Tuesday, May 18, 2010

Three Cheers for Economist Michael Hudson!!!

Michael Hudson writes in latest Counterpunch that the "wealthy in Greece won’t pay their taxes, so labor must do so". First time I've heard anyone say anything like that. (I checked and the tax rate in Greece for incomes over Euros 75,000 is 40%. So wealthy Greeks are paying something. But the superrich are probably sliding through relatively untaxed one way or the other.)

I respect Hudson and find his article fascinating. People are listening to him in some high quarters these days and I am glad of it.

On May 10, Real Clear Markets - a hot source for up-to-the-minute financial opinion - picked up his piece on the need to protect whistleblowers from The Big Money. And here the Financial Times gives 15 references to Hudson that have appeared in that paper, including two op ed pieces this year about Eastern Europe and Iceland.

And here is Hudson's March 2009 piece on the AIG bailout from Counterpunch.

Below is a ten minute interview taped in London in 2009 wherein Hudson compares the absurdity of modern debt-creation finance with the common sense of debt-limiting traditions of (get ready) ancient Babylonia. Sound crazy? It's not. Read and think. Impracticable under present circumstances, I suppose, but definitely not crazy.

Hudson describes the 2007-2008 global meltdown and its bailout aftermath managed by the Obama administration as a "once-in-a-century transfer of wealth". From whom to whom? Basically, so far as I can see, from those who can afford to invest (speculate) to those who can't.

You may not feel the alternatives he proposes to the modern system are practicable - writing down home mortgages in the midst of a housing crises to pennies on the dollar, with lenders taking catastrophic losses - but it's hard to dismiss the force of Hudson's reasoning behind them.

His May 2006 Cover Story for Harpers Magazine - "The New Road to Serfdom: an Illustrated Guide to the Coming Real Estate Collapse" - scroll down a bit to find it - is the most comprehensive description I've seen of the debt-building economic system that for decades has been relocating the cash and savings of most Americans into the pockets of the big money lenders who now manage America's so-called FIRE economy driven by intertwined Finance, Real Estate and Insurance interests. And, I might add, driven by the federal government as well, which borrows from taxpayers to lend to these big lenders. (Thought it's good to the likes of Citigroup and GM paying back their loans ahead of schedule.)

All told, I think Michael Hudson, sees it and tells it it pretty much like is.

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