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Soros and China: the Vocabulary of Neoliberal Diplomacy in Today’s New Cold War
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Mr. Soros has thrown a public sissy fit over the fact that he can’t make the kind of easy money off China that he was able to make when the Soviet Union was carved up and privatized. On September 7, 2021, in his second mainstream editorial in a week, George Soros expressed his horror at the recommendation by BlackRock, the world’s largest asset manager, that financial managers should triple their investment in China. Claiming that such investment would imperil U.S. national security by helping China, Mr. Soros stepped up his advocacy of U.S. financial and trade sanctions.

China’s policy of shaping markets to promote overall prosperity, instead of letting the economic surplus be concentrated in the hands of corporate and foreign investors, is an existential threat to America’s neoliberal priorities, he spells out. President Xi’s “Common Prosperity” program “seeks to reduce inequality by distributing the wealth of the rich to the general population. That does not augur well for foreign investors.”[1]George Soros, “BlackRock’s China Blunder,” Wall Street Journal, September 7, 2021. To neoliberals, that is heresy.

Criticizing China’s “abrupt cancellation of a new issue by Alibaba’s Ant group in November 2020,” and “banishment of U.S.-financed tutoring companies from China,” Mr. Soros singles out Blackstone’s co-founder Stephen Schwarzman (Note that Blackstone under Schwartzman is not to be confused with BlackRock under Larry Fink) and former Goldman Sachs President John L. Thornton for seeking to make financial returns for their investors instead of treating China as an enemy state and looming Cold War adversary:

The BlackRock initiative imperils the national security interests of the U.S. and other democracies because the money invested in China will help prop up President Xi’s regime … Congress should pass legislation empowering the Securities and Exchange Commission to limit the flow of funds to China. The effort ought to enjoy bipartisan support.

The New York Times published a prominent article defining the “Biden Doctrine” as seeing “China as America’s existential competitor; Russia as a disrupter; Iran and North Korea as nuclear proliferators, cyberthreats as ever-evolving and terrorism as spreading far beyond Afghanistan.” Against these threats, the article depicts U.S. strategy as representing “democracy,” the euphemism for countries with minimal governments leaving economic planning to Wall Street financial managers, and infrastructure in the hands of private investors, not provided at subsidized prices. Nations restrict monopolies and related rent-seeking are accused of being autocratic.

The problem, of course, is that just as the United States, Germany and other nations grew into industrial powers in the 19th and 20th century by government-sponsored infrastructure, progressive taxation, and anti-monopoly legislation, the post-1980 rejection of these policies has led them into economic stagnation for the 99 Percent burdened by debt deflation and rising rentier overhead paid to the Finance, Insurance and Real Estate (FIRE) sectors. China is thriving by following precisely the policies by which the former leading industrial nations grew rich before suffering from the neoliberal financialization disease. This contrast prompts the article’s thrust, summarized in its summary of what it hopes will become a Congressionally supported Biden Doctrine of escalating a New Cold War against non-neoliberalized economies, juxtaposing U.S.-sponsored liberal-democratic imperialism against foreign socialism:

Last month, Mr. Blinken warned that China and Russia were ‘making the argument in public and in private that the United States is in decline – so it’s better to cast your lot with their authoritarian visions for the world than with our democratic one.[2]Helene Cooper, Lara Jukes, Michael D. Shear and Michael Crowley, “In the Withdrawal from Afghanistan, a Biden Doctrine Surfaces,” The New York Times, September 5, 2021.

Mr. Soros had seen the ending of the Cold War open the path for him and other foreign investors to use “shock therapy” to provide easy pickings in Russia, followed by the much broader Asian Crisis of 1997 as a grab-bag opportunity to buy up the most lucrative rent-yielding assets. He is upset that President Xi is not emulating Boris Yeltsin and letting a client kleptocracy emerge in China to carve up Russia’s economy – which made Russia’s stock market the world’s darling for a few years, 1995-97.

Right after the Asia Crisis, Bill Clinton’s administration admitted China to the World Trade Organization, giving U.S. investors and importers access to low-priced labor able to undersell U.S. industrial labor. That helped stop U.S. wage gains, while China used foreign investment as a means of upgrading its technology and labor to become economically self-reliant. It has not let its monetary system or social organization become financially dependent on “markets” functioning as vehicles for the U.S. control that Mr. Soros hoped would occur when he began investing in China.

China recognized from the beginning that its insistence on maintaining control of its economy – steering it to promote overall prosperity, not to enrich a client oligarchy fronting for a foreign investor class – would create political opposition from U.S. Cold War ideologues. China therefore sought allies from Wall Street, offering profit-making opportunities for Goldman Sachs and other investors whose self-interest has indeed led them to oppose anti-China policies.

But China’s success has creating so many billionaires that it is now moving to curtail exorbitant wealth. That policy has sharply cut prices for the leading Chinese stocks, prompting Mr. Soros to warn U.S. investors to bail out. His hope is that this will bring China to heel and reverse its policy of raising living standards at the expense of sending its economic gains to U.S. and other foreign investors.

The reality is that China does not need U.S. or other foreign money to develop. The Peoples’ Bank of China can create all the money that the domestic economy needs, while its export trade already is flooding it with dollars and pushing up its exchange rate.

ORDER IT NOW

John McCain characterized Russia as a gas station with atom bombs (neglecting to acknowledge that it is now the world’s largest grain exporter, no longer dependent on the West for its food supply – thanks largely to U.S.-sponsored trade sanctions). The corollary image is the United States as a financialized and monopolized economy with atom bombs and cyber threats, in danger of becoming a failed state like the old Soviet Union but threatening to bring the entire world economy down with it if other countries do not subsidize its debt-ridden New Cold War economy.

Presenting itself as the world’s leading democracy despite its financial oligarchy at home and its support of client oligarchies abroad, the United States has consolidated financial power in the wake of the 2008 junk-mortgage and bank-fraud.

Policy making and resource allocation have passed out of the hands of meaningful electoral politics into those of the Finance, Insurance and Real Estate (FIRE) sector, and what Ray McGovern has called MICIMATT the Military-Industrial-Congressional-Intelligence-Media-Academic-Think Tank complex, including the major foundations and NGOs. These institutions seek to concentrate income and wealth in the hands of a FIRE-sector oligarchy just as the Roman Senate blocked reform with veto power over popular legislation, and Europe’s upper houses of parliament such as Britain’s House of Lords used similar chokehold power to resist government control in the public interest.

The rise of U.S.-sponsored neoliberalism means that the 19th-century’s fight to free markets from predatory finance sponsoring rentier parasitism and has failed. This failure is celebrated as a victory for the rule of law, democracy, property rights and even free markets over the authority of public power to regulate private wealth-seeking. Integrating the global economy along unipolar lines enabling U.S. financial interests and those of allied NATO economies to appropriate the most profitable and highest rent-yielding assets of foreign countries is idealized as the natural evolution of civilization, not as the road to neoliberal serfdom and debt peonage embodied in what U.S. officials call the Rule of Law.

What is the Rule of Law?

The United States refuses to join the World Court, or any international organization in which it does not have veto power. And it simply withdraws from international treaties and agreements that it has signed if its vested interests believe that these no longer serve their interests. This always has been U.S. policy, from the many treaties with Native American tribes broken by Andrew Jackson and his successors down through the U.S.-Soviet agreements ending the Cold War in 1991 broken by Bill Clinton to the treaty removing sanctions on Iran broken by Donald Trump. This policy has introduced a new term into the world’s diplomatic vocabulary to describe U.S. diplomacy: non-agreement-capable.

The evangelistic neocon administration of George W. Bush , effectively run by his Vice President Dick Cheney, followed the principle that “We’re an empire now, and when we act, we create our own reality.”[3]Ron Suskind, “Faith, Certainty and the Presidency of George W. Bush,” New York Times Magazine, October 17, 2004, quoting Bush-Cheney strategist Karl Rove. To impose this reality on other countries, U.S. “intelligence” is selected, invented or censored to give the appearance of whatever reality is deemed to serve U.S. interests at any given moment of time. Past and present reality is redefined at will to provide a guide for action. Whatever U.S. diplomacy dictates is claimed to reflect the rule of law, giving the United States the right to definite what is legal and what is not when it imposes economic and military sanctions against countries that do not follow pro-American policies. The resulting dictates laying down the law are always wrapped in the rhetoric of free markets and democracy.

What is a free market?

To the classical economists, the objective of 19th-century reform was to replace the rentier class’s political power with democratic power to create state policies to either tax away land rent and other economic rent, or to take (return) land, natural resources and natural monopolies such as transportation, communications and other basic infrastructure needs to the public domain. A free market was defined as one free from economic rent – the land rent imposed by heirs of the feudal warlord landlord class, whose economic role was purely extractive, not productive. Natural resource rent was said to belong to the public domain as national patrimony, and monopoly rent was to be prevented by keeping natural monopolies in the public domain, or firmly regulating them if privatized.

The 20th century’s anti-classical reaction has inverted the concept of a free market, Orwellian Doublethink style, to create one “free” for rent-seekers to carve out free-lunch rent income. The result is a rentier economy in which land, natural resources and natural monopolies are privatized and, in due course, financialized to turn rent into a flow of interest payments to the financial sector as the economy is driven into debt to afford the rentier overhead and debt-financed asset-price inflation for rent-yielding assets.

The “freedom” of such markets is freedom from governments to tax away economic rent and regulate prices to limit rent extraction. An exponential growth of unearned rentier income and wealth in the hands of a sector diverts income away from the “real” production-and-consumption economy.

As for free trade, the United States also retains the right to impose tariffs at will (euphemized as “fair trade”) and levy fines and sanctions to prevent companies from being free to sell technology to China. The aim is to concentrate technological monopolies in U.S. hands. Any “proliferation” of technology (which is treated much like nuclear weaponry as a national security issue) is deemed to be “unfair” and antithetical to U.S. freedom to control the world’s trade and investment patterns in its own interest.

This attempt to promote “free markets” and “fair trade” is defended by U.S. claims to protect democracy against autocracy, and to intervene throughout the world to promote Free World members defined ipso facto as being democratic simply by virtue of being U.S. allies. Today’s New Cold War is all about maintaining and extending such a captive U.S.-oriented “free market” by force, from Henry Kissinger’s coup in Chile to impose Chicago-style “free markets” to Hillary Clinton’s coups in Ukraine’s Maidan and Honduras and her NATO-backed destruction of Libya and assassination of Qadhafi.

What is democracy?

ORDER IT NOW

Aristotle wrote that many constitutions appear superficially to be democratic, but actually are oligarchic. Democracy always had been the deceptive euphemism for oligarchy making itself into a hereditary aristocracy. Democracies tend to evolve into oligarchies as creditors expropriate debtors (the “rule of law” guaranteeing a hierarchy of “property rights” with creditor claims at the top of the legal pyramid).

The move toward democratic political reform in the late 19th and early 20th century was supposed to create rent-free markets. But the dynamics of political democracy have been managed in a way that blocks economic democracy. The very meaning of “democracy” is degraded to mean opposition to the government’s power to act against the oligarchic rentier One Percent on behalf of the 99 Percent. The resulting travesty of a democratic free market serves to block political attempts to use public power to promote the interests of the wage-earning population at large, and indeed of the industrial economy itself to avid financial asset stripping and debt deflation of markets.

In the language of international diplomacy, “democratic” has become a label for any pro-U.S. regime, from the Baltic kleptocracies to Latin America’s military dictatorships. Countries using state power to regulate monopolies or to tax rentier income are denounced as “autocratic,” even if they have elected heads of state. In this new Orwellian rhetoric of international diplomacy, Boris Yeltsin’s kleptocratic Russian regime was democratic, and the natural move to stop the corruption and depopulation was called “autocracy.”

What is autocracy and “authoritarianism”?

Foreign moves to defend against U.S. financial takeovers and sponsorship of client oligarchies are denounced as authoritarian. In the U.S. diplomatic vocabulary, “autocracy” refers to a government protecting the interests of its own population by resisting U.S. financial takeover of its natural resources, basic infrastructure and most lucrative monopolies.

All successful economie throughout history have been mixed public/private economies. The proper role of government is to protect economies from a rentier oligarchy from emerging to polarize the economy at the expense of the population at large. This protection requires keeping control of money and credit, land and natural resources, basic infrastructure and natural monopolies in the hands of governments.

It is oligarchies that are autocratic in blocking reforms to overrule their rent-seeking by keeping basic needs and infrastructure in the public domain. To confuse understanding, Rome’s oligarchy accused social reformers of “seeking kingship,” much as Greek oligarchies accused reformers of seeking “tyranny” – as if their reforms were merely for personal gain, not to promote general prosperity. The resulting Orwellian Doublethink is woven into the rhetoric of neoliberalism.

What is neoliberalism?

Neoliberalism is an exponentially expanding financial dynamic seeking to concentrate the world’s most profitable and highest rent-yielding resources in the hands of financial managers, mainly in the United State and its client oligarchies that act as proconsuls over foreign economies.

The liberal mass media, academia, and “think tank” lobbying institutions, policy foundations and NGOs sponsor the above-described rhetoric of free markets to create vehicles for capital flight, money laundering, tax evasion, deregulation and privatization (and the corruption that goes with emerging kleptocracies). Neoliberal doctrine depicts all public moves to protect general prosperity from the burden of rentier overhead as being authoritarian autocracy “interfering” with property rights.

What are property rights?

In today’s financialized economies “property rights” means the priority of creditor rights to foreclose on the housing, land and other property of debtors. (In antiquity that included the personal freedom of debtors condemned to debt bondage to their creditors.)

The World Bank has promoted such creditor-oriented property rights from the former Soviet Union to Latin American indigenous communities in order to privatize hitherto communal or public property, including land occupied by squatters or local communities. The idea is that once communal or public property is privatized as individual rights, it can be pledged as collateral for loans, and duly forfeited or sold under economic duress.

The effect is to concentrate property in the hands of the financial sector. That in turn leads inevitably to a failed austerity-ridden economy.

What is a failed economy?

Economies fail because of the rising power of vested interests, primarily in the Finance, Insurance and Real Estate (FIRE) sector that control most of the economies assets and wealth. A failed economy is one that cannot expand, usually as a result of becoming burdened by rising rentier overhead in the form of land rent, natural-resource rent and monopoly rent as the financial sector replaces democratically elected governments as central planner and resource allocator.

The FIRE sector is a symbiosis between finance and real estate, along with insurance. Its business plan involved a highly political dimension seeking to centralize control of money and credit creation in hereditary private hands, and to turn this economic rent. “free” from taxation, public collection or regulation, into a flow of interest. The effect of lending primarily to buyers of assets, which are pledged as collateral for loans, is not to create new means of production but to inflate asset prices for property already in place.

The resulting finance-capital gains have become the easiest way to acquire fortunes, which take the form of rent-extracting claims on the economy, not new means of production to support “real” economic prosperity and rising living standards.

Financialized economies are doomed to become failed states because the exponentially growing expansion path of debt accumulating at compound interest plus new credit creation and “quantitative easing” far exceeds the economy’s underlying growth rate of producing goods and services to carry this burden. These financial dynamics threaten to doom the U.S. and its satellite economies to become failed states.

The underlying question is whether Western civilization itself has become a failed civilization, given the roots of its legal system and concepts of property rights in oligarchic Rome. Rome’s polarized economy led to a Dark Age, which recovered by looting Byzantium and subsequently the East and new conquest of the New World and East and South Asia. For the past twenty years it has been China’s socialist growth that has primarily sustained Western prosperity. But this dynamic is being rejected, denounced as an existential threat precisely because it is successful socialism, not neoliberal exploitation.

ORDER IT NOW

In times past there always was some part of the globe to survive and carry on. But Super Decadence occurs when the whole world is being dragged down together, with no region able to resist the polarizing and impoverishing rentier dynamics imposed by the militarized imperial core. Following the U.S. lead, the West is cutting itself off from survival. Rejection of neoliberalism by China and other members of the Shanghai Cooperation Organization (SCO) is met by U.S. trade and financial sanctions whose self-defeating effect is to drive them together to create a state regulatory system (“autocracy”) to resist dollarization, financialization and privatization. That is why they are being isolated as an existential threat to the dynamics of neoliberal rentier decadence.

The Alternative

It does not have to be this way, of course. China is defending itself not only by the productive industrial and agricultural economy its socialist government has sponsored, but by a guiding concept of how economies work. China’s economic managers have the classical concepts of value, price and economic rent, that distinguish earned from unearned income, and productive labor and wealth from unproductive and predatory financial and rentier fortunes.

These are the concepts needed to uplift all society, the 99 Percent rather than just the One Percent. But the post-1980 neoliberal reaction has stripped away from the Western economic vocabulary and academic curriculum. The present economic stagnation, debt burden and locked-in zero interest rates are a policy choice by the West, not a product of inevitable technological determinism.

Notes

[1] George Soros, “BlackRock’s China Blunder,” Wall Street Journal, September 7, 2021.

[2] Helene Cooper, Lara Jukes, Michael D. Shear and Michael Crowley, “In the Withdrawal from Afghanistan, a Biden Doctrine Surfaces,” The New York Times, September 5, 2021.

[3] Ron Suskind, “Faith, Certainty and the Presidency of George W. Bush,” New York Times Magazine, October 17, 2004, quoting Bush-Cheney strategist Karl Rove.

 
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  1. Realist says:

    It does not have to be this way, of course. China is defending itself not only by the productive industrial and agricultural economy its socialist government has sponsored, but by a guiding concept of how economies work. China’s economic managers have the classical concepts of value, price and economic rent, that distinguish earned from unearned income, and productive labor and wealth from unproductive and predatory financial and rentier fortunes.

    Yes, plus China’s seeming commitment to meritocracy, will make it the number one nation on the planet…soon.

    Excellent article.

  2. Mr. Soros has thrown a public sissy fit over the fact that he can’t make the kind of easy money off China that he was able to make when the Soviet Union was carved up and privatized.

    Not that I necessarily disagree with Hudson about China’s economic decisions, and about the worth of Soros’ advice. But I don’t think it is reasonable to accuse a 91-year-old billionaire of acting and emitting opinions out of greed. That’s strictly for the 9-year-olds.

    • Replies: @Notsofast
    , @derer
  3. TG says:

    Indeed, well said.

    But don’t forget Ma Yinchu.

    https://en.wikipedia.org/wiki/Ma_Yinchu

    China is moderating population growth, in order make it possible to accumulate per-capita wealth (it’s not so much the number of people, as the rate of increase).

    Meanwhile the West is working feverishly to boost population, to drive wages down and rents and profits up.

    China is following Ma Yinchu and John Maynard Keynes and Alexander Hamilton. The United States is following Julian Simon and Milton Friedman and George Soros. I wouldn’t bet against China.

    Yes, finance and debt. But never forget demographics, because all economies are first and foremost real people doing real things, and basically no economy without an open frontier has ever become prosperous when people who could maybe support two kids each instead all have seven.

