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Michael Hudson: Well, I think you’re quite right in organizing the conference to point out that today’s pandemic crisis hastens and intensifies the internal contradictions that have been building up. Many of these contradictions are going to be blamed simply on the virus. But there is an underlying problem that the virus is exposing and turning into a crisis. That underlying problem is the debts that have been building up for the last few decades.

We are in a situation much like a war. There are winners and there are losers in a war. In this case the winner is the aggressor – the financial sector. Its demands for payment have set the stage for today’s economic breakdown. This has been the case throughout history. Finance always has been the great destabilizing factor. Right now, you’re having businesses – retail stores, restaurants, hotels, airlines and other businesses that are being closed down or operating at only a small capacity far below break-even levels. These businesses are not able to pay their stipulated rents or mortgage debt service. Their landlords are not able to pay their banks.

Workers have been laid off, and they’re unable to pay their landlords or creditors. So they are falling more deeply into debt. Entire states and the cities, like New York State and New York City, are being squeezed. In addition to having to pay local unemployment insurance, they have to maintain basic infrastructure and social services. But their d tax revenues ae plunging as a result of fewer sales taxes and income taxes. So the pandemic is creating a fiscal crisis as part of the overall debt and real-estate crisis.

The question is, how do we get out of it? What is happening is what legal contracts call an Act of God. What do you do when economic activity is disrupted and the flow of payments that people have every month – their debt service, their rents or their mortgage, or their credit cards and other basic ongoing expenses. What do you do when they can’t be paid? I think that this crisis is laying the problem bare. It is a problem that’s occurred in Western civilization for the last 2,000 years. But what is so striking is how much more adroitly ancient civilizations handled this problem. They did so in a completely different wat from how other civilizations have handled things.

I have written quite a bit about Bronze Age archaeology in the ancient Near East. That is where the Act of God stipulation originated. It appears in the Laws of Hammurabi c. 1750 BC. The problem that the Babylonians had to deal with was what to do when there is a flood, a drought, warfare or a pandemic. What should be the rules when, suddenly out of nowhere, cultivators and the citizenry on the land are rendered unable to grow and harvest crops, out of which to pay the debts that they have run up during the year and are falling due. They owe the taxes, sharecropping or other rent that could not be paid.

Hammurabi was quite specific about how to handle this situation. Paragraph 48 of his Laws said that there would be a debt and a tax amnesty when the weather god, Adad, created a flood or otherwise prevented debts and other obligations from being paid. If the storm god floods the lands, the debts and rents don’t have to be paid. A fresh start was made under conditions of balance for the next crop season.

The basic problem was similar to that today: How does a society restore continuity and save itself from disruption creating a permanent loss and distortion of existing wealth and income relationships? What Hammurabi and every other Babylonian, Sumerian ruler and other Near Eastern rulers did between about 2,500 BC and the 1st century BC was to proclaim amnesties in such circumstances. If they hadn’t done that, cultivators would not have been able to pay their creditors and they would have fallen into bondage. They would have owed their labour and crops to their creditors.

This would have caused a serious fiscal problem for rulers. If victims of a crop failure or other economic interruption had to pay their creditors with their labour and crop surplus, this labor and crop tax wouldn’t be available to pay the palace its normal claims for taxes and corvée labour duties to build infrastructure or even serve in the army. Social balance and continuity would have been destroyed – from within. So when Hammurabi and every ruler of his dynasty proclaimed a clean slate cancelling the debts and rent arrears that had mounted up unpaid, proclaiming a return to the normal situation prevented a creditor oligarchy from emerging and seeking its own interest as distinct from that of the palace.

All this changed in Roman times. Classical antiquity protected the financial and rentier elites. Cicero and the other Roman leaders said that all the debts had to be paid, even (or indeed, precisely because!) this led to the enslavement of poorer Romans and Greeks. Rome’s creditor oligarchy used every crisis as an opportunity to grab the land of the smallholders, to force the population into bondage and to get control of their land.

We’re seeing the same basic dynamic occur throughout the post-Roman Western world. Creditors are now already planning to buy up distressed real estate from landlords that default as their rents are not paid. There is going to be a huge bankruptcy sale. Large private capital funds have already announced their intention to begin buying out the retail stores that have gone bankrupt, along with their real estate.


Individuals who are unable to pay their debts, workers who’ve been laid off, are told to borrow from their pension funds or social security accounts. That means that they won’t be receiving the retirement income they need to live. Likewise, the states and the cities that Jeffrey Sachs mentioned also are facing a debt crisis with their bondholders. Mitch McConnell, the Republican Senate head, said that Democratic states like New York, New Jersey and California should cover their shortfall by taking the pension funds that they’ve set up for public employees. The financial sector’s intention is to use this crisis to wipe out the pension funds and transfer the savings of the wage-earners to pay bondholders and other creditors. The promises that state and local governments made for pension in exchange for not asking for higher wages are to be wiped out.

The debts that have been built up are being used as a financial warfare tactic. It is more efficient than military warfare. Debt has been used to strip away the assets of middle-class people, of home owners, of employee pension funds, to suck their savings and property up to the top of the economic pyramid. The pandemic crisis has created a battlefield. Its rules have been written by the financial sector and their lobbyists as an opportunity for the largest property and financial grab since the Great Depression.

The result will be that much of the American and European economies are going to end up looking like the Greek economy five years ago, when it was unable to pay its euro-debts. You can look at Greece as the future of the United States, catalysed by the coronavirus pandemic.

Grigoris Zarotiadis: Thank you. Thank you, Tatiana, Professor Hubenova, thanks a lot. Michael, it’s your turn and allow me, before you start, because there was an extra question addressed to you, but also to the rest, included perhaps in the previous questions: who are the big winners, in economic terms, after current developments? Dear Michael, you have the floor.

Michael Hudson: I’ll talk about the questions in reverse order, beginning with the idea that there may be an inflation to help pay off the debts.

