Firing Alan Greenspan

During the interview for the documentary Real Estate 4 Ransom, Prof Michael Hudson discussed Greenspan's reputation in his formative days on Wall St, revealing a controversial 1966 incident. Transcript Why are real wages falling? MH: They’ve (wages) been going down because essentially the economy shifted radically throughout the world, starting in 1979, when Margaret Thatcher was elected Prime Minister of England and Ronald Reagan was elected President of here (The USA) … claiming to defend capital. The Reagan Bush Administration in its 12 years, quadrupled American debt by slashing taxes on the upper brackets while sharply increasing taxes on labour. They increased it largely by having Alan Greenspan create the Greenspan Commission to look at social security and pushing the myth that social security ...

Inside the World Bank's Population Policy

Taken from Super Imperialism, 2nd Edition, p213 (1972) For instance, the World Bank is essentially an American instrument, and the United States is a food-surplus nation threatened with loss of foreign markets for farm products as modernization of European agriculture proceeds. For the World Bank to finance such institutional reforms in developing nations as would lead them toward self-sufficiency on food account would run counter to American interests. U.S. farm surpluses would become unmanageable as the overseas market for U.S. farm products dwindled. Hence, the World Bank prefers perpetuation of world poverty to the development of adequate overseas capacity to feed the peoples of developing countries. There is a yet more subtle point to be considered. Mineral resources represent diminishing assets. It ...

Trade Theory Financialized

To secure its privileges and tax favoritism, the financial sector opposes government power to tax or regulate. Fighting under the banner of “free markets,” it is now fighting to centralize economic planning power in Wall Street, the City of London and other financial centers. What is remarkable is that under ostensibly democratic politics, an “independent” central bank has been carved out – independent from elected officials, not from the commercial banks whose interests it represents. Many voters believe that a financial bubble enriches the economy rather than turning the surplus into a flow of interest and banking fees.

EU: Class War Declared

Concentration of financial power in non-democratic hands is inherent in the way that Europe’s centralized planning in financial hands was achieved in the first place. The European Central Bank has no elected government behind it that can levy taxes. The EU constitution prevents the ECB from bailing out governments

Why Iceland Voted 'No'

About 75% of Iceland’s voters turned out on Saturday to reject the Social Democratic-Green government’s proposal to pay $5.2 billion to the British and Dutch bank insurance agencies for the Landsbanki-Icesave collapse. Every one of Iceland’s six electoral districts voted in the “No” column – by a national margin of 60% (down from 93% in January 2010). The vote reflected widespread belief that government negotiators had not been vigorous in pleading Iceland’s legal case. The situation is reminiscent of World War I’s Inter-Ally war debt tangle. Lloyd George described the negotiations between U.S. Treasury Secretary Andrew ...

Will Iceland Vote “No” or commit financial suicide?

A landmark fight is occurring this Saturday, April 9. Icelanders will vote on whether to subject their economy to decades of poverty, bankruptcy and emigration of their work force. At least, that is the program supported by the existing Social Democratic-Green coalition government in urging a “Yes” vote on the Icesave bailout. Their financial surrender policy endorses the European Central Bank’s lobbying for the neoliberal deregulation that led to the real estate bubble and debt leveraging, as if it were a success story rather than the road to national debt peonage. The reality was an enormous banking fraud, an orgy of insider dealing as bank managers lent the money to themselves, leaving an empty shell – and then saying ...

Why the IMF Meetings Failed

And the Coming Capital Controls “Coming events cast their shadows forward.” – Goethe What is to stop U.S. banks and their customers from creating $1 trillion, $10 trillion or even $50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1% interest cost? This is the game that is being played today. The outflow of dollar credit into foreign markets in pursuit of this financial strategy has bid up asset prices and foreign currencies, enabling speculators to pay off their U.S. positions in cheaper dollars, keeping the ...