Yoshihiko Noda

'US, Wall Street causing economic crisis'‎ ~ Rodney Shakespeare, professor of binary economics

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• published: 29 Jan 2012
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From: Press TV 'US, Wall Street causing economic crisis'‎ Sun Jan 29, 2012 11:14AM GMT An interview with 'US, Wall Street causing economic crisis'‎ Sun Jan 29, 2012 11:14AM GMT An interview with Rodney Shakespeare, professor of binary economics, from London , from London A prominent economist says that Wall Street and the United States are deeply involved in causing the problems which plague the global economic crisis. Press TV has conducted an interview with Rodney Shakespeare, professor of binary economics, from London, to further discuss the interview. The following is a transcription of the interview. Press TV: What's your take on the Japanese Prime Minister's [Yoshihiko Noda] comment about the eurozone debt crisis being the biggest threat to the world economy? Shakespeare: The Japanese Prime Minister is right in as much that Europe is in a serious condition. We have continuing downgrades: Belgium, Cyprus, Portugal, Spain, France, and there are many more to come. But before the Japanese Prime Minister self-righteously points his finger at Europe, he should remember that the total debt - I'm talking government debt, corporation debt and private debt - in Japan is somewhere around over 400 percent of the gross domestic product. And that has happened because the Japanese Prime Minister, like the European Prime Ministers, do not understand that we're now living in a flawed situation in which debt at compound interest is created by the banks out of nothing and is not put into the distribution of the real economy. So, the Japanese Prime Minister can point the finger at Europe but he is part of a corrupt and failing system, and so are the Americans. And the Japanese Prime Minister does not have a solution just as he's not had a solution to the depression which has been in Japan for the last 20 years. Press TV: Are you surprised that Mr. Noda talked about the euro zone debt crisis being the biggest threat right now, but didn't mention about the United States itself that got all of this rolling? Why do you think that that's the case, Professor Shakespeare? Shakespeare: Well, they're all finger pointing. And when it comes to smug self-righteousness, the Americans, of course, are the worst of all. The fact of the matter is, the real heart of the concepts and the practices is - certainly - Wall Street and the United States. And they are having a period at this moment where they can avoid the truth of the matter which is that they are more deeply involved in causing the problems; and that the global economic depression into which we are moving and to which is going to go on for at least 15 to 20 years is the direct result of the ideas and practices particularly centered in Wall Street. So, I'll let the Japanese Prime Minister off the hook to the extent that it is something worse than Europe behind this and that is the attitudes and practices of the USA. Press TV: Professor Shakespeare, very quickly, you said that the problem is a flawed system, in general, with compound interest. What do you think it will take to get the global economy out of, well, I won't just say a slump but this continual decline at this point in time? Shakespeare: You may use the word 'slump' and it's going to get worse. To get out of it you have to do two main things. Number one, you have to get control of the banking system. And you do that by a gradual rise in banking reserves saying that the banks may lend their own money and do what they like with it. They may lend their deposits with customers with permission. But they must not create money out of nothing and chuck it away. Secondly, you open up a supply of interest free money coming from a national bank and let it be administered by the commercial banks. But they may only administer for the development and spreading of the real economy to everybody in society. It is the spreading of the real economy which will ultimately bring things back into balance. At the same time you do that, interest-free money stemming from the national bank, but it may be administered by the commercial banks', are making an administration charge. If you don't do that, we are going into a long term economic collapse and there is going to be fascism which, by the way, is already coming into being in the United States of America. http://www.presstv.ir/detail/223717.html http://www.presstv.ir/detail/223717.html