The Unz Review • An Alternative Media Selection$
A Collection of Interesting, Important, and Controversial Perspectives Largely Excluded from the American Mainstream Media
 BlogviewMichael Hudson Archive
The Saker Interviews Michael Hudson
Email This Page to Someone

 Remember My Information



=>

Bookmark Toggle AllToCAdd to LibraryRemove from Library • B
Show CommentNext New CommentNext New ReplyRead More
ReplyAgree/Disagree/Etc. More... This Commenter This Thread Hide Thread Display All Comments
AgreeDisagreeThanksLOLTroll
These buttons register your public Agreement, Disagreement, Thanks, LOL, or Troll with the selected comment. They are ONLY available to recent, frequent commenters who have saved their Name+Email using the 'Remember My Information' checkbox, and may also ONLY be used three times during any eight hour period.
Ignore Commenter Follow Commenter
Search Text Case Sensitive  Exact Words  Include Comments
List of Bookmarks

Intro: I need to begin with a MAJOR caveat and tell you how/why this “interview” happened. I did not plan to interview Michael Hudson. I was listening to a well known Russian economist, Mikhail Khazin, and I was fascinated by what he was saying. I also understood only some of the points he was making. To put it mildly, I am not an economist, and while listening to Khazin did did not take any notes. What I did do is email Michael and ask him a few question by email, just to clarify my own thoughts and marginally better my (rather dismal) “understanding” of economic and their role in the current standoff. With this typical kindness and generosity, Michael gave me some very interesting answers, and he agreed to allow me to turn this into an interview. So, here are the caveats to keep in mind: I might have misunderstood or forgotten what Khazin actually said. So if the question sounds stupid, please blame me, not Khazin! As they say in the USA, this entire topic is way above my pay grade…

Please think of this as an exchange between a young and ignorant student and a college professor and my apologies to the economists out there 🙂

Having said that, here is my exchange with Michael Hudson:

Andrei: Is it true that the USA cannot raise interest rates to lower the inflation rate as this would trigger a cascading series of bankruptcies and cost the Dems the upcoming elections?

Michael Hudson: The Federal Reserve and Treasury painted the U.S. into a corner with its Quantitative Easing to save the banks and brokerage houses after 2008. The policy succeeded in supporting and even raising real estate prices, and providing arbitrage opportunities to borrow at low rates to buy higher-yielding stocks and bonds, vastly increasing the magnitude of financial wealth. This has been especially the case since the pandemic, creating an estimated trillion dollars in “capital gains” (including short term arbitrage) for the wealthiest One Percent.

What seemed to be the financial death trap was the prospect of rising interest rates ending the free lunch of interest-dividend arbitrage, and easy mortgage money. The threat was to reverse the asset-price run-up. We already are seeing that in recent weeks as stocks plunged to reflect the rise in Treasury bond rates.

But by now, 14 years after the Obama bailouts and QE rescue of insolvent banks, a new condition has emerged: a vast sum of private capital seeking to move out of the financial markets. Many of the most astute One Percent is taking their money and running – into private equity and real estate.

The result is that housing prices are soaring as private capital is out-bidding owner-occupant home buyers. While the latter face rising mortgage-interest rates, private capital finds the likelihood for both current rental income and capital gains to be a much better bet than the stock and bond market. The result will not be a decline in real estate prices, but a decline in home-ownership rates as a shift to rental housing occurs. The financial class is becoming the new absentee landlord class.

Lower stock prices will spur a similar private-capital wave of corporate takeovers, posturing as “rescuers” of the economy. The aim will be short-term asset stripping, of course (that is the business plan of private equity), but it will consolidate ownership in the hands of a financial elite. And to the extent that state and local budgets suffer from the downturn, sell-offs of public land and infrastructure also will transfer property and its rent-extracting opportunities into hands – not with borrowed credit but for all-cash, the cash that QE policy and tax favoritism has brought into being in the past 14 years.

So, to the extent that there are bankruptcies, this will have the usual result: consolidation and concentration of wealth ownership. The non-financial economy’s structure is being transformed – under the slogan of individualistic free markets.

Andrei: Is it true that the two digit industrial inflation in the USA cannot be lowered by means or price control, as that would guarantee even more empty shelves and cost the Dems the upcoming elections?

Michael Hudson: The current inflation is not primarily a monetary phenomenon – except for stock, bond and real-estate prices. Raw materials prices, commodity prices and import prices are rising throughout the world. Domestic price controls have no effect on import prices. In theory, they should be able to reduce monopoly prices, but in today’s world the monopolists may simply let shortages develop and wait out the government.

For meat, eggs and other farm produce, the farmers are not receiving higher prices for their crops and produce. The middlemen are gouging out more fees for themselves, thanks to the monopoly position of Cargill et al.

Andrei: Are those who say that the USA cannot export its inflation to other countries by forcing the latter to deflate their currencies and acquire dollars anymore correct?

Michael Hudson: The inflation is global, not stemming from the United States. The U.S. consumer price inflation reflects its dependence on other countries. Import prices are up, not only because of port congestion and supply shortages, but because of global energy prices and the fracturing of world trade into dollar-using and dollar-avoiding economies.

The most problematic U.S. economic problem is debt deflation, not price inflation. Payments to the FIRE sector for debt service, health insurance and housing are taking a rising bite out of family budgets for the 99 Percent as the economy polarizes between an alliance of creditors, landlords and monopolists at the top, and debtors, renters and hapless consumers at the bottom.

I don’t know what Mr. Khazin means by his idea that the United States is exporting its inflation. What do other countries buy from the United States, besides arms and agricultural output, patent-protected drugs and information-technology?

Andrei: Khazin also said that the USA needs to crash the EU in order to force Europe to purchase dollars and US goods and services HOWEVER any semi-real war in Europe will crash the international markets and, therefore, also crash the US economy.

ORDER IT NOW

Michael Hudson: This argument does not make sense. Europe does not have enough balance-of-payments surplus to buy dollars to support the U.S. exchange rate – and the U.S. economy does not need dollars from Europe, as it can simply print them (as MMT, Dick Cheney and Donald Trump have shown). And “crashing Europe” would not give it more means to buy U.S. exports. “Old Europe” has let U.S. financial diplomacy turn the euro into a satellite currency imposing austerity on the continent – a kind of financial NATO suicide pact.

Andrei: The Fed overprinted dollars and that there is now no way to get these dollars back out of circulation, thus is there is a high chance of stagflation in the USA by this summer?

Michael Hudson: Most Fed “dollars” are not spent on goods and services, but on FIRE-sector assets. There is indeed stagnation in store for the 99 Percent, from a combination of debt deflation (payments to the rentier class) and a price squeeze for basic needs. This is a structural phenomenon (as discussed above), not one of “the money supply.”

Andrei: Between a rabid inflation and the very high insecurity about the future of the economy, will the US industries will have to lower (or even stop) a lot of its current production, resulting in major shortages?

Michael Hudson: There is not that much industry left in the United States beyond the military-industrial complex. I wonder what the author imagines is still around to be cut back. OK, movies and entertainment with Covid-19 closing restaurants, Broadway and movie houses. Consumers will pay for what they need, and the wealthiest will buy luxuries, but the clothing and fashion markets don’t have much exposure in today’s masked-up world.

Andrei: Eventually, government payments and handouts will either lose their value due to inflation or won’t even be paid, right?

Michael Hudson: There is no problem of the U.S. government not having the money to pay. Inasmuch as most payments are to the wealthiest FIRE sector classes that have become the political Donor Class, there’s no need to worry. The recent wave of savings INTO Treasury bonds show that it is still the safest haven.

Andrei: Since there is nothing the White House or the Fed can do about any of that, do you think that there will be a lot of violence and state repression?

Michael Hudson: Well, there may be violence from the homelessness that looks imminent from the evictions, now that the Covid rent and mortgage moratorium is expiring. This may indeed take the form of racial tensions. But this is nothing like a revolutionary situation. It is highly localized and “free-market.” No political alternative appears on the horizon, as the U.S. is becoming even more of a one-party state (with the role of the Democrats being to block any challenge from “the left” to pro-Wall Street and pro-corporate Republicans. There really is no left-wing party with an independent program. The Democratic Party has co-opted them and buried them in a minority. So instead of violence, we are likely to see apathy – lower voter turnouts, a rising Republican majority in Congress, and enough Democrats to be Republicans pretending to be Democrats (not only Manchin and Sinema but Pelosi, Schumer, etc.) that psychology and anger will simply turn within. Suicide rates will rise.

In short, it looks like what a schlock 1950s science fiction movie would have described as the End Time of Revelation, rent by earth, air, fire and water. The earth is warming, pollution is continuing to cause extreme weather, forest fires are spreading, water levels are going to rise (and subsoil water is polluted by fracking, while the melting of glaciers create drought, ending electric power from dams). Heavier water is leading to earthquakes. We’re all just waiting for San Andreas and its relatives to blow the Seven Trumpets.

Andrei:So where does this leave Congress and the Democrat/Republican standoff?

Michael Hudson: As long as the filibuster is retained, Congress is paralyzed, as each party has the ability to block the other, and voters are almost equally divided as to whether real estate and financial wealth is to be concentrated in the hands of the One Percent by the Republicans (representing corporate America) or the Democrats (representing Wall Street). With so little difference between them in practice, this leaves law-making to the Supreme Court. And it has been put in place by right-wing Republicans, with full acquiescence from the Democrats (Senator Biden led the party’s notorious support for Justice Thomas.)

That’s why Justice Breyer just announced his retirement from the court today, to give President Biden an opportunity to name the next justice. His problem is to find a black women sufficiently right-wing not to threaten his party’s own Donor Class – knowing that in any case, the court is already set on a Republican cultural-political track for the next decade.

Breyer’s hurry reflected his recognition that the Democrats are about to lose heavily in November’s election, so there are only nine months to install a new member of the Court. The Democratic Leadership insists that the party has already moved too far to the left, despite breaking Biden’s promise to raise the minimum wage, cutting back CARES disbursements from Trump’s \$2000 to just \$1400, dropping the “social infrastructure” elements of his Build Back Better by being saved by Sens. Manchin and Sinema getting him off the hook so as to back his basic campaign promise that “Nothing will change very much.”

With a policy like that, why should Democrats turn out? What’s he done for them lately? Are they going to believe his rhetoric, or what’s actually happening to the economy and to them?

Andrei: thank you so much, dear Michael, for your time and much needed insights!!

 
• Category: Economics • Tags: Federal Reserve, Inflation, Wall Street 
Hide 117 CommentsLeave a Comment
Commenters to Ignore...to FollowEndorsed Only
Trim Comments?
    []
  1. Notsofast says:

    the fed can never raise interest rates to previous levels because then there wouldn’t be enough tax revenues to cover the vig on a +30trillion dollar debt. why we have to pay interest on our own money is another question all together.

  2. TG says:

    “I am not an economist”

    Kind of like saying “I am not an alchemist,” or “I am not an astrologer.”

    Don’t apologize. “Economists” are whores whose theories have neither predictive power nor internal consistency.

    “Economist” should be a dirty word.

  3. nsa says:

    The concept of Helicopter Money was introduced by Miltie Friedman and promulgated by Bennie Bernanke, two hebe financial alchemists of the highest order……as a last resort just fly choppers over every city in Amelika and release bales of hundred dollar bills. However, it was left to a goy useful idiot, Powell, to actually put the concept into effect during the wu-wu years of 2020 and 2021. Free money for all like manna from heaven. Care, PPT, stimmie checks for everyone, economic impact payments, advance covid child tax credits…….. 6 trillion dollars in helicopter money showering down on the grateful masses populating the greatest republic ever. To quote Helicopter Ben: “The US government has a technology, called a printing press, that allows it to produce as many dollars as it wishes at no cost”. To further quote the learned alchemist: “I’d throw dollars out of helicopters to stimulate the economy”.

  4. rgl says:
    @Notsofast

    By all means, correct me if I am wrong.

    As I understand it, all US money in circulation was produced by the Fed for the US government – at interest. As I understand it, the Fed is a private corporation, with it’s board comprised of all(?) major US financial institutions. As far as I know, it is entirely autonomous from the US government. I understand that it does, though, have two (and only two) US government mandated strictures. One is to maintain a tight labour market, and two, to keep inflation in check.