Just the opposite: What we are facing now is an era of debt deflation. It’s the worst debt deflation since the Great Depression. I’ve already described how there are going to be major defaults in real estate, especially for commercial real estate, for stores and all the other businesses that are going without income while their rents have accrued. If we are going to have a close-down for at least three more months, with no income for stores, entertainment, motion-picture houses and museums, paying three months’ back rent is not viable. There’s no way in which stores, or many wage-earners, can earn enough to pay the rent out of normal work and business. So, they’re going to go out of business.

There is going to be a wave of bankruptcy, and that will be followed by fire sales of real estate. Unemployment is going to lead to lower wage levels, and there also will be cutbacks in public spending for social services, transportation and other normal programs. Privatisation sell-offs will occur, much like Margaret Thatcher’s in England. this is now going to be imposed upon Europe. It’s possible that the Eurozone will break up if it does not change its rules and create the euro-money to enable Italy and Spain to get by. But at present the Eurozone rules are that all the money, all of the credit that is needed to grow in Europe, should be borrowed from banks at interest.

Banks can create this money on their keyboards electronically. The government could do the same, but relinquishes this privilege to the privatized banking sector. As Modern Monetary Theory explains, a central bank can simply print the money that is needed to fuel economic growth. But the financial sector has captured the hearts and minds of central bankers, from Europe to the United States.

The problem is these banks don’t lend money to create means of production or livelihood. They don’t lend money to build factories. Banks lend money against assets already in existence, mainly real estate, houses, buildings, and also companies – and to corporate raiders to buy other companies on credit. So, the effect of this bank lending has been to inflate the price of real estate, because a house or a building is worth whatever a bank will lend against it.

The financial sector has become less and less productive, and more predatory. It has prevented European governments from having a central bank that directs deficit spending into the real economy. Only the banks and financial sector, the elite One Percent, are supported, as in the United States. Ten trillion dollars ’s put into the economy, mainly into the stock and financial markets, the bond market and the real estate market, but not into production.

The Eurozone does not do that. This means that the governments of Europe are not really democratic. Europe is governed by the European Central Bank. It works for its customers, the commercial banks. And the commercial bankers say: “We want to starve the economy of credit, so that we, the commercial bankers, can create the money to lend to our customers, and charge interest and financial fees. Our own financial speculation that all the growth, the surplus that Europe produces, should be turned over to the financial sector.” That’s what the Europeans have voted for. In effect they vote for lower wages, cutbacks in public services and shorter pensions. These living standards are threatened by the way in which the financial dimension of the coronavirus crisis is being managed.

You’re seeing a disparity between Italy and the Mediterranean countries and northern Europe. Countries need credit in order to recover. But the Eurozone refuses to provide the credit that is needed to get through the coronavirus suspension of economic activity and its aftermath of unpaid debts, rents and other obligations. The Eurozone is treating Italy, Greece, Portugal and Spain just like President Trump here in America is treating the Democratic states like New York, New Jersey and California. The effect is to create a deflationary crisis. That makes it impossible to pay the backlog of debts and rents.


We may see a power grab creating something much like feudalism. In the United States it’s suggested that for student loans, or for loans to wage-earners collateralized by the debtor promising to pay 10%, 20%, 25% of everything they earn for the rest of their life. This is like a tax, but it’s really a form of debt peonage. It’s a payment much like medieval serfs had to turn over their economic surplus to their landlords. Well, now the wage-earners, small business and even big business in America and in Europe are going to have to turn over even more of their earnings to the financial sector in order to survive.

This may seem a crazy way to organize society, but it is how Western civilization has been structured on the basis of protecting creditor rights, not debtor solvency and overall social balance and continuity. Unlike non-Western societies, unlike even China today, credit in Europe and America is privatized. The supply of credit, like money, should be a public utility. Just like public health should be a public utility. Just like roads and communication should be a public utility. Europe has let it be privatized in an aggressive, predatory way.

As long as governments subordinate the will of democratic voters to whatever the central banks tell you, you are not a democracy. Jeffrey earlier mentioned what Aristotle thought. Aristotle explained a kind of eternal political triangle. He said that many constitutions appeared to be democratic, but they’re, actually, oligarchic. That’s because democracies tend to evolve into an oligarchy. The oligarchy makes itself hereditary into an aristocratic ruling class. Finally, thank heavens, some of the wealthy aristocrats fight among themselves and they try – like Cleisthenes did in Athens as early as 406 BC – to take the masses into their camp, and become democratic and order to mobilize support in the citizens against the other aristocrats. Then you have a democratic revolution, but democracy once again develops into oligarchy. That’s the eternal political triangle that Aristotle described.

And that’s what you have in Europe. It’s not a democracy anymore; it’s an oligarchy making itself into the same kind of hereditary aristocracy that occurred in classical antiquity. Many of you hoped that Europe had overthrown the aristocracy after World War I when you did indeed get rid of the kings and royalty. But you opened the way for a new kind of oligarchy turning itself into a hereditary aristocracy, that of finance. That’s the task before you to solve. The only thing I can say is that, perhaps, this crisis has indeed catalysed this basic internal contradiction and will create a response that deals with the pandemic by cancelling debts and de-privatizing the banking sector.

Remarks given at the 1st ASECU Teleconference ‘Systematic Crises Triggered the Current Pandemic & Progressive Way-Outs, May 8, 2020.

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  1. Hudson apparently has never heard of YouTube.

    • Replies: @anonymous
  2. I am wondering whether we don’t still have a lot to learn from the Middle East. Not then, not the Near East, I mean from Iran and Islam, now.

    All this financial sector stuff is prohibited by Islam, no usury. It was also prohibited by the mediaeval Latin Church, but only Christians were prohibited, so Jews jumped into the driver’s seat, were merciless, provoking occasional pogroms by the mob and expulsions by the rulers.

    It seems no such thing happened in 2,500 years to date in Persia, the Jews of Iran were never expelled in 2,500 years, love Iran, and are sharply critical of Israel, the state.

    This from the recent interview with their chief rabbi, seen on SOTT recently.

    • Replies: @mark tapley
  3. anonymous[245] • Disclaimer says:

    Good for him.

