Saxo boss: US debt debate "complete nonsense"
The shut down and the debt debate in the States is "complete nonsense", according to Saxo Bank's co-CEO, Kim Fournais. He says politicians need to back off and let businesses run their operations in their own way. October the 17th is the deadline for an agreement on raising the US debt ceiling, otherwise the US could default. But as yet there is no sign of the impasse being broken.
Fournais says too much money is being spent on the US budget and politicians need to remember that what brings prosperity and welfare is profitable businesses, but that it is increasingly difficult to run any enterprise.
President Obama has said he is willing to hold talks with the Republicans on "every item in the budget". But he says he will not negotiate until Republicans agree to lift the dual threats of the government shutdown and the fiscal calamity looming if the US breaches the debt ceiling.
The IMF has warned a failure by Congress to raise the federal debt ceiling and US default would cause "a worldwide shock" to the economy.
The US government began a partial shutdown on October 1st after Republicans refused to approve a budget. They said they would only do so if funding for President Barack Obama's healthcare reforms was delayed.
The US government has experienced 18 shutdowns in the past 30 years, with the last one lasting 21 days under US President Bill Clinton in 1995, costing the economy over USD 1 billion.