“The crisis was caused by the irresponsible policy of the US authorities”
Published: 22 July, 2009, 11:05
Edited: 04 August, 2010, 03:16
TAGS: Russia, Crisis Chronicle, Russia and the global economy, USA, Economy, Finance
The former chairman of Russia's Central Bank Viktor Gerashchenko spoke to RT about the causes of the world’s money troubles, a global reserve currency and international financial organizations.
“In fact, I believe the crisis was caused by the irresponsible behavior of the Americans. They did not follow the IMF rules because they are the main contributor, the main donor in the IMF and World Bank. For many years the US has been living on credit borrowing from its own people, from other countries and foreign investors. The Americans could afford a large domestic and foreign debt. In addition, they basically devalued the dollar in 1970 by raising the price of gold from $35 per ounce, because initially they promised to exchange dollars for gold from the US Federal Reserve at this rate, to $70, and later to $72. So, essentially, the Americans violated the fundamental rule of maintaining the exchange rate of their national currency.”
“Money is printed in order to preserve the production rate in some companies. The US will continue printing dollars and pumping them into the economy for as long as they have the money to buy special paper.”
“In my view, the causes of the crisis are first of all the objective ones, of overproduction and so forth, but also, partially, caused by the irresponsible policy of the US authorities. You cannot live on credit at the cost of the rest of the world.”
“I believe that so far [Russia is] of small significance to the world economy. Indeed, we can propose some reasonable things like with more responsibility, but I believe our voice is still rather weak.”
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3 comments
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I have to agree with this article. The United States has acted irresponsibly and the privately owned Federal Reserve is nothing more than a cartel of greedy bankers who control the US government. The Federal Reserve is the cause of this mess we are in. The United States people are nothing more than slaves to the Federal Reserve. They own every one of us by keeping us in debt. The Federal Reserve has complete control of our currency and therefore our people and our Government. There is a great documentary called "The Money Masters" that goes into great detail of how the Federal Reserve controls every aspect of our lives and our government with the ultimate goal of controlling the world. I have never seen this country in such desperate times. I fear for my children and the children of the world.
I have seen "The Money Masters " and it is the most informative show of The Federal Reserve I have ever seen . It is an old documentary but just as current today as it was when it was made . Capitalism does work when everyone plays by the rules , but when your own government sells you out to the highest bankers there will be no true recovery ! America was made into a credit-addicted society to serve a small group of international bankers . Unions were broken and cheap labour was facilitated by the Whitehouse making illegal immigration more acceptable . Good manufacturing jobs were sent overseas - never to return . As long as we have oil priced in American dollars , and the threat of war to anyone who wants to price in Euros , we are doomed !