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Monday, June 28, 2010

Ready for a screed that says that economic-forces-of-evil are out to get you?

Michael Hudson is your man:
This is the Junk Economics that financial lobbyists are trying to sell to voters: “Prosperity requires austerity.” “An independent central bank is the hallmark of democracy.” “Governments are just like families: they have to balance the budget.” “It is all the result of aging populations, not debt overload.” These are the oxymorons to which the world will be treated during the coming week in Toronto.

It is the rhetoric of fiscal and financial class war. ...

... today’s economic planning is not being done by elected representatives. Planning authority has been relinquished to the hands of “independent” central banks, which in turn act as the lobbyists for commercial banks selling their product – debt. From the central bank’s vantage point, the “economic problem” is how to keep commercial banks and other financial institutions solvent in a post-bubble economy. How can they get paid for debts that are beyond the ability of many people to pay, in an environment of rising defaults?

The answer is that creditors can get paid only at the economy’s expense. The remaining economic surplus must go to them, not to capital investment, employment or social spending.
There's lots more in the essay, including attacks on Obama and his Deficit Commission.



1 comments

Yes, debt is addictive, toxic and life destroying. It is no different when applied to a nation.

Obama is doing an amazing thing. He is converting liberals into conservatives in record numbers.

By Anonymous Anonymous, at 7/02/2010 6:34 AM  

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