    Is it incorrect to state that a private corporation holds a monopoly on the nation’s money? Personally, I don’t think it is.

  5. Franz says:

    “I am not an economist”

    The good ones are actually historians who pay attention to labor markets and buying power instead of who rules and which battles were lost.

    I gained respect for some of them when, in the 90s and early 00s, Dr Ravi Batra explained American work/opportunity problems as “industrial agrification”. His meaning was just like in agriculture, too few people can now can create abundance. Human labor is not an especially valuable commodity anymore.

    Look to industrial films in the 1940s to see how right Batra is. Armies were needed to make steel, staff shipyards, even to unload ships from overseas. Much of that is now automated to where only dozens are needed where hundreds used to be. Batra says this is why the US must repatriate the industries it has lost, and retool the ones that are still here to create more regional and local jobs.

    If they stick to known subjects and calculate what was against what is, economists are useful. That most aren’t isn’t really the fault of the good guys.

  6. @nsa

    Just to check that you recall, the bulk of that (“helicopter”) \$\$ went to the 1% who then chucked it at the stock/bond & -FIRE sector generally.
    What average people got was well less than what was sucked out of the economy during lock-downs etc.

    • Agree: Realist, mocissepvis
  7. @rgl

    “Is it incorrect to state that a private corporation holds a monopoly on the nation’s money?”
    Depends on how you look at — but other private banks “create” money in the act of originating loans (of course they are ALL back stopped by the Fed’)

  8. Notsofast says:
    @rgl

    from my understanding you are absolutely correct in your assertions. today’s dollar is worth about 3 cents compared to its value in 1913 (maybe less than that considering current inflation levels), when the banksters seized control of our money supply. they have abjectly failed in their mandate and we are not even allowed to know who owns the banks or even audit them properly. until the fed is dismantled, autopsied, and the criminals charged with their crimes, this country will be looted, pillaged and it’s citizens kept in financial bondage in perpetuity.

    • Agree: mocissepvis
  9. Realist says:
    @TG

    Economics is like reading tea leaves…just not as accurate.

  10. My thanks to Saker, Hudson and Unz. This peice is a keeper. I have great respect for Hudson but reading him usually puts me to sleep. This is the exception. Thanks again.

  11. @rgl

    The Fed is owned (mostly) by Rothschild banks in England, France, and Germany. The Morgan (Morgan was a Rothschild agent btw) and Rockefeller interests are “US institutions” but deeply integrated into the Rothschild matrix. So foreign interests are involved, and a rake-off of 6% of all US economic activity is pocketed annually.

  12. The method by which the imperial homeland exports the worst of its inflation (which is the natural result of creating helicopter money out of Banksters’ farts) is via cash loans from IMF and foreign aid – much of which is then used to enrich the empire’s MIC (Military Industrial Complex) owned by the same one-percenters who own most hard assets. For example, remember the “Arab Spring” – the series of ‘color revolutions’ launched throughout the Arab world in the wake of the GREAT BANKSTER BAILOUT by Obama and his congressional allies (both R-and D-jersey squads)? Lots of helicopter money was diverted for this operation.

    The riots were touched off because there was massive food inflation in these countries created by IMF debt-racketeering and foreign aid (which goes to government officials, not farmers or the hoi polloi). So in comes the ‘Open Society’ and its shadowy-friends (CIA, Mossad, et al) to install even more corrupt regimes sympathetic to the Globo-Pedo empire’s dictates. Libya was an early holdout of course – they had lots of oil and Ghaddafi was even going to establish a gold-backed Dinar so oil could be denominated in something other than “Federal” reserve fake-dollars. Magic Negro and the Witch taught him a quick (and permanent) lesson. The empire likely stole all of the gold he’d piled up over the years (35 tons) to boot, along with transporting all sorts of weaponry to their ISIS operatives in Syria. This kind of advanced criminal thinking is how you get Nobel Peace Prizes in advance.

    Speaking of the Alchemists (nice description – just follow the ridiculous statements emanating from Nobel-Prize winner Paul Krugman for a contemporary example) – one of the founding fathers of modern Alchemy was David Ricardo (1772-1823) whose theory of “comparative advantage” is the basis of the “free trade” dogma used to engage in the practice of both shipping jobs overseas and importing hordes of cheap labor. This famous Alchemist made a killing in the British stock market in 1815 when a peculiar announcement was made that Napoleon won at Waterloo. (As someone noted, a lie is halfway around the world before the truth gets its pants on.) He retired shortly thereafter and purchased a seat in Parliament from his estate in Ireland. You have exactly three guesses to describe the ethnic background of this Alchemist, and the first two don’t count.

    • Thanks: Ann Nonny Mouse, Sarah
  13. Barr says:

    USA imports supplies from 3 rd countries for most of the day to day needs . Highly valued dollars vs local currencies means the 3rd world laborers have to spend more time laboring . Printing dollars and forcing it on other as reserve currency exports US ’s inflation to those countries .

  14. What’s this, a Hudson article that isn’t 10,000 words of indecipherable jargon?

    The problem with most economists is that they only consider the financial aspect of the culture. Hence you get inane intimations of rightwing capital conspiracies that sound like they’re coming from a 1970s Marxoid professor at a community college. Never mind that the left controls all aspects of the mainstream, from entertainment to academe; or that any sane person can see that our culture is rotten and degenerate. To these people, Biden is not a leftist, but a rightist stooge of the 1%, merely because they’ve made the observation that anyone with eyes can make: money and power tend to concentrate into ever fewer hands, and those in wealth and power like to remain in wealth and power. To do so, they will play politics. Ideology has little to do with it. A rentier class can wrap itself in the stars-and-stripes just as easily as the rainbow flag.

    The truth is that neither this guy nor anyone has any clue as to what will happen if/when the dollar goes kaput. He seems to imagine an endlessly compliant population that will tolerate being sodomized and dispossessed by the monied interests and the PMC forever. History tells us that there is a breaking point, and that this period of relative peace and plenty is the exception to the rule, not the other way around.

    As I keep saying: the 2020s are going to be interesting.

  15. @TG

    Theoretical economics, structured institutional economics, from the “seminars” up to the “Central Bank” – Vatican. The “Pope” (Remember Greenspan).

    A structured religion? With it’s own Vatican? Dissident priests as M. Hudson? As much as Covid or Vaxxing, take away the “believe” and “God”(money) is no more, or “God” is some-one else. The books can be cooked in a myriad ways, plain accounting does not hold up to around the corner of Wall Street.

    A simple example, since science requires empirical proofs: What would be the “value” of New York prime estate if the absent owners fell unsafe walking up to their buildings?

  16. @nsa

    Much to the mono-rail raving of “My Lord, the people of Paris are hungry” And Marie Antoinette reply-ing “(seen the lack of bread) “Let them have pastries”. It did not go well. Money, it’s value at the bottom is decided by popular revolt(or not). At the top by the distance it creates in status between the few(nobility) and the others. A larger population of useless eaters might no longer be the solution, a smaller quality wise, endowed US population, that is richer by obvious consequence, might be the better long term bet.

    At the other side of the spectrum,

    Looking at the historical stability of Haitian dismay, the “people” alas citizens can be made to comply way beyond(Haitians have a fraction of their population eating plain earth. Why would the US tar-ball of useless meat-eaters be different?). The Jewish mindset of the current generation is getting soft. That is the short-term bet of street-legal economics.

    M. Hudson’s “communique” is happy hour to the agnostics.

  17. @Franz

    Some years ago, I recall reading an article about an Indian economist. I do not recall whether it was Batra or Nobel Prize winner Amartya Sen (likely the latter). The gist of the article was that economists only get recognized as being “competent” if they follow the mantra. Once recognized, they can go rogue. Whoever it was, he was asked why he was espousing economic theories when they wouldn’t work in India. His response was that he knew they wouldn’t work, but he had to prove he understood what wouldn’t work before he could demonstrate why they wouldn’t work.

    • Agree: Franz
  18. Nice to hear from professor Hudson.

    Most people put their money to work in the FIRE sector. Finance, Insurance and Real Estate.

    One exception seems to be Elon Musk who builds Giga Factories to produce goods and services in the real world. Elon Musk is now the richest man in the world for simply doing what capitalists should have been doing all along.

    There is some investment being directed into production by the government.

    GOOD NEWS: Intel, GM Invest BILLIONS In Ohio, Michigan | Breaking Points with Krystal and Saagar

    • Thanks: Robert Bruce
  19. I’m not an economist in any shape. I am a small business owner, manufacturing. In Australia. I’m going broke and so are most small businesses I know. As the last standing in my industry, Australia wide, I’ve even lasted longer than most. It is over. We’re shutting down in a couple of months. So all this economic talk is nothing to me. I never had a say in what was done at the top. Like everyone I voted. We never got we voted for. I know others derived any profit from my 19 years in business. Because we worked hard, spent and made millions in a year and I have nothing to show for it. I was not frivolous. They just always found a way to take it off me anytime I had excess. Taxes do whatever is left.

  20. tosca says:

    Economy and finance are not living beings with trends of their own, They are means to achieve certain goals. A very good example is to be found in Guido Giacomo Preparata’s Conjuring Hitler, Pluto Press, 2005, p.138 and following. Official history is the fog behind which the real actors play the real drama. Deception is the name of the game and anthropotheism the hidden dream. These actors
    yearn for the Unreachable Star: become God on earth . Though the means used are those of the devil.

    • Replies: @Nancy
  21. Jon Chance says: • Website

    During the previous bank-bailout extravaganza (2008), I suggested that the USA adopt an industrial-economic policy that could put it on a parallel path with the productive and prosperous economy of Germany:

    In one week the Sun provides more energy to Earth than all the world’s petroleum, coal and uranium reserves.

    When this clean, cost-effective and abundant renewable energy is efficiently utilized and equitably distributed, the delusion that war, pollution and poverty are necessary for our quality of life is prevented.

    In the solar economy, everyone can live with much greater security, liberty, justice, health, independence and prosperity.

    The Federal government, however, wastes over \$1 trillion (\$1,000,000,000,000) each year to wage “profitable” wars for the Federal Reserve Corporation and other private central banks.

    Americans are deceived into fighting criminal wars and paying unlawful taxes for these bankrupt banks.

    But an ounce of prevention is worth infinitely more than a pound of pollution, war and debt.

    When we eliminate Federal subsidies, the most practical, cost-effective, safe, secure and environmentally benign energy resources are renewables such as wind, solar-thermal, photovoltaics (PV), geothermal, hydroelectricity, cellulosic ethanol, organic vegetable oil, and efficient transportation like electric rail and plug-in hybrid electric vehicles (PHEVs).

    If Europeans, Japanese and others have high-speed rail, high-performance 50-mpg turbo-diesel automobiles, universal healthcare, tuition-free education, real elections and many other choices, why does the Federal Reserve Corporation rob such opportunities from Americans?

    The real price of petro-banking – including military costs and petroleum replacement value, but excluding health and safety – is over \$1 million (\$1,000,000) Federal Reserve Bank debt “dollars” per gallon.

    Too expensive to burn? A brighter choice is possible.

    https://jpchance.wordpress.com

    • Replies: @emerging majority
  22. Andrei: Is it true that the USA cannot raise interest rates to lower the inflation rate as this would trigger a cascading series of bankruptcies and cost the Dems the upcoming elections?

    The Federal Reserve is going to raise interest rates as sure as the sun comes up tomorrow. The Fed has two functions, price stability and full employment. If inflation continues (from the massive increase of bond purchases QE) then the Fed is going to raise rates, all other considerations are misperceptions of what the Fed does. The Fed does NOT have the stock market’s back. It was Alan Greenspan who warned against irrational exhuberance. The Fed does what it does, and speculation follows not because the Fed wanted that, but from the law of unintended consequences.

    That means if the government or businesses go bust with raising rates so be it. That is what happened in the 1970s with Fed Chair Paul Volker and all the Fed governors and Jpowell are saying rates are going up as soon as March 2020. The Fed follows the market rates, if rates go up the Fed will eventually raise rates. Rates are going up, all the Treasury Bills, Notes and Bonds rates are going up, and Fed Funds is going to follow as sure as the sky is blue.