    When the rich decide to treat people like cattle, when they force population growth up beyond what the people – left to themselves – would have thought appropriate, the result is basically never good for the average person.

  4. Realist says:
    @TG

    When the rich decide to treat people like cattle, when they force population growth up beyond what the people – left to themselves – would have thought appropriate, the result is basically never good for the average person.

    But the people allow themselves to be treated like cattle.

    • Agree: Arthur MacBride
    • Replies: @RoatanBill
    , @anon
    , @Weaver
  5. Notsofast says:
    @Brás Cubas

    what makes you think that billionaires don’t act like petulant foot stamping 9 year old spoiled brats? from my observations they all do, regardless of their chronological age. they should all be spanked with a barbwire wrapped baseball bat until they learn some manners, imho.

    • Replies: @Brás Cubas
  6. Chris Moore says: • Website

    Criticizing China’s “abrupt cancellation of a new issue by Alibaba’s Ant group in November 2020,” and “banishment of U.S.-financed tutoring companies from China,” Mr. Soros singles out Blackstone’s co-founder Stephen Schwarzman (Note that Blackstone under Schwartzman is not to be confused with BlackRock under Larry Fink) and former Goldman Sachs President John L. Thornton for seeking to make financial returns for their investors instead of treating China as an enemy state and looming Cold War adversary:

    The problem, of course, is that just as the United States, Germany and other nations grew into industrial powers in the 19th and 20th century by government-sponsored infrastructure, progressive taxation, and anti-monopoly legislation, the post-1980 rejection of these policies has led them into economic stagnation for the 99 Percent burdened by debt deflation and rising rentier overhead paid to the Finance, Insurance and Real Estate (FIRE) sectors. China is thriving by following precisely the policies by which the former leading industrial nations grew rich before suffering from the neoliberal financialization disease. This contrast prompts the article’s thrust, summarized in its summary of what it hopes will become a Congressionally supported Biden Doctrine of escalating a New Cold War against non-neoliberalized economies, juxtaposing U.S.-sponsored liberal-democratic imperialism against foreign socialism:

    Psychotically greedy ((Jews)) like Soros are at odds with insatiably greedy ((Jews)) like Schwartzman and Fink.

    Soros wants to see ALL of the money (except some crumbs for goyim) in the hands of his international Zionist gang before he dies, whereas Fink and Schwartzman will settle for 95%. In Soros psychotic mind, this makes them “appeasers.”

    Notice how Soros resides on the “humanitarian” left? ((Jews)) always define themselves as the opposite of what they truly are. It’s a trick, they always use it, e.g. calling themselves “persecuted victims” of a “Holocaust” when in fact they were Marxist “chosen vanguard” aggressors who perpetrated a ((commie)) holocaust against the human race, and are attempting to leverage Israel into police state headquarters (the Zionist “iron rod”) over the world.

    Inglorious Judeofascist bas-turds. Hitler did nothing wrong except in the fevered Judeofascist minds of ((Hollywood)) and ((MSM)), and the corrupt political class. And in the psychotic minds of billionaires like ((Soros)). Hitler’s true “crime”? Socialism of the type described by Hudson. You know, the kind of socialism that made America great.

    That’s why ‘America First’ Americans are “deplorable” and “terrorists” according to the liberal political class and to racist neocon “War on Terror” architects like George W. Bush and his ((Jewish)) partners in crime.
    https://www.rt.com/usa/534596-george-w-bush-911-speech/

    • Agree: Daniel Rich
    • Replies: @niteranger
  7. Rubicon says:

    Dr. Hudson wrote:
    “The reality is that China does not need U.S. or other foreign money to develop. The Peoples’ Bank of China can create all the money that the domestic economy needs……”

    Hold on, Dr. Hudson!! IF China doesn’t need foreign money, then why in the world, would they allow BLACK ROCK – to be a part of their “business?”

    Are you kidding me??? Black Rock and its CEO is one of the largest, most powerful hedge funds in THE WORLD!! For those, “in the know” Black Rock is one of THE most treacherous thieves here on Planet Earth.

    WHY would China dare do business with this evil bohemoth: Black Rock?
    Can someone here answer that question?

  8. reading says:
    @Rubicon

    I’m a machine translation reader. My English is not good. I’m sorry.

    Because Blackstone is one of the princes of the American Empire. China as a tribe under imperial rule. One of the princes must be chosen as master.

    If it satisfies all the knights of the empire, big and small. You’d be a whore with a venereal disease. He will soon die of illness.

    So he could only choose one prince as his mistress. This drug is in a better position… So Blackstone is the owner of China

    • Replies: @Anonymous
  9. reading says:
    @Rubicon

    In 1839 China refused to trade poison with the Jewish princes of the British Empire. The Family of jewish princes lobbied the British Parliament for war.
    Opium in jewish families mainly has: sassoon, kadoorie, fathers, Abraham, Solomon, Ezra, eagle, sea, symex family, also is one of the most famous sassoon family, and since 1840, the opium of the jews business gradually dominated by sassoon family, also become the world’s biggest drug cartels
    So doing business with the American Empire was a reward for the imperial princes. The tribe is in no position to refuse. Otherwise there will be aircraft carriers with radioactive missiles coming to salt your tribe and the tribe will have to choose between being raped by all the nobles or by a few princes.

    • Replies: @Ktulu
  10. @Realist

    Lets face reality. Most people are cattle when viewed from their intellectual capacity.

    • Replies: @skrik
    , @Curmudgeon
  11. @Notsofast

    I wasn’t clear enough, perhaps: I meant to say that the explanation Hudson gives will only satisfy 9-year-olds.
    All the same, your reply doesn’t address the point at issue, namely, Soros’ alleged greed motive; being petulant and stubborn is not the same as being greedy.

    • Replies: @Notsofast
  12. @TG

    But don’t forget Ma Yinchu.

    https://en.wikipedia.org/wiki/Ma_Yinchu

    China is moderating population growth

    Was Officially moderating population growth. In 2015 the 1979 one child policy was changed to a two child policy to no effect, which might support your position, and on May 31st to a three child one.

    • Replies: @frankie p
  13. Notsofast says:
    @Brás Cubas

    thanks for clarifying your position, i believe that mr. hudson was pointing out soros seems to feel that he should be able to direct public policy as a private individual because he is so rich and powerful and obviously more intelligent than the rest of us. when he doesn’t get his way he throws a hissy fit because if china is allowed to eliminate rent seeking vermin like him and the other spoiled brat billionaire scumbags the rest of the world might realize that we do not need these parasites and in fact would be better off without them. slowly the tide seems to be turning with soros becoming persona non grata in russia, hungry, and now china.

    • Agree: derer, St-Germain
    • Replies: @Brás Cubas
  14. @Notsofast

    China and Soros are doing the same thing, from opposite ends of the ideological spectrum: both are placing ideology before immediate profit. Soros writes as a Liberal, and China is acting illiberally.
    Only time will tell who is right.

    • Replies: @Notsofast
  15. Notsofast says:
    @Brás Cubas

    can’t agree with you on that but from the look of soros, time is on china’s side.

    • LOL: Biff
    • Replies: @Bill Jones
  16. Soros wrote:

    ‘To put it bluntly, I fancied myself as some kind of god…as I made my way in the world, reality came close enough to my fantasy to allow me to admit my secret. Needless to say, I feel much happier as a result.’
    https://www.dailymail.co.uk/news/article-5370079/GUY-ADAMS-George-Soros-broke-Bank-England.html

    He really is a person for these days when it seems the dark powers are reaching their zenith. Soros, the Rothschilds and Pope Francis, who all met recently, are perhaps in their own minds only doing tikkun olan but for whose benefit in reality?

    The burning of Notre Dame seems also like a symbol for old Europe.

  17. frankie p says:
    @That Would Be Telling

    We should be clear that increasing the “child policy” from one to two to three will not have the desired effect, and the CCP will implement additional policies to stimulate population growth. The CCP has shown itself to be remarkably agile and flexible in moving from research and analysis to policy implementation. I expect the encouragement to begin with policies similar to those we see in Orban’s Hungary, with large tax forgiveness for families that produce three or four children. I don’t think it will stop there, and it will be interesting to observe how the CCP provides incentives to families to procreate more in today’s modern China.

    • Agree: showmethereal
    • Replies: @Mefobills
  18. Ktulu says:

    I think the truth is these (((rentiers))) think that they can pull off another Waterloo moment, where in a period of chaos allowed them to buy up British stocks at low prices and indebt the world’s global power at the time to them. They seem to think they can keep moving, burning, destroying, and then moving again, and there is precedent for that. 109 precedents.

    Trouble is, from my perspective of irrelevant white peasant at least and if some high priest of finance disagrees go ahead and try to correct me, while these (((rentiers))) had banks and ethnic connections all over Europe and were able to easily play the political classes of Europe against one another, they are less established in China and the Chinese are an intelligent and observant group of people. If I, the white peasant, can tell what the (((rentier’s))) plan is, I certainly suspect powerful Chinamen tasked with understanding the situation know what the (((rentier’s))) plan is, and like hudson said, they don’t need foreign finance. They owe nothing to the (((rentier’s))), they own all the real assets, and the (((rentier’s))) attack dog is currently suffering the early signs of a total psychotic break.

    I think it’s time for the yellow man to reign. They earned it I suppose. The (((rentiers))) will shriek and cry about how unfair it all is and might even try pushing their pathetic excuse for an attack dog at them but the options at this point are really lose and face the growing wrath of us angry Kulaks or lose and be vaporized while vaporizing the yellow man out of spite. Either way, it seems their time is up.

    • Agree: Bro43rd
  19. Brilliant article.
    And China does not need western investment anymore. And I do suspect that China is now in buyback mode. And lets not forget that China can now easily play with prices of stocks.
    It is not nice, but than why not.

  20. Ktulu says:
    @reading

    China can literally just nuke Israel though, they have their own atom bombs, and as a matter of fact they could almost certainly stand their ground against a full scale conventional attack from the west. Why do they allow investment from black rock? I can’t be certain but it certainly could be a trick. Right now their enemies are arguing over what to do, Soros and Black Rock are having a suprisingly public disagreement. Imagine they suddenly cut off Black Rock from investing. Suddenly their preference has been revealed, no more need for Soros and Black Rock to argue, they know China’s position. If Black Rock totally bought into China and America burned, the Chinese could literally just nationalize whatever shares of the economy black rock has in china and rip larry fink limb from limb with a team of horses of they please, without force ownership is irrelevant.

    Completely unrelated: black rock and black stone are different. Rock and stone have the same definition in English but are clearly different words. Confusing but necessary to know as a foreigner using machine translation.

    • Replies: @reading
    , @Zarathustra
    , @d dan
  21. Ghali says:

    Soro’s Photo above is 20 years old. It is important to show what the devil looks today.

    • Replies: @Exalted Cyclops
  22. Rambam says:

    “(Note that Blackstone under Schwartzman is not to be confused with BlackRock under Larry Fink)”

    Blackstone, BlackRock, it’s still ROCKefeller to me. Might be a song in there.

    Or perhaps you’re saying all investment firms are run by Jews and we can’t tell them apart?
    That sounds like anti-semitism or something even worse, if that were possible.

    Still waiting for Soros to quit writing editorials and get out in public to speak to his fan base.
    Heck, Stephen Hawking did it after he was dead.

    Shalom

  23. JWalters says:

    Another excellent, insightful article from Michael Hudson. It’s no wonder he’s never invited onto the oligarchy’s corporate media to discuss economics.

    I would like to see Mr. Soros analyze the financial structure of the Wall Street & City of London criminal enterprises. And their ties to the crimes of Israel. Somehow that seems to escape his erudite radar. ???

    • Agree: JWalters
  24. @Chris Moore

    Hudson will never mention the Jews. He’s part of the same crowd who believes we have a “real economy” not controlled by the Jews. Soros has basically destroyed Europe with his manipulation of currencies. Soros was behind the Antifa and Black Lives Matter riots and overthrow of Trump’s administration.

    All economies go through the Jews and the International Banking Cartels. Only fools believe we have any control over our own economy. China knows better!

  25. anon[164] • Disclaimer says:
    @Realist

    Being treated like livestock is a religious experience to many; e.g., “Feed my sheep.” Bring back damnatio ad bestias.

  26. Biff says:

    The corollary image is the United States as a financialized and monopolized economy with atom bombs and cyber threats, in danger of becoming a failed state like the old Soviet Union but threatening to bring the entire world economy down with it if other countries do not subsidize its debt-ridden New Cold War economy.

    So many inside the bubble just can’t see it – so it continues.

  27. Great article, eloquently and succinctly outlining the key problems and issues at hand (never mind a couple of distracting typos).

    I especially liked the brief discussions on the change of meaning to which some terms have been subjected since the 1980s.

    One might add a few sentences to the comments wrapping up this article, referring to the fact that language itself is being destroyed. When words lose their meaning or when their meaning actually becomes the opposite of the reality they seemingly indicate, total confusion and chaos will be the necessary outcome.

    We are currently seeing the same process at work (in concentrated and accelerated fashion) in the great Covid-show. All over the world, hospitals are now being converted into death camps, doctors into murderers.

    When words lose their meaning, language itself becomes meaningless, and violence is just around the corner. No matter how you turn it, we are in the initial stages of a systemic collapse, only partially engineered, of which the outcome is impossible to discern with any precision.

  28. Anonymous[240] • Disclaimer says:
    @reading

    So Blackstone is the owner of China

    Actually . . . NO.

    To China, Blackstone is just another investor. Investors bring in money. Chinese really love money, so Blackstone is welcome. But the control is always in Chinese hands.

    In China, Chinese are ALWAYS in control. Outsiders can make money, A LOT of money. But money in China brings no power. This has historically been frustrating for outsiders who want to control things in China.

    In fact, so frustrating that the only solution for outsiders (British, French, Germans, imperial Russians, Americans, Japanese) is open warfare – because bribing, shaming, converting, or even marrying Chinese simply never works.

    But China is now back to its usual position in human history – extremely powerful and probably soon (not quite yet) at the top.

    War against China? This is suicide for anybody. Because not only is China in fact the largest economy, and growing fast, and not only is China a very cohesive tribe with a very strong state; they also spend so very little on defense (barely 2% of their GDP), and yet the U.S., NATO and Japan are already VERY hesitant to attack. China also has powerful friends – Russia, for one.

    If a relaxed China is not threatened by a tense collective West, who do you think will be standing after 100 or 200 years of a Cold War? The intense pressure is not on China to attack first, it’s on the collective West.

    “We” (I don’t support my government) must strike very soon to have any chance. In fact, even now, I think IF the West attacks, we will only reveal how powerful China really is. If the West doesn’t attack, China will just sit back, and grow.

    Even if the entire collective West unites (which it will not – Europe is already starting to distance itself from the U.S.), it cannot strong-arm China at this point.

    • Agree: showmethereal, vox4non
    • Replies: @The_MasterWang
    , @derer
  29. barr says:


    rental income, linked to the control of natural resources, property, financial assets and intellectual property, has become a dominant force in the global economy.

    This is the age of rentier capitalism;

    These days, rental income is mainly derived from “contrived scarcity.” This is explained by the Lauderdale Paradox, named after the eighth Earl of Lauderdale, who in 1804 observed that as private riches grew, public wealth fell. This is because the more the rich own, the more they can limit the availability for others, driving up the price. Today, such contrived scarcity has become pervasive and global, which is paradoxical, since globalization should have resulted in a surge of extra goods and services.

    Through the spread of trademarks, trade secrets, copyright and, above all, patents, intellectual property has become a key source of rental income. The number of patents registered annually has exploded. Patents are supposed to enable inventors to obtain a return on risky investment, but what qualifies as an invention has been diluted to the point that trivial tweaks designed to block competition can be patented.

    for example, a breast cancer gene) that should not qualify as inventions at all. But they allow many more activities to generate rental income.

    Where money goes, patents follow. In 2011, China topped the league table for total patent filings for the first time, ahead of the United States. Foxconn, the world’s biggest employer, with over 1.4 million employees, has registered more than 12,000 patents. Significantly, there has also been a big increase in the number of Chinese patent applications filed abroad, signaling their rising value.”

    http://america.aljazeera.com/opinions/2014/9/the-age-of-rentiercapitalism.html

  30. Sarah says:

    The meaning of the word democracy has been diverted and perverted by the US :

    ”U.S. strategy as representing “democracy,” the euphemism for countries with minimal governments leaving economic planning to Wall Street …. Nations restrict monopolies… are accused of being autocratic.

    Presenting itself as the world’s leading democracy despite its financial oligarchy at home and its support of client oligarchies abroad,…

    The United States refuses to join…any international organization in which it does not have veto power. And it simply ..agreements that it has signed if its vested interests believe that these no longer serve their interests.

     

    Whatever U.S. diplomacy dictates is claimed to reflect the rule of law, giving the United States the right to definite what is legal and what is not when it imposes economic and military sanctions against countries that do not follow pro-American policies…always wrapped in the rhetoric of free markets and democracy.

    This attempt to promote “free markets” and “fair trade” is defended by U.S. claims to protect democracy against autocracy, and to intervene throughout the world to promote Free World members defined ipso facto as being democratic simply by virtue of being U.S. allies.

    In the language of international diplomacy, “democratic” has become a label for any pro-U.S. regime, …

    Fake-democracy.

    • Agree: skrik
  31. Last month, Mr. Blinken warned that China and Russia were ‘making the argument in public and in private that the United States is in decline – so it’s better to cast your lot with their authoritarian visions for the world than with our democratic one.

    “Democratic.” Wear your masks everywhere goyim, even in the shower. Take the free, safe vaccine or starve. Oh, and watch out for China! Unlike the fraudsident biden brand they’re openly communist!

  32. onebornfree says: • Website

    Article ummary:

    a Marxist “economist” ( ie an admitted anti- free market idealogue) , blathers on, (as per usual ) , about the equally anti- free market economic policies of the likes of 100% criminal persons and entities such as Xi, Soros,and the US government, as if there is a dimes worth of difference between _any_ of them, including Hudson himself.

    What a joke. And so it goes….

    “Regards” onebornfree

    • Agree: Dystopian, Bro43rd
    • Replies: @Dystopian
    , @Mefobills
  33. Michael expresses much of my feelings about the current state of politics and the economy. However I believe the planet as a society has experimented a huge expansion in technology, science and in the well being of the people since the 1980’s. This has resulted in an increase in the global population, the financial gains and a reduced influence of the US on world affairs. This may not be apparent in the US which is in stagnation, but it is visible in Asian countries. Such an expansion should be followed by a quieter period where a new class of politicians and new social avenues will emerge.

    Currently, Soros is a voice from the past.

  34. Che Guava says:

    ‘Biden’ doctrine is more appropriate than ‘Biden doctrine’.

  35. Michael Hudson’s grasp of history and the interplay of economics and politics is second to none, thanks for featuring his works.

    “Aristotle wrote that many constitutions appear superficially to be democratic, but actually are oligarchic. Democracy always had been the deceptive euphemism for oligarchy making itself into a hereditary aristocracy.”