    Many of us prefer reading; it saves most people time, allows everyone to think about what’s been said at his own pace, and on a website like this supports more and better discussion.

    • Agree: animalogic, botazefa
    • Replies: @restless94110
  4. Michael Hudson is simply one of the best economists in the world today.

    • Replies: @Ann Nonny Mouse
    , @Rubicon
  5. Very interesting. Seems to me that the problem is the government ensuring the ability of the creditors to force liquidation first, then insuring that the creditors are made whole (implicitly subsidizing bad loan/investment policy) which destroys a normal risk/reward calculation.

    It really is the very, very few against the great, madding many all across the globe. The few are smart, determined, great at propaganda/psyops, and have been working steadily and tenaciously at it for decades. The madding many are poorly educated, too often bereft of a moral compass and principle, and badly frightened of their immediate material/economic prospects. The result of this imbalance may be the biggest stampede off a cliff of a great herd that has ever occurred.

    Fascinating times we live in.

    • Agree: mark tapley
  6. @animalogic

    I’m not qualified to agree or disagree, but Paul Craig Roberts, himself an important economist who should know, has written that Michael Hudson is the best economist in the world today.

    • Thanks: Iris
  7. This system Hudson details is the result of the International Banking Cartel. This fiat money monopoly was set up in England in 1692 and in the U.S. by the Jew Paul Warburg along with the Rockefeller (probably crypto Jews) and Rothschild Employee J.P. Morgan in 1913. England forced the colonies to use The Bank of England’s (Rothschild controlled) fiat paper and then pay interest on it. This is what caused the Revolution. Had we remained on a gold based monetary system where every bank stood or fell on it’s own financial integrity the the problems of the corrupt finance economy could not happen because credit would be controlled by the market (and it’s scarce gold base) not an elite group of monopoly criminals.

    Big corrupt crony governments must have a central fiat bank in order to fund the highly profitable wars without a direct tax on the goyim as in Jewmerica’s “War on Terror” for Greater Israel. The central bank is needed to pay for all the other unconstitutional rackets and gov. scams like the 15 trillion in welfare programs started by the shabbos goy criminal LBJ. Another bonus of the fiat fraud is that the middle class is gradually wiped out as the wealth is transferred to the elites at the top. If we had kept our constitutional gov. of sovereign states the “too big to fail” banks would have never happened and our money would not be depreciated at the rate of 50% every 17 years. The debt deflation problem that Hudson refers to would not be a problem because without the ability to manipulate interest rates and generate the boom bust cycles the elite would not have the tools to rig the market.

    The elite always work under cover of a contrived event or manufactured crisis. The fake virus has been planned for years and was sprung at the optimum time. 6 trillion dollars stolen by the sovereign immune from prosecution Global Banker criminals while the idiot goy cucks are walking around sucking through their useless masks

    • Replies: @james charles
  8. jadan says:

    Michael Hudson is our Moses. He is pointing the way forward in clear and understandable terms by reminding us of where we have been, which holds the key to where we have to go. We had two candidates in the primary, Sanders and Yang, who proposed radical changes in policy, but no candidate has yet criticized the banking system. Hudson goes right for the juggler of the creditor class and its banking monopoly with lucid analysis that shows a relatively simple solution to what seems an overwhelmingly complex situation: cancel debts and nationalize the banks. He’s not suggesting a receivership, but a complete overhaul of the system that changes the institutional goal of banking to the management of a public utility rather than the private allocation of credit. Big difference, big new mission statement. Michael Hudson is my hero!

    • Agree: Ann Nonny Mouse
    • Replies: @mark tapley
    , @onebornfree
  9. @jadan

    The debt problem was part of the banking cartel’s plan when the central bank was established by the Rothschild and Rockefeller syndicates in 1913. This fiat money along with control of interest rates has enabled the global bankers to become immune from prosecution as they rig the economy and steal the wealth of the country. Started right after the FED’s founding to shore up Britain’s sterling after WW1 then they instigated the Great Depression. In. ten year intervals the global bankers have instigated bailouts after the gov. contrived 911, then the huge “bailouts” for the super rich in 08 and now again under the cover of the fake virus they have stolen 6 trillion for the Wall St. crowd.

    Notice that the U.S. government was complicit in all of this. The politicians work right along with the banking cartel. Do you really think turning the banks over to the government will change things? Since the central bank was established the depreciation of currency has averaged about 50% every 17 years. this is moving the wealth to the elites at the top. If the gov. was running the banks this would not change. The debt problem is the result of the pillaging I mentioned. The gov. approved all of it.

    Hudson’s plan is to levy huge taxes on real estate. Do you think the money will be better managed in the hands of the gov? If the government only did things authorized by the constitution, taxes would be a minor issue. Hudson’s main concern is that debt deflation is being caused by the financial class being able to leverage their position as rent seekers thereby overburden the rest of society. Without the help from the government from the very beginning in allowing a central bank cartel that enabled the “to big to fail” crony banks all of this would have been avoided. Your public utility bank would end up pretty much where we are today.

  10. @Ann Nonny Mouse

    Interest is just the cost of money (capital) over time. The Muslims just call it other things but actually charge it. Money like everything else has a cost. Let’s look at what the Bible says about the issue rather than the Catholic Church. Matt 25:14-30 In the parable of the talents we are told the the master (Jesus) went on a journey and left his 3 servants with talents (gold coins) while he was away. To the first one he gave 5 to the next 2 and to the third he gave 1. At 10% compounded the money would have doubled in 7 years. When the owner returned the first servant had doubled his money as had the second one. The one who was given 1 talent had done nothing. He was rebuked as the master stated that all he had to do was turn it over to the money lenders (bankers of the day.) So we see that interest is not prohibited in the Bible. Jews have always been financial predators but that is not the only reason they have been kicked out of 109 countries. The son of the Chief Rabbi of Rome stated that the Jews were kidnapping and sacrificing gentile boys during the Feast of Purim.

    Read Miles Mathis long article on Iran. The Iranians have been under Jewish Dynasties since the 11th century and still are.

