Trade Theory Financialized

To secure its privileges and tax favoritism, the financial sector opposes government power to tax or regulate. Fighting under the banner of “free markets,” it is now fighting to centralize economic planning power in Wall Street, the City of London and other financial centers. What is remarkable is that under ostensibly democratic politics, an “independent” central bank has been carved out – independent from elected officials, not from the commercial banks whose interests it represents. Many voters believe that a financial bubble enriches the economy rather than turning the surplus into a flow of interest and banking fees.

Obama’s Good Cop/ Bad Cop deal with the Republicans

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Yet on Wednesday, October 4, the president tried to represent the OccupyWallStreet movement as supportive for his efforts. He pretended to endorse a pro-consumer regulator to limit bank fraud, as if he had not dumped Elizabeth Warren on the advice of Mr. Geithner – who seems to be settling into the role of bagman for campaign contributors from Wall Street.

Debt Deflation on the rise

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Michael Hudson on Bonnie Faulkner's Guns & Butter. Listen Here Guns and Butter: “Debt Deflation in Europe and America” Edited Interview by Bonnie Faulkner with Michael Hudson, September 2, 2011 (first aired on Pacifica, September 14, 2011). “Without consumption, markets are going to shrink. Companies won’t invest, stores will close, “for rent” signs will spread on the main streets and local tax revenues will fall. Companies will lay off their employees and the economy will shrink more. Why aren’t economists talking about these effects of debt deflation, which are becoming the distinguishing phenomenon of our time? They advocate giving more money to the banks, hoping that somehow everything will be okay, as if the banks would lend out the money to fund new production and employment. Mainstream economics and political leaders in both ...