  36. skrik says:
    @RoatanBill

    Most people are cattle when viewed from their intellectual capacity

    Unfair on cattle! A farmer near where I live has 50 dairy-cows, most of which can understand and intelligently use a rotating brush, they know how to trigger it and then move around to scratch at their itches. The other day I noticed one ‘kneeling’ to get at some grass under a low fencing-wire. There were 5 on a track I was walking along; a few approached me as if I had something to give them; I said “Kindly move aside, boys” and they did.

    Try that on a Simpsons’ couch full of US-TV-watchers. rgds

    • Replies: @Weaver
  37. Weaver says:

    I like the article. One point, China can certainly benefit from “US money.”

    It’s akin to moving a factory from the US to China, training Chinese to run it, and then having them run it and sell to the US in exchange for raw materials.

    We supply the materials; China protects its technological advantage, skills advantage, economy of scale. As a result, Chinese labour could become significantly higher priced than US labour, one day.

    • Replies: @Mefobills
  38. Hudson should look at Evergrande’s issues and offer advice to the CCP’s financial regulators to avoid a 2007-08 like crisis!

  39. Weaver says:
    @Realist

    Belloc warned we’re headed for a return to servitude, unfortunately the natural state of man. And if “servitude” isn’t wanted, can replace with whatever preferred word.

    Those in power aren’t necessarily the most meritorious or even strongest in a fair competition. They’re just the strongest at some point. In our society, we tend to promote those who are skilled managers to manage the US, but these people also need to not ask the wrong questions.

    So, it could be beneficial to not be too smart, in the US, at least if wanting to be promoted up the managerial ladder. We then develop a mythos around those who ascend up, praise them; but the US seems to promote the inept and the corrupt.

  40. reading says:
    @Ktulu

    Why is it so easy for you to say atomic bomb? The responsible decision-making level can maximize the peace of course to strive for! China accepted blackstone’s investment, of course, because Prince Blackstone’s terms were lenient. Prince Thoros is too brutal. They plunder even their own people. Most people can benefit from peace if China rejects all financial princes. Then all the princely bred MPS will be jumping up and down in Parliament agitating for war. There will be no capable opposition to interfere. Only the princes of the financial robbery syndicate will not benefit from peace. Blackstone has invested in China. It won’t burn America.. Because The Blackstone Prince is privately owned. His investment in China is like buying a house for rent. If the American people don’t want Blackstone to invest in China then they have to eat Blackstone. This seems to violate the principle of inviolability of private property… As for China’s reneging on the contract, anything has a chance. Of course, Blackstone decided to do it because it thought it had a good chance. Do you think Prince Blackstone is a fool? A prince who can roll such a large snowball of wealth is no gentleman. They are one of the masters of America.. Can get Congress to call in all the soldiers. Encourage all vassal knights/NATO to launch all missionary media channels to begin jihad for democracy and freedom… China can surrender to Prince Blackstone. Prince Blackstone can also pick promotion agents. Corruption eats away at Chinese society. These are games. Not everything ends in a duel.

  41. Maddaugh says:

    This Soros fellow is a nutball. The man is 91 years old and worth \$86B. The majority of us here on UR would be happy with \$1M. Its an individual thing but beyond a certain point the additional dollars do not enhance lifestyle. You can only wear one set of clothes, live in one room of a house and drive one car and eat so many steaks and lobsters.

    I hear that Terminator Arnold has 18 cars. What does he do in the morning, draw straws to choose which one to use. I see people in the mall dressed like shit, buying more clothes. I have colleagues with huge houses they rarely live in. One guy I worked with has his guest room, his room and basement filled with clothes and shoes he has never worn, with the original tags still attached. Its sheer madness !
    When will Soros be satisfied ? When he has \$100B, \$110B ? And to what end will his life be a happy and satisfactory one? He looks like the most miserable and despicable man on planet earth. People tell me “well its not the money, its the power” others “well its not really the money but the amount. Its the score card”

    I say whats the point ? \$86B and you are hated ? \$86B and like Howard Hughes probably locked away in some dismal mansion day in and day out ?

    I say this is financial gluttony. It is sheer, shameless greed for more and more. What must it do to the Soul / Look at Soros face and there you have the answer. In my opinion it is not the money, the power or the score card. It is a deep psychological sickness and Soros is a living example of how it rots a man’s soul.

    • Agree: GMC, CelestiaQuesta
    • Replies: @showmethereal
  42. Weaver says:
    @skrik

    From what I’ve seen, the managers who run the US are little more than cattle. They have some skill at managing us, but, to give an example, Biden was mocked even before he went senile. The waste and failure in US foreign policy is legendary. We daren’t audit the Federal Reserve. Healthcare costs are rocketing upwards along with education. The Chamber of Commerce seems to believe the US can import tens of millions, perhaps hundreds of millions, of foreigners without endangering their capital investments.

    Everyone wants to declare how superior he is, but the US system as a whole doesn’t work well right now. It’s not just the politicians.

    I don’t think “communism” is then the greatest form of government. As Aristotle noted, government forms change, from one to another. As such, an ideological war is futile, meaningless. But it’s sad to see our country fall so rapidly from being the sole surviving economy post-WWII with a large middle class to what we have today: a collapsing empire overrun by foreigners and corruption.

    All we have for solutions, on all sides of the spectrum, are people pointing at others saying, “they be dumb.”

    Since much of Asia is rising, I assume people will look to what Asia has done right for solutions. They won’t be looking here, not for a time, until things change once again.

    • Replies: @skrik
  43. @Ktulu

    It is not so simple. China still needs US as a customer. China cannot nationalize anything.
    If China would start to nationalize, there would be trade war with US. China would loose.
    What China can do is to decrease the production of companies with majority of foreign investment.
    Profits of those companies will decline, so also will decline yields on stocks. so the value of stocks will decline. Those stocks will be on sale. Than China would buy the stocks, and then increase the production to normal.

  44. Dystopian says:
    @onebornfree

    If the choice is between two tyrannies, I choose none of the above.

  45. Our problem as White people is that the Jews have made criminal financial activity legal. The Jews are like Gypsies with better intelligence, but they are just as much a criminal subculture. They are now in charge. It’s as if the mafia is the most powerful institution in the U.S.
    And make no mistake; the Jews are NOT Whites. Jews are the self-declared enemies of Whites. They need to be dispossessed and expelled along with their weaponized nonWhite foot soldiers. That will have to include our own domestic Blacks who have been in America since the 17th Century, and yet are still violent, stupid, third-world savages.
    None of this will be pleasant, but it will happen.

  46. skrik says:
    @Weaver

    They won’t be looking here, not for a time, until things change once again

    ‘They’ won’t be looking anywhere [there will be no change]; there’s no impetus, Newton’s 1st: “an object at rest will stay at rest.” Some idiot suggested ‘the end of history,’ I posit ‘the end of the enlightenment.’ Hudson describes it well; any/all objects, functions etc. are to be privatised = ‘fee for service,’ meaning all derived income is grabbed by the purchasers, and the customers – that’s mainly us, we the people, pay through the nose. Simple really, i.e. medicine for profit yields profit before health, the worst example.

    Neoliberalism did not spontaneously appear; AFAIK, putative origin was Uni of Chicago, but it was *ordered* by the psychopathic, tyrannical *unelected* ‘rulers’ – a covert-cabal within the ZUSA rogue-regime(s). rgds

  47. Mefobills says:
    @frankie p

    CCP provides incentives to families to procreate more in today’s modern China.

    Modern industrialized countries are in population decline. Why? Because when “women” become work units for labor; they see their value as substitute men, and not as a woman.

    Finance Capitalism wants a labor unit at a low price, and one aspect of Neo-Liberalism is to convince women to enter the workforce, and eschew the hard unmonetized work of child bearing and rearing.

    China’s industrial capitalism has not advanced to the stage where women are sent home, and housing prices are held down, to then allow family formation.

    https://gospelnewsnetwork.org/2020/06/23/goebbels-1933-speech-masculine-women-feminine-men-low-birth-rates-it-could-have-been-written-today/

    The woman in public life today is no different than the women of the past. No one who understands the modern age would have the crazy idea of driving women from public life, from work, profession, and bread winning. But it must also be said that those things that belong to the man must remain his. That includes politics and the military. That is not to disparage women, only a recognition of how she can best use her talents and abilities.

    Looking back over the past years of Germany’s decline, we come to the frightening, nearly terrifying, conclusion that the less German men were willing to act as men in public life, the more women succumbed to the temptation to fill the role of the man. The feminization of men always leads to the masculinization of women. An age in which all great idea of virtue, of steadfastness, of hardness, and determination have been forgotten should not be surprised that the man gradually loses his leading role in life and politics and government to the woman.

    It may be unpopular to say this to an audience of women, but it must be said, because it is true and because it will help make clear our attitude toward women.

    China has allowed a housing bubble, pushed by a group of privatizing intermediate banks (who took block loans from the State banks). China’s leadership has to address the house pricing problem, and the “laying flat” problem, otherwise China’s women will choose not to reproduce.

    The raising of the child policy from two to three, will have no effect, unless the economic externalities are fixed, as Goebbels and the National Socialists understood the equivalent in their day.

  48. @Anonymous

    A full scale nuclear first strike against China has a good chance of succeeding. If they can somehow convince Russia to not intervene.

  49. nsa says:

    Silly article. The US demise has nothing to do with Chink socialism or Soros jew avarice. The demise of the US is entirely self-inflicted, and due to state sanctioned theft and fraud writ large…..specifically negative real interest rates amount to a massive transfer of wealth from healthy producers and savers to deadbeat consumers and debtors. It’s just that simple. Return to paying savers 3% over the inflation rate and the US will flourish as never before…..once the ensuing depression abates Keynes explained the problem close to a century ago in his famous quote: “There is no subtler, no surer means of overturning the existing basis of society than debauching the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

  50. @Randy Dazzler

    “Seconded.”

    And a tertiary nod of approval from me.

  51. @Mefobills

    The raising of the child policy from two to three, will have no effect, unless the economic externalities are fixed

    And we can be sure some social ones. Having a brutally enforced “one child” policy for 36 years is enough to fundamentally change a society, see the massive excess of men. Anf at the moment having additional children is pure wealth outgo, it’ll be a long time as these things go before they’re hopefully productive enough to provide for their two parents and four grandparents (the 4-2-1 problem that might increase that last number).

    And even before you consider things like the Evergrande blowup Xi’s faction has started systematically trashing various sectors of the economy to maintain power, and a lot of us will agree that is doing some genuinely good things against globohomo inroads in the society. But they still destroy wealth, and this is a population that’s long been living in a system of financial repression, as we in the US have been for a while. For now I gather a lot of the normal economy is in stasis while people wait for Xi to finish his “rectification” of economy. And working harder to control information about the economy, keeping people generally ignorant of what’s really going on isn’t going to increase their risk taking.

    And the people will also realize policies of this sort are rather capricious, there’s 20th Century written in blood or rather starvation reasons they’re willing to eat just about anything, it’s a survival trait, and I’d guess one going back quite a bit further. The CCP is still totally involved in policing families and their births, and if Xi and his faction lose power or simply change their minds, a retroactive return to the former policy or the short term 2015-2021 two child can’t be ruled out.

    • Thanks: Sarah
  52. Mefobills says:
    @onebornfree

    Sour grapes from a Lol-bertarian. Libertarianism has no answer for the below:

    All successful economies throughout history have been mixed public/private economies. The proper role of government is to protect economies from a rentier oligarchy from emerging to polarize the economy at the expense of the population at large. This protection requires keeping control of money and credit, land and natural resources, basic infrastructure and natural monopolies in the hands of governments.

    It is oligarchies that are autocratic in blocking reforms to overrule their rent-seeking by keeping basic needs and infrastructure in the public domain.

    Lolbertarians act as disinfo agents for the rentier oligarchy, either with brainwashed dupes, or with paid agents.

  53. @The_MasterWang

    A full scale nuclear first strike against China has a good chance of succeeding. If they can somehow convince Russia to not intervene.

    I would think Russia would opt to avoid throwing around their own nukes to avoid being targeted.

    The two big problem I see with this is that I don’t think we have what it takes to do that (whether or not it’s a good idea), and with test ban treaties we don’t know if our nukes still work, or which ones do and don’t. This is one of the things that prompted the USSR to effectively surrender, between notorious Russian quality problems which we assume they had a good handle on, and SDI’s potential to randomly intercept some fraction of an incoming first strike which would be completely unknown until put to the test the first strike they’d been working for since the late 1960s became infeasible. Plus because of internal poor governance issues they’d spent way too much blood and treasure on their Strategic Rocket Force and SDI would have basically required scrapping it if put into production.

  54. Joe Wong says:
    @Rubicon

    During the Cold War, Warsaw block could create all the money that the domestic economy needs, but it was an isolated entity vulnerable to be killed by blockade. China did not want to repeat the Warsaw block’s mistake, so she adopted a feasible approach to grow by letting foreign money in for profits while she creates sufficient money herself to aid her domestic economy growth without letting the foreign money chock-hold China’s own economic and financial independence.

    China believes common prosperity for mankind, such mindset gives her the ideological flexibility to adopt policies that best suite for her national interests. It was a give-and-take approach to gain China’s own economic and financial independence without fearing being isolated and killed by the West’s blockade like the Warsaw block.

    Yes, China can create all the money for her domestic economic needs, but it is not the best way to grow China’s economy. Combining local money creation and foreign investment is the best way to grow an economy, but controlling the balance between these two money supplies is a tricky business.

  55. Michael Hudson always comes down to “price and economic rent, that distinguish earned from unearned income, and productive labor and wealth from unproductive and predatory financial and rentier fortunes.”
    I, for one certainly agree with this.
    The small hat way is sucking the victim dry, which isn’t what China is doing.

  56. Ref the “China vs Jew financier” debate, there is no doubt that China will emerge as winner. Chinese promote win-win policies with clients, contrast western policy of mass impoverishment (plus bombing for Israel) as detailed by Dr Hudson. Hence there already is huge global support for China, even in Europe.
    Additionally they are patriotic and have memories of the times of humiliation ref Sassoon and troops of the Jewish power known as Perfidious Albion. They have allowed Jew and Masonic finance into China to use it for their own purpose and to curb and even destroy it if necessary. No other explanation is possible in China.

    While western “leaders” wreck their own countries and tell their people to just put up with it (which they more-or-less do), there is NO WAY this crap would fly in China. Such now is the development of China that it is entirely possible that solving the millennia-old problem of Rothschild-Soros may be feasible, as in Byzantium and other medieval systems. Satan was chained in the pit, but was released by Oliver Cromwell, Masons etc.
    Time looms for him to be curbed again. Or finally destroyed.

  57. @RoatanBill

    Reality is that most people would rather be left alone and not being seen as a “market” or “consumer”. They are too busy trying to keep a roof over their heads and feed their families to follow the machinations of the psychopaths running the show.

    • Replies: @RoatanBill
  58. GMC says:

    A billion people is one of a hell market that can thrive as long as they keep it a free market system with open marketplaces like in Wuhan and the other towns and cities within China. Last time I was in Central Europe, they still had those public market places as does eastern Europe and Russia. These are a very important part of free market enterprise that is the backbone of community living and they are a cash economy. Very important for everyone ! Not sure if China took out the cash flow with their digital pay system, but governments aren’t the peoples best friends – always.

    The US doesn’t seem to have this large enterprise throughout the Country , except in farmer and flea markets and the reason is the large companies, USG, and the local statutes don’t want that big cash economy out there in the Public’s hands.. The Gov. wants to corall all the people and keep a the cash economy as small as possible. And as usual, the USG makes up excuses like cutting down cash – cuts down on dope dealings LOL, money laundering lol, or terrorism lol. But it’s OK for the local POlice or TSA to confiscate any cash you may be carrying around . That’s different tho .

    These markets also keep the local farmers, growers, bakers, butchers, bulk dry goods dealers, family enterprises and dozens of others, that are involved in community – working. Big Corporation have their place, but they have totally taken over everything in the government and the public economy. Maybe when the US falls these common markets can make a comeback. 330 million people is a huge market.

    • Agree: Notsofast
    • Thanks: CelestiaQuesta
    • Replies: @Mefobills
    , @Maddaugh
  59. derer says:
    @Brás Cubas

    Soros extracted money, mostly from Americans, without participating in any production processes but solely in parasitic sphere of the crony capitalist farce. He was not satisfied by that loot, but started imposing/creating his destructive and failing projects in gullible countries bringing them to misery. He has cozy relation with the Washington political gang (useful idiot), but always alibied by a dishonest claim of being a private citizen.

    • Replies: @DrWatson
  60. Mefobills says:
    @Weaver

    It’s akin to moving a factory from the US to China, training Chinese to run it, and then having them run it and sell to the US in exchange for raw materials.

    The same goes for China when it sells its raw materials on the world market. China is a large exporter of rare earth metals. Note the other economies benefiting from importing China’s rare earth metals.

    https://www.visualcapitalist.com/chinas-dominance-in-rare-earth-metals/

    Russia lost the increment of production in the 90’s, as it exported its titanium, platinum and others – so that catalytic converters and other high end goods could be made elsewhere. In effect, the labor value of the population is reduced when high end goods are not fashioned in the local economy.

    The same rules of economy goes for every country, including China, who should be making goods from its rare earths, rather than letting other economies take the increment of production.

    • Agree: Weaver
  61. Thanks to theft from Nazi German engineering and technology, US manufacturing and military might exploded (Hiroshima, Nagasaki) after WWII, in the biggest post industrial recovery ever. The Germans were using tape recorders for propaganda years before allied forces thought Hitler traveled to cities secretly giving speeches.
    What secret technology is now used that is hidden from governments and technopolies?
    I’m guessing it doesn’t use WiFi, RF, Bluetooth or the www.
    Hint: Laser beams.

    • Replies: @Commentator Mike
  62. @Notsofast

    Cubas has clearly bought into Soros’ idea of freedom. It was perhaps defensible thirty years ago, and I did defend it, history has already proven that reality now supports Hudson’s view.

  63. @Realist

    Nothing calls for the demise of western civilization than the rise of GlobalHomo, Mass immigration, diversity, CRT, banking and technopoly cartels.
    General Milley to his Russian counterpart: “My nuke is bigger than your nuke, hahaha”……(lisping w/fag hand jester) “so there silly”.

    • Thanks: Realist
  64. @Mefobills

    The same rules of economy goes for every country, including China, who should be making goods from its rare earths, rather than letting other economies take the increment of production.

    The PRC does both.

    Although it should be noted rare earths aren’t very rare, what’s rare is the willingness to “boil the ore in acid 1,000 times,” which a country who’s rulers don’t care much about the environment are particularly willing to do. Restarting refineries outside the PRC won’t be difficult if they were to as you might imply to embargo exports of the refined metals, assuming you don’t let the Greens stop this.

    • Troll: mulga mumblebrain
  65. @Curmudgeon

    I agree with you. That doesn’t, however, result in them being left alone. The trash in the gov’t is determined to recreate a feudal society and they are well on their way to success.

