The monetary system in the world today is based on faith, honor, and trust. Monies are no longer backed up by tangible assets. Remember when the gold standard was replaced? Well! now the currencies all over the world involve trust that national governments will act responsible and actually pay their debts.

The United States largest banks, financial institutions, and wall street are facing an acute crises that started back in 1999. The world’s central banks have now put nearly 1/2 trillion dollars into the US economic system in trying to stabilize it, but irrevoable damage has alredy been done.

America’s economic system was once the envy of the world, but now we are precieved with contempt and suspension. The continuing sub-prime mortgage crises is only the tip of the ice-burg in the US economy. Trust in America is quickly dissapeering. Why? Because we single handly brought the international financial system to almost insolvency by passing off fraud- ridden sub-prime debt on unsuspecting economies. 

Any time a possible recession looms interest rates are slashed. This is what happened  in 2000 and again in the beginning of 2007. Consequently mortgage rates fell and more people were able to get loans. This resulted in higher home prices and the whole system fed upon itself. But as home prices rose banks needed to develop more ways of recruiting more home buyers. That brought the easy sub-prime mortgage scheme. This whole system was based on low interest rates. What happens when interest rates rose? Well banks knew the risk in holding all of the overvalued sup-prime mortages so they looked to foreign financial institutions to sell their mortgages by marketing them as a safe investment. American banks convinced { Here is why trust is vital in the financial world} investment rating agencies like Mood’s and Standard & Poor’s to give the mortgage securities higher valuations than regular sub-prime rates would normally receive. { This is fraud  brought on by the US banking industry. } The whole world now realized that the United States thurst for quick and easy profit created a world wide economic disaster.

Now the problem is how to restore our credibility and regain the trust of the international community. One of the answers is to create an international regulatory system that monitors and challenges any national regulatory agency. This can be easily accomplished thru the World Bank and the United Nations. The other step is for the US Congress to pass National Economic Reform. In that way the rest of the world will witness what an united America can do to restore and regain economic security and bring about national security as well.