Obama’s Catfood Reform

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More at The Real News Edited transcript Michael Hudson: Obama's "bargain" on social security reform will push more retirees into poverty in exchange for a minor increase in high end income tax - a class that receives most revenue from capital gain. Obama's Social Security reform April 11, 2013. PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I'm Paul Jay. President Obama released his budget, and the most controversial piece of it is he wants to make some cuts to Social Security. Now here's a little bit of what he said: "Most economists agree that the chained CPI provides a more accurate measure of the average change in the cost of living." This chained CPI is at the heart of ...

Thatcher – ‘Sorry You’ve Lost Your Job’

More at The Real News Edited transcript PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I'm Paul Jay in Baltimore. Former prime minister Margaret Thatcher has passed away, and of course around the world people are debating her legacy. Henry Kissinger said she was a great defender of Western interests. She's known as the woman who stood her ground, the Iron Lady. I guess the question is: stood her ground for whom? Now joining us to give his take on Margaret Thatcher is Michael Hudson. He's a former Wall Street financial analyst. He's a distinguished research professor of economics at the University of Missouri-Kansas City. His latest books are The Bubble and Beyond and Finance Capitalism and ...

“Let us glory in our inequality.”

Failed Privatizations - the Thatcher Legacy By Michael Hudson, a research professor of Economics at University of Missouri, Kansas City, and a research associate at the Levy Economics Institute of Bard College. His latest book is “The Bubble and Beyond”. This is from my book on privatization, written some 15 years ago, never published. As in Chile, privatization in Britain was a victory for Chicago monetarism. This time it was implemented democratically. In fact, voters endorsed Margaret Thatcher’s selloff of public industries so strongly that by 1991, when she was replaced as prime minister by her own party’s John Major, only 35 percent of Britain’s voters supported the Labour Party – half the proportion registered in 1945. The Conservatives sold off public ...

Mrs. Thatcher’s Mean Legacy

The Queen Mother of Global Austerity and Financialization Michael Hudson and Jeffrey Sommers We typically honor the convention to refrain from speaking ill of the recently departed. But Margaret Thatcher probably would not object to an epitaph focusing on how her political legacy was to achieve her professed aim of “irreversibly” dismantling Britain’s public sector. Attacking central planning by government, she shifted it into much more centralized financial hands – the City of London, unopposed by any economic back bench of financial regulation and “free” of meaningful anti-monopoly price regulation. Mrs. Thatcher transformed the character of British politics by heading a democratically elected Parliamentary government that permitted financial planners to carve up the ...

Too Big To Jail?

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More at The Real News Too Big to Fail Public Banking Needed to Stop "Cannibalization" of the Economy, March 29, 2013. Michael Hudson: As long as finance is left in private hands, you’re going to have austerity and America ending up looking like Greece and Ireland. PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I’m Paul Jay in Baltimore. There’s been a debate about what to do about banks that are too big to fail, too big to prosecute, and too big to regulate. The debate goes that the big banks should be broken up, and some people are suggesting that the only real solution is public banking – banks that are big in scale but have public interest ...

Wall St Burdens the Public Debt

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More at The Real News PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I'm Paul Jay in Baltimore. As the effects of the sequester agreement ripple through the American economy--massive cuts, that is, to social programs, and the military to some extent--one thing is clear: both sides--President Obama and the leadership of the Republican Party--seem to think that public debt is the biggest challenge facing the American economy. Well, our next guest begs to differ. Now joining us in the studio is Michael Hudson. He was a Wall Street financial analyst, is now a distinguished research professor of economics at the University of Missouri-Kansas City. His recent books are The Bubble and Beyond and Finance Capitalism and Its ...

Banking on Student Debt

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More at The Real News Student debt is the new growth zone for banking revenues. With no student bankruptcy permitted, this is akin to a low risk revenue stream for the financial industry, now second in size to mortgage debt. Solution to Student Debt is to Get the Banks Out of the Education Business Michael Hudson: Crippling student debt, which is also a drag on the whole economy, developed as governments pushed the burden of higher education costs onto students and pushed them into the arms of the banks - PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I'm Paul Jay in Baltimore. A recent New York ...

Government Debt and Deficits Are Not the Problem. Private Debt Is.

There are two quite different perspectives in the set of speeches at this conference. Many on our morning panels – Steve Keen, William Greider, and earlier Yves Smith and Robert Kuttner – have warned about the economy being strapped by debt. The debt we are talking about is private-sector debt. But most officials this afternoon focus on government debt and budget deficits as the problem – especially social spending such as Social Security, not bailouts to the banks and Federal Reserve credit to re-inflate prices for real estate, stocks and bonds. To us this morning, government deficit spending into the economy is the solution. The problem is private debt. And in contrast to Federal Reserve and Treasury bailout policy, we view ...

Economic Policy Deception

Another in the series of interviews on the Renegade Economists radio show (Australia), a wide ranging analysis of the advantages to wealth that money printing and poor tax policy produce. Topics include land and housing policy, German gold repatriation, Occupy, Bradley Manning, Iran, Obama and Kruegar. Listen here Subscribe to the show (itunes) Transcription 06.03.2013: Karl Fitzgerald (KF): It’s seems that the most exciting things happening around the planet are not happening in a democracy, they’re happening in China. The new Premier there Xi Jinping has a real reformist agenda. Michael Hudson (MH): I think there’s a whole new generation coming in. I think they do things collectively in China, and then I was there a few years ago I was really happy to ...