    The entire worlds gov’ts are trying to rewrite their cultural norms and are becoming more authoritarian daily. Why the Australians and New Zealanders don’t revolt is a puzzle, for example. I suspect their populations are all trying to keep their heads down in the vain hope that the normal they once knew will reappear. They are delusional.

    No amount of voting in the world’s rigged party controlled elections is going to change anything. The only thing that will is the collapse of economies and the resultant destitution will cause massive civil disobedience, violence and much loss of life that could all be prevented if those somnolent individuals would wake up early enough to just say NO.

    The solution is to defy gov’t edicts at every level and to sabotage their plans at every opportunity by being non compliant.

  66. @That Would Be Telling

    I have never seen a sign language interpreter along side any Chinese or Russian government leader on any public broadcast. Hopefully this is the same reason why we will never see GlobalHomo represented in CCP or Russian government.
    This seems to be a sickening disease that only permeates western culture. It’s the difference between cRap music and classical orchestral and opera.

  67. HT says:

    Countries have different ways of dealing with the greed and detrimental influence of the Jewocracy. The US allowed them unimpeded to take over the country and every important institution, Hitler tried to deport or otherwise eliminate them and China seeks to limit their capacity to take over their economy. What motivates Jews to behave the way they do, to screw you over and demand that you enjoy it?

  68. Corrupt says:

    “This always has been U.S. policy, from the many treaties with Native American tribes broken by Andrew Jackson and his successors down through the U.S.-Soviet agreements ending the Cold War in 1991 broken by Bill Clinton to the treaty removing sanctions on Iran broken by Donald Trump.”

    Incorrect. There was not treaty with Iran, as it was not approved by the Senate as required for it to be a treaty.

  69. Mevashir says:

    Financialized economies are doomed to become failed states because the exponentially growing expansion path of debt accumulating at compound interest plus new credit creation and “quantitative easing” far exceeds the economy’s underlying growth rate of producing goods and services to carry this burden. These financial dynamics threaten to doom the U.S. and its satellite economies to become failed states.

    I have been arguing something like this for twenty years. Thank you for articulating it so clearly!!!

    The financial overseers suck out of the economy via interest payments far more than the natural economic growth rate, so all increases in GDP go into their greasy hands and increasingly concentrate their predatory wealth.

    I would venture to say that Woodrow Wilson set the death spiral in motion so long ago with his Federal Reserve Act and Income Tax provision, creating America’s own unique form of Bolshie-Kapitalism.

  70. d dan says:
    @Ktulu

    “Why do they allow investment from black rock? I can’t be certain but it certainly could be a trick.”

    Chinese need to let a wolf come in to train the sheep to fight and survive. At the minimum, the sheep need to recognize how a wolf looks like.

  71. DrWatson says:
    @derer

    Soros extracted money, mostly from Americans, without participating in any production processes but solely in parasitic sphere of the crony capitalist farce.

    Thanks for pointing this out. Not that I thought otherwise but it wasn’t apparent to me. Unbelievable that he has 87 billion dollars and he didn’t produce anything, not even a lousy social portal like Fb, etc.

    Speaking of his greed, I knew of a Hungarian guy who was a postdoc in Oxford in the early 90s on a Soros fellowship and he got a measly 500 pounds per month (or even less, can’t recall the exact amount) at a time when other postdocs made at least double of that and even that amount was very little. Clearly, it made life for that poor fellow a miserable existence. Why did Soros give so little? Almost like he enjoyed the suffering of his poor underlings.

    • Agree: derer
  72. Anonymous[240] • Disclaimer says:
    @The_MasterWang

    A full scale nuclear first strike against China has a good chance of succeeding. If they can somehow convince Russia to not intervene.

    Russia will soon no longer be needed to come in on China’s side in a nuclear war. The Russian arsenal serves as yet more deadly uncertainty for the collective West, but will not really be necessary going forward.

    China is already in the process of building up its nuclear force, at least quadrupling the number of its deployed missiles in the next 5 t0 10 years.

    Given that each missile (MARV ICBM, Hypersonic Boost-Glide etc) will at the same time have multiple warheads (up to 10 warheads really, but let’s low ball it and say 3 to 5), we can safely say that a massive first-strike against China will be able to be answered with a counterstrike which would be guaranteed to completely obliterate the offending nation(s).

    The Chinese nuclear arsenal is undergoing vigorous expansion as we speak. China has long had the means to build such a deterrent; now they have decided to actually do so.

    Indeed, China, or actually any nation or alliance, can in fact be destroyed with nuclear weapons, provided that the aggressor nation or alliance is also willing to be annihilated.

    And the point must be made: China’s military spending burden is considerably smaller than the West’s – definitely smaller than that of the U.S., U.K. or France, or most of NATO. If we are hoping to try to frighten China into spending itself into oblivion, we will be very, very disappointed.

    China is not the old Soviet Union (for that matter, neither is Russia).

    • Replies: @showmethereal
  73. Michael, the idiom is “hissy fit”, with an ‘h’.

    • Replies: @frankie p
  74. Maddaugh says:
    @RoatanBill

    For those with money, for those not employed by the Government, they can be non compliant.

    However, for everyone else they must bend over and take the sledge. The welfare recipient for example who does not get jabbed, what does he do when he gets a note that says you can take the jab in your arm or take the jab in your bank account. “No more Gumment handouts for you Jose/Abdullah/ Leroy”

    What then ?

    • Replies: @RoatanBill
  75. Financialized economies are doomed to become failed states because the exponentially growing expansion path of debt accumulating at compound interest plus new credit creation and “quantitative easing” far exceeds the economy’s underlying growth rate of producing goods and services to carry this burden.

    Why is this a burden?

    • Replies: @Mefobills
  76. Mefobills says:
    @That Would Be Telling

    The PRC does both.

    You have hit upon an important point.

    China used the Atlantacists and allowed raw materials to come into their East Coast, by ship. China then took a fraction of the increment of production for themselves, and exported goods from said East Coast.

    Meanwhile, China used state credit directed into industry, to climb up the industrial curve, while simultaneously improving the labor value of the population.

    China allowed wage arbitrage to channel to Western Finance Capitals, to then keep the Atlantacists quiet. Unearned income in the form of wage arbitrage channeled into finance centers such as London and Wall Street. Think of it as a bribe, and it obviously worked as politicians are paid off lackeys, as special interests sucking on China’s tits want to keep the milk flowing.

    The boiling of ore and despoiling of Chinese environment will not go on forever, especially when China becomes the first rank country. Dirty industry will be done elsewhere, or there will be technical and intellectual advances to allow it be done within the country.

    • Replies: @Weaver
  77. @CelestiaQuesta

    They probably beam thoughts into people’s brains by now. Nasty, evil, perverse, degenerate thoughts. Not that they have to with all such propaganda they promote in the media and culture, but still they do.

    • Agree: CelestiaQuesta
  78. @Ghali

    The old devil looks more like some rotting carcass out of Zombie Apocalypse today. While I certainly do not dispute that Soros is genuinely the Spawn of Satan, Mr. Fink and his “investors” at the world’s most transparent hedge-fund tacket, Blackrock, are if anything even more virulent demon-spawn. Yet for reasons completely unknown Xi and the gang allow these bloodsuckers to invest in the Middle Kingdom. That’s a good way to lose the “mandate of heaven”. We can only hope that Xi knows all about them and plans to do a Stalin move on his “partners”.

    Xi no doubt has many drones and special ops units, etc. at his disposal. He could make himself very many fans worldwide – even in Israel (of all places) – if he were to take a page from old Koba the Dread’s book. Especially the page where Koba notes that “When there’s a person there can be a problem. If there’s no person there’s no problem.” If he’s wanting some names and willing to be the Lord High Executioner, no doubt many could inform him “we’ve got a little list, and none of ’em be missed.”

    • Replies: @mulga mumblebrain
  79. @Rubicon

    Black Rock has to abide by Chinese laws… Not the other way around. As to why – there are several reasons. China has the largest piles of cash sitting in banks in the world – since its household savings rate is high. China is only now legalizing various forms of investments. Chinese mainly had two options – real estate – or move your money overseas. The real estate market got too hot and China had to regulate how much money people could send overseas. So now China is picking which type of investments to legalize. That will ease pressure on the real estate market and keep more money home without having to regulate it as much.

    • Replies: @antibeast
  80. @Maddaugh

    You perfectly describe an economy that relies too much on consumption (and often the debt that goes along with it).

  81. Thank you Mr. Hudson for the definitions. Unfortunately enough people aren’t reading your works. Btw – I saw you in “Spiders Web” – the documentary about the banks in the City of London. Great contribution.

  82. @Maddaugh

    I wish you would have used productive people in your example as opposed to the unproductive slackers in the society.

    I really don’t care what happens to people that mooch off of others. I would turn all gov’t welfare off and let the phony religious and charitable organizations handle their needs to keep gov’t from forcefully extracting funds from people who were never asked if they want to provide for the mostly shiftless. The needy should be supported via the voluntary generosity of those that have excess resources. I, for one, would only support those incapable of working, the truly needy and would absolutely never support the baby factories, dopers, alcoholics and other human trash.

    [MORE]

    For the anti vax working people that actually provide the brains and muscle to help make the economy function, they have one of three choices.

    1) They can organize and quit at a specific date en masse that I feel will cripple the economy to send a political message that must be responded to. This is essentially front running the no jab no work threat and gaining advantage in the process. I think that the regime would have no option but to give into their demands which would include lots more than just no jab for decades of issues that also need resolving. e.g. All illegals deported, all elections with audit trail paper ballots, all gun laws eliminated, etc. Their numbers are so large that they can not be ignored.

    2) They can take the jab and the consequences associated with an untested gene therapy for which no one knows what the future holds. These would be the short sighted individuals that don’t realize the economy is going to fail spectacularly soon anyway so getting the jab won’t ameliorate their situation in the long run. The rampant currency printing, the UBI known by the term stimulus money and the overly generous unemployment benefits, among other things are accelerating the inevitable inflation of the US Dollar towards worthlessness that any thinking individual should be expecting.

    3) They can become unemployed without sending any message to the regime which will embolden the controllers to push further and faster towards the new world feudal order.

    Logic tells me that only option 1 can possible reverse the momentum the controllers have accumulated. The economy will fail no matter what anyone does, but it would be nice to have a new pecking order established before hand.

    • Replies: @Maddaugh
  83. @Realist

    wholly agree, thank you, michael, for a brilliant article, which i’ve freely, happily shared, esp. with soros woke friends & family. michael hudson expresses exactly what i’ve wanted to for years & struggled to convey. thank you, michael, i believe with this concise succinct gem you will begin to lift the woke from their terrible sleep.

  84. I’d like to see China build another space station. Now that they have the system setup to build them why stop at one? They could even offer a few for sale.

    Of course, if they have five or six space stations floating around up there, they will need a station-to-station shuttle.

    It would be funny. Offering to sell Soros a space station.

    I wonder what the price would be?

  85. @Exalted Cyclops

    When you look mat the leadership of the hedge funds and money funds you see the truth of the observation that ‘Vulture Capitalism is Jewish Capitalism’.

  86. @That Would Be Telling

    Oh, dear-the BigPharma troll is a Sinophobe racist as well. What a surprise!

  87. frankie p says:
    @J. Alfred Powell

    Ah, ye of so little imagination.

    The sissy fit is a play on word, specifically the fact that the new laws in China forbid “sissy boys” being featured on tv, the movies and internet.

    • Replies: @Michael Hudson
  88. @That Would Be Telling

    Stupid and malevolent rubbish. Xi is reminding the oligarchs that the Government runs the country, and that the US situation, where the oligarchs control all real power and own politics will not occur in China. Traditionally the Chinese placed merchants at the bottom of the social hierarchy, and financial parasites, if encountered, were probably dispatched pronto.
    Moreover the Chinese, having created stupendous wealth through seventy years of hard work (eg forty-seven trillion in savings), are setting out to make their society more equal thus harmonious, the traditional Chinese ideal. This has Western parasites and their arse-lickers, like this troll, in a frenzy of fear and hatred. Imagine if the idea of social equality and justice somehow penetrated the brainwashing system in the West, and infected the proles there. The dangers are ‘existential’ for the global blood-suckers.

    • Thanks: skrik
  89. derer says:
    @Anonymous

    marrying Chinese simply never works

    Are you sure?

    You will not see China initiating any military attack, like dimwitted Mricans elite think, but they will win by the economic dominance. USA squandered their economic dominance, because the post-war European brain is dying out and replaced by a generation of violence and drugs. One of that generation is even walking in the WH hallways – not Joe but his son.

  90. JimDandy says:
    @Randy Dazzler

    So, is this why the dime was dropped on Milley? Soros lackeys vs. China-lovin’ quislings?

    • Replies: @Randy Dazzler
  91. Mefobills says:
    @GMC

    A billion people is one of a hell market that can thrive as long as they keep it a free market system with open marketplaces like in Wuhan and the other towns and cities within China.

    There is no such thing as a free market. There are three kinds of markets: Elastic, Inelastic and Mixed.

    Hudson spills a lot of ink, including in this article, on what the Classical economists meant by the term “Free Market.”

    Free Market is a market free from rent seeking, especially land rent imposed by the heirs of the landed class. In the case of England it was the heirs of the Norman conquerors, and the Jews they imported as tax collectors. A free market requires the government to step in and regulate or own the rent seeking economic sectors.

    To the average brainwashed normie or Lolbertarian, Free Market is something free for rent seeking. Privateers want to pick pockets and form monopolies, to then take easy rental income forever.

    Hudson: Orwellian Doublethink style, to create one “free” for rent-seekers to carve out free-lunch rent income. The result is a rentier economy in which land, natural resources and natural monopolies are privatized and, in due course, financialized to turn rent into a flow of interest payments to the financial sector as the economy is driven into debt to afford the rentier overhead and debt-financed asset-price inflation for rent-yielding assets.

    The whole point of Hudson’s article is that you DON’T WANT OPEN FREE MARKETS, otherwise your civilization polarizes. Markets are man made creations, and they have to be guided by law, with an eye toward the general welfare. Unfortunately, the brainwashing is so complete, the law itself is perverted to reward the rent seekers.

    Xi is slamming the heads of rentiers against the wall. He is returning wealth back to those who create said wealth, rather than allowing the economic surplus to channel to an over-head class who have no counterpart in production.

    China’s policy of shaping markets to promote overall prosperity, instead of letting the economic surplus be concentrated in the hands of corporate and foreign investors, is an existential threat to America’s neoliberal priorities, he spells out. President Xi’s “Common Prosperity” program “seeks to reduce inequality by distributing the wealth of the rich to the general population.

  92. windship says:

    This article would be easier to digest if it had been proof-read for syntax.

  93. @JimDandy

    So, is this why the dime was dropped on Milley?

    I haven’t delved into this deeply. My understanding is the story broke from a book quote, so he is the source. Nobody dropped a dime. What puzzles me is everybody jumping to the conclusion that he committed a crime. He may be an idiot, but he is not stupid. And there were undoubtedly lawyers involved, so it would seem somebody is trying to create a dust up over something.

    I am pretty sure treason requires a defined enemy. There is no doubt that was a “aid and comfort” message. Was it insubordination? A violation of the Logan Act? I don’t know. Was it in poor judgement? I’d have to know a lot more to say.

    Strangely though, even though I don’t have a lot of respect for Milley, I find comfort knowing that the militaries are in communication. We are definitely at the point where the only way to win is not to play. I think they all know that.

    Soros lackeys vs. China-lovin’ quislings?

    Not sure what you mean by this, or what it would have to do with Milley.

    • Disagree: Sean, JimDandy
  94. Sean says:

    As for free trade, the United States also retains the right to impose tariffs at will (euphemized as “fair trade”) and levy fines and sanctions to prevent companies from being free to sell technology to China.

    The Wuhan virology institute were taught to do gain of function experiments by Professor Ralph Baric in North Carolina. Experts of the highest eminence objected to anyonee doing those kind of experiments for several years before the pandemic: https://journals.asm.org/doi/10.1128/mBio.01882-14

    For the past twenty years it has been China’s socialist growth that has primarily sustained Western prosperity. But this dynamic is being rejected, denounced as an existential threat precisely because it is successful socialism, not neoliberal exploitation.

    Ten times the size of Japan, China shall become the master of the world because we are obliged to play by the rules?

    Rome’s oligarchy accused social reformers of “seeking kingship,” much as Greek oligarchies accused reformers of seeking “tyranny” – as if their reforms were merely for personal gain, not to promote general prosperity. The resulting Orwellian Doublethink is woven into the rhetoric of neoliberalism.

    Very well then, but please make it explicit what relative outcome you expect for China if it is joined in socialistically going for growth by America.

  95. Mefobills says:
    @Triteleia Laxa

    Why is this a burden?

    Compounding interest is an exponential function.

    A lake with two lilies, becomes four, becomes 8 becomes 16. The lilies population grows to fill up half the lake. On the last doubling, the lake fills completely.

    It took some time for the lilies to fill up half the lake initially, but the second half was filled up practically overnight.

    The burden is that the lilies want to consume the lake and everything in it. They are not following the natural curve of life, which grows fast in infancy, and then levels off into stasis in adulthood.

    Debts must be released on a periodic basis, as they grow unnaturally, making excess demands.

    How would it be if your feet kept growing at the same rate as childhood? Soon enough you would not be able to walk, as you would have clown feet.

    The conceit of debt based money systems, is that the debts can be paid back with ever increasing production. That the earth can be flogged to turn it into board feet of lumber, or chop-formed-pressed chicken nuggets.

    In finance capitalism (debts created by privatized finance sectors), new credit creation is done at banks (from nothing) and QE from the FED (swaps with legerdemain) that “far exceeds the economy’s underlying growth rate. Stock markets are also divorced from reality, as the price to earnings ratio no longer represents production, but instead finance manipulations.

    The lake (nature) cannot double and double again to match the exponential demands of the lilies (QE and new debt creation and paper claims on wealth).

    The burden is something like your back-pack being filled with ever increasing demands, weighing you down. Access prices to housing and life is increasing, not decreasing, despite industry becoming more efficient.

    The economic surplus is vectored away from the producers, and toward those who have no real economic value. The population is conned into thinking that parasites are to be protected, even when the parasites are killing the host.

  96. @Mefobills

    Me-Full-O-bullshit, or whatever handle you go by these days, I’m surprised you’re showing your face here after your embarrassing efforts in the comments section of the last Michael Hudson Trotskyist advocacy-for-MMT hitpiece.

    And, I see you’re once again following the script of your Marxist controllers by trying to impugn the Libertarians.

    It really irks you that they’re almost invariably right whilst your theories went the way of the Bolsheviks. ie: flushed down the S-bend.

    So, seeing as you’ve had plenty of time to organise it, when is Michael Hudson going to debate Peter Schiff ?

    If his discredited theories are so brilliant, as you espouse, then he should be relishing the prospect of a vigorous verbal exchange.

