China – Avoid the West’s Debt Overhead: A Land Tax is needed to hold down Housing Prices

How can China avoid the “Western financial disease” – a real estate bubble followed by defaults and foreclosures? The U.S. and European economies originally sought to avoid this fate by taxing the location’s site value. A rent tax was the focus of Progressive Era reforms. Enacting a rent tax remains China’s main challenge to accompany its privatization of real estate and natural resources. If land rent were fully taxed, it would not be paid to banks as interest for rising mortgage loans – and governments would not have to tax income and sales. Holding down housing debt will reduce labor’s cost of living, but not its living standards. While Western ...

The Insider’s Economic Dictionary – Part A

Part A to the Insider's Economic Dictionary. The Antidote to Euphemism The fallacies that lurk in words are the quicksands of theory; and as the conduct of nations is built on theory, the correction of word-fallacies is the never-ending labor of Science. … the party in this country, one of whose great aims was, at one time, the perpetuation of slavery, owed much of its popular vote to the name Democracy. – S. Dana Horton, Silver and Gold (1895) Now, it is clear that the decline of a language must ultimately have political and economic causes . . . It becomes ugly and inaccurate because our thoughts are foolish, but the slovenliness of our language makes it easier for us to have foolish ...

The Bubble Economy as a 2 part play for Privatisation

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As published in the latest World Economics Association digest, the Real World Economics Review The Federal Reserve’s QE3 has flooded the stock and bond markets with low-interest liquidity that makes it profitable for speculators to borrow cheap and make arbitrage gains buying stocks and bonds yielding higher dividends or interest. In principle, one could borrow at 0.15 percent (one sixth of one percent) and buy up stocks, bonds and real estate throughout the world, collecting the yield differential as arbitrage. Nearly all the $800 billion of QE2 went abroad, mainly to the BRICS for high-yielding bonds (headed by Brazil’s 11% and Australia’s 5+%), with the currency inflow for this carry trade providing a foreign-exchange bonus as well. ...

Finance Capitalism & Its Discontents on Kindle

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This collection contains the most important interviews and speeches that Professor Michael Hudson, Distinguished Professor of Economics at the University of Missouri (Kansas City), and president of the Institute for the Study of Long-term Economic Trends (ISLET) has given over the past decade (2003-2012). They span the political spectrum from COUNTERPUNCH.COM and KPFK radio’s GUNS AND BUTTER to iTULIP.COM and SANKT GEORGE in Berlin. It also includes his now-famous Rlmini, Italy, speeches that were given at a packed sports arena in early 2012 on the topic of how finance capitalism is pushing the world, starting with Europe, into austerity and neo-feudalism. Find it for Kindle, paperback here for £6.79

Left Forum: Austerity Isnt Working

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I am speaking in two panels at the Left Forum - I hope you can join us. Austerity isn't Working, Can Keynesian Reforms Save the System?
 Saturday, 8th of June 10:00am-11:50am Pace University, New York City
 Room: W613 Abstract: Three contributions on the question, Is a Reformist Solution Possible? Hillel Ticktin looks at the conflict between the Keynesians and those who favor a return to 19th Century capitalism; Michael Hudson asks whether Austerity is simply a European mis-step or is the Class War Back in Business, and Robert Brenner analyzes the roots of the crisis looking at Finance and the Real Economy. Suzi Weissman chairs/moderates. Chair, Speakers: Suzi Weissman -- Saint Mary's College of CA and KPFK Los Angeles, Hillel Ticktin -- Editor, Critique Journal, ...

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 ...