. I think that this will be another key factor in the success of our nation. With his perseverance and absolute dedication to this country, he has gained the confidence of the American people and created hope for many around the world.

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