    C’mon, we’re all waiting. Don’t you (and Hudson) scurry off like craven chicken-shits as you did last time when I suggested the idea of a debate.

    OR, are you afraid that your easily refutable nonsense will be exposed for what it is ?

    • Replies: @Mefobills
    , @Anon
  97. Bro43rd says:

    The simple mistake Mr Hudson, & many commenters, make is assuming government has any business regulating the economy. Government power over the economy is what leads to the “rentier capitalism” that he despises. The author never discusses that real problem because he only wants to change who gets to feed at the trough, not do away with it.

    • Replies: @Mefobills
  98. @Mefobills

    Necessary treatise on the overwhelming diabolical destructiveness of the subversive Jew ideology “feminism”.

  99. @Mefobills

    Volumes in a single sentence:

    A free market requires the government to step in and regulate or own the rent seeking economic sectors.

    They’ve been brainwashed to the extent of being militant advocates for creditors’ rights and the sanctity of debt.

    So thank you for this showing how diametrically wrong popular opinion is:

    The whole point of Hudson’s article is that you DON’T WANT OPEN FREE MARKETS, otherwise your civilization polarizes. Markets are man made creations, and they have to be guided by law, with an eye toward the general welfare. Unfortunately, the brainwashing is so complete, the law itself is perverted to reward the rent seekers.

    We’re seeing that collapse now with our Jew Occupied Government empowered by usury having destroyed the economy, the currency, and the momentum of youth with the Jew Flu Hoax.

    By the way, is Gates crypto or simply the most lavishly rewarded Shabby Goy diabolical pervert (((they’ve))) ever found (then filmed by (((Epstein))) to lock into slavish servitude)?

    • Replies: @Mefobills
    , @Anon
  100. @Mefobills

    Brilliantly edifying in simple clarity:

    It took some time for the lilies to fill up half the lake initially, but the second half was filled up practically overnight.

    The burden is that the lilies want to consume the lake and everything in it. They are not following the natural curve of life, which grows fast in infancy, and then levels off into stasis in adulthood.

    You said it all here in the entirety of this comment as to why Jew Usury must be outlawed as Jesus did right out of the gate (Luke 4:16-30 as revealed by Michael Hudson “…and forgive them their debts” (2018)).

  101. GMC says:
    @Mefobills

    Well, maybe I didn’t write clear enough but Mr. Hudson would know what I’m talking about , he has been all over the world, and yes the market place I buy at is as close as free as it gets. An enclosed stall with electric costs less than 50 cents a day in rent and you can make the interior suit your needs/products etc. There are over 100 owners. And these types of markets go back centuries. It’s a cash only deal – no taxes like the western ways , but it is up to each individual owner to file a personal tax form which is 13% , if he/she wants a pension when they retire. As far as laws – you must give a receipt and show the guarantee document in case of a problem . This is what I’m talking about and they are the most stable markets in the community.

    Of course that market place in Mogadishu, Somalia, that the US Military so stupidly tried to do a special ops next to, is definitely not the – Free Open Market – you want to piss off — especially the Locals. Sabe’ ?

    • Replies: @Mefobills
  102. Mefobills says:
    @GMC

    The market stall where you buy or sell goods is elastic priced. There is price competition between vendors. Maybe one of the vendors will sell melamine laced baby formula, because the baby food industry is not regulated enough? Price competition among the merchants tends to keep prices low.

    Vendors get electricity from another market, which is not elastic. It would not be price competitive to have hundreds of electricity providers, all driving up price by duplicating overhead. In the same way, there are no competing sewers leading to houses and businesses, as the unused sewer would fall into disrepair. All of the enclosed stalls are likely getting their electricity from one supplier.

    The LOWEST PRICE is delivered when market mechanisms are understood, and using the term “free market” is a form of hypnosis, which has become Orwellian doublespeak, as Hudson has alluded to. Free market as a term, only means that the three market types are free from rent seeking, to then lower prices to their lowest level.

    The cash that the buying public uses in the market, for the most part, is initially emitted from China’s STATE BANKS. State Bank loans tend to channel toward the commons and industry, as China is industrial capitalist. After the loan channels and creates new wealth, the new Yuans created also find their way to a “merchant” in the stall, who generally has no conception of the greater economic picture.

    With regards to taxes, when the founders of the U.S. invented industrial capitalism, they also used state banks (the first bank was 50:50 private/state), which channeled American credit (not gold or silver) into industry, as can be seen in Hamilton’s report on manufacturers. The central government used tariffs to fund its operations, not negative consumption or production taxes on the citizens.

    https://www.gilderlehrman.org/history-resources/spotlight-primary-source/hamilton%E2%80%99s-report-subject-manufactures-1791

    • Replies: @GMC
  103. Mefobills says:
    @Farrakhan.DDuke.AliceWalker.AllAgree

    By the way, is Gates crypto or simply the most lavishly rewarded Shabby Goy diabolical pervert (((they’ve))) ever found (then filmed by (((Epstein))) to lock into slavish servitude)?

    You don’t have to be a Jew to become mal-formed.

    Psychopaths are born, and sociopaths are created. Jewish religion is a form of taught sociopathy. Jews, especially with fake victimhood Holocaustianity narratives stuffed into their brains from childhood, are trained to hate the goyim, and also harvest goy as hosts.

    There are three defective types that have to be kept away from the controlling levers of civilization:

    1) Money Sickness 2) Psychopathy 3) Sociopaths.

    I would put Narcissim as another characteristic that would be a tell for a defective individual.

    People who have money sickness have no loss of wants. They can never have enough. Unfortunately, the West lauds the sickest types as this type have manically inserted themselves into positions of power and influence, as if the Logos does not exist. From what I can tell, China’s communist party is pretty good about weeding out, or not selecting the worst types for its hierarchy.

    If the “elect” who are running your civilization are defectives, then your civilization is doomed.

  104. Maddaugh says:
    @RoatanBill

    Well said RB.

    Butt. people wont stand up. I know that in most of Latin America, the public goes ape shit when politicians get too uppity. Here, the population just takes it. Everyone talks about the “breaking point” but I personally dont see any of that on the horizon.

    • Replies: @RoatanBill
  105. Mefobills says:
    @Truth Vigilante

    Me-Full-O-bullshit, or whatever handle you go by these days, I’m surprised you’re showing your face here after your embarrassing efforts in the comments section of the last Michael Hudson Trotskyist advocacy-for-MMT hitpiece.

    I’ve never changed my handle, that is you trying to create a strawman.

    If you actually bothered to read Hudson, you will find out that he is not an advocate for how MMT theory is being abused.

    Demoralized people strike out with emotion, because the false narratives in their brains conflict with reality. It is easier to strike out like a hysterical woman, than sack up and be a man.

    Hudson is also not a Trotskyist, he is a classical economist. Again, more straw man tactics on your part.

  106. Maddaugh says:
    @GMC

    GMC, first, what you have written needs no addition nor subtraction. It is as you have stated. However I see Mefobills has written a whole Phd dissertation in high economic theory and practice regarding farmers markets. As usual, his blather is the usual faux financial bullshit !

    Whatever you do, dont mention you wear sandals in the summer as he will give you a history of footwear going back to prehistoric hunter gatherers.

    Thank God, farmers, from the beginning of time were unaware of Mefo’s horseshit ramblings. As the old saw goes “the bumble bee is unable to fly, but the blasted bee does not know this”

    I have attended farmers markets in Southern South America, areas populated mostly by Germans, Poles and Italians. The well functioning Municipality usually has an outdoor market place with steel pipe buried in the ground. The vendor buys a regulation tarp and poles, erects his cover, sets up regulation tables and sells his produce. It is all home grown and since the low end farmers cannot afford expensive chemical fertilizer, the food is fresh and tasty. At the end of the day they must clean up or be banned. While most grow similar products frequently farmers produce different fruits and vegetables. Prices are low because the local population cannot afford pricey goods. Hence there is no point in charging \$12 for a dozen eggs which will be left to rot. If the market runs at night on some days of the week the vendors bring kerosense lamps rather than tap into “elastic electricity supply” from wherever LOL.

    As you quite correctly stated these markets have existed for thousands of years. Run by people without Mefobull’s Economics Phd from Harvard. I dont know if you have ever visited the US or lived here but generally, this system has been perverted. Half an hour from I live there are first of all 8 fast food restaurants on three corners and a cemetery on the fourth. There must be a moral there somewhere. A Martian who crashed his Flying Saucer into a residential home would wonder what the fridge and stove was for.

    Anyway the real joke is in one of the malls, there used to be a “farmers market”. However, the “farmers” are hustlers who buy from Walmart and set up to double their price. Hence, when Walmart peddles their strawberries at \$1.99 a quart, we used to see “farm fresh berries’ at \$3.99 a quart. The whole game became so perverse that it went belly up. The “farmers” would sit all day reading a cheap novel waiting to double their money on some cucumbers etc. The fact that the “direct from the farm” fruits and veggies tasted like liquified cardboard is another story.

    Sadly, like most ventures in the US, sheer greed and chicanery ruins a good thing, some of the reasons we are in such a damned mess.

    • Replies: @Mefobills
  107. antibeast says:
    @showmethereal

    China treats Black Rock as just another foreign investor, albeit in the financial services industry, which makes it subject to Chinese laws, rules and regulations. One of the biggest reasons for the recent crackdown on Chinese tech giants like Alibaba, Tencent, Didi, etc. has to do with their capital structure due to their being offshore VIEs (‘Variable Interest Entity’) rather than FIEs (‘Foreign-Invested Enterprise’), incorporated in tax-havens such as the Cayman Islands or BVI, which makes them effectively Stateless Corporations, despite their management, engineering and operations being headquartered in China. To make things worse, these Chinese tech giants are listed in US stock exchanges such as the NYSE or Nasdaq, which makes their capital structure subject to the laws, rules and regulations of the USA.

    The Chinese government now wants to restructure these Chinese tech giants in such as way that they would become legally and financially domiciled in China, with their capital structure subject to Chinese laws, rules and regulations. One way to accomplish this is to ban Chinese tech companies from listing in US stock exchanges, without the express approval of the Chinese government, which would force them to raise RMB funds by listing in Chinese stock exchanges, as opposed to raising USD funds by listing in US stock exchanges. Foreign financial houses such as Black Rock would then be free to invest the RMB funds raised from Chinese investors under their management in these Chinese tech companies INSIDE China, subject to Chinese laws, rules and regulations.

    • Agree: showmethereal
    • Thanks: Sarah
    • Replies: @Anonymous
    , @Showmethereal
  108. @Maddaugh

    When People Have Nothing Left To Lose, They Lose It.
    Gerald Celente

    In countries where the majority of the population has very little, they can afford to be enthusiastic in displaying their displeasure with their local overlords. In the US, people feel they can’t afford to stick their neck out because the laws are written so that farting could be construed as an EPA offense with a large fine and jail time. The very idea that one needs to apply for a permit to protest and that people actually go along with that insanity really tells the whole story in a nutshell.

    I’m waiting for the black swan somewhere in the world that will cause a cascade of failures to take out the banks and other financial institutions to usher in an easily identifiable depression in the US. That’s the SHTF moment when the screws get put to people that have been quiet so far because shit slides downhill. Too many innocent people will get hosed over and I imagine some of them will go postal and that will spread like a virus. I think it’s just a matter of time.

    • Replies: @Ralph B. Seymour
  109. Anonymous[240] • Disclaimer says:
    @antibeast

    That is one excellent reason for China’s “crackdown” on “tech” (actually “tech-powered”, not tech development – meaning engineering – nor research – meaning science) corporations.

    China operates on a simple assumption, which we all experience everyday without thinking it through.

    The world is divided among tribes. Many tribes, of which China is one. So the Chinese have concepts such as loyalty to home, people, and civilization.

    Such old-school people the Chinese are.

    • Replies: @antibeast
  110. Mefobills says:
    @Maddaugh

    As you quite correctly stated these markets have existed for thousands of years. Run by people without Mefobull’s Economics Phd from Harvard.

    Why don’t you just come out and endorse Soros? He is a money merchant wanting “free markets,” so he can take rents and unearned income.

    If you google libertarianism and Karl Popper (Soros’ hero), you will get a lot of hits with Lolbertarians basically agreeing with the philosophy.

    Hermes is the god of merchants in Greek mythology.

    https://www.godchecker.com/greek-mythology/HERMES/

    Messenger of the Gods and fabulous business entrepreneur. He’s also the God of Merchants and Commerce, Athletics and Travel, Public Speaking, Shepherds and Thieves. Quite a mixed bag.

    The son of Zeus and Maia, he was barely a day old before he was stealing sheep, bartering goods and contemplating the small print of manufacturers’ warranties.

    Born in a cave and finding his mum asleep, Hermes toddled off to see what was what. What he found was a herd of cattle, and innocently decided to take them home to play with. He didn’t know they belonged to Apollo but, instinctively realizing that adults can be a bit funny, covered their tracks anyway.

  111. @RoatanBill

    I certainly hope that you are correct that there will be a black swan which implodes the banking system because, as horrible as that might be for many people, that is our only way out of slavery.

    But, as I have noted before, I’m not quite as sanguine about that prospect as you. Because along with the huge debt destruction (of all sorts of debt) and many bank failures that will be the result of a major depression, there will also be a huge reduction in the money supply. And this might allow the parasites to save their system.

    With respect to the demise of the dollar, you can make the case that the Federal reserve is the best looking horse in the glue factory. I believe I’m correct in asserting that most central banks have printed more money than the Fed. Therefore, it is those currencies that are more exposed to extinction than the dollar.

    Does it make sense that the worldwide banking system will simply fail and that people will lose confidence in all fiat currencies concurrently? Anything can happen; I say it’s doubtful. But even if that does happen, the criminals will con the public into accepting their new and improved digital currency— backed by GOLD!

    I say never underestimate the power and resolve of the parasite guild that rules the world. I’m fairly certain that they are the inventors (and controllers) of Bitcoin and they have had a lot of fun with it. Look at how they rig all the financial “markets”. Gold should be double what it is now.

    Our rulers will do ANYTHING to maintain their perch at the top and they have all the money and all the power because they control all governments. I don’t have any confidence whatsoever in the thoroughly dumbed down, weak and damaged population to throw off their chains– regardless of their dire circumstances. Look at what these idiots have accepted so far.

    But I hope I’m dead wrong.

    • Replies: @RoatanBill
  112. @frankie p

    No, actually “sissy fit” was a typographical error for a bad idea that I should have changed to “ideological rage.”
    I have a corrected version on my website, michael-hudson.com

  113. @Ralph B. Seymour

    Although the US may look like the best horse in the glue factory, one must remember that as the world’s reserve currency, there’s a huge portion of all dollars sequestered outside the US. As the world slowly but surely dumps the dollar, those dollars will find their way back to the US to purchase whatever is on offer, driving up prices. That increase in inflation is on top of the money printing as both the new issuance and the no longer needed dollars will hit the US market. That’s a sure fire recipe for significant inflation which will hurt the US population in buying power.

    The recent China Evergrande situation came close to causing a meltdown in China and I’m not certain that’s over yet. Given that the world’s financial markets are intertwined via business relationships, and derivatives exposure, a problem in China is a problem everywhere as the domino effect takes hold. A significant problem anywhere is a problem everywhere. Cleanest dirty shirt or not, when there’s a serious default and even with a restructuring, someone is taking a hair cut. It’s like a small hole in a dam. It’s not going to get any better with time.

    The rush into the dollar when trouble hits will bolster it for a time, but if the tsunami of defaults gets bad enough, it’s like nuclear critical mass and it all blows up.

    The countries of the world are all serial fiat counterfeiters and the debt load they’ve engineered can never be repaid honestly. They’ll attempt to pay it back technically with fresh counterfeit as inflation keeps increasing, meaning the purchasing power keeps going down. At some point, some country will back their currency, at least partially, with a commodity, probably gold. That will signal all other countries to do the same if they can, and many won’t be able to resulting in fewer national currencies.

    Anyone holding any fiat during the transition to the commodity backed currency will be left with a purchasing power of cents on the dollar. Think Weimar, Zimbabwe, Argentina, Venezuela, etc.

    • Replies: @Ralph B. Seymour
  114. @RoatanBill

    My thinking must be wrong on this confusing subject. But if I’m right, repatriated dollars will not be material to the severely diminished money supply.

    According to the Fed there are 1.74 Trillion paper dollars in circulation. Estimates of those held outside of the US fall between 40 and 70 percent.

    https://www.bullionstar.com/blogs/jp-koning/how-much-u-s-currency-is-held-overseas/

    Compare that to total US dollar debt of 130 Trillion much of which will be destroyed. And this does not count all the stupid derivative positions and “swaps” that wall street types keep in their file cabinets.

    https://www.goldmoney.com/research/goldmoney-insights/the-dollar-s-debt-trap

  115. John V says: • Website

    I have no bone to pick with the overall cognitive content of the piece, but believe the theoretical economic justifications aren’t quite right. First of all, every formal economic activity is a booked entry, and in accounting no exponential progression can exist; Hudson thus seem to imply that something else besides accounting is involved. Second, an economy in order to progress needs determinants along the way. These determinants aren’t set on the supply side but on the demand side of an economy; or, in other words, in the returns on economic activities. Again, his “exponential progression” is a fallacy. In my opinion, the bulk of the piece would have better been written in terms of how an economy works in the real world.

    • Replies: @Mefobills
    , @Showmethereal
  116. @Ralph B. Seymour

    Dollars held by foreigners and foreign central banks are paper AND electronic. When the Fed does a currency swap with another nation, that’s probably almost all electronic with a paper certificate backup. Nations deal in the millions and billions and paper dollars just aren’t appropriate to their needs. Actually, the paper dollars are the least of the issue.

    When the Russian central bank got rid of their dollars, that meant those dollars were probably spent for balance of trade payments to other nations. That takes time but because the US dollar is the world’s reserve currency, it’s the easiest one to get rid of because most countries need dollars for oil at least. The form doesn’t really matter. It could be US currency, T-Bills, Bonds, electronic transfers, whatever.

    The debt most likely won’t be destroyed. It’s unlikely the US will actually default on its debts, at least not initially. It will be paid off in fresh counterfeit fiat, so the currency supply is likely to seriously increase while debts are technically paid off. Anyone that gets a debt payoff will immediately spend those dollars on real goods to convert fiat to something tangible and that could be anywhere in the world. When spent in the US, that’s more dollars chasing a fairly static physical goods supply which is the definition of price inflation.

    Look at Weimar, Zimbabwe, etc to see what most countries have done and it’s almost universally debauching the currency by printing with abandon which causes hyperinflation eventually. The rampant price inflation due to currency inflation (printing) is what hits the average citizen to destroy their accumulated wealth.

