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Vatican Bank president analyzes raising of US national debt ceiling

CWN - August 04, 2011

Writing for L’Osseravtore Romano, the president of the Vatican Bank asks, “What does it mean to raise the ceiling on public debt?”

“It means essentially to nationalize private debt, which had become unsustainable,” says Ettore Gotti Tedeschi in answer to his own question. “But it also means inflation, more taxes and the devaluation of the dollar. The ratings of the American economy worsen and the cost of debt increases.”

“The solution to economic problems would necessitate a long-term politics of austerity,” he adds. “But this is an unpopular strategy and risks electoral defeat for whoever attempts to put it into practice.”

Tedeschi concludes:

But are all of these problems really the consequence of today’s economic crisis? Or are we only experiencing the effects of a preceding crisis, which is not economic but has produced economic effects? In reality, the real crisis has been created, lived and fed by the Western world, in accepting the idea of a man who needs to be satisfied only materially, making him consume.

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