    • Replies: @Anon
  11. jadan says:
    @mark tapley

    The people have no other recourse than government. The Constitution begins with the phrase “we the people”, but at the same time it describes an electoral mechanism that prevents the people from directly electing their president and other representatives. The founding oligarchs did not trust the people. The same irony applies to the “all men are created equal” phrase that rang like a bell heard all around the world. We have expanded the franchise since that time and pursued the ideals of social, racial, & gender equality. When direct election of the president is permitted and the electoral college is eliminated, we will have moved that much closer to the rule of a democratic majority. At present we have no democracy, though politicians use that term to describe our system. In truth, it is still an oligarchy and the chief reason for that is control of the monetary system remains in private hands who use it for their own benefit.

    You use the can’t-trust-government argument, a favorite “conservative” talking point. You assume government is always controlled by special interests and you are in fact some one who does not believe in democratic government. I don’t see the point in talking to you or your ilk, who are on the whole a faithless and cynical crew. I believe in a government by and or the people and I won’t waste my time with those who don’t.

    • Replies: @mark tapley
    , @76239
  12. @anonymous

    Hmm, and there are 10 comments on this article while most Unz articles have several hundred? Yeah. I’m gonna stick with my this needs YouTube comment, to the 3 of you who would rather read. By the way, I’m just asking for a link to a video. You can still have your transcript.

    • Replies: @anonymous
  13. @mark tapley

    “No, the coronavirus wasn’t made in a lab. A genetic analysis shows it’s from nature
    Scientists took conspiracy theories about SARS-CoV-2’s origins seriously, and debunked them “

    • Replies: @Robert White
  14. @mark tapley

    ” . . . has enabled the global bankers to become immune from prosecution as they rig the economy and steal the wealth of the country. ”

    You mean these incompetent ‘global bankers’?

    “As Axel Weber remarked, afterwards:
    I asked the typical macro question: who are the twenty biggest suppliers of securitization products, and who are the twenty biggest buyers. I got a paper, and they were both the same set of institutions…. The industry was not aware at the time that while its treasury department was reporting that it bought all these products its credit department was reporting that it had sold off all the risk because they had securitized them . . . ” 1h. 10m. in.

    “The root problem of 2008 was a failure to recognize that the highly leveraged money center banks had used derivatives not to distribute subprime mortgage risk to the broad risk bearing capacity of the market as a whole but, rather, to concentrate it in themselves.”

    • Replies: @mark tapley
  15. anonymous[245] • Disclaimer says:

    The videos that used to be published on this website drew almost no comments, and presumably relatively few viewers. But if you’re too restless to read, why didn’t you first comment, “Please provide a link to any available video or audio recording”?

    Some of your contributions here are like poor graffiti.

    • Replies: @restless94110
  16. @james charles

    Golman Sachs set up separate companies to keep their name out of the scam as much as possible. They would buy the fraudulent mortgages they knew were worthless, bundle them as derivatives then sell it as bonds to wealthy investors expecting high interest. Then Goldman Sachs did short sales against what they had sold. They then cried to their lackies in congress that they needed a bailout. Made billions with only a relatively small fine. A well planned racket accomplished because the global bankers knew they were immune from any prosecution.

    • Replies: @james charles
  17. @jadan

    The founders realized what you evidently do not. Madison and others realized that if too much power is put into the hands of the people they would get their hands in the till and ruin the government. On the other hand they knew that if too much power was put in the hands of the aristocracy then they would enslave everyone else. That is why they endeavored to establish a government of sovereign states and a very limited national gov. Democracies always turn into tyranny and that is what the founders sought to avoid.

  18. @anonymous

    Are you playing Miss Manners with me, you pretentious prig? I said what I said. Post a video or a link, Hudson, you old fogie.

    If you look at Hudson’s posts you find that almost all of them have no one. commenting.

    There has to be a video of this interview. Post it.

    And go clean up your own house, Miss Manners.

  19. @mark tapley

    ONE swallow does not a summer make.

  20. The corporate sector of the Western Empire of Banking leveraged their assets under management towards unsustainable debt servicing costs knowing that greed was the number one driver of industry, and that leverage was the ultimate downfall near term and long term forecasting.

    To assert that these corporate moral hazards that occupy the halls of the Banking Empire are to be forgiven for the leveraged debt accumulation is to miss the point of abject failure to govern their business in a prudent manner as my Chartered Accountant did for decades working for National Revenue CANADA.

    American business leaders and chief executive are by all accounts incompetent to govern their own businesses given the leveraged asset era that was modelled by Dr. Alan Greenspan during his incompetent tenure over the Federal Reserve which is now overly leveraged to the point of insolvency across the board USA states of the union.

    Richard ‘the Gorilla of Wall Street’ leveraged Lehman Brothers 44:1 knowing that if his bets went south he would have the entire system backing his absolutely terrible bets because the entire system could not withstand failure of the fourth largest investment bank in the world.

    Richard Nixon closed the gold window temporarily so that people like Fuld could lever up and count on the Greenspan Put backstop that perpetuates a false sense of security when business cycles turn south. Had the banks not leveraged to the netherworlds of insolvency we would not now be reading policy that is advocating for debt forgiveness.

    The Dark Pool Derivatives Universe USD is approximating a \$2 quadrillion threshold, and it is wholly unsustainable even if we accept Professor Hudson’s thesis to bail them out again. In brief, sovereign nations should never have bailed the banks & Wall Street out to begin with in 08.

    One cannot eliminate moral hazard with greater moral hazards via a printing press mentality to lever up on a losing bet. Americans gambled with their lives and lost their livelihoods, homes, cottages, and business all in one go because they don’t understand money or investment from a Finance or Economic perspective.

    Professor Hudson is my absolute favorite American Economist, but on the point of bailing out serial felon banks I, for one, am suggesting that that is the wrong tack to take.

    Leveraged bets on orders of magnitudes that cannot be paid should not be processed by the Wall Street bookies even if BlackRock shareholders claim they have your back when they could not possibly bail out all the bad overly leveraged bets made via irrational exuberance of people that are formally educated to know better.


