Kicking the can: Budget deal will not solve Washington’s problems
Despite a deal to lift the debt ceiling and end the government shutdown, the United States is far from a respite, as it won't address the underlying, internal issues that have usurped its power in the world, economics professor Rodney Shakespeare told RT.
“I say to the rest of the world: Get on with it. Organize yourselves and give up this corrupt, out-of-date system, which no longer is providing adequate leadership,” Shakespeare said.
RT: The default is averted. That's good news, isn't it?
Rodney Shakespeare: Nothing has been averted. Instead, there’s going to be some sort of meeting between the Democrats and the Republicans, who are two sides of the same coin. And there are three subjects, which they’ll refuse to discuss. The first is the out of control military budget, which ought to be cut to one tenth of what it is at the moment to bring it in line with comparable nations. The second thing is that the system works by exporting jobs. They’ve exported the jobs to about 56,000 enterprises over the last 11 years. That’s five million jobs – and each job creates another three. That’s roughly 15 million jobs which aren’t coming back. And the third thing, which they aren’t going to discuss at this ‘wonderful’ meeting between the Democrats and the Republicans – they will not discuss the core of the issue, which is a corrupt banking system, whose center is the Federal Reserve. Instead, what they’ll do is they’ll blame everything on the poor. So, you see, nothing has been put off. Nothing has been solved. Nothing has been addressed. The situation goes on and ultimately it’s going to result in the final collapse of the dollar. But that may be a year or two off at the moment.
RT: It's only a temporary fix for the US debt ceiling. But what happens when America is on the verge of running out of cash again?
RS: The same thing is going to happen as is happening at this moment, except that another two or three months will have passed, in which they’ve failed to address the underlying issues and their vanity and the essence of the corruption of the system will not have been addressed. So, you’re going to find at some point that they’ll then…the world will wake up to the overall level of the American debt, which is now just at the point when it becomes unrepairable. And when that happens, you’ll get a sudden, irrevocable slide in the dollar. So, they’ll kick the can down the road for a bit.
RT: It may also be difficult for the rest of the world to understand why there had to be so much last-minute drama in Washington, DC before they reached an agreement. A domestic squabble that held the rest of the world to economic ransom – can the global community afford to risk that again?
RS: The world community should continue doing what it’s quietly doing at the moment: starting to organize it in ways which are separate [from] and outside the West. They should do it in their banking agreements. I’m pleased to say that the BRICs are creating on optic fiber cable, so that the banking can be done away from the West. They should do it by creating different national and central banks, which put out interest-free money. They should make agreements among themselves, particularly among the non-allied nations. This should be political agreements and financial agreements. They must accept that the West now…its economic powers have declined; its political powers have declined. And as of America’s moral authority? Forget it! They are putting out a poisonous depleted uranium. They’re attacking. They’re assassinating. They have no moral authority whatsoever. Everybody else should get on with organizing themselves away from the pariah states, which are now the US, Israel, Saudi Arabia, with their poodles, which are the UK and France. I say to the rest of the world: Get on with it. Organize yourselves and give up this corrupt, out-of-date system, which no longer is providing adequate leadership.