Why is the economy going through a money crisis ? and whats the resolution ?

MNSL answered 5 months ago …

I think we will have currency crisis when the when the value of a currency changes quickly. This could be next mass of destruciton. 2012 is very crucial.

Some solutions to the money crisis:

More saving
Reducing exposure to non productive commodity and assets
Controlling credit and credit card expansion
Better macro economic policy
Avoiding volatility in the currency market (In some countries export sector is performing very badly due to their currency appreciation)
Avoiding management of inflation by using interest rate control and currency control

Pl see following link:

http://www.metro.co.uk/news/article.html?Global_money_crisis_is_so_dire_wa r_may_erupt&in_article_id=593290&in_page_id=34
Monday, March 23, 2009

Global money crisis 'is so dire war may erupt'

The economic crisis is so dire millions will face poverty, unrest and even war if banks are not cleaned up, the global finance regulator warns.
Recovery was impossible until the financial sector became smaller and healthier, Dominique Strauss-Kahn, head of the International Monetary Fund, said yesterday.
http://www.versaglobe.com/news/insideTheMoneyCrisis.htm

While the consumer debt and over leveraging are hurting the American economy, one might think that huge financial companies would be more responsible. Not so. Many of the American, and world, financial institutions have leveraged their capital into CDOs or Collateralized Debt Obligations losing out as the credit market declines. The irresponsible lending and investing of financial institutions has led the Federal Reserve to consider greater restrictions and regulations on financial institutions. This is the first time in American history that the Fed has taken such a role.

http://www.cnbc.com/id/31106964

Dollar Crisis Looming — Don't Short the Market: Jim Rogers