    If for some reason the Fed does not try to tame inflation, then people will abandon dollars and Bitcoin will go to the moon. Currently Bitcoin is crashing and burning because the market sees that the Fed is still an inflation fighter. But the main reason the Fed has to fight inflation and protect the USDollar is to maintain USA hegemony over the rest of the world. The USA has 1200 foreign military bases only made possible by the USD reserve status. Thus there is zero chance the Fed is going to let inflation run wild. ALL FED WONKS ARE SUPER HAWKISH ON taming INFLATION. It is only that little sewer rat Paul Krugman who wants to pull a Weimar hyperinflation with trillion dollar platinum coins.

    So since rates are going up, including mortgage rates, expect real estate to go down. Higher rates means the principle will have to go down so borrowers can make payments. If interest rates go up then money will flow into bonds again as soon as bonds pay reasonable rate of interest. Rates are so low they need to go up so that banks can do banking again. Everyone knows that, so that means huge changes are coming when the current superbubble unwinds. Already many of the meme stocks are off over 50%. Cathie Woods ARKK fund is in the toilet heading toward 90% loss or more.

    The amount of speculation was epic, Nikola (electric truck) never made a single working truck, they even faked it rolling down a hill, and it has been above \$10 a share after they were totally busted and outed as a fraud – yet the stock is still way above zero when they have no product and no sales and are proven frauds.

    Interest rates are going up, and the stock and real estate markets are going down. And since Uncle Sam is way over his head in debt, rising rates means austerity is coming in a big way. The US government is going to be forced into austerity and maybe even default on some of it’s debt. This is true for many businesses, states, counties, and cities who have way to much debt.

  23. US National debt is closing in on 30 Trillion. To put this into perspective, 1 Million seconds is about 11.5 days. 1 Billion seconds is about 32 years. 1 Trillion seconds is 32,000 years.

    The debt is NEVER going to be repaid.

    • Agree: mocissepvis
    • Thanks: GomezAdddams
  24. Miro23 says:
    @TG

    “I am not an economist”

    Kind of like saying “I am not an alchemist,” or “I am not an astrologer.”

    Don’t apologize. “Economists” are whores whose theories have neither predictive power nor internal consistency.

    “Economist” should be a dirty word.

    I did an undergraduate degree in development economics at a leading university in the early 1980’s and IMO the problem was politicization.

    There was a “party line” which had to be supported – with all the associated talk, theories and cherry picking of data. Rather like the scientific/ historic inevitability of Communism as taught in the Soviet Union, except that in this case it was the scientific/historic destiny of Free Market Neoliberalism as the ultimate world system.

    With hindsight, I can see that it was specifically designed to give intellectual cover for the massive wave of industrial outsourcing happening at the time. Sending production to Asia was enormously profitable (more so than now) and every last corporation was appointing an outsourcing director to check that every job that could be exported was exported. The only motive was profit but there was a corporate fear of a social/political push back.

    So the job of the economics profession was to sell it which they did:

    – Manufacturing was Old Economy. New Economy was design, marketing, finance and logistics.

    – Old economy was dirty and polluting while new economy was green ( implication that China could handle the pollution and waste).

    – Manufacturing was lower grade grunt jobs (good to be exported) while design and management was desirable higher paid employment.

    – Outsourcing was an opportunity to retrain industrial workers in higher level skills such as computer programming.

    – Increased corporate wealth would trickle down making everyone richer.

    – The future was trading and arbitrage in a new globalized “World is Flat” economy. Frontiers were meaningless and capital would seek out profit opportunities wherever they might be. The keyword was Globalization (also social, for example – “I’d Like to Teach the World to Sing (In Perfect Harmony) multicultural Coke ad. 1971)

    – Ricardo’s theory of Comparative Advantage (1817) was resurrected and dusted off. “Why countries engage in international trade even when one country’s workers are more efficient at producing every single good than workers in other countries”. Only relevant when capital and technology are immobile like they were in 1817. The argument was that everyone would benefit.

    – Financiers were the cool guys and everyone wanted to be an investment banker/speculator. Everything to do with manufacturing was very uncool.

    At the time I naively assumed that most of this was true, although I had some doubts about retraining industrial workers and also about the loss of the middle class jobs dependent on manufacturing. I raised some of these points in class but was generally told that I “didn’t get it”with the lecturer saying that it was time to move on.

    Also, I wasn’t aware at the time that so much evidence was being suppressed. The subject was supposedly Development Economics – and, for example, I don’t recall that the massive and rapid development of South Korea (which was already well underway) was mentioned even once. The South Koreans were making every effort to climb the education/technology skills curve and gain added value through efficient agriculture and producing their own export quality products.

    It was only years later that I read true Development Economics books like Joe Studwells “How Asia Works” 2013 Profile Books Ltd., London, Park Chung Hee’s “The Country the Revolution and I” 1962 Hollym Corporation Publishers, Seoul, and Henry Ford’s invaluable “My Life and Work” 1922 Doubleday Page& Co. New York.

    IMO Henry Ford’s book alone explains why the US became the world’s richest and most advanced nation (manufacturing power) by 1920 with the prosperity reaching all levels of society.

    • Replies: @Joe Levantine
    , @RoatanBill
  25. @Yukon Jack

    Simple arithmetic says that the Fed Gov can’t afford higher interest rates. Higher rates leads to default on its debt obligations or more monetization (printing) to fund the obligation. That leads to the dollar becoming worthless. That leads to destitution in the US and around the world.

    That’s what should happen to wring out the fraud in the system, but will it? I think the Dollar is toast, but TPTsB will try every conceivable trick to avoid that outcome. They will fail, but the interim period is up for grabs for what will be tried. Some black swan will eventually come along and take a dump on the world’s phony money and then it’s all over.

    • Replies: @Ralph B. Seymour
  26. Anon[632] • Disclaimer says:
    @Rabbitnexus

    Hey mate, that’s rough to hear. My dad worked as an engineer in Australia’s foundry industry. He is subdoening it now and there was no job for me to follow in (even if I’d been so inclined, which I wasn’t). I’m shutting my own business up soon as a result of the madness here too. Just wanted to say I feel you and I hope the future brings better things for you. Good luck.

    • Replies: @RadicalCenter
  27. I have been reading Paul Craig Roberts’ columns for years. I know he has a great deal of respect for Michael Hudson. I also know that he created and still defends the Reagan Supply Side Tax Cuts. I wonder what Michael Hudson thinks of the Supply Side Tax Cuts.

  28. Miro23 says:
    @Yukon Jack

    So since rates are going up, including mortgage rates, expect real estate to go down. Higher rates means the principle will have to go down so borrowers can make payments.

    That’s not the line that Hudson takes. He sees the main points as 1) The FED QE trillions > financial sector friends > stock and bond bubble 2) it’s reached the limit so the financial elite now cash out and exit 3) then they raise rates = bankrupt mortgage holders + stock market collapse 4) financial elite purchase all the cheap repossessed property for cash.

    That way they convert their confetti money into real property assets and the public turn into renters.

    Alternatively they could use the Weimar hyperinflation model and get their hands on real property assets by taking out mortgages that they repay for a few cents in real terms.

    However, they seem to have chosen the high interest rate route to protect the dollar – so the dollar stays strong (high interest rates) and paradoxically/simultaneously, real estate prices also rise strongly (from their concentrated cash buying).

    The drawback to the Weimar hyperinflation route (from their POV) is that they would lose the Dollar. That didn’t matter so much ref. the D Mark in Germany 1920’s but it’s critical to the US ZioGlob NWO.

    The open question is the effect on the US public of mass poverty and dispossession.

    • Agree: Ralph B. Seymour
  29. Towey says:
    @Rabbitnexus

    Democracy and voting was always a scam. Modern Democracy was invented on the same day they established the Bank of England so that citizens could not renege the debts contracted in their name by a so-called representative government with private bankers who conjured money out of thin air under the fractional reserve system. Citizens are mere collateral for debt.
    They also introduced income tax so that the government would always have the money to pay the interest on these fictitious debts with real wealth produced by labour. That is how the usurers have accumulated so much wealth and power they can now impose their NWO.
    They also banned independent goldsmiths so that the bankers fraudulent paper currency scam would have no competition.
    The same reason they destroyed Hitler and Gadaffi.
    Hitler had achieved full employment by bypassing the central bank to issue his own currency and achieved full employment in the middle of a world economic depression.
    Gadaffi proposed to mint a new currency based on gold,the dinar.
    Under the cynical guise of promoting democracy every single war and revolution since then has been to impose this nefarious system on the rest of the world.
    It is no coincidence that after 9/11 the only two countries left in the Middle East without a Rothschilds controlled central bank are Syria and Iran.

  30. @Miro23

    Thanks for the post. Though I would like to add the biggest drawback to economics majors in the U.S. and very much throughout the developed world:

    1- over emphasis on Keynesian economics at the expense of Austrian economics.
    2-the absence of the theory of money creation and the role played by the Federal Reserve, which we were never told is a private setup, and the expansion of the money supply through lending by commercial banks.

    Most of economics classes are pushing the student into a tunnel vision through make believe theories that have no connection to reality, like the correlation between high employment and high inflation or high interest rates and low inflation etc.. Basically nobody taught us the important role that the banking sector plays in the economy depending on which direction bank landing favours; FIRE sector on the one hand or the productive manufacturing and agricultural sector on the other hand.

    Finance is an integral part of economic development, and the way finance has been geared towards the benefit of the mega rich, by landing a wealthy and privileged financial aristocracy at preferential rates, and recently lending governments at negative rates, for the sake of speculative purposes and boondoggles of governments, while overburdening the population at large with punitive interest rates, being at house and car mortgage rates and far more flagrantly at credit card rates, is the crust of the matter.

    Overall, I rate my economics classes in the U. S. to be within the same category of the MSM meme building news for the sake of social engineering.

    • Replies: @PetrOldSack
  31. whodat says:

    Commerce in the US may be reduced to fundamentals, and currency will become locally issued semi barter based script of some kind. Farmers can’t operate on a huge scale because the bank loans to produce and trucking to see model may fail. Those lacking skills to survive in the north will move south where freezing to death postpones one’s demise. Third world America possibly on some scale.

    This don’t look so bad. They have electricity and plastic wrap though so this is not the limit point.

  32. gotmituns says:
    @Franz

    Look to industrial films in the 1940s to see how right Batra is. Armies were needed to make steel, staff shipyards, even to unload ships from overseas. Much of that is now automated to where only dozens are needed where hundreds used to be. Batra says this is why the US must repatriate the industries it has lost, and retool the ones that are still here to create more regional and local jobs.
    —————————————————————————————————
    Excellent paragraph but somehow contradictory. You’re completely right about labor saving technology. As far as repatriating industries, it’s not going to happen. For example most of our young people don’t know how to work and don’t want to work and even if industries did come back (which they’re not) they would be mostly technologically advanced and provide few jobs for that element within our population that can work and wants to work.

    • Replies: @RoatanBill
  33. Message to The Saker (Andrei Matyanov?):

    „Economics is way above my paygrade“

    How can one understand politics without understanding „economics“?
    Politicks is econo mix(ed up) and vice versa. „It’s all about money.“

    What seems more way above you, are some historical facts, especially when they do not fit into your selfcomforting narratives, foremost your anti German sentiments, your general hatred (of Germans in particular) and your bias going as far as completely disenabling reader’s comments out of Germany under your (sometimes interesting) articles in The Saker.
    (That’s it for a start. Read no further as lopsided bigot, which is anything but real Russian to me.)

    [MORE]

    „Economics“, foremost macro economics is a Jewish initiated curtain woven to hide the fact that the selfchosen ones „get the money for nothing and the chicks for free“; factually it is nothing more than bank robbery under the guise of „economics“, especially macro economics. It is not out of the blue, that „economics“ is dominated by Jews or jewed goy harnessed for big business.

    So, Andrei Germanhatewich Matyanov, hopefully economics is not way above you but way below you, as evil, low life, the crocked is regularly not comprehendable to the straight, even to the ones on the small and straight of hate (hate as a discipline of Judaism).

