US Economic Risks - How the Fed and Goverment Policies Are Creating a Vicious Economic Cycle?

Policy White Paper International Institute of Management (IIM)

IIM Executive Journal

U.S. Economy Risks and Strategies for 2007-2017 Policy White Paper

(Draft V 1.0)

By Med Yones

International Institute of Management (IIM) Abstract

Since 2001, economic growth have been largely fueled by rapid increases in asset prices (housing bubble) and expanding consumer debt rather than development projects, which results in non-sustainable and unhealthy (debt-driven) growth. In order to address the emerging socioeconomic risks, policy makers must acknowledge the economy's strengths, weaknesses, opportunities and threats.

This IIM white paper provides the following: 1). A neutral assessment of the U.S. economic health, 2). An analysis of the long-term consequences of current policy decisions 3). The emerging economic, social and geopolitical threats to the U.S. financial prosperity 4). Risk mitigation strategies 5). Management best practices

The paper addresses the key challenges facing the U.S. government policies and attempts to answer the following critical questions:

1. The United States economy has been resilient, but for how much longer? Can the U.S. economy sustain unlimited economic growth? 1. Will the United States face another economic crisis? When? How strong and how long will the negative cycle be? 2. Did the US enter a vicious economic cycle? 3. How can the United States manage the financial costs of the aging baby-boom generation? 4. How can the United States compete with low-cost China, India, Mexico and other economies? 5. How can the United States fight and win the antiterrorism war and at the same time not lose international allies and economic partners? 6. How can the U.S. government mitigate social, economical and geopolitical risks and reverse the negative trend? 7. What will be the price of recovery from past and current policy mistakes? 8. Are the Fed and government policies enforcing the virtuous or vicious economic cycle?

The white paper summarizes the study in seven sections: 1). historical perspective, 2). economic risks, 3). social risks 4). geopolitical risks, 5). root cause analysis 6). government policy options and their price 7). recommended strategies 8). management best practices 9) notes and 10). resources.