    • Replies: @james charles
  21. @james charles

    Science News Org can get in line to lick my balls in deference to my superior intellect as SARS-nCoV-19 is indeed a Gain-of-Function Dual Use man made Pandemic Pathogen. Moreover, Science News Org is mere propaganda for the suggestion.

    Science News Org was not a charter member or signatory of the Cambridge Working Group Call to Action 2014 headed up by Harvard’s top Epidemiologist Dr. Marc Lipsitch.

    SARS-2-nCoV-19 is most assuredly a Gain-of-Function Dual Use Pandemic Pathogen for those of us that know better and have been following the discipline via the undisciplined propagandized so-called social media online Internet.


    • Replies: @james charles
  22. @Robert White

    Lots of assertions. No evidence.

    • Replies: @Robert White
  23. @Robert White

    “In brief, sovereign nations should never have bailed the banks & Wall Street out to begin with in 08.”

    A. Kaletsky disagrees?

    “Guarantees would have been the easiest form of intervention to present politically because they would have emphasised the true purpose of government assistance to the banking system: to prevent the savings of depositors – especially wholesale depositors such as corporations, foundations, savings institutions, and local governments. These depositors would have seen trillions of dollars in payrolls, pensions, and working capital evaporate if the banks were allowed to fail. Guarantees would have underlined the fact that the main beneficiaries of all bank rescues were not greedy bankers or shareholders but wholesale depositors whose money is not covered by retail guarantees.”
    A. Kaletsky: Capitalism 4.0. P150.

    • Replies: @Robert White
  24. @james charles

    If I compiled the evidence and disseminated it via Internet I, for one, would be deplatformed just like the other opposition researchers were. Professor Doyle has been deplatformed for saying the same thing but with evidence enough to ruffle feathers.

    Dismiss my comments freely as I’m not invested to a point of actually giving a damn.


    • Replies: @james charles
  25. @james charles

    I have tonnes of evidence that I will never share. Take my word for the fact that SARS-2-nCoV-19 is a Gain-of-Function Dual Use bioweapon that was manufactured in the USA and deployed via glass ampule by the Central Intelligence Agency Intelligence Officer that was embedded within the USA Military contingent for the Wuhan Military Games.

    CIA plans are to blame China for the bioweapon, and their modus operandi is regime change because they are completely deluded and out-of-touch with geopolitics. Moreover, USD is going to crash, and China/Russian Federation will be dumping their US Securities due to CIA color revolution, COVID-19, BlackRock Inc. taking over Federal Reserve & US Treasury duties, et cetera.

    The USA is finished, and so is USD, mark my words.

    P.S. Getting deplatformed on Internet is happening more & more each day. One has to be careful about ‘evidence’ these days. Write to Boyle and ask him about his evidence as he is a respected professor of legal studies in the USA. He is approachable, and he will reply to you if you pose intelligent questions and are polite/professional in approach.


    • Replies: @GeeBee
  26. @james charles

    Goldman Sachs built The Giant Vampire Squid via interbank architecture & connectivity that is wholly predictable, traceable, and evidence of the Ponzi that is global. Running a worldwide Ponzi scheme off of the backs of public taxpayers & private taxpayers is what the Americans are doing. One cannot justify running worldwide Finance this way when we all know that Too-BIG-to-Fail, Nail, or Jail is not justification enough to keep practicing fraud on a global scale in hopes that scientists won’t notice the fragility of the architecture, and associated risk for sovereign nations, taxpayers all, and even the corporate sector worldwide.

    The simple fact of the matter is that Too-BIG-to-Fail, Nail, or Jail is just a Ponzi that is getting weaker by the day and is about to topple based upon market fundamentals for day traders on a global scale. Finance proper will most assuredly want to press on with a financial reset, but the day traders still have to ascertain market fundamentals which are absent in this financial climate with the advent of BlackRock assuming Treasury & Fed Reserve duties as an off-exchange dark Hedge Fund that is not accountable to taxpayers whatsoever as a private corporation that runs their business in private manner without public disclosure like the Treasury is committed to deliver quarter upon quarter to government accountability office-GAO auditors.

    Allowing serial felon banks to fail is the best thing that could happen for civilization in so far as it is going to happen anyways due to the Second Law of Thermodynamics.


  27. GeeBee says:

    Many of you hoped that Europe had overthrown the aristocracy after World War I when you did indeed get rid of the kings and royalty. But you opened the way for a new kind of oligarchy turning itself into a hereditary aristocracy, that of finance.

    As commenter Mefobills has regularly pointed out, although Michael Hudson is an outstanding and perspicacious economist, he refuses to ‘touch the third rail’ (and understandably so for a man who wishes to retain his career, rather than seeing it arbitrarily destroyed). In short, he will not name the very leaders of the toxic, witches brew of Finance Capitalism, whose pot is stirred mainly by men bereft of a prepuce.

    In the quote above, Hudson therefore portrays the sweeping away of centuries-old European monarchies as somehow being a good thing; something to be welcomed and indeed celebrated. How strange, then, that the demographic that agitated for war in 1914, and which did so again in 1939, and which has so royally enriched itself as a result of these tragic and unnecessary undertakings, is the same that was formerly kept at bay by those very monarchies that stood in the way of their parasitic ambitions. Or in other words, the key objective of these usurers and financial mavens was to remove the stability and social justice that monarchies enshrined, precisely because – as Hudson so aptly puts it – these monarchies ‘prevented a creditor oligarchy from emerging and seeking its own interest as distinct from that of the palace’. One need hardly add that this same ‘creditor oligarchy’ that Hudson laments has all too successfully cornered the Western half of the globe since 1945, a development that more or less forms the entire subject matter of everything he now addresses.

