What impact on the European and U.S. economies may diversification of central bank reserves into euros have?
International Economy Diversification of central bank reserves into larger holdings of euros is much in the news these days. Quite apart from the widening U.S. trade and payments deficit, the Iraq war has created a backlash that has led some Arab and Islamic politicians to urge OPEC countries to price and sell their oil in... Read More
Published in Fakt (Warsaw) Poland’s vote to join the European Community has put an end to the centuries of military rivalries that have long devastated the nation and its neighbors. Entry into the EC makes future internecine wars unthinkable. That was the easy decision to make. Poland now must confront the financial issue dividing Europe:... Read More
Hudson’s latest interview with Bonnie Faulkner, discussing his recent venture to Latvia amidst Europe’s current troubles. Why have government’s suddenly forgotten how to finance themselves? Hudson on Guns N Butter, June 2010
The “New Austerity” Road
Europe is committing fiscal suicide – and will have little trouble finding allies at this weekend’s G-20 meetings in Toronto. Despite the deepening Great Recession threatening to bring on outright depression, European Central Bank (ECB) president Jean-Claude Trichet and prime ministers from Britain’s David Cameron to Greece’s George Papandreou (president of the Socialist International) and... Read More
Breakup of the euro?
Is Iceland’s rejection of financial bullying a model for Greece and Ireland? This article is an excerpt from Prof. Hudson’s upcoming book, “Debts that Can’t be Paid, Won’t Be,” to be published later this year. Last month Iceland voted against submitting to British and Dutch demands that it compensate their national bank insurance agencies for... Read More
Will Greece Let EU Central Bankers Run Riot Over Sovereignty?
When Greece exchanged its drachma for the euro in 2000, most voters were all for joining the Eurozone. Their hope was that it would ensure stability, and that this would promote rising wages and living standards. Few saw that the stumbling point was tax policy. Greece was excluded from the eurozone the previous year as... Read More
How Bankers are using the Debt Crisis to welcome in the Financial Road to Serfdom
Financial strategists do not intend to let today’s debt crisis go to waste. Foreclosure time has arrived. That means revolution – or more accurately, a counter-revolution to roll back the 20th century’s gains made by social democracy: pensions and social security, public health care and other infrastructure providing essential services at subsidized prices or for... Read More
Michael on the Keiser Report, discussing the role of finance in the EU debt crisis. How does Wall St and the IMF fit into the picture? Michael comes on at the 14 minute mark. Download the Hudson only portion of the interview
More at The Real News Transcript: PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I’m Paul Jay in Washington. In Greece, the Parliament has passed the austerity measures. And judging by the reaction of the stock markets and investors, everyone was rather pleased with that. Stock markets shot up for the next... Read More
NY Times, August 11, 2011 A debate between five economists on “Why Aren’t Germans Protesting?” Rightly Disgusted at the Banks A bailout, like any other government expenditure, is a tax. Someone must pay all this money. And it is unfair to tax the broad population to pay for a special interest. Instead of being a... Read More
During the the Global Policy Forum (Russia), Jeffrey Sommers and Michael Hudson discussed the future of the EU with Bloomberg columnist Matthew Lynn. Tags: Euro, Jeff Sommers, Russia, TV
Michael Hudson on Bonnie Faulkner’s Guns & Butter. Listen Here Guns and Butter: “Debt Deflation in Europe and America” Edited Interview by Bonnie Faulkner with Michael Hudson, September 2, 2011 (first aired on Pacifica, September 14, 2011). “Without consumption, markets are going to shrink. Companies won’t invest, stores will close, “for rent” signs will spread... Read More
Trade and Payments Theory in a Financialized Economy
Paper delivered at the Boeckler Foundation meetings, Berlin, October 29, 2011, #D3. Summary Ricardian trade theory was based on the cost of labor at a time when grain and other consumer goods accounted for most subsistence spending. But today’s budgets are dominated by payments to the finance, insurance and real estate (FIRE) sector, and to... Read More
More at The Real News Transcript PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I’m Paul Jay in Washington. In Europe, people in many countries are saying no to paying for the crisis and bailing out banks. And to a large extent leading the way have been people in Iceland, who have... Read More
Michael appears on Capital Account to discuss his two most recent articles, Democracy & Debt and Europe’s Transition from Social Democracy to Oligarchy.
See Dr Hudson with Max Keiser in On the Edge as they sift through the latest issues including the EU, Ron Paul, Austrian economics, Iran and the role of the US dollar.
2,181 Italians pack a Sports Arena to learn Modern Monetary Theory: The Economy doesn’t Need to suffer Neoliberal Austerity I have just returned from Rimini, Italy, where I experienced one of the most amazing spectacles of my academic life. Four of us associated with the University of Missouri at Kansas City (UMKC) were invited to... Read More
Hudson on the plan for the 1% to monopolise Main Street through concentration of ownership AKA asset grabs. 73,000 views in 2 days. Transcript PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I’m Paul Jay in Washington. Concentration of ownership leads to concentration of political power. It’s rather obvious. It’s practically a... Read More
Michael appeared on Guns and Butter alongside Assoc Professor Stephanie Kelton in Rimini. Listen to the interview aired March 7th. Make sure you read Michael’s piece on Our Very Oscar Night in Rimini for more background. “There IS An Alternative To European Austerity: Modern Money Theory (MMT)” with Stephanie Kelton and Michael Hudson in Rimini,... Read More
Hudson on Lauren Lyster’s Capital Account discussing the upcoming Washington Consensus meetings.
This is a re-working of my second talk at the Rimini MMT conference, as heard on Guns and Butter. Suppose you were alive back in 1945 and were told about all the new technology that would be invented between then and now: the computers and internet, mobile phones and other consumer electronics, faster and cheaper... Read More
Paul Krugman is widely appreciated for his New York Times columns criticizing Republican demands for fiscal austerity. He rightly argues that cutting back public spending will worsen the economic depression into which we are sinking. And despite his partisan Democratic Party politicking, he warned from the outset in 2009 that President Obama’s modest counter-cyclical spending... Read More
Cross posted from the Financial Times by permission of the authors. Michael Hudson and Jeffery Sommers: a distinguished professor at the University of Missouri-Kansas City and associate professor at the University of Wisconsin-Milwaukee respectively, who have both advised members of Latvia’s government on alternatives to austerity. They are also contributors to the forthcoming book by... Read More
Europe’s three needs: a debt write-down, a real central bank, and a more efficient tax system
Brussels Talk, Madariaga College, Governing Globalisation in a World Economy in Transition, June 27, 2012 What can Europe learn from the United States? First, the United States – like Canada, England and China – have central banks that do what central banks outside of Europe were created to do: finance the budget deficit directly. I... Read More