    • Replies: @Mefobills
  117. @Ralph B. Seymour

    I don’t think RoatanBill was talking about mere paper dollars outside the US where they still might be better than the local currency for a while, but for example foreign reserve funds that are used to buy things on the international market that are priced in dollars. Even if that glue factory really gets into gear, something has to replace that function or things will get very ugly, but that’s of course not out of the question, we could say the same things about the Roman Republic and then Empire. In the meantime, the USD is still the “least worst currency,” but our ruling trash does seem to be determined to fix that.

    But your point about deflation is something not enough people keep in mind, a collapse of the dollar scenario could result in a tremendous amount of paper wealth being destroyed, a deflationary thing. I also don’t recall these sorts of catastrophes happening in a country where so much of its wealth is notational paper, but again what’s beyond the abilities of our ruling trash?

    And this does not count all the stupid derivative positions and “swaps” that wall street types keep in their file cabinets.

    The aftermath of 2008 shows a lot of those can cancel out. When everything was settled for Lehman Brothers very little money changed hands.

  118. Mefobills says:
    @Bro43rd

    The simple mistake Mr Hudson, & many commenters, make is assuming government has any business regulating the economy. Government power over the economy is what leads to the “rentier capitalism” that he despises. The author never discusses that real problem because he only wants to change who gets to feed at the trough, not do away with it.

    What? You are arguing for anarchy. Hudson is arguing for how to create a successful state, and how debts mount, even in normal economic times. He is also making the case that ancient civilizations, some of which lasted thousands of years, released debts as a necessary condition to their long term success. This then prevented those who are un-deserving from feeding at the trough.

    There is nothing in lolbertarian doctrine about releasing debts. Rational people don’t want to hear LoL bedtime stories for kiddies – a fantasy world that can never exist. The fantasy is about how there must be free movement of capital, free movement of labor and people, and that everything will somehow just work out magically if we trust in gold as our god. If only we had faith in the shiny metal. It doesn’t rust you know. Oh, and free markets are god-like in their ability to find lowest prices. Faith. That golden trough is at the end of the rainbow.

  119. Mefobills says:
    @RoatanBill

    Look at Weimar, Zimbabwe, etc to see what most countries have done and it’s almost universally debauching the currency by printing with abandon which causes hyperinflation eventually.

    Good job, you managed to conflate two very different things.

    Weimar hyperinflation was due to Versailles debts and private creation of bank money.

    Germany could not acquire enough dollars, pounds, francs to pay the triangular flow of debt. Germany had to pay France/England, who then had to pay U.S. Treasury. The debts accrued by the dough boys during WW1, were not released to the allies. Unpayable Versailles debts were thrust into the mouths of the Germans.

    The effect was to put downward pressure on the Mark, which then was sniffed out by “international” bear raiders … currency traders of the Soros ilk, who then caused the hyperinflation. The exchange rate mechanism caused the hyperinflation, and then creating new loans for the currency shorts created virtual money printing.

    It was returning the Reichsbank back to government control, which overcame the hyperinflation. Ooops, government didn’t cause the hyperinflation, but the opposite – it took government power to fix the problem caused by the supposed free market.

    In the case of Zimbabwe, it was negroes killing off white farmers, and hence the economic base disappeared.

    Good job, comparing a stone age African civilization against an advanced industrial European civilization.

    • Replies: @RoatanBill
  120. Mefobills says:
    @John V

    First of all, every formal economic activity is a booked entry, and in accounting no exponential progression can exist;

    The double entry ledger allows a pass-thru.

    Everybody reading this is familiar with a 30 year house loan, where you pay the bank two or three times the purchase price of the home.

    If you graphed the home loan it would be an exponential function, where in the beginning of the loan you pay almost all interest. At the end of the loan period, your principle is drawing down quickly.

    In the first instances of the loan, the interest passes through your double entry ledger, not drawing down principle, but instead passes onto the bankers ledger.

    He then gets to spend your hypothecation credit on blow, hookers, and that new yacht. All of this for the legal right conferred on privateers to create double entry credit. Oh, and if you don’t pay your loan on time, he gets to transfer your real assets as payment.

    Your statement about exponentials not existing is a fail, and further you indicate that you have low understanding of double entry mechanics, which do indeed allow for, even encourage exponential functions.

    A builders loan has compounding interest on the back end, which is why they rush to build crap homes, so they don’t get penalized.

    • Replies: @John V
  121. @Mefobills

    I didn’t specify why the inflation happened, just that it did happen and eventually led to hyperinflation via rampant currency printing. To the average person living in those countries it didn’t matter how it happened; all that mattered to them was that it did.

    Good job erecting a straw man so you could knock it down.

    As for using the names of an industrial civilization and a backwards one, that doesn’t matter either.

    • Replies: @Mefobills
  122. John V says: • Website
    @Mefobills

    And a pass-thru is an exponential, rather than a linear progression? Two or three times the principal over 30 years is exponential? Show us how “f(x) = a^x” fits the process of paying off a mortgage; and I mean formally, not by verbiage soup. Otherwise the F is all yours.

    • Replies: @Mefobills
    , @Anon
  123. antibeast says:
    @Anonymous

    That is one excellent reason for China’s “crackdown” on “tech” (actually “tech-powered”, not tech development – meaning engineering – nor research – meaning science) corporations.

    You raise an important point about these so-called ‘tech’ giants like Facebook, Twitter, Amazon, Tencent, Alibaba, Uber, Didi, etc. as most of them are not really ‘tech’ companies but ‘tech-powered’ SERVICE companies. In the case of Chinese ‘tech’ giants such as Alibaba and Tencent, these ‘tech-powered’ SERVICE companies serve Chinese citizens INSIDE China, thereby amassing vast amounts of DATA about their Chinese users.

    Why should the Chinese government allow all these Chinese ‘tech’ giants to incorporate OUTSIDE China which bypasses Chinese laws, rules and regulations, thereby allowing their Chinese founders and foreign investors to evade taxes on their capital gains? Why should China allow them to raise USD funds by listing their stock in US stock exchanges, thereby subjecting them to US laws, rules and regulations, considering that most of these Chinese ‘tech’ giants — with the lone exception of Tiktok (owned by Bytedance) — serve Chinese citizens in China, not US citizens in the USA?

    Not only do these Chinese ‘tech’ giants pose LEGAL and FINANCIAL problems due to their offshore status and capital structure but their US listing subjects them to US laws, rules and regulations which makes them NATIONAL SECURITY risks to China. Just imagine what would happen when US investors file class-action lawsuits against these US-listed Chinese ‘tech’ startups which would require them to disclose operational and financial DATA including personal information of Chinese citizens to US courts in the USA, a foreign power hostile to China.

    Ain’t goin’ to work.

    In addition to the aforementioned national security risks, there are also ECONOMIC reasons why China wants to ban these Chinese ‘tech’ startups from raising USD funds in US stock exchanges: all these Chinese ‘tech’ companies operate in China which is a RMB economy requiring RMB funds. Why should China allow these Chinese ‘tech’ startups to raise USD funds by selling their stock to US investors in US stock exchanges and then come back to China and exchange their USD funds into RMB to invest in China? This roundabout way of raising capital doesn’t make any economic sense at all as USD funds are irrelevant to China’s RMB economy which requires RMB not USD funds!!! Well, guess what? Xi’s China has allowed big-name Wall Street/Silicon Valley financial houses such as Sequoia (venture capital), Black Rock (private equity) and Goldman Sacks (investment banking) 100% ownership/management of their Chinese firms. All these Chinese ‘tech’ startups are now free to hire Sequoia, Black Rock and Goldman Sacks to help them raise RMB funds inside China, subject to Chinese laws, rules and regulations, obviating the need to raise USD funds outside China, subject to foreign laws, rules and regulations.

    • Thanks: Sarah
  124. Mefobills says:
    @John V

    Seriously?

    You cannot look at an interest rate curve and figure out that it has an exponential, and almost all hypothecations have this function at their base?

    Also, beware the equal sign in economics, it usually doesn’t deal with time. Your logical fallacy of accounting doesn’t account for time.

    For example, the housing bubble pushed housing prices because a number of loans per unit time were created, which then created a flood of credit aimed at said housing. About 70% of new credit created channels toward the FIRE sector. Later, when the loans cannot be sustained, then you get a crash – which is what happened in 2008.

    The double entry ledger is a liar. It passes through interest, it allows exponential functions, and it grabs real assets in a swap to then cancel monetary debts.

    The double entry ledger also allows re-hypothecations, as debt instruments are on-sold into markets, such as TBTF banks, where it can be sliced/diced/tranched into MBS’s.

    A re-hypothecation, will often absorb the interest of one loan into the principle of a new loan. This is how Greece got into debt problems, as they rolled over old debts into new ones.

    The economics profession being filled by quants and accountants is a negative development. Neo-liberal economics is a brainwashing operation, where they think that money is a neutral veil.

    • Replies: @John V
  125. Mefobills says:
    @RoatanBill

    It wasn’t rampant currency printing in the case of Germany.

    It was rampant loan creation to back up the currency shorts. Shorts were imposed on Germany by the (((International))) I might add. The loan creation happened in private banks as the Reichsbank was privatized under the Dawe’s plan at the time.

    The loan creation happened first, and then printing happened afterwards as the money was created on a bank ledger first.

    In the case of Zimbabwe, it was a bunch of ignorant Africans thinking that paper is magick, something like a cargo cult. The amount of money in circulation has to match production. Zimbabwe killed their production, and also increased the money.

    The underlying cause of the hyperinflation, and all hyperinflations (except Zimbabwe) was due to exchange rate pressures.

    By conflating the two hyperinflations you do a disservice to the truth, as if they were both the same, when they were apples and oranges.

    This is no strawman, it is an statement of historical of facts at hand, and most people are ignorant of the facts.

    • Replies: @RoatanBill
  126. @Michael Hudson

    MH, you need a copy editor like, really bad. Your writing is so lucid, so penetrating, so permeated with precise analysis — and the typographical flubs are so … avoidable. All it takes is a sharp-eyed reader. Just one.

    Other than that, nothing but gratitude & praise.

    • Agree: Mefobills
  127. John V says: • Website
    @Mefobills

    Cost accounting couldn’t exist without time, it’s a deductive discipline and there is nothing fallacious about it. It measures economic activities in terms of a unit (of account), first on the debit side in the hope of returns in the form of credits later. In the mean time these activities are indeterminate in value, that cannot as such be conceived to exist in time. In the aggregate a continuity will ensue, meaning: books will balance over time, if and only if rentier-extracted incomes become directly spent on final output embedded with interest and other financial fees. This would hold true for any rate of interest, and also for needing to take up the slack of a lessening in discretionary spending power of the economy’s borrowers.
    This is the criterion at play in the real world, where an economy solely exists because it is accounted for; i.e., a non-material structure as such. Any economic crash would leave its materiality fully intact, and would only need an electronic over-night adjustment of its accounts; a debt jubilee in Michael Hudson’s parlance. However a disequilibrium reigns, not because of some exponential (mathematical) property of interest rates, but because rentiers aggregatively fail to resolve their share of embedded costs. Mathematics is inapplicable to a structure that can only exist due to cost accounting with values that are statically indeterminate.

    • Replies: @Mefobills
  128. GMC says:
    @Mefobills

    I understand M – some of what you are saying and even Geo Washington’s boys were thinking – Big – but – You can’t compare a simple cash flowing market place with a manufacturing plant or industry because market places are all lower classed middle men and women , working to pay the bills with hopes of making enough profit to buy a new/ newer truck or remodel the kitchen etc. and this is common folk economy 101.
    Example – during Geo Washington days { and later on} we fished for our food and some bigger boats sold their catch to the Local market places. This cycle kept the economy and the fishing grounds – fairly safe from over fishing and kept the community fed.
    Todays mega global capitalism has endangered the fishing grounds and removed too many lower middlemen and boosted only large local markets. For people who make really good money , no problem , and yes , in that huge super market, one can find a decent priced product – but at who’s , and What’s the long term expense ?
    It gets pretty complicated, this financial and economic talk so I stay with the easy way at looking at things .

    • Replies: @Mefobills
  129. @Mefobills

    I have seen the photos of people rolling wheelbarrow’s full of paper currency to buy a loaf of bread. I’ve read the stories and seen the photos of people papering their walls with currency because it was less expensive than purchasing wallpaper. I’ve seen the photos and read the stories of people shoveling currency into ovens to heat their homes.

    Are all these reports phony? The currency in each case was created by the gov’t / central bank / banking system to make it available to be used in each case. That is rampant currency printing.

    Milton Friedman described inflation as “always and everywhere a monetary phenomenon.”

    You can call it rampant loan creation and put an economists spin on the story, but in the final analysis is was the creation of the currency that caused the hyperinflation. The reasons for that currency creation are varied in every case of hyperinflation around the world but they don’t matter in the final analysis. Regardless of the regime’s reasons for creating excess currency, it is the fact that it was created that brought about the misery. Had the currency not been created, there would not have been a hyperinflation.

    Are you, by any chance, an economist fraud?

    • Replies: @Mefobills
  130. Mefobills says:
    @RoatanBill

    Are you by chance incapable of understanding?

    The money “printing” was a response to the loan creation. There is cause and effect and it is important to get the order of of operations right. The loan creation, using unwanted positive feedback, had other factors, most especially the versaille debts, and Germany being forbidden from acquiring dollars through exports.

    You are saying the effect was the printing. That is way too simplistic.

    The central bank did allow more private banks to print notes “post facto” to then match the new loan creation.

    Here is a good article on the whole mechanism:

    https://www.wintersonnenwende.com/scriptorium/english/archives/articles/hyperinflation-e.html

    The gold and FX was used as the basis for the shorts.

    Quote:

    In the monetary chaos, Hamburg, Bremen and Kiel established private banks to issue money backed by gold and foreign exchange. The private Reichsbank printing presses had been unable to keep up, and other private parties were given the authority to issue money. Schacht estimated that about half the money in circulation was private money from other than Reichsbank sources.

    Also Milton Friedman is being tongue in cheek. There are different kinds of inflation, including cost-push.

    • Replies: @RoatanBill
  131. Mefobills says:
    @GMC

    It gets pretty complicated, this financial and economic talk so I stay with the easy way at looking at things .

    Fair enough, and your summary is pretty good. I try to make the complicated easier to understand, but then get taken to task when I am too complicated for some readers.

    Jefferson wanted a population of yeoman farmers, who were independent economic entities.

    Economic independence is a pre-condition to real freedom. This is why I harp on Lolbertarians, because the very thing they want, they can’t have due to internal contradictions in their ideology.

    Their ideology allows land enclosure, and oligarchy to arise. It also doesn’t differentiate how the “city folk” and rural economies predict different voting patterns, something the founders understood with creation of Electoral College.

  132. Mefobills says:
    @John V

    However a disequilibrium reigns, not because of some exponential (mathematical) property of interest rates, but because rentiers aggregatively fail to resolve their share of embedded costs.

    I can accept that if we extend the definition of rentiers.

    An example: You have been contracted to transport goods from one town to another. By some sort of happenstance, say a lightening strike, or a highway robbery, you are relieved of the goods.

    The former credit/debt relation can no longer be consummated by the transfer of goods. Are you on the hook to make everything right, as if happenstance is your fault?

    It would require a third party, usually a King or some high authority to use force of law to erase the debt overhang.

    With regards to exponentials, one can see the macro effect in the ratio of debt instruments and paper claims relative to extant money. I think derivative claims are something like \$600 trillion now. All of this funny business is marked by simple accounting, with proliferating ledgers and paper making claims. Within these claims are also other exponentials, such as interest paid – which is accounted for with the pass through.

    • Replies: @John V
  133. @Mefobills

    You’re not hearing me. I don’t care why the currency was printed. It doesn’t matter why it was printed. The gov’t can always come up with a reason for printing currency as that’s what gov’ts do.

    The fact that the supply of currency was increased to ridiculous levels, regardless of any excuse the gov’t used, is why the hyperinflation came about.

    Cause : Printing
    Effect : Inflation / hyperinflation.

    If you want to back up in time to state another cause / effect relationship such as Cause : loan, Effect : Printing, I’ll agree to that but that has nothing to do with the fact that the PRINTING is the absolute cause of the hyperinflation. We can keep backing up in time to eventually arrive at Cause : Man appeared on earth, Effect : Inflation / hyperinflation, but that ignores all the steps in between. The minimalist Cause and Effect relationship is Cause : Printing, Effect : Inflation / hyperinflation.

    The US has inflated the money supply by a huge percentage in the last few years and inflation is starting to become obvious to all. Eventually, if they keep it up, the act of creating new currency units is the cause of the hyperinflation that will ruin the dollar as it’s ruined numerous fiat currencies in the past, and the reasons given for the printing won’t matter one bit.

    You never did answer my question about you being an economist (fraud) but I think I know the answer.

    • Replies: @Mefobills
  134. @antibeast

    Yes – understood. I was just trying to get the previous guy to understand why China is opening up its economy to more investmemt interests. But yeah hopefully he read your comment too. Most people didnt even know that it is only recently a company that wasnt showing profits could even list in China and that is why most IPO’s went overseas. There are so many misconceptions about China’s market in the west. Mr Hudson does a good job explaining parts though.

    You are absolutely correct too. Its not just homegrown companies either. They quickly brought Elon Musk under manners too. He cant talk to China like he talks to US politicians. Jack Ma wont be a Jeff Bezos. The head of JD.com has wisely kept a low profile. China had to remind them – you can get rich – but you wont be able to dictate policy.

    • Replies: @antibeast
    , @Sarah
  135. @John V

    Economics and Finance and Accounting are all different discipline s and can look at the same scenario in 3 distinct ways

  136. John V says: • Website
    @Mefobills

    What kind of bearing does your hypothetical micro-economic example have, you figure, on my conclusion as to how the macro economy works, within the reality of it being a system of accounts?

    No, all that is required is democracy and a well-informed constituency. The latter having been shown through impeccable logic, and jargon-free, what money actually is; and the institutional perversion that has been going on, in regard to structural and involuntary unemployment, pulling the wool over everyone’s eyes. The “wealth” of Soros and his ilk is nothing but irresolvable debt.

    Within a double-entry accounting system, all money is created ex nihilo as a to be resolved debt; your “extant money” not being any different. Money cranks, in their conviction of it representing some kind of positivity, don’t realize that for their “system” to work, the economy’s accounting will need to revert to a Mom and Pop’s corner store single-entry system, with all the now unavoidable waste this would represent.

    A couple of centuries ago already, someone made the stunning observation that the negative values of to be resolved portfolio claims, may very well survive the destruction of the positivities that used to underlie them at their inception. No economist alive today can boast having that kind of insight. vcn.bc.ca/~vertegaa/TPreface.pdf

    • Replies: @Randy Dazzler
  137. @Anonymous

    Everything you said is correct… Though it should be noted Russia is currently helping China upgrade it’s missile launch early warning system

  138. anon[222] • Disclaimer says:

    So called primary dealers are the top dog of the rentier class. They receive the lorinted money and distort stock market,real estate,and reduce the purchasing powrrs of the dollars thus reduce the value of the labors through effective lower wages .

