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Iranian President slams capitalism as root cause of economic meltdown

29 April 2012 03:17 (UTC +04:00)

Baku-APA. Iranian President Mahmoud Ahmadinejad blamed the capitalist system for the economic crisis hitting the world countries, APA reports citing FNA.

"This crisis has been caused as a result of the performance of those who advocate the use of force as well as capitalists; the ordinary people have had no role in instigating that," Ahmadinejad said on Friday.

"However, today, those who caused the crisis themselves, boast of managing it and, to that end, they have put their hands into the pockets of the people and sought to manage the economic crisis by exerting pressure on the people, instead of going for the capitalists and returning the wealth that they plundered from the public to their owners," he added.

The Iranian chief executive lashed out at the prevailing global economic structure and argued that such a system can only be dismantled when the rule of "justice and amity prevails in the world".

After the plunge on August 5, 2011, the global stock market dived again on August 8, showing that the global economy might fall into another round of recession from the temporary rebound after the 2008 financial crisis.

Unlike four years ago, the current plight of the world economy could not be solved so easily. During the 2008 financial crisis, it might be considered resolved only by activating the Quantitative Easing Monetary Policy and injecting money into the market and financial institutions.

This time, however, even China might be unable to save the global economy. Its previous 4 trillion Yuan economic stimulus package has cost it a heavy price, including economic bubble formation and rapid expansion of local government debts.

The current crisis is mainly caused by debts in advanced countries. Expansion measures would only worsen debts and if the US introduces the third quantitative easing (QE), it would make inflationary to become further out of control.