Articles

Railway Financing and the Shape of China’s Future: Some Lessons from American Economic History

March 18, 2003
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Report for the Robert Schalkenbach Foundation “Is it British wealth we want when we desire to develop our resources or build railroads? No, we do not need the wealth, for at this moment we are the richest nation on the face of the globe. We need the money.” – John Brown, Parasitic Wealth, or...

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Privatizing Social Security to Inflate Stock Market Prices

November 12, 2002
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Contents Introduction Why it was regressive to fund Social Security as an autonomous system Financial engineering vs. industrial profits and employment Social Security, forced saving and Labor Capitalism What if the stock market does boom? Will that save Social Security? Introduction This would not seem to be an auspicious time to mount a campaign...

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The New Economic Archaeology of Debt

April 23, 2002
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Introduction to Debt and Economic Renewal in the Ancient Near East (ed. with Marc Van De Mieroop) (CDL Press, Baltimore, 2002) Economists, anthropologists and assyriologists have discussed the origins of debt and the setting of interest rates from such different perspectives that there has been remarkably little overlap or mutual discussion. Indeed, when economic...

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I Meet the Leading Authority on the Babylonian and Near East Tradition of Debt Cancellation

April 12, 2002
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Copy of a regular newsletter by Boudewijn Wegerif, Sweden WHAT MATTERS-77 Dear list members, Yesterday I was with an American economist who says of himself that he is a Marxist, whose godfather was Leon Trotsky, whose father was thrown in prison in the US in 1941 for advocating the overthrow of the government, who...

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The Methodology of Real Estate Appraisal: Land-Residual or Building-Residual, and their Social Implications

October 25, 2001
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NYU Real Estate Institute’s Round Table Discussion of Land- and Building-Price Indices A meeting was held at New York University’s Real Estate Institute on October 25 to discuss the virtues and pitfalls of constructing a land-price index to distinguish between land and building values. The Institute’s Associate Dean Ken Patton had invited Michael Hudson...

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The Land-Residual vs. Building-Residual: Methods of Real Estate Valuation

October 25, 2001
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Some Prefatory Remarks to the N.Y.U. Real Estate Institute discussion, Oct. 25, 2001 Economic theory focuses on labor and capital, yet the largest category of tangible assets is not industrial plant and machinery earning profits, but real estate, and its primary objective is to make capital gains. Most new entries into the Forbes or...

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The Mathematical Economics of Compound Rates of Interest: A Four-Thousand Year Overview Part II

April 24, 2001
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2. Why Economies Develop Debt Crises: The Mathematics of Compound Interest The past century’s economic schoolbooks have described a universe running down from entropy. Production is assumed to be plagued by diminishing returns, so that each additional unit of input produces less and less output. Even if technology were recognized to raise the productivity...

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Where Did All the Land Go?

March 25, 2001
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- The Fed’s New Balance Sheet Calculations A Critique of Land Value Statistics The most comprehensive official statistics on nationwide real estate values are those published by the Federal Reserve Board (FRB) in its annual “Balance Sheets of the American Economy.” As part of its Z.1 statistical release the FRB compiles annual balance sheets...

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How to Lie with Real Estate Statistics

March 25, 2001
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The Illusion that Makes Land Values Look Negative – How Land-Value Gains are Mis-attributed to Capital Dr Hudson is President of the Institute for the Study of Long-term Economic Trends, New York. He has specialised in national income accounting, the balance of payments and flow of funds analysis for leading Wall Street finance houses....

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The Economics of Reality: How Finance Dominates Production and Rents Overshadow Profits

March 24, 2001
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The Economics of the Future Wagner’s Music of the Future – his “total art work” – sought to integrate music and drama (along with art, dance and poetry). In a similarly broad way, the economics of the future will integrate finance and production, thereby restoring the lost link (as drama had been lost to...

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