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 ...

Norway's Sovereign Wealth Risk Vortex

What does Norway get out of its Oil Fund, if not More Strategic Infrastructure Investment? For the past generation Norway has supplied Europe and other regions with oil, taking payment in euros or dollars. It then sends nearly all this foreign exchange abroad, sequestering its oil-export receipts – which are in foreign currency – in the Oil Fund, to invest mainly in European and U.S. stocks and bonds. The fund now exceeds $500+ billion, second in the world to that of Abu Dhabi. What do Norwegians get out of these financial savings, besides a modest interest and dividend yield? The export surplus is said to be too large to spend more than a small fraction (a Procrustean 4 percent) at home without ...

Deficit Hawks One Two Punch

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More at The Real News December 16, 2010 Why Government is More Afraid of Debt than Depression Michael Hudson: Deficit Hawks Want a One Two Punch Against the Economy Transcript PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I'm Paul Jay, coming to you today from New York City. Now joining us is Michael Hudson. He's a distinguished research professor at University of Missouri - Kansas City. He's also the author of many books, including Super Imperialism: The Economic Strategy of American Empire, and Trade, Development, and Foreign Debt: A History of Theories of Polarization Versus Convergence in the World Economy. That's a mouthful. Thanks for joining us. PROF. MICHAEL HUDSON, UNIVERSITY OF MISSOURI - KANSAS CITY: Thank you. JAY: So President ...

Hudson to Hudson

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Part One of this discussion was published in the Huffington Post today. You get to see the whole piece here. Michael Hudson talks with . . . Michael Hudson Michael Hudson and Michael Hudson are often mistaken for each other. Along with sharing a name, they share an interest in economics, debt and the creative ways that some people help themselves to other people’s money. Michael Hudson the economist – author of such books as Super-Imperialism – teaches at the University of Missouri-Kansas City. In 2006, he wrote a prescient cover story for Harper’s entitled “The New Road to Serfdom: An illustrated guide to the coming real estate collapse.” Michael W. Hudson the reporter is a staff writer at the Center for ...

Speculating on Quantitative Currency Wars

An Interview with Dr. Michael Hudson October 21, 2010 Interviewer: iTulip’s Eric Janszen (E): Welcome Michael Hudson to iTulip again. Thanks for joining us. Hudson (H): Thank you, Eric. E: So we’ve had discussions in the past about China’s response to America’s escalation of the currency wars. Yesterday they made a bold move, raising their interest rates and also imposing an export embargo on an important industrial commodity, rare earth metals. H: Let’s talk about the latter first. I think China finally caught on to the fact that it was pricing its rare earth minerals at the uneconomic low-cost margin of extraction, not taking into account the environmental clean up costs or the replacement costs for these basically irreplaceable rare metals. They pointed out that ...

Is the Economy as Broke as Lehman Was?

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The Angelides Committee Sidesteps the Mortgage Fraud Issue What is the difference between today’s economy and Lehman Brothers just before it collapsed in September 2008? Should Lehman, the economy, Wall Street – or none of the above – be bailed out of bad mortgage debt? How did the Fed and Treasury decide which Wall Street firms to save – and how do they decide whether or not to save U.S. companies, personal mortgage debtors, states and cities from bankruptcy and insolvency today? Why did it start by saving the richest financial institutions, leaving the “real” economy locked in debt deflation? Stated another way, why was Lehman the only Wall Street firm permitted to go under? How does the logic that Washington used ...

Grand Theft Monopoly

Renegade Economist Podcast 96 "As broadcast on the mighty www.3cr.org.au – Professor Michael Hudson excels in describing globalisation from a financial snipers perspective, analysing how real estate (land) is used in the game of currency siphoning out of Latvia, Eastern Europe and Russia. What does neo-liberalism deliver? Who is behind the controls? Also gold, white collar sub-prime crime and GW’s departing deception." GrandTheftMonopoly