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U.S., Source of Worldwide Economic Instability

Korean Central News Agency of DPRK via Korea News Service (KNS)

   Pyongyang, January 26 (KCNA) -- The world economy is slumping into a serious disorder.
    The growing alarm over the economic depression in the United States has caused stock price slumps worldwide and called forth voices of unrest and concern about an economic crisis.
    The main factor of this worldwide economic instability is generally traced to the sharp rise of the oil price and the crisis of housing market in the U.S.
    But a close scrutiny reveals that the consequences of the reckless war policy and "anti-terrorism war" of the U.S. underlie it.
    Entering upon the 21st century, the U.S. has provoked three wars including the Afghanistan war and the proxy war in Lebanon, prompted by its "anti-terrorism war" strategy for maintaining its position as "the only super power" in the world.
    The Lebanese war ended with a woeful defeat of the U.S. and Israel and the wars in Afghanistan and Iraq, which had been started earlier, are sinking deeper into a hopeless bog.
    The bankruptcy of the "anti-terrorism war" means the close of the "U.S. age". So the U.S. is hurling a greater amount of fund into these wars and trying to find a way out of the serious financial crisis in the growth of export by the devaluation of the dollar.
    The U.S. administration has steadily cut the rate of interest by switching over from the dollar overvaluation policy to its devaluation policy over the last three years. The deficit recorded the lowest mark in the fiscal year of 2007 for recent five years.
    Consequent upon this, the oil price in the world market broke the 100 dollar mark per barrel, far beyond its real value, in January this year. This posed a serious threat not only to the oil consumer states but also to the oil producer states.
    The dollar devaluation policy of the U.S. administration to fend off the catastrophic effect of the "anti-terrorism war" on the domestic economy is the fundamental cause of the jumping oil price, which cannot be put on a par with the speculation on the oil market and "imbalance between demand and supply".
    The crisis of housing market in the U.S. which was another fuse to the world economic instability finds its origin, in the final analysis, to the "anti-terrorism war".
    The U.S. administration has drastically cut down the social expenditures such as to health care and housing while increasing military expenditures without limits under the cloak of "anti-terrorism". It advertised a fine-sounding policy of tax reduction supposed to help people rise up for themselves by tax cut. But it was none other than the rich who benefited by it. Under the present U.S. administration, the number of the poor has increased some five million and the gap between the poor and the rich has got the broadest in history.
    The aggravation of the state in which the rich get richer and the poor get poorer resulting from the "anti-terrorism war" has inevitably touched off the crisis of real estate market and banking, while holding back economic growth by decreasing the expenses of the consumers, which is said to be the "motive power of the U.S. economy".
    The crisis of the housing market is its concentric reflection.
    It is foreseen that the losses in financial sectors caused by the slumping housing market will continue growing. Coupled with the sharp rise of oil and protracted dullness in the auto industry, the stagnation crisis of the overall U.S. economy further come to the surface.
    The United Nations Conference on Trade and Development in its report made public on January 9 warned the U.S. of pursuing a policy of sharp and disorderly dollar devaluation, noting that the housing market crisis and depression in the U.S. further increase the danger of leading the world economy to stagnation.
    Nevertheless, Board of Governors of the U.S. Federal Reserve System on Jan. 22 took one more measure of lowering the rate of interest to drive the world deeper into a commotion.
    All the facts show that the politico-economic instability and mess in the world have been triggered off by the U.S. unlimited imperialistic rapacity.
    The progressive people across the world will vigorously turn out in the struggle for smashing the aggressive "anti-terrorism war" of the U.S. imperialists, the common enemy.