    “What is the worldly reason of Judaism? The practical need, the self-interest. What is the worldly cult of the Jews? The haggling. What is his worldly god? The money … An organization of the society, which would abolish the preconditions of the haggling, thus the possibility of the haggling, would have made it impossible for the Jews“. Moses Mordechai Levi (aka Karl Marx)

    „Economics“, foremost macro economics is a chore problem in itself.
    The very existence of a chatter science called „Economics“ shows that all has gone astray.
    The fact that it can now pose as a mathematically exact science (of modellings), makes it even worse, i.e. more of a blender. Economics’ modells regularly do not work because of the so called „external shocks“.

    What are „external shocks“? Interferences, meddlings are external shocks. Who interferes? Who meddles? Who is warring for what?

    “Large-scale corruption, imported from France in 1870, is developing with unheard-of rapidity. Stroußberg [a German Jewish financier] and Pereire [a French Jewish banker] tip their hats to each other. Ministers, generals, princes and counts make in shares in spite of the most grated stock exchange Jews and the state recognizes their equality by baronizing the stock exchange Jews en masse”. Friedrich Engels.

    “Capital is dead labor, which, like a vampire, lives only by sucking living labor, and lives the better the more labor it sucks.” Kuck Marx did or did not want to understand, under his King Rotten Child, that „The Capital“ he is talking about ist not labour in the first place. Big money was and is nothing but paper with the Jew’s nepotic stamp on it.

    Let us get to the chore of it and that is the end of „economics“ and the beginning of real economy, native (national) house works of the 4 real, just economic sectors – peoples working businesses – and the return of native wealth and racy habitats, which have natural boundaries and are the end of globalism/internationalism (=fascism) and their „exchanges“ and „investments“; their casinos.

    We have a casino world economy and the Jew is the wheeler & dealer.

    A quinary sector of financial „services“ is the chore problem with the sick background of stock and other phantom exchanges, private banking together with insurers, who only reinsure themselves.
    „Finanical engineering“ is as much a perversion as are „investors“.
    Other than a peoples bank – it only needs the stately peoples bank – moneteering is nothing but teering away the foundations of life, the livelyhood of man, which the devil wants to himself; as the one and only one, the selfchosen one with his fuckyou to God and (GOOD) creation.

    „An organization of the society, which would abolish the preconditions of the haggling.“ MMLevi – and no more levies.

    The nitty gritty of real money works was established by the likes of Silvio Gesell – natural economic societies – and practised during the great depression of white man by the Jew in small communities till the Jew got wind of it and sent in troops (of white men). It is simple.

    What you might not like to hear at all, but what would have taken the life out of the last Jewish World Wars running up to now would have been following Hitler’s economic example. Hitler learned and practised some of the main lessons of Gesell. Gesell means companien. Working companies instead of stock corporations with „investors“ and everything that comes with infestors.
    Investors = Infestors; macro economics is their science (tricked in by their Moses Levi(es)).

    Inflation = hidden tax (interest paid to monies that have never seen labor).
    Inflation = Judaism (Global nepotism / mafia codex of misconduct – Talmudd)

    Capitalists = Internationalism (World Gvt.)
    Communists = Internationalism (World Gvt.)

    Internationalism x Internationalism = Internationalism²; = facism
    Communists x Capitalists = Globalism²; = facism

    “This is commerce, economics. You remember it very well that the problems with Nord Stream emerged not because of Ukraine or any complications with the United States of America, but because the Americans, and first of all the Trump administration, back then decided that Russians have nothing to do on the European market and they [the US] need to supply their liquefied natural gas to the European market. This is how it all started, actually,”
    GORKI, January 27. /TASS/. Deputy Chairman of the Russian Security Council Dmitry Medvedev
    (Trump = Jew; Medvedev = Jew)

    „Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as internationalists and of conspiring with others around the world to build a more integrated global political and economic structure – one world, if you will. If thats the charge, I stand guilty, and I am proud of it.“
    David Rockefeller, Memoirs, 2002, page 405

    Hudson should start writing straight and stop circumlocutions with pseudo economic terminology puzzling people who have not studied Judaism’s economic theory (for the eager goy).

  34. @Miro23

    The Reader’s Digest version of your post is that economics is bullshit; outright, flagrant bullshit.

    But you said it in a nice way.

  35. MLK says:

    My comment will seem off-topic but bear with me for a second. You will think I’m once again banging a drum about Trump but, believe me, there is an on-topic method to my madness.

    It’s important to remember something that’s been memory-holed. After Trump came down the escalator his candidacy was heavily promoted by what became known as the Fake News. Anyone who is anybody intended that he would grease the wheels for the reviled Hillary’s coronation.

    Yet when Trump caught fire in the Republican primaries, like any corrupt, too-smart-by-half gaggle, they dreamed the dream of what is playfully known as mission creep. Not only would Hillary be installed but the Republican Party would be demoralized, split and effectively destroyed.

    Under the totality of the circumstances, my view for many years and increasingly so, especially after 2008/2009, was that we were heading toward one of the two major parties going bye-bye like the Whigs, the largest at the time, did in one election cycle.

    Consider the last two-decades on the discrete question of which party won’t see the other side of this. Until recently it wasn’t even a close call. Being the party of government, the Democrats were the odds on favorite to survive. It’s worth remembering that the Democrats promoted Obama as their Reagan, That he would usher in an era of Democrat dominance.

    It didn’t go according to plan. And one way to consider this from the commanding heights is when did the worm turn on which major party would split and disappear. But, rather than answer that, observe what is in my view most salient at the moment, the crash and burn of Obama’s reputation.

    The Democrats’ would be Reagan or FDR is now as tiny and discredited as his predecessor he worked so hard to emulate and protect, Bush. In short, Obama is utterly discredited and is the proxy for the Democrat-coalition, its prospects in 2022 and its very endurance.

    That’s why last night at his rally Trump asked repeatedly, “What happened to Barack Hussein Obama?”

    Who would have bet that Obama would destroy the progressive wing of his party? Or that they would, like some sort of Cargo Cult, turn to the oligarchs/Wall Street/Multinationals and the War Party, to lead them to the promised land of perpetual, illegitimate power?

    The other tell to keep an eye on is the lovely AOC. It’s been downhill for her since her high water mark when the Amazon/NYC collapsed and the establishment generously tried to blame her for killing a terrible deal for the city and state. If she doesn’t primary Schumer, and Progressives don’t support her, then she and what purports to be the progressive wing of the Democrat Party will be even more discredited than they are already, if that is possible.

    • Replies: @Anonymous
    , @showmethereal
  36. @gotmituns

    If there is no more funny money for welfare and make believe jobs, then people will either starve or work at what’s available. The fact that the US population is near innumerate and proud of it means that high tech jobs that actually require a reasonable IQ will go wanting for labor for quite some time. There’s no quick fix.

    The US education system has produced morons with degrees in all manner of bullshit from the humanities and social sciences. The young adults haven’t the skills or desire for any job that requires actual knowledge. They all want to be YouTube stars, basketball players or Wall Street scum. Any manufacturing will require ever more robotics to turn out products because the workers are too stupid, too lazy and too expensive versus automation. Expect unionism to make a major comeback to skew wages in certain directions thereby screwing anyone not in a union. Expect unions and their members to become modern Luddites further stigmatizing the intelligent as the source of their problems.

    The US has lots of arable land. Food is a large export item now and that need will grow over time due to world wide population increase and the coming solar minimum that is already pushing growing regions south. Instead of importing farm labor, get the welfare recipients, history majors, economists and other mental midgets to pick the crops; do something actually productive.

    After the Dollar fails, and the military muscle atrophies, the US will produce primarily low tech output almost exclusively since there isn’t the talent for anything else in the current work force.

    • Agree: Joe Levantine
  37. Che Guava says:

    It is good to see the Saker back here, and Hudson always has wise words. Many, though, we already knew by our own thougits on reality.

    Best thing I was reading today was a Dutch parliamentarian on Takimag.

    https://www.takimag.com/article/my-political-duty-fight-the-wef/

    Our govt. hasn’t declared a new ‘state of emergency’, at least not yet in Tokyo, although it seems inevitable, but they have already asked businesses that had returned to normal hours to close early, and most comply.

    Some places here have already declared new ‘states of emergency’, it is so tiring and alogical that I am not paying any attention.

  38. “The earth is warming, …”

    Really? Hogwash. Exactly the opposite.

  39. @Rabbitnexus

    My prediction is like here in America, small businesses around the world closing down will leave easy pickings, pennies on the dollar business real estate to be scooped up by a certain breed of (((vultures))).

    • Replies: @RadicalCenter
  40. @Notsofast

    “why we have to pay interest on our own money is another question all together.”

    Huh? Another question? It’s the only question?

    • Replies: @Paul Greenwood
  41. ‘Sir’ Michael Hudson explains economics and politics so well that I almost accept his view on global warming, but there is too much contrary evidence.
    Here’s one I have yet to post in DaLimbraw Library –
    https://coldclimatechange.com/what-would-a-mini-iceage-look-and-feel-like%EF%BB%BF/ – all about a new mini ice age.

    • Replies: @Ralph B. Seymour
  42. @Patrick Gibbs

    I believe that more Americans than since the Great Depression are considering socialism as a “go to” economic system as they have come to realize that the 1% have the Dems. and Repub.s sewed up to serve only themselves.
    The personal fortunes of Team Red and Team Blue are inconsequential when facing a future as a serf. And as a serf you shall be. In the future – you will never own your home or, probably, never even your own car. You will take whatever job is offered to you; whatever medical care is given to you; and do whatever is wanted from you. That is the aristocracy that we thought we were done with by signing The Declaration of Independence. They are back!

    • Replies: @Patrick Gibbs
  43. @Joe Levantine

    Amazingly to the point. There is no book-keeping, i should add as a remark. Thus lest to say there is any correlation between “rich” at the top and “poor” at the bottom. Economics is indeed social engineering, no less.

    As for Saker not understanding economics, and i doubt he intended it that way, he could have been right on to something, since understanding theoretical economics, and replicating any of it coherently to reality is either bad faith(for the ones who see through the hoaxes) and then for almost all plain ignorance(justifable, and forgiven). Saker, where are you positioned? M. Hudson is definitely bad faith, and in exchange for little, being the outcast anyway.

    • Agree: Joe Levantine
  44. Anonymous[123] • Disclaimer says:
    @MLK

    Another one who thinks that there is a difference in the two parties but let me tell you son they are both one and the same. Trump was the chosen one otherwise Clinton would have won for it would have been simple to have flipped those too close to call states, and he served his class very well while he gave main street or the working class the finger.

    • Agree: Thim
  45. @dogbumbreath

    “debt”, “national debt”, “US national debt”, has no meaning, it could be taken of the books anytime, if there were “ledgers” somehow, somewhere. There are none. Empty palaces.

    In a nutshell, there is no correlation(as their should be) between money(a measure of quantitative exchanges) and resources(debate is open to what can be counted as such, including human resources). Not internally to the US, the Western world, and certainly not on the Planetary level. When things are not quantified and there being a fixed or dynamically justifiable correlation with “money”, there can be no book-keeping done, inventory done, prospective policies developed.

    Michael Hudson knows he was a player in a theater of absurdity, and is scared as hell to acknowledge his full debrief. Sadly so, it would draw some good laughs. For when Michael, could you leave some kind of memoir to trusties for after your passing, go anonymous?

  46. So, if the 1% ever need to flee the country, how do they preserve their wealth if that wealth is represented by real estate holdings? You can’t carry your real estate onto a private jet as you’re pursued by an angry mob.

    • Replies: @PetrOldSack
  47. Ace says:

    ** The earth is warming, pollution is continuing to cause extreme weather, forest fires are spreading, water levels are going to rise (and subsoil water is polluted by fracking, while the melting of glaciers create drought, ending electric power from dams). Heavier water is leading to earthquakes. **

    Man, this guy really KNOWS stuff.

    And then a sprint to the finish line with a load of leftist nonsense. Democrats will stay home because Dems didn’t “do” enough for them. No raising the minimum wage, cutting back CARES disbursements, dropping the “social infrastructure” elements of his Build Back Better promise. You know. The fundamentals of restoring a semblance of a productive economy.

  48. @Klaus Karlbad

    So, if the 1% ever need to flee the country, how do they preserve their wealth if that wealth is represented by real estate holdings? You can’t carry your real estate onto a private jet as you’re pursued by an angry mob.

