The Coming Financial Reality

An Interview with Economist Michael Hudson for Counterpunch By STANDARD SCHAEFER The war in Iraq is allegedly over, interest rates are going lower and there are rumors of recovery although the economy is still in the doldrums. A Bush is president, but an election is around the corner. It sounds a bit like the recession of 1990-1991. In fact, the recovery from that period, anemic as it was marked by very little growth in employment--was actually stronger than this one. The US economy grew at an annual rate of 3.1% compared to the 2.6% annual rate currently. Except for the 1992 recovery, the last seven economic recoveries were much stronger than this one, and each of them, corresponded with the usual ...