Monday 18 July 2011

'Raising debt ceiling worsens economy'

This is a discussion on the debt ceiling in the United States and possible default - from Iranian-based Press TV.

More in coming days.

Even with a raised debt ceiling, America's social and economical conditions will still worsen since the US debt crisis is 'out of control,' a professor of economics says.

“The debt is now out of control and if you raise the limits for example, all you are doing is kicking the can down the road and making it worse,” London-based professor of economics Rodney Shakespeare told Press TV. 

He describes the situation as turning the country into a 'banana republic,' technically a country without independent improvement, and it has paved way for its own 'social and economic collapse.' 

According to a report by the Financial Crisis Inquiry Commission, the dramatic failures of corporate governance and risk management at many systemically important financial institutions were a key cause of the US economic crisis. 

Shakespeare explained that the US “exported the jobs” since it follows the interests of a “tiny group of companies.” 

He added that the US is also trying to divert attention from its economical depression by extending “its world war.” 

Shakespeare went on to say that in order to solve the problem the US government should offer interest-free loans, which would improve the conditions of the American people. 

The US recession that began in late 2007 ended officially in June 2009, but much of the country is still suffering. 

To watch the interview press here

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