    That is the meaning of “global” in The Great Reset. It is “all” or “nothing”. As soon as the population mattress burns “globally” the smoke will get into the eyes of the 1%. Russia and China will be options, “conditionally”, not to their liking. Again the 99% is the enemy of yours Klaus, they do not burn, the “angry mob” is you participating, or not. As long as you are content on your shoal and jumping, you keep sustaining the loathables (elites at the top) into the clouds. It is not them and a little you, as the “middle classes” tacitly indulge. It is you, Klaus, taking the lead, or them smothering you into the bottom of the pot.

  49. @RoatanBill

    That’s right. Every time they try to raise rates, they recant.

    I’m no economist, but common sense tells me massive debt default is in the cards without regard to rates. This, in conjunction with a decimated economy, will be massively deflationary.

    I have learned the hard way to NEVER underestimate Jewish black majik money power. Think about all the junkie stunts these clowns have got away with.

    I’m keeping some cash.

    • Replies: @RoatanBill
    , @Yukon Jack
  50. @Crush Limbraw

    Climate change blamed on CO2 levels is a 100 percent complete hoax designed and popularized by globalist minions to continue the looting and social engineering.

    End of story.

    • Replies: @interesting
  51. @Ralph B. Seymour

    Hyperinflation is guaranteed to occur. Along with it will be deflation in anything not required for survival. Second homes, boats, planes, expensive cars, etc will all fall in value like a rock when the SHTF as people scramble to keep the important assets and use the not so important ones to sell for whatever they can get for them. It will be a great time to bargain hunt if you have something other than paper money or paper assets.

    Cash may be king for a short time, but the amount of funny money floating around says it will become worthless rapidly once the slide begins.

    • Replies: @Paul Greenwood
  52. @Ralph B. Seymour

    @RoatanBill

    That’s right. Every time they try to raise rates, they recant.

    I’m no economist, but common sense tells me massive debt default is in the cards without regard to rates. This, in conjunction with a decimated economy, will be massively deflationary.

    I agree massive defaults are coming. I do not agree with the commonly held view that ‘Every time they try to raise rates, they recant.’ as I am quite sure that eventually the market is going to demand higher rates for inflation risk. I know this is a contentious question, but there are those who think the Fed follows rates, see these charts:

    [MORE]

    Cheers, I am the first to admit I have no idea what may happen next, but I do think interest rates bottomed out in 2020 and now are heading higher for decades. These charts illustrates my view:

    • Replies: @Ralph B. Seymour
  53. @TheTrumanShow

    Maybe because people holding Mutual Funds or 401-K accounts like the idea of getting a return ?

    • Replies: @Ace
  54. @RoatanBill

    Hyperinflation cannot occur if the money never leaves the banking system.

    • Replies: @RoatanBill
  55. @TG

    An economist is a person that can tell you today why what they said yesterday was wrong.

  56. “The earth is warming, pollution is continuing to cause extreme weather, forest fires are spreading, water levels are going to rise”

    I stopped reading right there. When some one starts spewing this 30 year old, and still waiting for it to happen nonsense, I have to wonder what else is he full of shit about.

    I wish I could post a graph here.

    https://fee.org/articles/forest-fires-aren-t-at-historic-highs-in-the-united-states-not-even-close/

    For all the talk about 2020’s fires being an unprecedented apocalypse (7M acres burned), it’s worth noting 2020 is unlikely to surpass 2017’s total.

    Even if it does, it’s still about about 1/5 of the total acreage burned in 1930.

    Context matters.

  57. @Ralph B. Seymour

    As soon as he started spewing the climate change nonsense I stopped reading.

  58. Levtraro says:

    Hudson never gives straight answers. Just long tirades of content-poor leftist pedantry.

    I will try to give some straight answers to some questions.

    Andrei: Is it true that the USA cannot raise interest rates to lower the inflation rate as this would trigger a cascading series of bankruptcies and cost the Dems the upcoming elections?

    False. The Fed has to rise interest rates even if that means that dems lose the midterms. Actually dems losing that one is a trivial matter compared to keeping the dollar as a currency with high value. In addition, the Fed and the Treasury may unleash TARP 2.0 with some help from their friends to bail out bankrupt corps.

    Andrei: Is it true that the two digit industrial inflation in the USA cannot be lowered by means or price control, as that would guarantee even more empty shelves and cost the Dems the upcoming elections?

    True. Price controls are out of the question, not because of dems petty concerns but because price controls are not implementable, at least not until fiat currencies go full digital.

    Andrei: Khazin also said that the USA needs to crash the EU in order to force Europe to purchase dollars and US goods and services HOWEVER any semi-real war in Europe will crash the international markets and, therefore, also crash the US economy.

    True and False. The US may force the EU (and Canada, Australia, UK, South Korea, Taiwan and Japan) to buy dollars to fund very large bail outs due to the coming market crash but not by destroying their economies.

    Hudson answer here is informative about his shortcomings in understanding. He says: “Europe does not have enough balance-of-payments surplus to buy dollars to support the U.S. exchange rate”.

    What? So the US can print all the dollars that its printers can print but the EU cannot print enough euros to buy dollars because of balance-of-payments shortages? Crazy. Is not the euro also a fiat currency?

    This is informative also about a fatal blindness of all MMT proponents (all of them are Americans of course): they fail to realize that the dollar exists in an ecosystem of fiat currencies. Ecosystems are cruel networks. Nodes may go extinct if they are unsustainable for sufficiently long times. MMT economists are trapped inside the tautology of the sectoral balances equation so they don’t see that there is one sectoral balances equation for one sovereign and there are other sectoral balances equations for many other sovereigns and they all interact yielding nonlinear, non zero-sum outcomes.

    Hudson also says that there is no industry left in the USA except for the MIC, yet anybody can go and check that industry accounts for a quarter of total GDP in the USA.

    Commenter Barr in #13 explains briefly one aspect of the interaction of fiat currencies that benefit the US, actually the single most important aspect. It seems that Mikhail Khazin is pointing out at that, along with many others including Putin and Jinping, but asking Hudson is like asking a bot, always the same pseudo-technical obfuscating leftist pedantry.

    • Replies: @peterAUS
  59. @rgl

    Banks create money when they lend; if they could manage liquidity, then the whole interest from this loan goes to them; if they could not manage liquidity, then they have to ask the FED to print money for them; in this case they need to share a portion of the interest with the FED.

    Government may borrow from the FED indirectly; this is also printed into existence only when necessary; in this case the whole interest is profit to the FED.

    You are absolutely right that a private corporation holds monopoly over printing currency, and waving digital “money” into existence.

    And whenever there is an expansion of the economy, money supply must increase to meet the expansion. Else, there will be a deflation. Since there is a monopoly over money creation, any expansion of the economy means a % of this surplus automatically goes to the money creators as interest.

  60. Man, this guy really KNOWS stuff.

    EXACTLY LOROFL

    This paragraph is leftist nonsense and mostly completely wrong which does call into question the interviewees intellectual honesty. Leftist talking points are not evidence of upcoming mayhem. CO2 caused climate change is not real and it is not causing social upheaval, thus it is a false argument used to white wash the Fed and government caused mayhem from improper governance and monetary policies. CO2 arguments are used like Original Sin arguments, used to demonize the rabble for government caused chaos.

    [MORE]

    The earth is warming, pollution is continuing to cause extreme weather, forest fires are spreading, water levels are going to rise (and subsoil water is polluted by fracking, while the melting of glaciers create drought, ending electric power from dams). Heavier water is leading to earthquakes.

    1. CO2 has no effect on earth thermodynamics. CO2 levels have been 3,000-6,000 in previous earth ice ages. Current CO2 levels @ 420 ppm are still very low. During the last ice age before the big melt CO2 levels got so low plants died and dust storms covered the earth.

    The greatest of hoaxes is co2 warming, we are still in an ice age and the ice will return regardless of CO2 levels.

    CO2 got so low in the last ice age plants dies and dust storms covered earth.

    2. Pollution (he means CO2 pollution) is not causing extreme weather. CO2 is not a pollutant and CO2 increases are causing plants to grow faster and earth to green (again). CO2 is a trace gas, and a trace gas does not cause the weather.

    Al Gore (who never took a single science course and not qualified to even talk about this subject) got it wrong when he asserted CO2 causes warming. CO2 follows temperature:

    3. Water levels are not rising. Ocean levels went up by 300 feet when the last ice age abated. 2 mile thick glaciers which covered all of Canada melted. Ocean levels have been stable for the past 8,000 years.

    • Agree: Ralph B. Seymour, Towey, Sepp
    • Replies: @Towey
    , @mulga mumblebrain
  61. @Paul Greenwood

    The US Dollar is sloshing around all over the world. Lots of that “money” is no longer needed or wanted by the countries that have experienced sanction or other interference in their internal affairs by the US war mongers in DC. The Fed has no control over when and where that money enters the US system, and it must eventually enter the US system to find any value at all. The US has been exporting inflation for decades by having the rest of the world quarantine those funds in their central banks and corporate coffers for exchange purposes. That process is reversing.

    It’s not the Fed’s control over the funny money they’ve squirreled away in the banking system, but the excess that they have no control over since the US has antagonized the bulk of the world.

    https://www.economicvoice.com/how-long-until-the-u-s-dollar-loses-its-reserve-currency-status-2/

  62. @Jon Chance

    You might wish to reconsider whether “cellulosic ethanol and organic vegetable oil” should be considered as “environmentally benign”. Purport of those “solutions” is that whole forests are decimated via high-tech mechanized instrumentalities. Destruction of broad swathes of trees is, as the Muslims would say, “haram”–forbidden. Ecologically, forests comprise a community of life-forms which provide increased oxygen levels for animal/human life. Clear-cutting of forests on behalf of “cellulosic alcohol” is disastrous.

    Because pesticides, insecticides and everything else harmful to the natural environment besides, are ultimately the product of industrialized agriculture; “organic vegetable oil” is nothing other than theft from the productivity of food producing lands. Better to turn much of High Plains America and Canada from marginal agricultural productivity for such shit-crops as corn and soybeans into massive hemp farms. Hemp, with its deep root system, draws more minerals into topsoil than it subtracts from that bio zone. Also, massive quantities of water are not essential to irritating those plants from underground sources.

    Outside of the two areas where you have overlooked implications of misuse; your overall thesis
    is commendable and worthy of further consideration by those few who actually care. Many brighter choices are possible. However, they are being sabotaged by those who are ever on the make for a combination of market control and the fast buck. So keep on thinking and communicating.

    • Replies: @Jon Chance
  63. @dogbumbreath

    Do bear in mind that the single largest holder of U\$ government indebtedness happens to be none other than the primary shareholders of the “Federal” Reserve Banking corporation. Do you think for a moment that the main godfather capos of that financial conspiracy, mainly the Rottenchild and Rottenfeller Crime Clans, will not FORECLOSE on the United \$tates of America Corporation, as duly registered under the corporate laws of the State of Delaware (that state owned by yet another crime clan, the Duponts)?

    My best take is that those titans of highest finance will indeed foreclose on that very corporation which they manufactured back during the earliest stages of the Roosevelt regime, back in 1933-35. Please note that each American’s BIRTH CERTIFICATE is held by that governmental corporation’s Department of Commerce. Effectually, that means that each and every American is held as SURETY for the indebtedness of the owners of said serfs…the United \$tates of America CORPORATION. To put it into simple English, their debts have been made into OUR debts.

    Those holders of the governmental (and public) indebtedness seem to be Biden their time, waiting for all the rest of the chess-pieces to be assembled by their board of directors. So when you are talking 30 Trillion dollars—let’s just call it 35 for the sake of easy math–with the U\$ population adding to something just short of 350 million—simply boil down those trillions and mere millions and deduce the debt per individual. Strikes me that if the present system maintains, all of American’s posterity for generation upon generation into the future will exist as slaves to a totally predatory and parasitical handful of vampire squids.

  64. @Yukon Jack

    Very good. I stand corrected.

    I’ll have to give up commenting on this witchcraft—- that I know nothing about!

  65. Mr Hudson – why do I not see you promote your book “Killing the Host”? I think that book is a great explainer for many of the things you say in your interviews. In any event – thanks for this insight. Indeed – tax breaks went to stock buy backs and crashing stock prices will lead to takeovers for the sake of accumulating assets rather than a benefit to the overall economy.

