Scrawny Geese; No More Golden EggScenes From the Global Class War

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Counterpunch On Friday, October 24, the pound sterling dropped to just $1.58 (down from $1.73 earlier in the week, an enormous plunge by foreign-exchange standards), and the euro sunk to just $1.26, while Japan’s yen soared by 10 per cent. These shifts threatened to disrupt export markets and hence industrial sales patterns. Global stock markets plunged from 5 to 9 per cent abroad, and there was talk of closing the New York market if stocks fell more than 1,000 points. Pre-opening trading saw the Dow Jones Industrial Average down the maximum limit of 550 points (largely on foreign selling) before bounding back to lose “only” 312 points as the dollar soared against European currencies. Friday’s currency turmoil and stock market plunge was ...

Financial Warfare against Labor and Industry

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Global Research On Friday, October 24, the pound sterling dropped to just $1.53 (down from $1.73 earlier in the week, an enormous plunge by foreign-exchange standards), and the euro sunk to just $1.26, while Japan’s yen soared by 10%. These shifts threatened to disrupt export markets and hence industrial sales patterns. Global stock markets plunged from 5 to 9% abroad, and there was talk of closing the New York market if stocks fell more than 1,000 points. Pre-opening trading saw the Dow Jones Industrial Average down the maximum limit of 550 points (largely on foreign selling) before bounding back to lose "only" 312 points as the dollar soared against European currencies. Friday’s currency turmoil and stock market plunge was a case of ...

Parsing Mr. Paulson’s Bailout SpeechThe Unprecedented Giveaway of Financial Wealth Story

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Global Research Mr. Paulson’s bailout speech on Monday, October 13 poses some fundamental economic questions: What is the impact on the economy at large of this autumn’s unprecedented creation and giveaway of financial wealth to the wealthiest layer of the population? How long can the Treasury’s bailout of Wall Street (but not the rest of the economy!) sustain a debt overhead that is growing exponentially? Is there any limit to the amount of U.S. Treasury debt that the government can create and turn over to its major political campaign contributors? And is it too much to say that we are seeing the end of economic democracy and the emergence of a financial oligarchy – a self-serving class whose actions threaten to ...

Guns and Butter: The Bailout’s New Financial Oligarchy

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Guns and Butter Interview on KPFA radio. For part one of this interview click here. “If you want to see the ideal of the World Bank and the IMF, look at the Russian, Latvian and Estonian economies. They have shrunk as if there were a war on. And in a sense it is a war – a class war and simultaneously a war of American high finance against the rest of world. As in military wars, its devastating consequences threaten to include shortening life expectancy, lower health standards and depopulation, poverty and de-industrialization, rising debt arrears and defaults. You’re going to have many of the post-Soviet countries going the way of Iceland very quickly as their real estate debt collapses. Because crazy ...

Guns and Butter: The New Kleptocracy

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Guns and Butter Interviews on KPFA radio. You can read part two of this interview, The Bailouts New Financial Oligarchy, here. “Considering that there is an $800 billion giveaway, to be followed by another trillion and another trillion after that, this is the biggest giveaway since the land giveaway to the railroads in the mid-nineteenth century and just as that giveaway created a power elite that would rule America for a century and a half, this is creating a new power elite that has changed America from a democracy into an oligarchy. And as Aristotle said, ‘what is democracy but the stage immediately preceding oligarchy?’” I’m Bonnie Faulkner (BF): Today on Guns and Butter, Dr. Michael Hudson. Today’s show: “The New Kleptocracy”. ...