    These dynasties that were so gleefully swept away in 1918 acted more or less in the same way as did the much-vaunted Hammurabi, as well as the many other kings whom Hudson so trenchantly and conspicuously defends. To be specific, we know that the Romanovs had long maintained a system whereby Jews were obliged to live in an enormous area (equivalent in size to France and Spain combined) known as ‘The Pale of Settlement’. Furthermore, they were largely (but not entirely) prevented from playing any part in Russia’s governance or economic affairs. As for the thousand-year-old Hohenzollern dynasty, Kaiser Wilhelm II maintained the proscription of Jews within his government, and indeed harboured real personal animosity towards them. He had, for example, written in a letter to a friend that:

    The Hebrew race are my most inveterate enemies at home and abroad; they remain what they are and always were: the forgers of lies and the masterminds governing unrest, revolution, upheaval by spreading infamy with the help of their poisoned, caustic, satyric spirit‘ (Rohl, J. 1987/1994. The Kaiser and His Court. Cambridge University Press.1994: 210).

    Further evidence of Wilhelm’s feelings towards the Jews is provided by Lady Susan Townley. She was a daughter of the seventh Earl of Albemarle, and her husband Sir Walter Townley was a British Diplomat. When her husband was posted to Germany in 1899 they dined frequently with the Kaiser, and in her wonderfully informative book Indiscretions of Lady Susan (1922) she remarks that: “A dislike of the Jewish element in his country seemed deeply implanted in him” , and she went on to mention that Kaiser Wilhelm had once told her that: “The Jews are the curse of my country. They keep my people poor and in their clutches. In every small village in Germany sits a dirty Jew, like a spider drawing the people into the web of usury. He lends money to the small farmers on the security of their land and so gradually acquires control of everything. The Jews are the parasites of my Empire. The Jewish question is one of the great problems I have to deal with, and yet nothing can be done to cope with it.”

    Michael Hudson needs to decide on which side of the Traditionalist/Modernist divide he sits. One cannot praise ‘the palace’ at the remove of two or more millennia, yet chastise those that fell a mere century ago.

  28. GeeBee says:
    @Robert White

    I find your comments intriguing. Is there no way I can somehow get in touch, in order that you might share some of your evidence with me? There must be some way of using it without prejudicing your own interests.

    • Replies: @Robert White
  29. @GeeBee

    I’m an Intelligence guy, GeeBee. I switched to Financial Intel a number of years ago as I’m not into the weeds of intel anymore due to stress factor and age. Suffice to say that I am publically stating that the American military and CIA are 100% responsible for the Pandemic Pathogen which was intentionally deployed in Wuhan at the end of the Wuhan Military Games so that the USA Military contingent could escape from Wuhan before the pathogen went viral.

    My evidence of CIA planning and deployment is first hand evidence that I am 100% positive of empirically and scientifically. Moreover, whilst I am 100% confident of my information gleaned I can assure you that opposition research would refute it without basis other than partisanship.

    The CIA & Fort Detrick are wholly responsible for this assault on the world population along with the NIH, CDC, and FIVE-EYES plus One given that the CIA cannot act unilaterally against partners in the intel network.

    The deployment was signed off on because of the REPO hemorrhaging in September 2019 as the USA Oligopoly knew that the Federal Reserve & US Treasury had lost control mid September when Reuters made the first news announcement that the Fed was having difficulty.

    Disclosing what I know is happening slowly via an Investigative Journalist that has interviewed me already and has asked to call me back after interviewing a number of Epidemiologists beforehand.

    In terms of disclosure I’m just going to do it publically with circumspection so that I don’t get mired in the hyperpartisanship of intel & politics. Bottom line is that China’s Wuhan BSL-4 is not responsible for the outbreak as the CIA & US Military is with 100% certainty on my part.


    • Replies: @GeeBee
    , @Greg dh
  30. GeeBee says:
    @Robert White

    Many thanks for your informative reply. I wish you well in your stratagem, and I sincerely hope that you are not put in harm’s way as a result (as an insider you’ll no doubt have your precautions worked out).

    • Replies: @Robert White
  31. @GeeBee

    I’m not an insider in Intelligence. I am outlaw Intelligence which is best elucidated via Black Hat Intelligence. I was raised by a Civil Servant Chartered Accountant father and merely know how the system works through upbringing and tertiary education.

    Five-Eyes plus One knows who I am I assure you.

    And Government of CANADA politicians know who I am too.

    Everyone in Intelligence knows better than to ever screw around with me as I am just as adept as they are if not more so when it comes to ruthlessness.


  32. “That underlying problem is the debts that have been building up for the last few decades.”

    And ‘this’?

    ‘The first principle is that all forms of economic output – literally all of the goods and services which comprise the ‘real’ economy – are products of energy.
    Nothing of any economic value or utility can be supplied without using energy. . . .

    If you want a succinct answer to this question, it is that ECoE (the Energy Cost of Energy) is rising, relentlessly and exponentially. The exponential rate of increase in ECoE means that this cannot be cancelled out by linear increases in the aggregate amount of total or gross (pre-ECoE) energy that we can access. The resultant squeeze on surplus energy has been compounded by increasing numbers of people seeking to share the prosperity that this surplus provides.
    As a result, prior growth in prosperity per person has gone into reverse. People have been getting poorer in most Western advanced economies (AEs) since the early 2000s. With the same fate now starting to overtake emerging market (EM) countries too, global prosperity has turned down. One way of describing this process is “de-growth”. ‘

    “This reflects a question I posed here a while back – if electricity is (say) 4% of GDP, how much GDP would we have left if power supply collapsed? The conventional economists’ answer is 96%. The real answer is somewhere near 0%.”

  33. onebornfree says: • Website

    “Michael Hudson is our Moses. ”

    Hudson is a neo-Marxist Keynesian . In other words, he’s a fraud, because both Marxist economics, and its offspring Keynesianism, are fraudulent ideologies.

    All he ever does is pontificate about his latest “solution”[s] to problem[s] initially created by government, which always just happen to be: more laws, more government, less freedom , and less free markets.

    “Solutions” which inevitably always result in even less wealth for the average jobber.

    But, of course, the average jobber is too dumb to understand this, and is therefor suitably impressed by Hudson’s pseudo-intellectual Marxist techno- blather, because that average jobber is almost as much a Marxist as Hudson.

