EU Fracking Wedge

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An interview with Radio Voice of Russia, World Service on Ukrainian sovereignty in the face of IMF loans, the push for fracking by US interests and how corruption lurks in the background. Is this Ukrainian pressure part of an EU fracking wedge on behalf of certain interests? According to this perspective, food sovereignty is a relict of past times. Play This

Losing Credibility: The IMF’s New Cold War Loan to Ukraine

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By Michael Hudson In April 2014, fresh from riots in Maidan Square and the February 22 coup, and less than a month before the May 2 massacre in Odessa, the IMF approved a $17 billion loan program to Ukraine’s junta. Normal IMF practice is to lend only up to twice a country’s quote in one year. This was eight times as high. Four months later, on August 29, just as Kiev began losing its attempt at ethnic cleansing against the eastern Donbas region, the IMF signed off on the first loan ever to a side engaged in a civil war, not to mention rife with insider capital flight and a collapsing balance of payments. Based on fictitiously trouble-free projections of the ability to pay, the loan supported Ukraine’s hernia currency long enough ...

Washington Consensus Encloses Ukraine

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More at The Real News The Real News Network West looks to ramp up gas production, as Vice President Biden's son named leader in Ukrainian gas company Burisma - August 4, 2014 JESSICA DESVARIEUX, TRNN PRODUCER: Welcome to The Real News Network. I'm Jessica Desvarieux in Baltimore. And welcome to this edition of The Hudson Report. Now joining us is Michael Hudson. Michael is a distinguished research professor of economics at the University of Missouri-Kansas City. Thanks for joining us, Michael. MICHAEL HUDSON, PROF. ECONOMICS, UMKC: Good to be here, Jessica. DESVARIEUX: So, Michael, we've been covering Ukraine quite extensively. And I know you've been keeping track of ...

S for Saint Simon

Part S in the Insider's Economic Dictionary S-curve: The typical shape of growth in nature, such as human beings whose height tapers off as they reach maturity. They also typify most business cycles, which taper off after an upswing as employment, raw-materials and resource limits are approached and wages and commodity prices rise, slowing profits. The demand for specific products likewise tapers off as markets become saturated. Meanwhile, the fact that financial claims and debts tend to grow at compound interest means that financial dynamics tend to outrun the S-curve of production and consumption, creating business crises which end the upswing. Saint-Simon, Claude Henry de (1760-1825): French reformer best known for recognizing the need to replace debt relations by turning saving into equity (stock) investment. Among his followers, the Pereire brothers helped ...

Vulture Funds trump Argentinian sovereignty

More at The Real News PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I'm Paul Jay. The U.S. Supreme Court's refusal to review a case in which vulture funds sued to make the Argentinian government pay them 100 percent of the value of bonds, which they purchased for a fraction of the face value, let stand a lower court ruling requiring the bonds be paid in full. Reuters reports that Aurelius Capital Management, one of the lead holdout creditors seeking to settle with Argentina over sovereign debt payments from its 2002 default, said on Monday the government faces a new crisis on July 30 unless it engages in serious negotiations. Argentine officials and the holdout investors met separately, with a court-appointed mediator on Friday emerging from his ...

Escaping the dollar

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More at The Real News Is the New BRICS Bank a Challenge to US Global Financial Power? Michael Hudson and Leo Panitch discuss and debate the significance of the new international development bank created by Brazil, Russia, India, China and South Africa - 6 min ago Michael Hudson is a Distinguished Research Professor of Economics at the University of Missouri, Kansas City. His two newest books are “The Bubble and Beyond” and “Finance Capitalism and its Discontents,” available on Amazon. Leo Panitch is the Canada Research Chair in Comparative Political Economy and a distinguished research professor of political science at York University in Toronto. He is the author of many books, the most recent of which include ...