Of late obvious the US economy has 2 possible outcomes for its future; the first is linked to the inflation processes, the other is deflation and great economic recession.

Most of the US Federal Reserve has already gained views on how the US economy will result in, so did every other popular politician. Only one part did not give its view, those who offer financial support to the economic research, who are the cause of the current and economic systems and are actually the major beneficiaries.

Their silence has not been explained. It is known they were not ready to speak their mind. To add to that it is unusual that they are behaving in this manner because their image indicates only unequivocal messages of latent sense. To be honest speaking this way today is very hard. Some economists have said the future of the recession may be 50% decreased. Not all authorities are aware of this but they all have the feeling that some kind of inevitability will happen.

A few weeks ago, Americans witnessed the break of the silence and some low-level authority began to speak. The silence was broken by Goldman Sachs Group Inc.

According to the group the US economy revival and economic crisis, is yet to get finished, and only possible if the Federal Reserve redeems about 2-4 trillion dollars worth bonds by first accepting the tax decrease policy. The analyst believes that this amount will be enough to keep the rate of inflation and joblessness at considerable levels. Nevertheless, the same analyst is unconvinced that the Federal Reserve take this route while the economic climate remains stable. It remains known that the amounts are not all that on the lower side 2-4 trillion is such a big amount to just be printed.

The main question according to the economist remains to be what the first step that the Federal Reserve will take, and then to what extend will it keep inflation low and resolve the issue of unemployment.

But what do these amounts interpret to in the current US economy infrastructure? According to redeeming of bonds, the money will be put in the budget; this will lead to a stimulation of the population (through social programs’) and could be by the government programs geared towards supporting the economy. The main thing is that the amounts are supposed to go directly to the consumer market, as opposed to the financial as it has always done.

The current US economy is in an environment where the cumulative demand is higher than the cumulative income. The higher side is by $3 trillion. It should be noted that this is a cumulative amount, a sum of household dept ($ 1.5 trillion) together with the amount of underestimation. Arguments can be based on this because the US statistics overestimate savings and hide cumulative demand decrease.

The fact of the matter is that the issue of the current world crisis was in the decrease of cumulative demand, leading to inevitable recession of the real sector and destabilizing the financial markets. In addition, the economy faces demand decrease caused by the decrease of household income. The issue of stability in the ratio of demand to income is lower than present state of demand approximated to be $6 trillion a year. As a mater of fact, as things currently stand, economic growth is nearly impossible because the equilibrium is low simply due to people lack the money to spend.

For there to be economic growth under the current economic imbalance, then we must be ready to compensate the decrease in household income in some way by making money available for people to be able to spend. This is not an easy process. It will lead to further inflation, then again further decrease in the household income, but in the process, it will solve the issue of unemployment leading to an increase in household income.

The economy has been this way for as long as 30 years before the crisis hit it, there was no increase in household income, and this result was attained by making “financial bubbles.” The result of financing the budget with by an increase in printed money remains unclear.

How it will be possible to keep money in the real estate industry and have it not having its way to the financial sector remains a puzzle. If money finds its way to the financial sector, there will be an inflation, period.

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