  66. The key to ending the ziocom control over America is to end the zionist privately FED and IRS and declare all FED created debt null and void.

    This would take away the zionist welfare for the zionist banksters aka FED and IRS and make America debt free as it was prior to 1913 and free Americans from the zionist plantation aka the ZUS.

  67. Towey says:
    @Yukon Jack

    150 years ago, the English economist, William Jevons mapped the relationship between sunspots and the business cycle: more sunspots; a more active sun; warmer weather; better harvests and more money in the economy. He was inspired to do so because William Herschel, the astronomer, had noted that during periods of high sunspot activity, the price of wheat fell.
    The relationship between sunspots and the business cycle was still being taught at the LSE in the late seventies, as I can personally attest.

  68. @Patrick Gibbs

    Just because you don’t understand finance and economics doesn’t mean no one else does. And economics and finance are just like medicine or politics… You practice the craft. For instance – many predicted the financial stock collapse of the early 2000’s… Others also correctly predicted what happened in 2008. So it is incorrect to say no one knows what will happen. Even Covid was predictable. Don’t believe??? Go watch Event 201 that took place in NY in October 2019. Everything they said would happen in a pandemic did happen. Like the predicted collapse in 2008 and the known folly of credit default swaps – they just weren’t put in the mainstream.

    • Replies: @Patrick Gibbs
  69. peterAUS says:
    @Levtraro

    Price controls are out of the question, not because of dems petty concerns but because price controls are not implementable, at least not until fiat currencies go full digital.

    Some people believe that price controls or actually control of all of the economy, society even, CAN be controlled in an emergency. War, for example.

    A decent regional war, or two, with tight control on nuclear weapons by all the willing players. Those at the top of all nuclear powers. Their own “1 %” if you will.

    I think we are getting there as we speak.

    • Replies: @Levtraro
  70. Breyer’s hurry reflected his recognition that the Democrats are about to lose heavily in November’s election

    There it is again. This idiotic assertion, in denial of all obvious recent in-your-face evidence to the contrary, that elections will be both clean and fair going forward. THIS is the stake of stupidity that will be driven through America’s heart as its death blow.

    Stop it, folks. Just stop it! Some of us are getting damned sick and tired of the condescending insults to our intelligence.

    • Replies: @emerging majority
  71. There really is no left-wing party with an independent program.

    Yes, there is such party: the party of leftist academia professors who tirelessly do Putin’s con job on America.

    • Troll: Yukon Jack
    • Replies: @Ace
    , @RadicalCenter
  72. Rubicon says:
    @Patrick Gibbs

    Before you lump Dr. Michael Hudson in with the others, we would strongly recommend you read a number of Hudson articles seen on his website, with Unz’s/Grayzone/Pepe Escobar’s interviews with Dr. Hudson.
    http://www.michael-hudson.com

  73. Ace says:
    @Paul Greenwood

    You can’t be serious!

    :–)

  74. Athena says:

    From the ”50s on, the U.S. went from being the global creditor to the global debtor.”

    ”The debt is owed by the U.S. government to other governments in the form of treasuries bonds.”

    ”This debt is basically created by military spending for the 800 US military bases abroad. So America has been able to control other countries by issuing its money.”

    The United States, through control of the World Bank and the IMF, imposes austerity and performs ”food strangulation” in every country so that they will never compete with the United States, ”but actually end up serving the U.S. economy as inputs.”

    See: Grayzone Interview with Michael Hudson
    https://www.unz.com/mhudson/grayzone-interview-with-michael-hudson/?highlight=blumenthal

    ”So America essentially has painted itself into a corner as a result of its military spending. It has lost its industrial advantage. It has lost its international competitiveness. And the only thing that it has left to do is the power to destroy, if other countries don’t essentially surrender their economies to control by the US, pretending to be objective and non-nationalistic by saying, we’re not controlling you, the the World Bank is controlling you, the IMF is controlling you, the international organizations are controlling you.”

  75. @MLK

    That Amazon/NYC deal that the female congressmember helped kill is part of what is wrong with the US – but not because of her per se. The way cities and states fight against each other to land such jobs and projects ultimately weakens the nation. I know it’s all the “states rights” argument – but in reality it makes for a “race to the bottom”. Frankly it was despicable to watch Amazon stand there as a king maker and states and cities all lined up with treats to entice them. A smart company in such a huge country will simply set up regional centers for attract as much talent as possible. In places where there is more talent – you simply build a bigger center. An area with smaller talent pool – you build a smaller office. If there isn’t enough talent in an area – you simply don’t even look. (And if there isn’t enough talent in an area – then that is the government’s job to provide the education and training in the underdeveloped regions). That whole scene was pathetic.
    American politicians can curse China’s model… But Jack Ma and Alibaba could never get away with such garbage. You either want to help build the nation’s economy or not. National development policy can be useful – with competent leadership.

    • Replies: @Avery
    , @MLK
  76. @mocissepvis

    Are you contending that the 2020 elections “were free and fair”? That seems implicit in your brief note…or am I mistaking your assertions?

    Both parties at the DNC and RNC commanding levels, are dancing to the strings of blackmail and bribery which determine their behind the scenes machinations, as per the DNC squelching the likes of Sanders and Gabbard both during and after the primaries…not that the state “Central Committees” did not also achieve results analogous to those of the Nomenklatura in the old USSR. Now it would seem that the U\$ has become U\$\$er than they were.

    • Replies: @mocissepvis
  77. There is no actual Left/Right divide in US politics.

    Terms are redefined as needed to give an illusion of a difference, and of a choice at election time. Bush-Gore, Bush-Kerry, Obama-McCain, Obama-Romney, Trump-Hillary, Biden-Trump. What difference does it make who wins?

    There is the Blue team or the Red team, both teams are wholly owned by corporate and billionaire donors [and AIPAC].

    The wars continue regardless of the party, or the individual resident, in the White House. The economy continues down the toilet, except for the investment bankers.

    Obama’s “affordable” care act was a gift to the corporate sick care industry, guaranteeing lifetime customers, backed by government spending. We end up with primary care providers that are not MDs, instead nurse practitioners, to cut care costs.

    The D’s pass the NDAA’s over and over. The D’s (and R’s) authorized everything that was spawned from the 9/11 hoax. Gitmo, Iraq, Afghanistan, Libya, Ukraine, etc.

    Along with creating DHS and TSA, authorizing the spending on security technology to prevent another hoax terror act, equipment purchased from Israel, while Congress gives money to Israel to use to purchase US weapons to terrorize their neighbors.

  78. Avery says:
    @showmethereal

    { You either want to help build the nation’s economy or not. National development policy can be useful – with competent leadership.}

    Unfortunately US stopped being a Nation a long time ago.
    It’s simply a rich marketplace run by special interest groups and Global corporations.
    The Congress is bought and sold openly in a highly competitive marketplace.
    National interest be damned.

    POTUS is no better: he is not whored openly, but is beholden to special interest groups.
    Special interests and corporations select 2 candidates and then people are given the “great honor” to vote for one of the 2 chosen. The Election Circus goes into hyperdrive: red, white, and blue balloons, speeches, MSM “analysis”, fake suspense,…..the works.

    Even SCOTUS, which is supposed to be independent, is affected by the malaise that has spread in US of America. Imagine any other normal country where the highest court in the country declares that Corporation are — in effect — people*. Corporations (and Unions) can spend unlimited amounts on political issues. Meaning they can buy as many votes as they can afford to pay for: there is our vaunted ‘American democracy’.

    __________________________________________________
    * Citizens United decision.

    • Agree: Miro23
  79. @Notsofast

    The simple fact that interest rates cannot be raised because the debt Ponzi is so huge, explains why the CoViD pandemic dictatorship is being imposed, and the Imperial warmongering is reaching insane levels. There is no way out from this impasse for the global parasites, so they have gone mad, ‘..at first gradually, then suddenly’. Just perusing the ‘liberal’ Guardian tells you just how psychotic these swine have become. and shows what natural fascists they are.

  80. MLK says:
    @showmethereal

    It’s NYC. It’s development model is well and truly broken if it has to give decades of tax breaks and other monies to corporations to have a presence there.

    Of course it didn’t have to as after the collapse of this deal Amazon quietly built its operations there without a deal. Google was smart enough to forgo such a deal.

    The lovely AOC really wasn’t responsible for killing the deal. Cuomo and Schumer stupidly tried to make her the dirty dog and she brilliantly didn’t deny credit.

    • Replies: @showmethereal
  81. @nsa

    Helicopter money would only be released over Wall Street, not Main Street. It’s the ‘Cantillon Effect’. Wall Street, ie Larry Fink and the other vultures, get more or less free money, while the proles still pay 20% interest on their credit cards, and vastly more with pay-day lenders and other such blood-suckers who are allowed to operate. The one and only purpose of the system is to make the rich richer, and to Hell with the serfs.
    This is a system that must cause revolt, hence the ‘pandemic’. Either to introduce Draconian social control, or to exterminate much of the ‘useless classes’. Or both, one after the other, or simultaneously.

  82. @Franz

    With automation, computerisation, artificial intelligence and robotisation, 90% of the populace are rendered ‘surplus to requirements’. But they still represent a threat to the system and its owners. Really, is there any question what must follow? The ‘useless classes’-kaput!

  83. @emerging majority

    Are you contending that the 2020 elections “were free and fair”? That seems implicit in your brief note…or am I mistaking your assertions?

    Yes, I’m afraid that you greatly misread my assertions, which are that the 2020 Presidential Election was anything but “free and fair,” that this was/is painfully obvious to everyone, and that it’s insulting to everyone’s intelligence to keep pretending otherwise.

    Both parties at the DNC and RNC commanding levels, are dancing to the strings of blackmail and bribery which determine their behind the scenes machinations, as per the DNC squelching the likes of Sanders and Gabbard both during and after the primaries…not that the state “Central Committees” did not also achieve results analogous to those of the Nomenklatura in the old USSR. Now it would seem that the U\$ has become U\$\$er than they were.

    Yes, absolutely.


  84. http://www.barrons.com/public/resources/documents/CovCht.pdf

    I am going to tell you the future about interest rates and you will not like it, nor are you going to believe it (which is exactly why it will happen – it is the least expected outcome).

    Interest rates are going up, and they are going to go up for decades, maybe for 20 years. This may seem completely ridiculous, but I will show you some charts to convince you that interest rates bottomed in 2020 and have reversed course.

    When you least expect it, 10 year treasuries will be back above the 200 year average of 5%

    [MORE]

    10 year treasury in bottoming process circa 2020

    10 year Treasuries new trend channel after 2020 low

    Japanese Nationwide Land Prices – Japan’s Central bank opened the credit flood gates yet still there was 20 years of DEFLATION


    The Fed is currently fighting DEFLATION, M1 velocity has fallen off a cliff, if velocity picks up the Fed will have to squash hyperinflation.

    • Replies: @nsa
  85. Hoyeru says:

    not a very good interview.
    They didn’t touch on the obvious that when USA faces economic collapse it starts a war on the other side of the world to divert the attention of its citizens. This ties neatly with what is going on between USA and Russia and USA and CHina.
    Both parties are useless and are in such a sad shape, they cannot allow the 2024 presidential elections to occur, therefore I expect a major false flag even happening between now and 2024. I have said it first.

  86. @Rabbitnexus

    Use what resources you have left to get residency or citizenship by investment in a freer less hysterical country. Same advice for Americans who can do so.

  87. @Anon

    Get out of that country and let the police-state hysterics get what they want, good and hard. Watch them live their prison life and eventually starve — from far away.

    The Australian and US governments are hostile occupying powers and they need to be lawfully removed and punished.

  88. @Catdompanj

    The owners of small businesses and residential tenants alike need to simply stop paying the big banks and corporate landlords, then refuse to leave the premises. If your personal or business landlord is not a human being but a corporation or a bank or a hedge fund, fuck them and stop paying whenever necessary.

    Pay your landlord, if you can, if he is an actual human being trying to make a good living. We’ll be better off, on balance, with big banks and corporate landowners taking a massive hit to their revenues and profits. Again, let them suffer a fraction of what they are doing to all of us. Save the smaller local credit unions and families, let the “too big to fail” get crushed by the long-overdue backlash from the people.

