QE Intentions All Too Obvious

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“Quantitative Easing for Whom? TRNN, March 11, 2015. The European Central Bank’s trillion euro plan will only help keep the banks afloat. SHARMINI PERIES, EXEC. PRODUCER, TRNN: Welcome to The Real News Network. I'm Sharmini Peries, coming to you from Baltimore. In an effort to relieve some pressure on the struggling European economies, Mario Draghi, president of the European Central Bank, announced a 1 trillion euro quantitative easing package on Monday. Quantitative easing is an unconventional form of monetary policy where a central bank creates new money electronically to buy financial assets like government bonds. And this process aims to directly increase private-sector spending in the economy and return inflation to target. Well, what does that mean and what might be wrong ...

T is for Trickle-Down

Part T in the Insider's Economic Dictionary Tableau Économique: The first formal national-income account, developed by the Physiocrat Francois Quesnay on the analogy of the circulation of blood within the human body. (See Economist, Say’s Law.) Taxation: The way in which a government gives value to money by accepting it in payment of taxes or for public services (see State Theory of Money and Chartalism). The basic fiscal-financial principle at work is that whatever revenue the tax collector relinquishes is available to be pledged for debt service. Without taxation, much more of the economic surplus would be taken by the financial sector, especially inasmuch as government money has less basis for issuing its own money and credit as the tax base shrinks. ...

Ukraine denouement

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The  Russian loan and the IMF’s One-Two Punch The fate of Ukraine is now shifting from the military battlefield back to the arena that counts most: that of international finance. Kiev is broke, having depleted its foreign reserves on waging war that has destroyed its industrial export and coal mining capacity in the Donbass (especially vis-à-vis Russia, which normally has bought 38 percent of Ukraine’s exports). Deeply in debt (with €3 billion falling due on December 20 to Russia), Ukraine faces insolvency if the IMF and Europe do not release new loans next month to pay for new imports as well as Russian and foreign bondholders. Finance Minister Natalia Yaresko announced on Friday that she hopes to see the money begin to ...

Big Fish, Little Fish

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US 2015 budget anti pension law, January 2, 2015. On the Senate’s last day in session in December, it approved the government’s $1.1 trillion budget for coming fiscal year. Few people realize how radical the new U.S. budget law was. Budget laws are supposed to decide simply what to fund and what to cut. A budget is not supposed to make new law, or to rewrite the law. But that is what happened, and it was radical. Wall Street’s representatives in Congress – the Democratic leadership as well as Republicans – took the opportunity to create an artificial crisis. The press called this “holding the government hostage.” The House – backed by the Senate – said that it would shut the government ...

The Koch Brothers’ Governors

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Butlers Selling the Public’s Silver…. A Dress Rehearsal for Hillary? by Jeffrey Sommers & Michael Hudson The Koch Brothers are the closest thing the United States has to Russia’s oligarchs. They fuse ownership of the economy and state, using the latter to enrich themselves while making private gains through the public’s losses. Their idea of a “market economy” is to buy government officials and the assets they privatize at giveaway prices. The top three butlers at the Koch’s nouveau riche ‘Downton Abbey’ are Governors Sam Brownback of Kansas, Wisconsin’s Scott Walker, and Chris Christie of New Jersey. All three ran elections based on the anti-Keynesian oxymoron of promoting job creation by balancing budgets with regressive tax plans. All declared that cutting taxes (chiefly on ...

Backfired!

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U.S. New Cold War policy has backfired – and created its worst nightmare 1. The world’s geopolitics, major trade patterns and military alliances have changed radically in the past month. Russia has re-oriented its gas and oil trade, and also its trade in military technology, away from Europe toward Eurasia. The result is the opposite of America’s hope for the past half-century of dividing and conquering Eurasia: setting Russia against China, isolating Iran, and preventing India, the Near East and other Asian countries from joining together to create an alternative to the U.S. dollar area. American sanctions and New Cold War policy has driven these Asian countries together in association with the Shanghai Cooperation Organization as an alternative to NATO, and ...

Think Tank Memories

Think Tanks Blow Public Opinion: Prof Michael Hudson on the most influential US think tanks by Renegadeeconomists on Mixcloud Subscribe to the weekly Renegade Economists podcast Transcript Renegade Economists October 1, 2014: DOUBLETHINK TANKS, TAR SANDS, WATER & IMPERIALISM. Karl Fitzgerald: This week on the Renegade Economists we’re joined by Professor Michael Hudson, the author of The Bubble & Beyond, Super Imperialism, and a host of other books. You can read his work at www.Michael-Hudson.com. Certainly our favourite guest here on the Renegade Economists and Michael, today we’re going to have a look at the role of think tanks in sculpting the American mind and the public policy that flows from that. What’s your take on the role of think tanks in American ...

Piketty vs. the Classical Economic Reformers

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As published in the Real World Economics Review #69 - Special issue on Piketty’s Capital Thomas Piketty has done a great service in collating the data of many countries to quantify the ebb and flow of their distribution of wealth and income. For hundreds of pages and tables, his measurements confirm what most people sense without needing statistical proof. Across the globe the top 1% have increased their share of wealth and income to the steepest extreme since the Gilded Age of the late 19th and early 20th century. The Federal Reserve’s 2013 Survey of Consumer Finances shows that economic polarization has accelerated since the 2008 crash. The 0.1% of Americans have pulled even further ahead of the rest of the 1%, ...

EU Fracking Wedge

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An interview with Radio Voice of Russia, World Service on Ukrainian sovereignty in the face of IMF loans, the push for fracking by US interests and how corruption lurks in the background. Is this Ukrainian pressure part of an EU fracking wedge on behalf of certain interests? According to this perspective, food sovereignty is a relict of past times. Play This

Losing Credibility: The IMF’s New Cold War Loan to Ukraine

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By Michael Hudson In April 2014, fresh from riots in Maidan Square and the February 22 coup, and less than a month before the May 2 massacre in Odessa, the IMF approved a $17 billion loan program to Ukraine’s junta. Normal IMF practice is to lend only up to twice a country’s quote in one year. This was eight times as high. Four months later, on August 29, just as Kiev began losing its attempt at ethnic cleansing against the eastern Donbas region, the IMF signed off on the first loan ever to a side engaged in a civil war, not to mention rife with insider capital flight and a collapsing balance of payments. Based on fictitiously trouble-free projections of the ability ...