783. Michael Hudson critique of current..

One of the most vocal critics. Are his arguments correct, what’s missing? Several obvious points. Economics and politics are closely coupled, really two sides of the same structure of governance.

The financial sector realizes that the game is over. The financial interests from America to Greece, Ireland and Europe are all insisting that governments pay off the bad bank loans that they’ve taken onto their balance sheet by increasing taxes and pushing the economy into a depression. In the United States, president Obama has bought the idea that the only way of getting recovery is to cut wages by about 30 percent and he’s doing that in two ways. At the Federal Reserve he’s empowered the Federal Reserve Chairman, Bernanke, to lower interest rates, flood the economy with money, QE2, $600 billion have flown out of the country, to push the dollar down. When you push the dollar down the main victims are consumers because oil prices and raw materials prices and machinery prices and shipping all have a common cost.

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