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When will US, EU debt crises end?

By Shi Jianxun (People's Daily Overseas Edition)

14:09, October 17, 2011

Edited and Translated by People's Daily Online

European Commission President Jose Barroso put forward a "roadmap" aimed at bringing an end to the European debt crisis in the European Parliament on Oct. 12, of which the effects will be uncertain. Three international credit rating agencies lowered the sovereign credit ratings of Italy and Spain as well as the credit ratings of several European and U.S. banks a few days ago, and euro zone finance ministers have postponed a decision about giving Greece bailout loans until early November. Thus, the European debt crisis situation is still serious.

Meanwhile, the European and U.S. debt crises are developing into a political and social crisis spreading to the West. German people have marched to protest the bailouts to the debt-ridden euro zone state members, while people in countries including Greece, Spain and Italy have marched to protest fiscal budget and benefit cuts.

The Slovakian government has been forced to resign because of the European debt crisis. What is worse is that one month of "Occupy Wall Street" movement has expanded and spread throughout the United States and Western countries, showing a trend for long-term "occupation" and deterioration.

The financial, economic and sovereign debt crisis as well as mass protests in the Western community has reflected an institutional crisis in the world dominated by financial oligarchs. The European and U.S. debt crisis have resulted from the long-term accumulation of contradictions in the political and economic systems of European countries and the United States.

First, the financial oligarchy dictatorship of the United States is becoming more obvious in recent years. The Asian financial crisis in 1997 and the U.S. financial crisis in 2008 were all caused by the financial oligarchs that dominate the policies of the U.S. government in order to obtain monopolistic super profits and played a core role in creating and shifting the crisis.

They ruthlessly steal and plunder the wealth from the people in the United States and around the world and leave only misery to them. Second, the election system in Western countries forces the politicians to pay attention to winning elections. This requires them to focus on short-term political considerations rather than long-term national interests. In order to get votes, they would increase their national debts without hesitation to raise the social welfare level, leading to large financial deficits of their governments.

Third, the United States' long-term high-deficit development mode and the large and still increasing military expenditures aimed at pursuing the global hegemony are the direct causes of the U.S. debt crisis. Fourth, the euro zone cannot overcome the contradiction between its unified currency and separate financial systems. Some member countries have had high deficits for a long period due to their high welfare policies. These are the direct causes of the European debt crisis.

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Leave your comment9 comments

  1. Name

PD User at 2011-10-18120.22.0.*
The crisis took decades to brew before the eruption; it therefore won’t end anytime soon. We haven’t seen the worst yet in Europe and the US. In order to address the problem, political leaders must first tell the truth to their people and admit the fundamental flaws from the system and the leadership. Unfortunately this won’t happen as whoever does that, his/her leadership would be gone immediately. No one needs a failed leadership and the system. Also the task for change is made extremely difficult as the West have been preaching the flawed system for so long, to so many people and in so many parts of the world. The ultimate truth we all learn is there is no perfect system. It’s much better to keep the heads down to continue the reform and improvements BEFORE the crisis makes its first strike.
ood at 2011-10-18120.165.40.*
No wonder, what is actually happening today in America,because this means that the U.S. president is determined based on the money politics , it"s not really elected by a majority of the U.S. ordinary people .
Ji at 2011-10-1886.184.213.*
When will US, EU debt crises end?After a currency debasement, also known as money printing in today"s terms, follows with default and banking crisis, exchange rate volatility crashes, out of control inflation, political and social unrest, often follows with riots, disturbances and unemployment for a generation or two.
romanov. at 2011-10-1780.94.16.*
Never.This bankrupt"s all economical politic UE they style to lead economy.They a conception as all union to show oneself politic demagogy.
Li Rong-zhi at 2011-10-17175.137.255.*
Agreed, the basic problem facing the U.S. is its over expenditure on its military. That is the one item that is bankrupting the American nation. Nothing else comes near it. When will the Americans come face to terms with this reality?

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