The “Next” Financial Crisis and Public Banking as the Response

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Introduction and Transcript: In this episode of The Hudson Report, we speak with Michael Hudson about the implications of the flattening yield curve, the possibility of another global financial crisis, and public banking as an alternative to the current system. Paul Sliker: Michael Hudson welcome back to another episode of The Hudson Report. Michael Hudson: It's good to be here again. Paul Sliker: So, Michael, over the past few months the IMF has been sending warning signals about the state of the global economy. There are a bunch of different macroeconomic developments that signal we could be entering into another crisis or recession in the near future. One of those elements is the yield curve, which shows the difference between short-term and long-term borrowing rates. Investors and financial pundits of all ...

Argentina: Loans upon Loans

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Michael Hudson: Argentina’s New $50 Billion IMF Loan Is Designed to Replay its 2001 Crisis, July 23, 2018. The recently elected neoliberal government of Mauricio Macri has decided to seek a $50 billion IMF credit line, which will only enable more capital flight for the upper class and greater unpayable debt for the rest of the population, says the economist Michael Hudson. SHARMINI PERIES: It’s The Real News Network. I’m Sharmini Peries, coming to you from Baltimore. For several months now. Argentines have been taking to the streets to protest against neoliberal austerity measures of President Mauricio Macri. The most recent such protest took place on July 9 on Argentine’s Independence Day. There have also been three general strikes thus far. In the two years since he took office, President Macri has laid ...

Argentina Back on the Debt Train

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THE HUDSON REPORT: Argentina gets biggest IMF loan in history. July 9, 2018. Left Out podcast: In this episode, Paul Sliker speaks with Michael Hudson about the economic and political implications of the International Monetary Fund's $50 billion loan to Argentina, which is the largest IMF credit line in history. Find the audio here Paul Sliker: Michael Hudson welcome back to the Hudson report. Michael Hudson: It’s good to be back. Much has happened while I was away for a few weeks. Paul Sliker: Michael, Argentina recently agreed to a $50 billion loan from the International Monetary Fund. That’s the largest ever in IMF history. It is supposed to run for 36 months. Argentina began talks with the IMF last month, after three central bank rate hikes. Despite pushing borrowing costs above ...

China’s housing: It Doesn’t Have to be This Way

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In this week's edition of The Hudson Report, Paul Sliker speaks with Michael Hudson about the state of housing in the U.S. vs. China, why unaffordable housing is not a part of true nature, and why the self-supporting class of millennials can't afford to buy homes. "Housing is a very good investment if you have millionaire parents." - Michael Hudson THE HUDSON REPORT: US vs China housing…and those millennials Paul Sliker: Michael Hudson welcome back to The Hudson Report. Michael Hudson: It's good to be back. I'm just home from China, getting over jetlag. Paul Sliker: You recently gave a paper at Peking University about the economy and what sorts of policies they should implement and what to avoid. But Michael, because we only have a short amount of time in these ...

An Overview – Welcome Words

My friend and colleague Paul Craig Roberts had this to say: For Economic Truth Turn To Michael Hudson Paul Craig Roberts Readers ask me how they can learn economics, what books to read, what university economics departments to trust. I receive so many requests that it is impossible to reply individually. Here is my answer. There is only one way to learn economics, and that is to read Michael Hudson’s books. It is not an easy task. You will need a glossary of terms. In some of Hudson’s books, if memory serves, he provides a glossary, and his recent book “J Is for Junk Economics” defines the classical economic terms that he uses. You will also need patience, because Hudson sometimes forgets in his explanations that the rest of us don’t know what he ...

“Creating Wealth” through Debt: The West’s Finance-Capitalist Road

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Michael Hudson Peking University, School of Marxist Studies May 5-6, 2018 Volumes II and III of Marx’s Capital describe how debt grows exponentially, burdening the economy with carrying charges. This overhead is subjecting today’s Western finance-capitalist economies to austerity, shrinking living standards and capital investment while increasing their cost of living and doing business. That is the main reason why they are losing their export markets and becoming de-industrialized. What policies are best suited for China to avoid this neo-rentier disease while raising living standards in a fair and efficient low-cost economy? The most pressing policy challenge is to keep down the cost of housing. Rising housing prices mean larger and larger debts extracting interest out of the economy. The strongest way to prevent this is to tax away the rise in land prices, ...