The ironic part of the entire economic recession, is that the core reason for the global recession is excessive borrowing and lending by governments, much like most individual’s own economic problems are the result of too much credit card debt. Only in this case, the balance of the world was out of whack due to the fact that countries with large trade surpluses such as Germany and China spent their money lending it to countries that already had compiled too much debt.

In order to stop the same situation from playing out again, as countries begin to grow stronger, there needs to take careful steps to avoid large lending practices by countries with wealth, and borrowers need to be careful about taking the burden of another debt. The basic concept is that when you grow by borrowing and falling into debt, the bottom will fall out. This is exactly what happened a few years ago leaving us in the current global economic situation.

However, unless political leaders are able to focus their efforts on the long term need instead of short term, it may be so easy to avoid the same situation. Perhaps the government should slash their "credit cards" as well with other countries.

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