Recent Posts by Michael

How the U.S. Treasury avoided Chronic Deflation by Relinquishing Monetary Control to Wall Street

As published in the Social Sciences Research Network Michael Hudson University of Missouri, Economics Department, 211 Haig Hall, 5120 Rockhill Road, Kansas City, MO 64110, USA and Peking University, No.5 Yiheruan Road, Haidan District, P.O. Box 1008/71m, Beijing, P.R. China The Eurozone today is going into the same deflationary situation that the U.S. did under Jackson’s destruction of the Second Bank, and the post-Civil War budget surpluses that deflated the economy. But whereas the Fed’s creation was designed to inflate the U.S. economy, Europe’s European Central Bank is designed to deflate it — in the interest of commercial banks in both cases. 1. Introduction Deflation was the main U.S. financial problem prior to 1913. To replace the Treasury conducting its fiscal operations independently from the banking system, ...

The Paradox of Financialized Industrialization

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These remarks were made at the World Congress on Marxism, 2015, at the School of Marxism, Peking University, October 10, 2015. The presentation was part of a debate with Bertell Ollman (NYU). I was honored to be made a permanent Guest Professor at China’s most prestigious university. When I lectured here at the Marxist School six years ago, someone asked me whether Marx was right or wrong. I didn’t know how to answer this question at the time, because the answer is so complex. But at least today I can focus on his view of crises. More than any other economist of his century, Marx tied together the three major kinds of crisis that were occurring. His Theories of Surplus Value explained ...

Rewriting Economic Thought

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The following is a transcript of CounterPunch Radio – Episode 19 (originally aired September 21, 2015). Eric Draitser interviews Michael Hudson. Eric Draitser: Today I have the privilege of introducing Michael Hudson to the program. Doctor Hudson is the author of the new book Killing the Host: How Financial Parasites and Debt Bondage Destroy the Global Economy, available in print on Amazon and an e-version on CounterPunch. Michael Hudson, welcome to CounterPunch Radio. Michael Hudson: It’s good to be here. ED: Thanks so much for coming on. As I mentioned already, the title of your book – Killing the Host: How Financial Parasites and Debt Bondage Destroy the Global Economy – is an apt metaphor. So parasitic finance capital is really what you’re ...

Putin: The empty veil of ‘democracy’

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As published on Counterpunch. In his Orwellian September 28, 2015 speech to the United Nations, President Obama said that if democracy had existed in Syria, there never would have been a revolt against Assad. By that, he meant ISIL. Where there is democracy, he said, there is no violence or revolution. This was his threat to promote revolution, coups and violence against any country not deemed a “democracy.” In making this hardly-veiled threat, he redefined the word in the vocabulary of international politics. Democracy is the CIA’s overthrow of Mossedegh in Iran to install the Shah. Democracy is the overthrow of Afghanistan’s secular government by the Taliban against Russia. Democracy is the Ukrainian coup behind Yats and Poroshenko. Democracy is Pinochet. It ...

Beyond Leeching

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An interview on Uprising with Sonali Listen by clicking here The Federal Reserve this week is considering raising interest rates above levels that have hovered at zero since 2008. News media are characterizing the debate over whether or not to increase rates, as “Should we be more concerned about the pace of job growth or the threat of inflation?” But the question often left unasked is, “why are most Americans still struggling in this economy?” The bottom lines of corporations are taken to be a measure of economic health. But if the economy is ostensibly designed so that all can benefit, why is it that only a few benefit?

The Sanctity of Debt

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[soundcloud url="" params="auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false&visual=true" width="100%" height="450" iframe="true" /] Today's interview on the highly regarded This Is Hell! show: Economist Michael Hudson explains how finance became capitalism's driving force and why an increasing amount of American life is being dedicated to sustaining unsustainable debt values, then gives a radical history lesson in debt economics - from ancient Sumer to the University of Chicago - that suggests the only way to end a debt crisis is to end the debt itself. Michael is author of the new book "Killing the Host: How Financial Parasites and Debt Destroy the Global Economy."

Ukraine falters as per plan

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With military stalemate in the east of the country and the economy in serious depression, the regime in Kiev has had to face some very hard realities. And its very survival is in doubt. Losing on the battlefield and the economic front, the Kiev regime is turning in on itself. CrossTalking with Mark Sleboda, Michael Hudson and Rodney Shakespeare. Audio version:


Killing the Host – the book

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The book can be ordered in paperback or as an ebook:     KILLING THE HOST exposes how finance, insurance, and real estate (the FIRE sector) have gained control of the global economy at the expense of industrial capitalism and governments. The FIRE sector is responsible for today’s economic polarization (the 1% vs. the 99%) via favored tax status that inflates real estate prices while deflating the “real” economy of labor and production. The Great 2008 Bailout saved the banks but not the economy, and plunged the U.S., Irish, Latvian and Greek economies into debt deflation and austerity. This book describes how the phenomenon of debt deflation imposes austerity on the U.S. and European economies, siphoning wealth and income upward to the financial sector while impoverishing the ...

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