Introducing the Geopolitical Economy Hour

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https://www.youtube.com/watch?v=6adqdNCSVhU Radhika: Hi everyone, and welcome to this Geopolitical Economy Hour. I'm Radhika Desai. Michael: And I'm Michael Hudson. Radhika: Every fortnight we are going to meet for an hour to discuss major development in the fast-changing geopolitical economy of our twenty-first-century world. We'll discuss international developments. We'll discuss their roots in individual countries and regions. We will try to uncover the reality beneath the usually distorting representation of these developments in the dominant Western media. We plan to discuss many subject — inflation, oil prices, de-dollarization, the outcome of the war over Ukraine which is going to determine so many things, the threats the U.S. is making against China about Taiwan, China's increasingly prominent role in the world, how China's Belt and Road Initiative is going to reshape it, how Western alliances ...

Michael Hudson’s Patreon Q&A

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It's time for our quarterly Q&A with Michael! Please support Michael's important work via his Patreon page. Theme: NATO's provocative role in Eastern Europe. If you are a Patron Plus supporter on Patreon, you will be able to register. Anyone upgrading to Patron Plus at least 24 hours prior to the event is invited. **Register for the Q&A with the name and email on the Patreon account**

The Euro Without German Industry

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The reaction to the sabotage of three of the four Nord Stream 1 and 2 pipelines in four places on Monday, September 26, has focused on speculations about who did it and whether NATO will make a serious attempt to discover the answer. Yet instead of panic, there has been a great sigh of diplomatic relief, even calm. Disabling these pipelines ends the uncertainty and worries on the part of US/NATO diplomats that nearly reached a crisis proportion the previous week, when large demonstrations took place in Germany calling for the sanctions to end and to commission Nord Stream 2 to resolve the energy shortage.  The German public was coming to understand what it will mean if their steel companies, fertilizer companies, glass companies and toilet-paper companies were shutting down. These ...

The Big Context

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Interview of Michael Hudson by Andrei The Saker, August 2022 Russian transcript Transcript Key: ATS = Andrei The Saker; MH = Michael Hudson ATS Well first of all, Michael, a huge, huge thank you for agreeing to this conversation. It’s a big pleasure for me to have you here, it's a big honour too, and I really look forward to getting your insight as to what's happening, 'cause there's a lot happening right now. The first thing I want to ask you about is a current event then we can go into deeper things. What do you make of Pelosi landing in Taiwan and how do you see … what is this all about, what's happening here? MH Well I think in what you just wrote today you made it all clear. There's really no practical effect ...

American Diplomacy as a Tragic Drama

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As in a Greek tragedy whose protagonist brings about precisely the fate that he has sought to avoid, the US/NATO confrontation with Russia in Ukraine is achieving just the opposite of America’s aim of preventing China, Russia and their allies from acting independently of U.S. control over their trade and investment policy. Naming China as America’s main long-term adversary, the Biden Administration’s plan was to split Russia away from China and then cripple China’s own military and economic viability. But the effect of American diplomacy has been to drive Russia and China together, joining with Iran, India and other allies. For the first time since the Bandung Conference of Non-Aligned Nations in 1955, a critical mass is able to be mutually self-sufficient to start the process of achieving independence from ...

The Fed’s Austerity Program to Reduce Wages

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To Wall Street and its backers, the solution to any price inflation is to reduce wages and public social spending. The orthodox way to do this is to push the economy into recession in order to reduce hiring. Rising unemployment will oblige labor to compete for jobs that pay less and less as the economy slows. This class-war doctrine is the prime directive of neoliberal economics. It is the tunnel vision of corporate managers and the One Percent. The Federal Reserve and IMF are its most prestigious lobbyists. Along with Janet Yellen at the Treasury, public discussion of today’s inflation is framed in a way that avoids blaming the 8.2 percent rise in consumer prices on the Biden Administration’s New Cold War sanctions on Russian oil, gas and agriculture, or on ...

Is US/NATO (with WEF help) pushing for a Global South famine?

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Is the proxy war in Ukraine turning out to be only a lead-up to something larger, involving world famine and a foreign-exchange crisis for food- and oil-deficit countries? Many more people are likely to die of famine and economic disruption than on the Ukrainian battlefield. It thus is appropriate to ask whether what appeared to be the Ukraine proxy war is part of a larger strategy to lock in U.S. control over international trade and payments. We are seeing a financially weaponized power grab by the U.S. Dollar Area over the Global South as well as over Western Europe. Without dollar credit from the United States and its IMF subsidiary, how can countries stay afloat? How hard will the U.S. act to block them from de-dollarizing, opting out of the U.S. ...

The Dollar Devours the Euro

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It is now clear that today’s escalation of the New Cold War was planned over a year ago. America’s plan to block Nord Stream 2 was really part of its strategy to block Western Europe (“NATO”) from seeking prosperity by mutual trade and investment with China and Russia. As President Biden and U.S. national-security reports announced, China was seen as the major enemy. This despite China’s helpful role in enabling corporate America to drive down labor’s wage rates by de-industrializing the U.S. economy in favor of Chinese industrialization, China’s growth was recognized as posing the Ultimate Terror: prosperity through socialism. Socialist industrialization always has been perceived to be the great enemy of the rentier economy that has taken over most nations in the century since World War I ended, and especially ...

Putin’s Rubles

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Cross-posted from The Saker. Following Putin’s announcement about selling gas for Rubles only to hostile nations, I decided to reach out to Michael Hudson and ask him (my level, primitive) questions. Here is our full email exchange: Andrei: Russia has declared that she will only sell gas to “hostile countries” for Rubles. Which means that to non-hostile countries she will continue to sell in Dollars/Euros. Can these hostile countries still purchase gas from Russia but via third countries? Michael Hudson: There seem to be two ways for hostile countries to buy Russian gas. One seems to be to use Russian banks that are not banned from SWIFT. The other way would indeed seem to be to go through what looks to develop as a formal or informal third-country ...