  139. @John V

    From an old post of yours:

    A debt jubilee is a matter of justice. Keen and Hudson know it, I know it. That knowledge and a couple of bucks might get any of us a cup of coffee somewhere, but no debt jubilee. So what’s next? I’d argue that the first thing is – coming up with a coherent theory of money. It’ll probably surprise most of you, but, after a few centuries and countless analyses, still no serious theory of money/funds in capitalism exists.

    Ahem, ICYMI: https://www.unz.com/trall/the-collapse-of-the-u-s-government/#comment-4883814

    Plenty of context up and down my postings from there, though I suggest you start at the beginning. I’ve covered a lot of material that probably strike most as unfamiliar, and many with “Why didn’t I think of that?”

    Now, going on about “double entry accounting”. Nothing magical there, it is simply a redundant error correcting mechanism.

    Within a double-entry accounting system, all money is created ex nihilo as a to be resolved debt; your “extant money” not being any different. Money cranks, in their conviction of it representing some kind of positivity, don’t realize that for their “system” to work, the economy’s accounting will need to revert to a Mom and Pop’s corner store single-entry system, with all the now unavoidable waste this would represent.

    This makes no sense. Introduction of money into the system is just that, and it if it is electronic, it will be significantly more robust with backup copies and audit trails. It is introduced, no matter how you account for it. Note, the distinction between money created by a bank (a private IOU) and money created by a sovereign government (a share of wealth). You are talking about “bank money”, I am talking about “real money”. Only real money can pay taxes.

    Any business can be run with a single or double entry accounting, even in the latter you have a source journal, which is single entry at that point. A business of any size is pretty much required to run a standard double entry system in order to satisfy reporting requirements.

    Please read my stuff before you respond, or don’t bother. I’m a systems automation expert with a lot of experience. I have interfaced many accounting systems.

    FYI, your display of understanding between compound interest and an exponential function is a tell.

    • Replies: @John V
  140. Anon[299] • Disclaimer says:
    @Truth Vigilante

    One thing is certain, it won’t be you contributing anything of substance here — except your typical bowel movements.

    • Replies: @Truth Vigilante
  141. Anon[299] • Disclaimer says:
    @John V

    You clearly have never taken either a basic accounting or a basic finance course and yet you insist on promulgating your ignorance.

    Accounting (or GAAP in the US) is a convention or a set of rules (constantly revised by FASB) which is a representation of economic value in the currency of the statement. Variation in interpretation of accounting presenting can lead to…Enron (if you recognize that failed high flying company).

    The compounding of interest is a mathematical procedure which is not subject to interpretation but is instead based on the terms of the legal agreement between party/parties.

    Mefobills is absolutely correct in his explanation.

    Have you ever considered taking an online course (there are many free ones) in these areas? Not everyone has to go to Harvard Business School (though some of us have).

    • Replies: @John V
  142. John V says: • Website
    @Randy Dazzler

    Not much there to have missed out on. Just another guy full of himself who thinks he knows better than one of the main spokespersons of MMT.
    “The ideas [of MMT] are not theoretical, and they aren’t particularly modern. What we’re doing is simply describing, operationally, the way government finance works. It’s not a theory; we do not make assumptions, although we are economists. What we’ve been describing to you today is not dependent upon any ceteris paribus condition or any set of assumptions about perfect competition or rational agents or anything else that you get exposed to when you study economics, but rather an attempt to simply describe the way in which the institutional arrangements are set up, and the accounting identities and what happens in a balance sheet framework; when one side of the equation moves, what happens on the other side of the equation? That’s really all we’re up to…”

    Stephanie Kelton, Session 2 — 1st Fiscal Sustainability Teach-In and Counter-Conference
    George Washington University, Washington DC, April 28, 2010

    MMT talks up a good story of what money does, but doesn’t even attempt to theorize what money is; as for the latter, assumptions are needed. When you got yours, gathered from outside the field of investigation, so no circular reasoning occurs, get back to me. At this point I’m not interested in discussing the properties of money, as a non-material to be resolved debt and unit of account, with you.

    • Replies: @Randy Dazzler
  143. antibeast says:
    @Showmethereal

    One other thing I forgot to mention is that China passed the Foreign Investment Law (FIL) in January 1, 2020, granting ‘national’ treatment to foreign-invested enterprises by abolishing the old foreign investment laws on Wholly-Foreign-Owned Enterprises (WOFE), Chinese-Foreign Joint Ventures (CFJV) and Foreign-Invested Enterprises (FIE). Prior to this new law, the old laws restricted foreign investors to participating only in the above-named three categories of foreign-invested enterprises, barring them from investing in domestic enterprises or raising capital in the local stock markets in China. This restriction forced most Chinese Internet/E-commerce companies to incorporate their holding companies in offshore jurisdictions where they are free to raise capital outside China, as their VCs backers were often foreign firms such as Sequoia who are now free to raise capital inside China, as expressly permitted by the new FIL.

    Contrary to popular opinion in the West, China is actually liberalizing its capital markets by allowing foreign firms such as Sequoia, Black Rock and Goldman Sachs to ‘play’ the money game in the Chinese capital markets using RMB funds raised inside China, subject to the juridical authority of the Chinese government. The good ‘ole days of Chinese Internet/E-commerce startups raising USD funds outside China, then listing their offshore VIE shares by doing IPOs in US stock exchanges, subject to the juridical authority of the US government, is now over.

    Here’s a graph on the relative share of RMB funds vs USD funds raised by VCs/PEs in China in 2017:

    As seen in the graph above, RMB funds have long ago surpassed USD funds in the VC/PE industry in China. The new FIL now allows foreign firms such as Sequoia, Black Rock and Goldman Sachs to access the Chinese capital markets by raising RMB funds from Chinese investors in China.

    They are no longer in Wall Street but in China Street.

  144. Weaver says:
    @Mefobills

    China likes controlling supply. As a result, the US is dependent and couldn’t easily fight a war against China, without first developing our own rare earth metals. However, I don’t think it would be sensible for the two to fight anyway. But I guess the US is crazy.

    I agree with your post, just adding that in for the small chance it helps you.

  145. Weaver says:
    @Mefobills

    Singapore intentionally climbed up the labor value curve as well, using the state not the market. It’s fun to see “neoliberal economics” or whatever buzzword thwarted.

    American “strategists” had this bizarre notion that China would develop like Japan, “End of History.” They were wrong.

    • Agree: Mefobills
  146. Sarah says:
    @Showmethereal

    Jack Ma wont be a Jeff Bezos. The head of JD.com has wisely kept a low profile. China had to remind them – you can get rich – but you wont be able to dictate policy.

    JD.com’s daughter company : http://www.joybuy.com/ (in English).

  147. @John V

    No worries. I prefer to understand systems based on first principles rather than emergent properties. To try to explain our two different approaches in reference to that basis would be too much effort. There is no circular reasoning in my presentation.

    What I describe is similar to MMT, as it is similar to UBI, but they are qualitatively different. How it maps to existing perspectives in not an important matter to me. As long as you have seen it, can’t refute it, I’m okay. I’m a Systems Scientist more than an Economist, the latter being a subset of the former.

    I understand how Academics works, and the motivation for your excessive erudition encompassed in eloquent expression. In my case, false modesty impairs proper elucidation. I’m delivering a message, I am writing intending clarity, not jargon. You aren’t the intended recipient, just somebody I thought might benefit.

    How things work, not just what they “is”, is kind of important. I am describing an inherently stable system vs one that needs active control. It’s an Engineering thing.

    • Replies: @Mefobills
  148. Mefobills says:
    @RoatanBill

    The gov’t can always come up with a reason for printing currency as that’s what gov’ts do.

    The government didn’t print the currency, it was private banks.. Private banks are stock owned corporations. The government did print the currency in the case of Zimbabwe.

    Who even cares about your appeals to authority? Most economists think that money is a neutral veil and has no effect on the economy, which makes them unqualified to speak. Steve Keen’s book “Debunking Economics” explains how economic theory is just plain wrong, especially in the aftermath of the 2008 crises. There were only a few economists in the world who forecast the bubble collapse correctly, and one of them was Hudson. Assumptions about reality matter, and if you are shown wrong, then it is on you to correct yourself.

    China’s government isn’t maneuvered by stock owned companies, as it is not finance capitalist. They’ve done a pretty good job of controlling their money supply. A lot of “Westerners” are going to have a come to Jesus moment, where they have to re-assess what they think they know.

    China’s banks and money are sovereign, although to be fair, they did allow a housing bubble by an intermediate group of privateers, who did effectively print money by making new loans, and push housing prices.

    Some people will read our exchange and benefit from it, but not you.

  149. Mefobills says:
    @Randy Dazzler

    I’m okay. I’m a Systems Scientist more than an Economist, the latter being a subset of the former.

    Yes. Michael has made himself into a system engineer, especially with his understanding of capital flows. Economics profession is due an upgrade, which is happening with systems engineering approach, some of which Steven Keen is pioneering. The new models use dynamics, and understand that economies have lots of moving parts.

    How things work, not just what they “is”, is kind of important. I am describing an inherently stable system vs one that needs active control.

    The “Free Marketeers” and Neo-Liberal Economists will never admit that the economy is an inherently unstable system and requires active control. Instability is inherent in economies that emit new credit in an uncontrolled fashion via privateer hypothecations, especially for speculation. Wealth and production economies are less speculative, and hence more stable. On the other side of the debt instrument is production and physical economy, not finance engineering.

    For example, the German Hyperinflation that I’ve been discussing had unwanted positive feedback.

    Exchange rate pressure, leads to the shorting mechanism, which makes new credit, which causes more exchange rate pressure, which makes new shorts and so on, so the system spins out of control. Speculators ride the wave, and pat themselves on the back, meanwhile real people and wealth are destroyed and shifted to the speculators.

    In modern times there is an analog with the 97-98 Asian Currency Crises. The Government of Malaysia confronted the IMF and the speculators in Western Banks and Hedge Funds.

    The Malaysian response to the speculator assault prevented Malaysia from spinning out of control, and was contrary to the neo-liberal Washington Consensus economists ensconced in the IMF.

    https://catalogue.nla.gov.au/Record/3509929 Marie-Aimée Tourres cataloged the event, which has otherwise fallen into the memory hole. A crises was averted, and so people have forgotten about it.

    Economies are indeed Systems Engineering, and there is no god or magick in “free markets.”

    When I say these things (and you), certain people take umbrage as their Ox is being gored. But, too bad so sad, there are first principles and non-circular reasoning.

    • Thanks: Randy Dazzler
    • Replies: @anon
  150. John V says: • Website
    @Anon

    Your missive is based on a few (unstated) assumptions isn’t it? Like: a currency = a unit of account = a material, determinate (positive) thing to which an exponential function is applicable, no? How about, macro is nothing but the sum of (static) micro conditions? I’m sure you’ll let me know if it’s not. So let’s for now continue with the situation where non of those assumptions hold, and a unit of account is non-material entity, a non-thing that gets created as a to be resolved debt; in other words as a negative. Now perhaps HBS is a bit slow in picking this up, but the latter as established fact has been known since independently given testimonies by pre-war CB chairmen Towers and Eccles, of Canada and the USA respectively. And guess what, just in case you’ll dismiss it as unimportant, exponential functions cannot have a negative base… surprised? Got a coherent theory of your own, as to what money is, to bail yourself out?
    I’m not the least bit interested in basing my own macroeconomic theory on a misguided convention held to be valid for static micro conditions. The grief the latter has caused in many cases is nothing short of illegal, if not to say criminal; since, as seen from a macro perspective, there have to be defaults in the aggregate system regardless the utmost responsibility of borrowers (already alluded to in my earlier message to Mefobills). And, “for loan agreements to be valid generally, both lenders and borrowers must inherently be able to honor the terms of a contract” (Rawls’ Theory of Justice: 1999, p. 153). Meaning, that whatever payback conditions are agreed upon and also regardless of any future uncertainty, at the outset of lending the possibility of loan redemption must always remain intact or justice won’t be served; and an economy both in conflict with its underlying accountancy principles and without justice cannot possibly sustain a betterment of society. (excerpted from: ontology.pdf).

  151. It is disingenuous and duplicitous to state that the banks created the currency as though the gov’t had nothing to do with it. The banks are the gov’ts agents with license to do exactly as they did then and are doing today. They invent a loan and thereby invent the new currency to cover it.

    Who even cares about your appeals to authority?

    Please show where I did that as I recognize no authority in anything.

    Most economists think …

    Who cares about what those frauds think. Economics is bullshit from top to bottom. The only portions of economics that make sense are those parts they purloined from common sense and labeled it as their revelation. It’s because it’s all bullshit that they can’t predict anything with any accuracy and can’t even do a decent postmortem on their failures. And it is their failures as they pretend to know how to run an economy when no one should be even attempting to run an economy. Hudson, the Keynesian’s, the Austrian variety are all not to be trusted with the control they’d like to implement.

    Why you brought China into the discussion is a mystery, so I’ll leave it alone.

    I agree with you on your last sentence. Some will benefit from our exchange to realize that you haven’t debunked my logic and just ramble on showing you’re just a purveyor of hot air.

    • Replies: @Mefobills
  152. Mefobills says:
    @RoatanBill

    It is disingenuous and duplicitous to state that the banks created the currency as though the gov’t had nothing to do with it. The banks are the gov’ts agents with license to do exactly as they did then and are doing today. They invent a loan and thereby invent the new currency to cover it.

    I brought up China because I knew you would make a statement like the above.

    China has state banks under sovereign control. They then can control the channeling of new Yuans, and also control the volume, velocity and other money variables. China can also erase Yuan debts, effectively creating debt free money. China’s economy is then permanently efficient, and no free market privateering dupe will be able to understand why. It is impossible to understand the why, when you hold narrative in your head that cannot explain the world.

    Money’s true nature is law. If the law was usurped for privateers to emit the credit, then anybody rational has to admit that as fact. (The usurpation happened in the U.S. especially by 1912.)

    It doesn’t matter if you hate government, there is hierarchy in all things. How the hierarchy is organized is what matters. This whole government = evil thing is bedtime stories for kiddies. There were always be government or some sort of third party insertion to settle differences.

    If the law is preserved to improve the general welfare (China), then rational people can observe and admit it as fact.

    The mistake Germany made was allowing the Reichsbank to no longer be under Chancellorship control, and hence Western privateer speculators ran wild, especially using FX and Gold as the basis for their “international” shorts.

    The printing of money was POST FACTO, a response to ledger mechanics. Exactly the same thing applies today, where bank credit is created first, and any “cash” or money printing happens post facto.

    These speculative attacks were and are non-trivial as they demoralized and debased the German population, even to the point of having their generational wealth appropriated by outsiders.

    • Replies: @mulga mumblebrain
  153. You do like to ramble on.

    Money’s true nature is law.
    No, currency’s true nature is law, the law of force. Currency and money are two completely different things. See Mike Maloney’s excellent series of videos on the difference.

    Gold is money. Everything else is credit.
    J.P. Morgan

    Gold and silver were and still are money. The central banks of China, Russia and many others are accumulating gold because they know their fiat has no intrinsic value and sooner or later will meet the fate of all other fiat currencies in history – go bust. Fiat currencies have value only because there are gov’t guns behind them that force their use.

    The Chinese system has differences but is just as rotten. The recent China Evergrande situation says they are just as vulnerable to the fraud of fiat as are all other countries. That Lehman moment isn’t over yet. I suspect it’s the tip of a very large iceberg.

    You keep blathering on but you’ve never refuted my statement that printing leads to inflation / hyperinflation. That’s because you can’t refute it; no one can.

    • Replies: @Mefobills
  154. Anon[647] • Disclaimer says:
    @Farrakhan.DDuke.AliceWalker.AllAgree

    ”You know that privatisation as a process is important but it shouldn’t be an end in itself,” RBC quoted President Vladimir Putin’s spokesman, Dmitry Peskov, as saying.”

    “And, moreover, we all remember that in our recent history … we’ve repeatedly had situations where whole industries were on the verge of disappearance as a result of privatisation and it cost a tremendous amount of effort to re-consolidate them in the hands of the state.”

    Kremlin brushes off Kudrin’s call for sweeping privatisation

    (excerpt)

    On: http://emergingmarkets.me/kremlin-brushes-off-kudrins-call-for-sweeping-privatisation

    Also note:

    World Bank appoints David Knight lead economist for Russia
    Posted on September 1, 2021

    ”The World Bank has appointed David Knight, earlier a senior economist for the international bank and an adviser in the British and Sierra Leonean governments, as the lead economist for Russia with effect from September 1, 2021.”

    ”Before his current appointment, Knight, who will be based in Moscow, was the World Bank’s senior economist for Turkey and earlier on for Timor-Leste. Previously, he had held a World Bank Sydney-based role leading research on macroeconomics, poverty reduction, fiscal management and trade for several countries in Asia-Pacific, the World Bank said in a statement.”

    See: http://emergingmarkets.me/world-bank-appoints-david-knight-lead-economist-for-russia

  155. @Mefobills

    In the Western capitalist ‘democracies’ (it is to laugh!) the country is run for the benefit of the rich parasites who own the country, its politics and media. Therefore, inevitably, these dystopias only ever grow more unequal and burdened with debt. Inequality destroys economic vitality, so they stagnate, kept afloat with ever greater tsunamis of funny fiat money, that never reaches the proles, but is gobbled up by the financial vampires and used to keep juicing asset prices.
    In China the country is run for the advance of its people, and those of the world, at which it has been stupefying successful. This incites genocidal, racist, rage in the ‘democracies’ as we can clearly see in the rush to war, one which we will all lose. But you can’t teach an old thug new tricks.

    • Agree: Mefobills
  156. @antibeast

    The ruling elites in the US are crazy, but above all else they are Evil.

  157. Mefobills says:
    @RoatanBill

    You do like to ramble on.

    You say the above, and then reply with a bunch of Lolbertarian quotes, and then talk about how printing leads to hyperinflation.

    Mulga puts it right (see above), you can’t teach an old dog (you) new tricks. Others will read our exchange, and hopefully they are warned away from Lolbertarianism, because it is a mind screw. Look what it has done to you.

    Currency is just money that has been put in motion, to make current – to flow. Your mind has been filled with nonsense, which is why you cannot understand China or the world around you.

    Money comes in different types, some is Credit (emits from a ledger), some can be even debt free. China can erase debts, which effectively makes debt free. If gold is monetized by law, then it becomes money. You actually quote Morgan, who was one of the principle parties who funded the usurpation election of 1912, which undid the Country.

    Lolbertarians are un-american, repeating an implanted memory that gives succor to finance capitalism and neo-liberalism. Dupe.

    Cost push was part of the reason for the German hyperinflation. Germany was food dependent, and had to import food. The exchange rate pressures (DUE TO VERSAILLE DEBTS NOT MONEY PRINTING), put exchange rate pressure on the mark, which made food more expensive … inflation.

    Inflation is more complex than simple Lolbertarian platitudes, but then again the ideology is bed-time for kiddies, and designed to entrap and demoralize its adherents.