    “Stupid is as stupid does.” And so it goes…

    “Regards”, onebornfree

    • Replies: @Robert White
    , @eric
  34. @onebornfree

    I stared out in Tool & Die Making – Mechanical Engineering Technician Algonquin College of Applied Arts-2-year Diploma, then went into High Production 5-Axis CNC/NC, and onto Large Hadron Collider build of the ARGUS Microvertex Particle Detector. After that I quit because manufacturing was sold down the river to China, & Mexico via Wall Street brain trust of Ronald Reagan and his Trickledown Economists like that know-it-all Paul Craig Roberts with the too tight tin foil hats n’ cats.

    Who’d a thunk that Dr. Paul Craig Roberts would turn into the cat lady hoarding grocery bags & boxes in demented old age?


  35. Wall Street, the government, Silicon Valley, the AMA, the media, and the education, industry seem to have a lack of understanding as to what makes a business, profession, product, service, economy, and nation successful, in fact I was unaware that it was even humanly possible to have such a complete lack of understanding that I am witnessing with the 
    Coronavirus Conspirators Covid economy, which is entirely based on forcing people to have something that they absolutely despise and is of absolutely no use or value to anyone, and 
    demanding that the government pay for it.

    Maybe if they can figure out that people have absolutely no interest, use, or demand for what they are offering, and finally accept that it is they that must submit to us by offering what it is that we are willing to pay for, and not the other way around, there would be far more harmony than trying to shove something down our throats that we do not want, regardless of how much they attempt to sugar coat and market the magic pill.

    We do not want surveillance, masks, lockdowns, forced medical treatment, pathological lying, increased regulations on individuals, products that do not work properly, years of wasted  life paying obscene amounts of money listening to self-important, self-entitled, bloviating, ivy league, ivory tower, pseudo-intellectuals that have very little understanding of the real world just in order to participate in a totally dysfunctional society that they themselves have designed, but have never been forced to actually try to live in! 

  36. @mark tapley

    you say “Your public utility bank would end up pretty much where we are today” — that would be true only if the public utility bank were not held accountable — but, not true if the public utility bank were held accountable — holding a public utility bank accountable is certainly not beyond us, is it? if you think that holding a public utility bank accountable is beyond us, then that means (to me) that you simply want to give up, i.e., surrender — how “un-American”; same comment regarding your comment where you say “Do you think the money will be better managed in the hands of the gov”

    • Replies: @mark tapley
  37. @herb kline

    Hello Herb: As long as the central banking cartel is in power what difference is your Public Utility Bank going to make. It is clear that the global banking cartel is sovereign and does what they want even though theoretically they are accountable to congress. They control congress. They have control over the fiat money and credit. Just now they have created mountains more debt and taken in trillions more in toxic liabilities as they line the pockets of their Wall St. buddies. The P.U.B. would be operating within their system. The depreciation of currency (50% every 17 years since founded in 1913) to fund the Zionist wars for Israel, increase the size and scope of Jewmerica’s socialist agenda and the transfer of all of the wealth to the top is an integral part of the system. This racket is set in stone.

    The problem is not really one of accounting. The banking cartel does all the above and still claims accountability for their activities. That is like telling the mob they can do whatever they want “as long as you are accountable.”

    We must have a system independent of the government, and the banking cartel that is accountable only to the market. A gold backed currency that could not be depreciated, and could not be expanded and contracted to bolster England’s failing economy, or create a great depression and the boom and bust cycles in which the Jews at Black Rock can come in and pick up the failed businesses their buddies at the FED created for them. The to big to fail banks enabled by the very government you would depend on, have been deemed accountable over and over no matter how transparently criminal their activities are. The fiat banking fraud cannot be fixed. That is why our founders declared it unconstitutional. It is a privileged monopoly created by financial criminals with the sanction of government. When you get big government you get big corruption. The present central bank of criminals was engineered by Paul Warburg (Rothschild Agent) but it was maneuvered through congress by senator Nelson Aldrich (maternal grand father of Nelson Rockefeller). He was from the government and he was there to help us.

  38. 76239 says:

    This Hudson is a naive pinko commie of the first sort.

    “The pandemic is creating a fiscal crisis as part of the overall debt and real-estate crisis.”

    No it was the shutdowns not the virus. It was government action which is something this author supports to no end. The policy was worse than the disease. It would have been better if the state had just gotten out of the way. Doing nothing was better than something stupid.

    “Entire states and the cities, like New York State and New York City, are being squeezed”

    Entirely self inflicted. They made their bed, and they will lie in it. Governments do not produce wealth; they steal it. They have no money of their own. Government doesn’t sell anything or any service. Sorry Mr. Hudson, government action does not create wealth it shrinks it.

    • Replies: @james charles
  39. Anon[351] • Disclaimer says:
    @mark tapley

    One can’t lend 100 dollars and ask for 101 dollars or more in return in Islam Never was and not even now allowed in the Islamic Bank. But the mutual investment of the money raises different sets of problems and solutions .

    • Replies: @mark tapley
  40. eric says:

    I agree. Having the state subsidize profligate governments–California, Illinois, Greece, Italy–is not a solution, being neither just nor efficient. Prosperous societies save more than they spend and do not need to monetize their deficits. The last thing a dissolute man or state needs is someone enabling their counterproductive behavior.

    Marx was profoundly wrong on the who constitutes the class war, as it is not the rich vs. poor, but rather the crony capitalists and their government mandarins allied with the unskilled, all against the middle class. Inflation taxes those with net fiat wealth: the poor have none, the rich have most of their wealth in property and stock, but the middle class holds a disproportionate amount of cash. Fiat money is like many things that are good if used moderately and with discipline, but over time is prone to abuse, especially as many think ‘more fiat’ is a simple solution to all manner of complex problems.

  41. @Anon

    As I have shown in my Biblical example, the making of interest is not a problem. The Muslims and the Catholics have both adopted a practice that is not required by the scriptures. And that is only reasonable because money (capital) has a price like everything of value. I am not an authority on Islam but I know that when they are lending money they are getting a return at the front end or down the road, no matter what they call it. Otherwise they would not be risking the money.