    Then let the pigs see what happens if they try to throw such masses of desperate people out on the street. Those desperate abused people of all races will make mincemeat of the pigs, rightly or wrongly.

    Finally, only human beings should be allowed to own and rent out residential property, not artificial entities created by government to help some people rape others financially behind cover of a corporation or bank.

    • Replies: @PetrOldSack
  89. @MLK

    But my point is it wasn’t an NYC issue. I recall reading the process from the time they first made the announcement of a 2nd hq. Dozens of governments went to them like they were bringing gifts to a king. All trying to outdo each other for “more more more” treats. It was basically showing Jeff Bezos and Elon Musk control the US public purse. Amazon still is expanding it’s NYC staff. The whole thing was a pathetic joke. Pitting states and municipalities against each other is not a way to make a country strong. Texas poaches companies from California and Florida poaches companies from NY. It doesn’t benefit the whole nation when companies just relocate for taxes or such. It just makes for a divided country. I don’t know how many nations do such things. I only know how a handful operate on such a level. But that’s why I brought up Jack Ma and Alibaba… or to use Elon Musk. His company Tesla now exports more from it’s Shanghai factory than it does from the US. now Musk was given lots of help from the Shanghai gov – but there is no way in 10 years he could threaten Shanghai to move to Chengdu if they didn’t give him more incentives. An expansion is a different cup of tea. Chengdu would be able to offer incentives – but not if it would hurt the amount of jobs in Shanghai.

    • Replies: @MLK
  90. nsa says:
    @Yukon Jack

    Nice charts! The 60 year interest rate cycle (peaks 1861, 1920, 1981) is well known but does it still hold sway after the closure of the gold window (1971) and the elimination of silver coinage (1965)? This is the age of fiat paper and financial alchemy. The last peak was on time (1981) but the 2021 trough was late at 40 years. The next peak is scheduled for 2041 which is only 20 years away.
    As to the feasibility of a 5% 10 year interest rate: 2021 federal tax revenues were 4 trillion, with expeditures of almost 7 trillion, and a gross national debt of 30 trillion. 5% of 30 trillion is 1.5 trillion just to service the debt i.e. almost 40% of annual tax revenue. This is an impossibility.
    The Japanification of Amelika means zirp and nirp forever. And remember that in the whole history of the human race, every fiat paper currency has eventually become worthless i.e. buttwipe. The U\$D is better than most, having lost only 98% of its purchasing power since 1913.

  91. @matzahballsgonewrong

    Somehow I don’t think you know much about the Americans who tend to respect or admire Putin. “Left-wing” is definitely not the generalization to use.

    • Replies: @matzahballsgonewrong
  92. @RadicalCenter

    While y-o-u are electronic collar trapped by your phone(each and every individual), corporations, “legal” entities are wrapped in layers of opaque-ness, hiding in the end a minor group of little old men, responding then to family and clan of theirs. Medieval times over. Indeed that is the first anomaly that allows abuses to arise. It makes the enemy invisible, and allows for the stupor most individuals dwell in during their complete life-cycle. Passing the bucket on are “education” (all levels), and the misery mindset of living of the crumbs of the table by the middle classes, set up against their own collective interests.

    Sadly M. Hudson is definitely part of the latter. Upholding “within the system” as “good enough for me, but none for thine”.

  93. MLK says:
    @showmethereal

    I completely disagree with you on China. I’ll set it to the side since it’s tangental twice removed to the point I was making.

    I do, however have little disagreement with you on what has happened in the US. For all it’s technological prowess, Amazon has a simple, straightforward business model. It’s a jobs killing machine in furtherance of building a monopoly once the competition is destroyed.

    Multinationals have always harnessed their overweening governmental influence to destroy their mid and small sized business competition. None more than Amazon in the modern era. For example, track the entities and industries that generously support a high minimum wage — a competitive advantage for behemoths that can and do develop and deploy the low skills job-killing technology.

    As I alluded to before, check out Google’s entry and presence building in NYC. It smartly paid the “rack rate,” forgoing the reputation damaging deals Amazon negotiated. Not to put too fine a point on it but Amazon has reaped enormous rewards from close alignment with the smart set.

    Its expanded operations in Virginia make the point in cruder form. They’re buying influence by hiring the wives, husbands and children of those with power in Washington, politicians and permanent government alike.

    Our discussion though has taken us away from my principal point, which was a political one about the so-called progressives in the context of the Democrat coalition. Anyone not horrified by the attempted formation of singularity within this great republic of so-called progressives, who argue amongst themselves when they can move from Leninism to Stalinism, Woke globalist corporations and oligarchs, with RINO and Neocon filth, hasn’t been paying attention.

    Everyone can continue to say what they want about Trump. Believe me, I understand the inexorable driver — resentment. He is the great clarifier in what is an inexorable process of discreditation. Anyone still confused should go back and read his speech after taking the oath on inauguration day in 2017, in which he “burned the ships.”

  94. Sepp says:
    @Yukon Jack

    Interest rates will go up, but not for the reasons you write about.

    Klaus Schwab and his cabal owners have promised us a 4th industrial revolution, build back better, great reset, and that we will own nothing and be happy. Interest rates are a part of this grand strategy just as much as zero carbon, vaccine mandates and vaccine passports.

    Global wealth is being consolidated into the hands of an ever shrinking pool of billionaire insiders who demand ever increasing wealth and refuse to face any losses. So what these Sabbateans are planning is a great shake out, where they can pick up even more property at far lower prices and far less risk.

    Buying assets now when the nations of the world all have debt levels between 100% and 400% of GDP would be very high risk if not suicidal. So they are planning a great shake out, like in 1929, but only far bigger and with UBI and either CBDC or IMF SDR’s on the other side.

    So the cabal insiders will raise cash or other liquid forms of money, the FED and all subservient Central banks will jack up interest rates, and bond and stock markets will crash like never before in the history of the planet. Since people have continually become ever more incapable of providing for themselves for generations, they will be screaming for government handouts. This is when UBI will be instituted across the west, simultaneous to a tidal wave of liquidity being put primarily into the hands of Blackrock, Vanguard, State Street and secondarily into Credit Agricole, CS, UBS, ING, Rabobank, DB and all the other Fed member banks. They will then continue the process of hoovering up all the assets across the planet at fire sale prices.

    Their plan is clearly that robotics and AI will have enabled a massive increase in productivity before the reflation, which will make the 300 families who will by then own the vast majority of assets no longer dependent on manual labor.

    Of course simultaneous to all this there will be a massive global culling, but that is a topic for another thread.

    • Replies: @Miro23
  95. @RadicalCenter

    the Americans who tend to respect or admire Putin

    Oh, yeah, sure, what not to admire? His ascending to power with laundered drug money? His crimes against humanity? His two Chechen wars? His war against Ukraine using killers-for-hire in Donbass? The mafia style assassinations of his political adversaries, including members of Parliament? The incarceration of thousands of young people who dare to oppose his genocidal policy? Only a card-carrying Commie would admire a career-criminal like Putler. Congratulations!

  96. Che Guava says:
    @TheTrumanShow

    That is not a good argument. I half agree with you, but you need at least a few phrases on specifics to back up what you are saying. ‘Hogwash’ doesn’t qualify.

  97. @showmethereal

    I’m not sure you read my comment – all I’m really saying is that our “elite” is really an occupational rentier class, and that they are driving this country off a cliff in order to enrich themselves. You don’t need to “understand finance and economics” to predict that a calamity is coming, which will likely be occasioned by a collapse in trust in the US dollar. As Bob Dylan said, “you don’t need a weatherman to know which way the wind blows.” What I’m saying is that no one knows what comes after that. Are we in for a replay of 1914? The 1930s? That’s the question I’m interested in, not “what are the ramifications of a patently insane economic policy?”

    • Replies: @showmethereal
  98. @Richard V Vajs

    Once again, this all assumes that the populace as a whole will continue to tolerate their dispossession. They might; they might not. No one knows. What I do know is that thinking that more gibbs is the cure for what ails us is unthinkably stupid as it will only further entrench the parasites that have pilfered our country.

  99. Miro23 says:
    @Sepp

    Global wealth is being consolidated into the hands of an ever shrinking pool of billionaire insiders who demand ever increasing wealth and refuse to face any losses. So what these Sabbateans are planning is a great shake out, where they can pick up even more property at far lower prices and far less risk.

    So the cabal insiders will raise cash or other liquid forms of money, the FED and all subservient Central banks will jack up interest rates, and bond and stock markets will crash like never before in the history of the planet.

    I think that this is it. It’s the classic Pump and Dump cycle but just on a much larger scale.

    Everything the Masters of the Universe have done so far was aimed at increasing their wealth/assets so it’s not out of character they want to go the whole way an own everything.

    The public get digital permission passes and all digital money. Troublemakers can be neutralized with a few clicks. Everything is rented and nothing is owned. In fact, rather like the intriguing film “In Time” (slammed by mainstream critics).

  100. @matzahballsgonewrong

    Okayyyy. Please note that I wasn’t expressing an opinion, just saying that the people I read and meet who respect or appreciate aspects of Putin haven’t been leftists.

  101. If I was rationalizing the cause of rising rates, my first choice would be risk. Current levels of interest do not reflect risk, not just from inflation, but from default. The United States is bankrupt, the only reason it has it’s doors open is that they still can pedal their bonds, but that is (probably) only because the Fed buys massive quantities of Federal paper.

    Back in 1789 when the Treasury issued it’s first bonds, it was for only 10 years and extremely high rates especially when you consider the nation was on a gold/silver standard and inflation was not a factor like it is now. Back in those days they actually paid down the debt. So lending was of little risk but very high rates. I argue that risk now is off the charts, the Republic is near collapse, and soon interest rates will shoot up to reflect that risk.

    Currently the nation faces extinction, and rates are near historical lows. That, I believe, is going to change in the near future. Many people believe we are near a civil war between red and blue states. But regardless of political turmoil, the borrowing needs are immense and interest rates are going up which everyone recognizes as a huge problem because interest on the debt is huge in itself. What no one believe is that the Federal Government could actually default, as it is really just another corporation. Then we have the Federal Reserve, which is not a federal agency but a private bank with stock ownership – which will certainly act in it’s own self interest.

    So the point I want to make, when everyone is on one side of the boat (meaning everyone is leveraged to the hilt with debt) the boat will either tip over or roll the other way. What no one is doing is saving dollars, but what everyone is doing is borrowing to buy stock, homes, retail consumerism with credit cards, etc. Debt is out the yazoo. So a contrarian would say take the other side of the bet – save every dollar, cash out everything and go to dollars. This is held by 99.9999% as batshit crazy because everyone is convinced inflation is forever, and the Fed will back the stock market, and buy government bonds forever. All that is, is popular psychology at the moment, not the ultimate reality as I have described.

    There is yet another point. If I was a ultra paranoid conspiracy theorist I would say the bankster elite have suckered everyone into debt before they pull the rug out and crash the system. By lowering interest rates to zero, and in some nations below zero, they have created the impetus to take savings (which pay no interest) and speculate into stocks, bonds, junk bonds, mortgages, cars, paintings, collectibles. Everyone is out of dollars and “all in” for hyperinflation.

    So can anyone tell why now is not the perfect time to crash the system in a great reset? Like Klaus Scwab says, you will own nothing and be happy. If we have another 1929 then that prophecy will come true, at least the part of owning nothing. Surging interest rates, and surging commodity prices will have severe impacts on house ownership. Rising rates will eventually suck money out of speculative stocks and back into bonds. So if stock and real estate crater together that will cause consumers to stop spending as their portfolios shrink losing decimal places in a year.

    The hyperinflation argument is dead wrong, the United State is not Weimer, Germany or Zimbabwe. The USA is a modern nation with hundreds of billions in bonds, and those bonds have owners who wish to preserve wealth, and they will react to hyperinflation by selling bonds. Then we have the Fed policy wonks who are universally for low inflation and raising rates. All parties are now saying the Fed has waited too long to raise rates to combat inflation, so that means the Fed is going to raise rates – and Jerome Powell says this March the first rate hike in the new cycle.