    The shorts came later, after parasites in the finance centers — oh wait, isn’t that free market? The international parasites then attacked, using FX and Gold. Oh wait, Gold is money and magick and it can do no wrong. It is shiny and doesn’t rust!

    You just got refuted, but you don’t have the ability to comprehend, because you are demoralized.

    Hudson wrote a book, J is for Junk economics. He wrote it because so many people don’t have language to understand. You wasted your life by lapping up brainwashing doctrine (lolbertarianism) which is equally as wrong as ne0-liberal economics.

  158. Keep talking to yourself because I’m no longer listening.

    BTW using mumblebrains for a reference doesn’t enhance your ludicrous position.

  159. anon[132] • Disclaimer says:
    @Mefobills

    The Malaysian response to the speculator assault prevented Malaysia from spinning out of control, and was contrary to the neo-liberal Washington Consensus economists ensconced in the IMF.” – Yes and the neoliberals were screaming for Malyais’s head .

    America doesn’t allow IMF or WB .It doesn’t have to .It creates its own money .If the mortgage banking housing crisis were limited to S Korea,Japan, Taiwan Germany France – we would have seen a different responses- like cutting welfare ,gutting public services and allowing massive sale of public utilities would have been the remedies. American unique immunity is nit from any economic factor not from any economic ground or strength of free market but from pure military strength.

  160. @Anon

    Thanks Anon – you’re too kind.

    Looks like we’ve exposed yet another economically illiterate groupie (like Mefo-bull). of Michael Hudson.

    We’ll be keeping an eye out for you Anon, at the next anniversary of Karl Marx’s birthday – because we know you’re sure to attend.

  161. @Michael Hudson

    Hey Michael, I have a question to ask you.

    I’m sure you’re familiar with the contributor in the comments of UR that uses the handle Mefo-bull (easy to spot, seeing as he’s made 60% of the comments in this thread).

    Well, he thinks the sun shines out of your arse – he’s that enamoured with your output.

    You’ll notice also that he never wastes an opportunity to discredit Libertarians – it irks him that their spokespersons (eg: Dr Ron Paul and Peter Schiff), are almost invariably right and that the Austrian Business Cycle Theory is rock solid, while Mefo-bull is the perennial loser.

    Well Michael, since Mefo says you’re SOOOOO right and the Libertarians are so wrong, let’s put the rubber to the road and arrange a debate.

    It can be you Vs Peter Schiff (former economic adviser to Ron Paul’s 2008 Presidential campaign), arguing over whose economic theories are best.

    What do you say ?

    I suggested it to Mefo before and asked him to contact you. But Mefo scurried off like a cockroach.

    This is a great opportunity to raise your profile – seeing as hardly anyone knows you. (As opposed to Peter Schiff who has a huge following the world over).

  162. Well, as Mefobills says, the problem is vocabulary — what language to speak.
    The words of libertarians exclude serious discussion and analysis of reality. They establish a parallel universe that is so unrealistic that a reasonable person must stop and spend all the time unpacking just the first paragraph of circular reasoning.
    One needn’t get fleas in the process of explaining why not to go to fleabag hotels.

    • Agree: Mefobills
  163. Anon[378] • Disclaimer says:

    There is no debate. No government on the planet uses libertarian or Austrian economics. None ever will, and none ever has. Any nation that tried to use those kind of policies would be road kill. They would be destroyed by competition with nations that use functional economics, engineering economics.

    The nations of the world have voted with their feet.

    • Replies: @Truth Vigilante
  164. @Michael Hudson

    OK then, I’ll take that as an admission that you’re TOO SCARED to debate the Libertarians – for fear that the shaky foundations on which your voodoo economics is based will be eviscerated.

    Go back to worshipping Richard Wolff and other Socialist advocates of the failed Keynesian experiment, secure in the knowledge that you won’t have to face up to those that genuinely understand economics.

    You people talk up a big game but when you’re confronted, you’re all TOO GUTLESS to take on the Libertarians in an open forum.

    The following video where Peter Schiff takes on ‘Clueless Liberals’ is good viewing.
    (It could just as easily have been Schiff Vs Clueless Michael Hudson (and his groupie Mefo-bull) if this dynamic-duo had the courage to stand up for their misguided convictions:

    Lastly, the internet is awash with ‘Peter Schiff was Right’ videos (being a compilation of the countless prescient calls Schiff made in the lead up to the 2008/09 GFC where, based on Libertarian/Austrian Economic principles, Schiff was able to make word perfect predictions of the calamity that was about to unfold.

    Meanwhile, is there any documented evidence that Michael Hudson made a SINGLE call of substance in the lead up to that GFC ?

    DON’T MAKE ME LAUGH.

    • Troll: mulga mumblebrain
    • Replies: @Mefobills
    , @Mefobills
  165. @Anon

    Anon wrote:

    They would be destroyed by competition with nations that use functional economics, engineering economics.

    The fact is, Free Market/Austrian Economics was more or less practised in the 19th century by both the U.S and Great Britain (hence the reasons for their phenomenal economic growth and highest living standards in the world).

    It is the reason for the Chinese economic miracle of the last 40 years (China’s low tax, low regulatory environment coupled with a far lower percentage of GDP being wasted supporting Big Government than in the profligate western world), has ensured that the 21st century will be theirs.

    There is no chance of a country adopting Austrian Economics being destroyed by another practising the DISFUNCTIONAL economics that you advocate for Anon.

    What sort of delusional world do you live in, my uninformed friend ?

    Your left-of-centre Keynesian based views have FAILED everywhere they’ve been initiated.

    To the extent that the U.S was the world hegemon for the latter half of the 20th century despite employing hefty doses of Keynesianism, was due to the plentiful bounty it had accumulated in the 150 years preceding that when it was mostly a Free Market economy.

    Their situation was greatly assisted by being the last man standing amongst the great powers in the immediate aftermath of WWII.
    The British had been bankrupted by that war, while Germany and Japan’s industrial base had been decimated.

    It would be accurate to say that the U.S maintained its position as the great economic/military hegemon in the latter half of the 20th century DESPITE the adoption of Big Government foolishness (esp. under FDR and LBJ), that retarded growth.

    Now, I don’t disagree with you when you say Libertarian/Austrian School based economies are not likely to take hold in the major countries in the immediate future.
    And there is an important reason for that:

    The Zionist Dominated Usury Banking Cartel will use all their considerable leverage to ensure that a Libertarian/Austrian Economics based government never takes the reins of power.

    Such a government would’ve been established had Dr Ron Paul not been cheated in the Republican primaries for the 2012 Presidential election.
    There is no doubt in my mind that Dr Paul would’ve gone on to win the Presidency had he been the GOP candidate – instead of the uninspiring and bereft of imagination/intellect Zio sock puppet Mitt Romney.

    The Zio-cabal went out of their way to prevent this happening.

    Because a Ron Paul Presidency, based on Libertarian/Austrian Economic principles, would’ve ushered in an era of peace and prosperity, the likes of which the world had never seen.

    It would’ve served as a template for other countries to follow and would’ve broken the usury monopoly that the Zionists had over the entirety of the western financial system.

    Instead Anon, you, Mefo and Michael Hudson got your wish. ie: the present situation, where it’s more of the same Keynesianism and looming financial armageddon resulting from the debt funded over consumption from endless ‘money printing’ (digitally created or otherwise), that all of you espouse.

  166. Mefobills says:
    @Truth Vigilante

    If you bothered to read my comment history, you would find out I’m a Nazi. I’m a Nazi without the racism; I’m more in alignment with Ron Unz on race realism.

    Oh wait, Ron is a Jew, Mefobills is a Nazi, and Michael is a Trotskyite.

    Don’t tie yourself up into a pretzel trying to figure that one out, because in Lol Lol lolbertarian land, reality is a parallel universe. It is A-Priori theory, and then the world is force fit into the theory. A clock is right twice a day.

    A real truth seeker, pulls on the red thread of history, and finds themselves in a place that a LoL can never follow. Michael has introduced debt into the consciousness of truth seekers everywhere, and hence both the present world and future owes him a great debt of gratitude.

    The world does not owe a “debt of gratitude” to those who would pull us downward, into a parallel universe of unreality. There is no Truth in Truth Vigilante, but the opposite. Lolbertarianism is a brainwashing operation.

    In this thread alone, I’ve recommended other economists, including Steve Keen, and Marie-Aimée Tourres.

    Also, you (Truth Vigilante) actually think I’m a groupie and am not accomplished in my own right? That is because you are a groupie yourself, a cultist, who got ensnared in a false parallel universe. You are an example of why Lolbertarianism is dangerous, as it ensnares the young and well meaning and diverts them into cul-de-sacs of bad thought. Then they are then disarmed so their pockets can be picked. At the end of their life, they become demoralized and defend the indefensible.

    You didn’t even post the latest greatest thinker from Lolbertarian-ville, who is Huerta De-Soto. I doubt you even know who he is, and are probably surprised that I’m well versed in Libertarian doctrine.

    Here is another economist I can recommend, Joeseph Huber.

    https://www.academia.edu/31070996/Neo_Austrian_School_Notes_on_the_occasion_of_reading_Huerta_de_Soto

    De-Soto, who is actually intelligent (unlike Vigilante) is unable to square the circle. The internal contradictions of Lolbertarianism cannot be overcome.

    I would even rate Peter Schiff as unintelligent, and more of a disinfo agent. Ron Paul, who you also follow, is just plain deluded.

    The founding of America was never Libertarian, that is an implanted memory, and Paul has done a lot of damage by popularizing a false history.

    To disabuse yourself, all you have to do is read Hamilton’s report on Manufacturers, and note that it is American Credit flowing in the economy, not Gold or Silver.

    But, then again, you are unwilling to confront contradictions and change course – the definition of demoralization.

    People who are greater than me (Hudson for example) don’t even want to deal with your type, or Schiff. You are annoying and stupid, and caught up in falsehoods, and then strike out with insults because you have no real argument.

    Huber dismembers De-Soto and Austrian Theory. The sooner Austrianism and Lolbertarianism dies a well deserved death, the better.

  167. Mefobills says:
    @Truth Vigilante

    Meanwhile, is there any documented evidence that Michael Hudson made a SINGLE call of substance in the lead up to that GFC ?

    You are doing a good job of single-handedly making Lol’s look bad. Your being a groupie has blinded you.

    https://michael-hudson.com/2017/06/harpers-slow-crash/

    Have you ever heard of someone sitting on Wall Street who read Harper’s in May 2008 and acted appropriately?

    _______________

    I don’t think they needed me. If they’re on Wall Street, they didn’t need me to tell them that the economy is going to collapse. They all knew it was going to collapse. That was in the language of “liar’s loans” and “NINJAs.” It was pretty obvious what was going on. It’s just the media didn’t talk about it because the media was giving handouts from Alan Greenspan saying that it’s not possible for there to be a real estate collapse, it’s only local. The media are cheerleaders for the stock market. Whenever it goes up they celebrate, even if it goes up because there’s a short squeeze on speculators. The media have not done a good job in educating the American public.

  168. Mefobills says:
    @Truth Vigilante

    The fact is, Free Market/Austrian Economics was more or less practised in the 19th century by both the U.S and Great Britain (hence the reasons for their phenomenal economic growth and highest living standards in the world).

    It’s just like Michael says, you have to spend hours unpacking the circular reasoning and lies, so it is just an exercise if frustration debating LoL’s.

    You make assertions and have language that is a parallel universe.

    There is no such thing as a free market, that is Orwellian double speak. There is only markets Free from rents and usury, and Lol’s are apologists for the creditor class, who in turn want to take rents and usury.

    The U.S. did not get its start using Lolbertarian Free Market economics. That is an implanted memory, and you have been duped.

    https://www.barnesandnoble.com/w/americas-protectionist-takeoff-1815-1914-michael-hudson/1020975792

    The contribution of the American School of Political Economy (1848 to 1914) to America’s wildly successful industrial development has disappeared from today’s history books. American protectionists and technology theorists of the day were concerned with securing an economic competitive advantage and conversely, with offsetting the soil depletion of 19th century America’s plantation export agriculture. They also emphasized the positive effect of rising wage levels and living standards on the productivity that made the American economic takeoff possible. The American School’s “Economy of High Wages” doctrine stands in contrast to the ideology of free traders everywhere who accept low wages and existing productivity as permanent and unchanging “givens,” and who treat higher consumption, health and educational standards merely as deadweight costs.
    Free trade logic remains the buttress of today’s financial austerity policies imposed on debtor economies by the United States, the World Bank, and the International Monetary Fund. By contrast, the lessons of the American School of Political Economy can provide a more realistic and positive role model for other countries to emulate – what the United States itself has done, not what its condescending “free-trade” diplomats are telling them to do. The lesson is to adopt the protectionist policies of the late 19th and early 20th centuries that made America an economic superpower.

    I doubt you want to disabuse yourself, since you are a LOL and convinced you are right. The early days of the America’s, the election cycles were mostly about the Tariffs. Is the Tariff going up, or down?

    The U.S. got rich behind Tariff walls and Industrialization, and also using its own credit. American credit channeled into industry and the commons, exactly what China is doing today.

    In my comment history, I make the case that the first Industrial Capitalism economy was Massachusetts Bay, who emitted bills of credit. NOT GOLD AND SILVER. The Gold and Silver types who were around wanted usury for the right to use their stored gold, and John Winthrop told them to F- OFF. The colonial experience made its way into the constitution, especially the general welfare clause.

    China is Industrial capitalist, not Lolbertarianism. Libertarianism is a branch of liberalism, and is much closer in ideology to finance capitalism, which the U.S., and west now operates with. LIbertarianism is a kissing cousin of neo-liiberalism.

    And I doubt you even know that the Revolutionary War was due to the 10 year long depression in the Colonies, that was initiated by the Bank of England and the Finance Class in London. The English prevented the Colonials from using their Script, and wanted imbalanced trade to be consummated in Gold/Silver. This had the effect of draining the colonies of their lifeblood.

  169. @Mefobills

    Ron Paul might be wrong on the practicality of some of his economic theories – but he is mostly right when it comes to foreign policy. And he is right about much of the trash that is US fiscal policy.
    But that is why the Chinese system works. China through off most of the shackles of dogmatism… As long as the cat catches mice… Take a little from here and a little from there and make the pot of stew palatable and healthy.

  170. @Truth Vigilante

    The fact is, Free Market/Austrian Economics was more or less practised in the 19th century by both the U.S and Great Britain (hence the reasons for their phenomenal economic growth and highest living standards in the world).

    NOT TRUE:

    Kicking Away the Ladder (2003) – Ha-joon chang

    https://www.un.org/development/desa/dpad/wp-content/uploads/sites/45/2019-OS-Chang.pdf

    You also fail to mention the theft of China during the Opium Wars:

    https://www.wbur.org/news/2017/07/31/opium-boston-history

  171. @Truth Vigilante

    And vast numbers of the US and UK populations lived in extreme poverty under laissez-faire. Moreover the UK prospered because of Imperial loot, as tens of millions of Indians and others starved, and the US used chattel slavery, indentured labour, genocide against the indigenous and the exploitation of the richest natural resources on Earth, yet there, too, the majority lived in poverty. As ever, the harder Right, the more moronic and viciously misanthropic the insect.

  172. @Michael Hudson

    As do anthropogenic climate destabilisation deniers and all Rightists in general. They do not do logic or argument. They have settled opinions based on personal psychopathy and group dynamics, and refuse to EVER change their minds, no matter how solid the evidence. This type totally control Australian politics and the MSM, with repercussions that are coming to fruition quite tragically. Thus we pick a fight with China, who never did us any harm, and we are the world’s pariah when it comes to fossil fuel use. And, for afters, we spit in the face of France, then whinge that they are being unreasonable! It helps to have a PM who is a religious fundamental crackpot, a la Bolsonaro, but less charming.

    • Replies: @Truth Vigilante
  173. Venusian says:

    My first read on unz.com

    Very knowledgeable and precise article, thanks to the author.

  174. Smith says:

    As long as the CCP and specifically Xi Jinping controls the economy, all is fine. Soros can bark, but that’s it, but as long as people have jobs and have food, they don’t care.

    Economic breakdown has to do with weak leaders than anything.

  175. @mulga mumblebrain

    The real tragedy is that the countless hundreds of billions wasted on subsidising wind, solar and all the other extremely inefficient energy alternatives, would have been more than enough to clean up all the world’s ACTUAL environmental problems TENS TIMES OVER (and that includes ending world poverty, malnutrition and health remedies for the world’s poor).

    Dupes like you Mulga still haven’t worked out that this largesse of subsidies, funded by the poor and the middle class whose energy bills have gone through the roof, all ends up in the pockets of the Zio-cabal miscreants who overwhelmingly own these ‘Green’ energy organisations and are the major shareholders of white elephant monstrosities like Tesla Motor Corp (who make cars for the well-to-do with subsidies from the rest of us).

    And all for a NON-PROBLEM.

    We know, WITH ABSOLUTE CERTAINTY that increased CO2 in the atmosphere does NOT induce anything other than the most infinitesimal warming.

    Ice Core records show UNAMBIGUOUSLY that Temperature rises FIRST (due to solar activity, the Earth’s variable elliptical orbit around the sun, the variable tilt if the Earth’s axis etc) and CO2 follows much later (with an approx. 800 year time lag).

    This is not surprising to anyone that’s studied the most basic of Chemistry.

    It’s a phenomenon call OUTGASSING, whereby CO2 that is dissolved in the Earth’s soil, and to a far larger extent in our oceans, is released into the atmosphere as temperatures rise.

    The more the temp rises, the more of said gas is released.

    Similarly, when temperatures fall, CO2 is reabsorbed back into the oceans and terra firma.

    FACT: In only 9% of the entire history of the planet, has the Earth experienced a situation where even one of the poles has been frozen over (let alone both, as we have now).

    That’s right, for 91% of Earth’s history, BOTH POLES have been ice free.

    Yes, the Earth was a few degrees on average warmer than it is now.

    But what the climate cultists DON’T KNOW, or have been too lazy to research because it doesn’t fit the alarmist narrative, is that when the Earths AVERAGE temp rises by say 3 degrees C, this is not uniformly distributed over the planet.
    Those places in the lower latitudes (between the tropics/nearer the equator) experience a negligible rise in temp whereas places like Siberia and the Arctic regions of northern Canada which are in year round permafrost, may rise disproportionately from their present average temp of say 5-10 deg C to say 11-16 deg C.

    Of course, this is an average. In summer time they may get into the low 20’s and hence open up vast tracts of land for agricultural purposes that would enable the world to sustain a far greater population.

    And, as ice core samples have demonstrated, Antarctica could once again return to being a lush green paradise, like the Amazon forest.

    Wake Up Mulga ! The Earth presently is at or near the lowest CO2 concentrations in its history. (Historical average is around 2000 ppm compared to the drought like 400 ppm at the moment).

    More Co2 will green the Earth and increase agricultural output per hectare.

    What’s not to like about that ?

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