  42. Greg dh says: • Website
    @Robert White

    Man… I did a lot of research in this topic but your information is very interesting. I wish you could share some evidence but I understand.

    • Replies: @Robert White
  43. @76239

    “Sorry Mr. Hudson, government action does not create wealth it shrinks it.”

    “This chapter finds that increased public infrastructure investment raises output in both the short and long term, particularly during periods of economic slack and when investment efficiency is high. This suggests that in countries with infrastructure needs, the time is right for an infrastructure push: borrowing costs are low and demand is weak in advanced economies, and there are infrastructure bottlenecks in many emerging market and developing economies. Debt-financed projects could have large output effects without increasing the debt-to-GDP ratio, if clearly identified infrastructure needs are met through efficient investment.”
    “The point estimates in panel 2 of the figure show that higher public investment spending typically reduces the debt-to-GDP ratio both in the short term (by about 0.9 percentage point of GDP) and in the medium term (by about 4 percentage points of GDP), but the decline in debt is statistically significant only in the short term. There is no statistically significant effect on private investment as a share of GDP (panel 3).
    The latter finding suggests the crowding in of private investment, as the level of private investment rises in tandem with the higher GDP as a result of the increase in public investment.
    . . . an increase in public infrastructure investment affects output both in the short term, by boosting aggregate demand through the fiscal multiplier and potentially crowding in private investment, and in the long term, by expanding the productive capacity of the economy with a higher infrastructure stock.”

    Infrastructure investment spending of the government will increase both the marginal product of labour and capital [New Keynesianism and Aggregate Economic Activity by Assar Lindbeck – Economic Journal, 108, 1998 pp167-80]

  44. @Greg dh

    You need to follow proto-fascist hate mongering Steve Bannon for his latest push on of propaganda that China’s Wuhan BSL-4 lab was the progenitor causal link to Trump’s ‘China Virus’ misinformation disseminated early on as the outbreak hit the news wires. Bannon is playing CIA directive for denial in terms of American admission of biowarfare, and reflexively pointing the finger at the CPC.

    All Western news media are loudly proclaiming that the world’s scientists have concluded unanimously that SARS-2-nCoV-19 is ‘not a bioweapon’, but the US State Department is pressing on with CIA directive to launch a class action lawsuit against China for the outbreak when they know the deadly Pandemic Pathogen actually came from the CIA and Fort Detrick BSL-4 as they were ordered to produce the deadly Pandemic Pathogen for biowarfare purposes long before the Wuhan Military Games were booked.

    Follow the knee jerk reflexive denials of USA involvement in biowarefare attacks on sovereign nations since 1945. Look at hatemonger Bannon and his role of misinformation to generate a Maoist Colour Revolution of race baiting and hate towards ethnicity in the world today.

    The CIA launched the bioweapon SARS-2-nCoV-19 because the USA Federal Reserve hemorrhaged September with the Wall Street investment bank REPO lines of repurchase agreements which necessitated all out war against China due to the fact that China is now positioned to be the new world hegemon financier of the world and Americans don’t appreciate that because they mistakenly thought they had the world by the balls when it came to Petrodollar supremacy, and world finance hegemon status.

    Now that America is tits up insolvent the CIA decided in their infinite wisdom that they had only one course of action to take against such an upstart competitor as China, Russian Federation, et cetera. in the One Belt One Road Initiative.

    Like Smedley Butler always stated historically, these networks of American criminals run rackets all over the world whereas gangsters like Al Capone only ran rackets in a few states of the union.

    Americans are being played yet once again by the God damned CIA.



  45. 76239 says:

    “You use the can’t-trust-government argument”

    You are hopelessly naive. The government just wants more of your money and your liberty. They are parasites.

    US department of education doesn’t teach.

    US military doesn’t protect the country from covid cultists, illegal immigrants or corrupt politicians.

    US energy department doesn’t produce energy.

    US department of agriculture doesn’t grow food.

    I could go on and on, but I wont.

    We pay half of what we make to these ghouls for nothing in return.

  46. 76239 says:

    “What is happening is what legal contracts call an Act of God.”

    Hudson is dumb. It is as if he saying that the shutdowns were caused by god and not the government.
    This is a plandemic. Like Sept 11 and the demolition of the buildings, planned in advance. Like the patriot act, planned in advance . The bought and paid for government wants total power. The American government is at war with the American people. Hudson should be smart enough to know this. he is a shill for the state.

  47. 76239 says:

    “Debt has been used to strip away the assets of middle-class people, of home owners, of employee
    pension funds, to suck their savings and property up to the top of the economic pyramid.”

    Cry me a river. Is it Hudson’s assertion that the bankers put guns to peoples heads to borrow all that debt? The debtor is just a victim? Its all the lender’s fault? Hudson should write for the pinko new York times.

    People in debt got in debt because they wanted to get into debt. No one forced them. They could have made other choices.

    Successful people have self control. Unsuccessful people do not. To be successful you need to avoid immediate gratification. Debtors cannot do this. They live for today and not for tomorrow. As a result they suffer economically. Its their own fault.

    • Replies: @Lurker
  48. Rubicon says:

    AMEN to that, “animalogic.”

  49. 76239 says:

    “As Modern Monetary Theory explains, a central bank can simply print the money that is needed to fuel economic growth. ”

    Hudson is not very observant. Japan and Europe did everything to print money. The Japanese central bank bought all kinds of assets and still no growth. Did all the MMT bull shit policies like QE and QE55.

    Japan and Europe still have high unemployment and no growth economically. They are dead in the water. So there is no way printing money will fuel economic growth. Printing money will just go in speculation of the hot asset sectors. If printing money fueled economic growth, then cuba, north korea, argentina, italy etc would be high growth economies. These economies are basket cases.

  50. Lurker says:

    Thats great if its you personally. Now explain the consequences of the US government being a debtor – a small matter of \$trillions.

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