    • Replies: @antibeast
    , @Miro23
    , @nsa
  102. @Patrick Gibbs

    Well no one every knows 100% what will happen – but there are absolutely good financiers/economists who can predict somewhat what will happen. That is also why in any crisis – there are always those who get wealthier – because they know how things work and take advantage. Then there are those who don’t seek to capitalize off others misfortunes but simply take wise steps to protect their own… Those are pretty much the scenarios Mr Hudson always discusses as well.

  103. @matzahballsgonewrong

    Your lying reaches an almost religious intensity. A true psychopath.

  104. @Yukon Jack

    Such imbecility and mendacity so late in the day. Killed by morons -what a fate for H.saps.

  105. Levtraro says:
    @peterAUS

    Price controls can be achieved in either of two ways: (1) by the State owning the means of production and thus centrally coordinating the economy, or (2) by a fully and exclusively digital coin where the State makes it algorithmically impossible to complete a transaction if it passes the limit price (Error!: unit price exceeds the limit for this transaction, transaction not completed!). Those two conditions do not apply. The State may (3) try to impose price controls by decree but this just creates the conditions for large scale hoarding and sending a large part of the economy into the dark or into barter. (1) and (2) work, (3) fails.

    The fact that there is an emergency, such as a war, may encourage the State to control everything via (3) above, but that does not guarantee its success in doing so. If people feel the war is unjust, or it is far away and irrelevant (i.e. Ukraine vs. Russia), nobody will let the US nomenklatura take control of everything, much less the prices of things that are consumed by regular Joe.

    • Replies: @peterAUS
  106. antibeast says:
    @Yukon Jack

    The hyperinflation argument is dead wrong, the United State is not Weimer, Germany or Zimbabwe.

    There is no hyperinflation because the excess money supply has been funneled to Wall Street instead of ‘trickling down’ to Main Street. Wall Street in turn has invested those extra Fed dollars into the FIRE and Tech sectors, inflating real property and financial assets. After the feeding frenzy by Wall Street, only leftover crumbs were given to Main Street as shops closed and jobs disappeared.

    The USA is a modern nation with hundreds of billions in bonds, and those bonds have owners who wish to preserve wealth, and they will react to hyperinflation by selling bonds.

    There will be a sell-off in bonds as the Fed raises interest rates to siphon off excess liquidity in the financial markets. As mortgage rates rise and the rental and mortgage moratorium ends, there will be a wave of evictions and foreclosures in the property sector with Wall Street selling bonds to buy real property.

    Then we have the Fed policy wonks who are universally for low inflation and raising rates. All parties are now saying the Fed has waited too long to raise rates to combat inflation, so that means the Fed is going to raise rates – and Jerome Powell says this March the first rate hike in the new cycle.

    Consumer inflation reached 7% by the end of 2021, caused primarily by Covid-19 supply-chain bottlenecks and secondarily by the higher commodity prices. The inflation rate could go down as interest rates rise which should lead to lower commodity prices.

  107. Jon Chance says: • Website
    @emerging majority

    I do not advocate biofuels derived from soybeans, corn kernels, genetically modified organisms, or any crops resulting in deforestation or excessive inflation of food prices.

    Canola, hemp, palm, and algae can be cultivated wisely for biofuels.

    Plug-in hybrid electric vehicles charged by windpower and supplemented with benign biofuels (and petroleum) offer numerous cost-effective advantages including dynamic grid stabilization and utility-scale energy storage.

    Appropriate environmental regulations are desirable.

    Expansion of bikeways and electric railway is also essential for a sensible transportation system and healthy economy.

    Renewable Energy Credits might not be the best alternative anymore if all subsidies can be abolished and if the Treasury issues all money (United States Notes) fully backed by Location Value Rent.

  108. peterAUS says:
    @Levtraro

    The fact that there is an emergency, such as a war, may encourage the State to control everything via (3) above, but that does not guarantee its success in doing so.

    True. Some people just have a very strong feeling that’s exactly what’s going to happen.
    Which brings us to

    If people feel the war is unjust, or it is far away and irrelevant (i.e. Ukraine vs. Russia), nobody will let the US nomenklatura take control of everything, much less the prices of things that are consumed by regular Joe.

    Well….I guess we have different opinion about that “people” thing. The Scamdemic has proven that what people believe is irrelevant. Most “people” will behave in a way whatever TPTBs wish them to behave. Those who won’t be dealt with similar to those who’ve disobeyed all those mindless Scamdemic mandates.
    The only problem with the “solution” above is careful control of nuclear weapons. It’s doable. As you said “not guaranteed” too. So, we’ll see, and rather soon I think.

  109. Miro23 says:
    @Yukon Jack

    There is yet another point. If I was a ultra paranoid conspiracy theorist I would say the bankster elite have suckered everyone into debt before they pull the rug out and crash the system. By lowering interest rates to zero, and in some nations below zero, they have created the impetus to take savings (which pay no interest) and speculate into stocks, bonds, junk bonds, mortgages, cars, paintings, collectibles. Everyone is out of dollars and “all in” for hyperinflation.

    So can anyone tell why now is not the perfect time to crash the system in a great reset?

    That makes me an ultra paranoid conspiracy theorist because I actually believe that this is what’s going on.

  110. @TheTrumanShow

    The facts are irrefutable-the twenty hottest years ever measured have all occurred since 1998. Or do you have your own, moronic, facts. What is it with you psychopaths-stupidity, pig ignorance, Rightwing fanaticism, or just the hatred of life on Earth? Or all of the above?

  111. nsa says:
    @Yukon Jack

    Yukon, If you are still there, Japan 1991 to 2022 is the template. The Japs have proven you can run the national debt up to at least 250% of GDP and still have a functioning society…..running zirp and nirp forever. US national debt is only 130% of GDP so there is a long way to go. A couple of mickey mouse interest rate hikes, stocks douche 35% and a mild recession, and back to zirp and nirp. The PTBs aren’t stupid and will follow the path of least resistance like water responding to the law of gravity. Bank on it……….and bet accordingly.

    • Replies: @Yukon Jack
  112. @nsa

    I agree that is a strong possibility, and I have argued that point many times, there is a limit to debt, and the Japanification of Amerika may be in the cards. Many youtubers are claiming this also. This is the general model accepted as the limit to inflation in asset prices. Once real estate peaks (now) and it starts going down year over year the impetus to borrow diminishes. At some point many get their asses burned by their debt obligations – being underwater on mortgages.

    There is a limit to debt, debt follows a cycle, at first people are hesitant to borrow because of ingrained conservative values learned on a gold standard, but those that do get rich (think real estate investors post 1945). This information spreads, you get rich by leverage (no money down strategies proliferate even on the Jewtube). Then after decades and decades of borrowing the bust comes (2006-9) but the Fed QEs infinity, pumping up the bubble one last time, a superbubble as rates go to zero. In the last 5 years mortgage rates are at all time lows, lowest ever in the history of man.

    So we are currently just past peak superbubble – stock and real estate moving down. This new trend is not fully registering yet as those who are all in are going to deny it. The tech bubble is going bust, Zillow, ARKK ETF, Peloton, Facebook (dropped 26% yesterday), NKLA, TSLA, etc etc are all going down – the up has reversed to down. The hype has been replaced by reality. NKLA one of my favorites – never even made one functional truck, faked it rolling down a hill, and yet even in the last year that stock has been trading above \$10 even though it has no value.

  113. ‘Fighting’ yesterday’s ‘battles’?
    Usually the ‘economists’ who use ‘macroeconomic models’ ‘believe’ that the solution to the current macroeconomic problem is the implementation of the ‘correct’ type of demand side policies. That is, how to increase income/output {‘growth’}.
    Increase M0, M2 or M3, cut r, or make it negative, implement ‘debt forgiveness’. Increase G and finance it by ‘borrowing’ from the central bank or by borrowing from the private sector. Or ensure that private credit is extended only for GDP transactions.
    All that is lacking is a ‘sufficient’ increase in effective demand!
    The neoclassical/Austrian economists, who believe that income/output is ‘supply determined’, will argue that all that is required to generate a large increase the growth of the underlying productive potential of an economy is for taxes to be cut and more ‘competition’, etc be introduced!

    Aside from the negative externalities of ‘growth’, what they ignore is the ‘energy supply side’?

    ‘We’ have 16 years?

    ‘Global peak oil production may have already happened in October of 2018 (https://energyskeptic.com/2020/will-covid-19-delay-peak-oil/ Table 1). It is likely the decline rate will be 6%, increasing exponentially by +0.015% a year (see post “Giant oil field decline rates and peak oil”). So, after 16 years remaining oil production will be just 10% of what it was at the peak.’
    http://energyskeptic.com/2020/climate-change-dominates-news-coverage-at-expense-of-more-important-existential-issues/

    [MORE]

    Or,
    ‘We’ have ten years?
    “ . . . our best estimate is that the net energy
    33:33 per barrel available for the global
    33:36 economy was about eight percent
    33:38 and that in over the next few years it
    33:42 will go down to zero percent
    33:44 uh best estimate at the moment is that
    33:46 actually the
    33:47 per average barrel of sweet crude
    33:51 uh we had the zero percent around 2022
    33:56 but there are ways and means of
    33:58 extending that so to be on the safe side
    34:00 here on our diagram
    34:02 we say that zero percent is definitely
    34:05 around 2030 . . .
    we
    34:43 need net energy from oil and [if] it goes
    34:46 down to zero
    34:48 uh well we have collapsed not just
    34:50 collapse of the oil industry
    34:52 we have collapsed globally of the global
    34:54 industrial civilization this is what we
    34:56 are looking at at the moment . . . “

    Or, have 5 years? {unlikely?}.
    “The greatest threat to humanity on Earth is the escalating Arctic atmospheric methane buildup, caused by the destabilization of subsea methane hydrates. This subsea Arctic methane hydrate destabilization will go out of control in 2024 and lead to a catastrophic heatwave by 2026.” ?
    https://arctic-news.blogspot.com/2021/05/extinction-by-2027.html?fbclid=IwAR3FEKqILrzS_Le1Z4LRmEvqoSRz6p2rBIFjbNmY1NFB_rHeU4RpDT8u2Zg

  114. frontier says:
    @Yukon Jack

    The Fed has two functions, price stability and full employment

    Well, they haven’t pursued any of them, what they have pursued, is lower cost of borrowing for the government and the oligarchs who control it. That’s it! Everything they did and still do is dictated by it. Are you saying that they are now going to suddenly remember what their legally stipulated function is?

    Hudson is a fraud of monumental proportions, he was advocating higher deficits and social spending which directly increase inflation and he’s still lying about it. He pretends to not know how US inflation can be exported, conveniently forgetting that the dollar is still the global reserve currency. Then he turns around to claim that inflation fell from the sky in the rest of the world, and from there, it “naturally” came to America – both of these are criminally dirty lies.

    Inflation came from monetizing debt and stuffing the banks with QE money and “overnight” debt. Globalization made the problem worse but inflation abroad has been high for many years and it has never translated to inflation here. On the contrary, people seek a stable currency and if you have it, they will buy it and make it stronger. The Fed, under pressure from the government and idiots like Hudson, went for more monetization and counterfeit printing but that spooked the rest of the world and the faith in the dollar was lost. Hudson is trying to evade responsibility for his idiotic advice about which he has been repeatedly warned.

  115. Nancy says:
    @Rabbitnexus

    With a 2 party system, we never have a choice – a two sided coin. WA state may consider ‘ranked voting’, where all party candidates (it will encourage more parties) are on the ballot; you rank your vote by 1st, 2nd, 3rd, etc. Your vote is never ‘thrown away’… if your #1 guy can’t win, your vote goes to your #2 guy, so on. Candidates will have to appeal to a broad range, more consituencies, etc, etc . It has worked elsewhere. We can get together to promote this system. Otherwise, we continue to have NO citizen representation.

Current Commenter
says:

Leave a Reply - Personal attacks and gratuitous insults are not acceptable and this author will ban such commenters.


 Remember My InformationWhy?
 Email Replies to my Comment
$
Submitted comments have been licensed to The Unz Review and may be republished elsewhere at the sole discretion of the latter
Commenting Disabled While in Translation Mode
Subscribe to This Comment Thread via RSS Subscribe to All Michael Hudson Comments via RSS