Michael Hudson’s Antidote to Neo-liberal Economists’ and “Austerians’” Deadly, Daily, Poison

Another title, for the conditioned to unconditionally surrender to party line liberal, could have been: Paul Krugman Sucks Up To Robert Rubin’s and the Fed’s Deadly Farts.

According to Hudson’s insight into the purpose of the Fed’s (3 Trillion, and counting) QE policy – no end in sight – and the neoliberal deficit hawks’, in the Congress, “Austerian” agenda for the public; no policies reflecting economic policy other than robing the public to save Wall Street’s stellar accumulation of wealth, while working class wages have been driven 6% down since Wall Street declared  ”green shoots for themselves!” Soylent Green for the rest of us all, but that is the unfortunately necessary “sharing of the burden,”  Now or later are the only options offered by both the Dems and the Reps. A Tower of Babble built of bullshit, is what it is!

Presented in a “barefoot economist” language with enough anchoring in economic theory to support a layman’s sense that Hudson knows his shit. And so it resonates, even if uncomfortably, in places.

 

A massive pile of accumulated debts and a global credit bubble are tearing apart our politics and societies. As illusory wealth continues to evaporate, a battle ensues between creditors that lent too much and a rapidly growing class of debt serfs. With the ability for reform appearing increasingly futile, a systemic crisis has created paralysis on the edge of an abyss. What do the examples of previous indebted empires tell us? Can we create an alternative to a neoliberal philosophy that ends in neofeudalism?

In Extraenvironmentalist #67 we discuss the implications of the bursting global credit bubble with economist and historian Michael Hudson. Our conversation covers many of the themes in Hudson’s new book, The Bubble and Beyond which covers the process of quantitative easing, neofeudalism and more. Then we speak with Nate Hagens, the former lead editor of the Oil Drum and an expert on global resource depletion. Nate describes why the relationship between energy and debt will increasingly lead to defaults as slowing growth means debts won’t be serviced.

 

Starts at: 2:22

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source: http://www.extraenvironmentalist.com/2013/10/16/episode-67-bubble/

  • Liberius Cato

    Economics is a lot simpler than most people make it out to be – our government’s complicating the obvious in order to hide what it’s doing from the rest of us. In short, you can only spend more than you make as long as you can make the payments on the debt you can incur. I’ve found that out the hard way in real life, it’s hard to afford both my student loans and my new car. If I tried to run my finances like the government does, I’d take out a new credit card to pay for the car. That approach would lead to bankruptcy, and possibly hard time for fraud, so I have to manage my expenses better by cutting out the garbage I didn’t really need, like fast food.

    That’s the core of what Austerity’s supposed to be – cutting out the garbage you didn’t really need. Unfortunately, all of the garbage we don’t really need in the government is extremely profitable to the political class and their cronies in banking and the corporate world, so in countries where “Austerity” is embraced, they end up cutting services so they can keep the graft. 600 million dollars for a website from a crony contractor that doesn’t work would still happen, they’d just figure out a way to trim that money from, say, Medicaid instead.

    It’s an old city hall tactic, that when budgets are cut, the first thing you cut are police and the fire department, so people will scream to restore the budget. The City Council’s lavish vacations on your dime will, of course, never end up anywhere near the chopping block.

    Until we do some serious house-cleaning in government, our economic problems and debt problems will continue. If states are like ships, ours is like a garbage-laden barge that keeps getting more heaped up on top of it, and it’s getting pretty low in the water.