Michael Hudson (economist)

Michael Hudson (born March 14, 1939) is an American economist, Professor of Economics at the University of Missouri–Kansas City and a researcher at the Levy Economics Institute at Bard College, former Wall Street analyst, political consultant, commentator and journalist. He is a contributor to The Hudson Report, a weekly economic and financial news podcast produced by Left Out. He is a former Wall Street analyst and consultant as well as president of the Institute for the Study of Long-term Economic Trends (ISLET) and a founding member of International Scholars Conference on Ancient Near Eastern Economies (ISCANEE). Hudson sees consumer protection, state support of infrastructure projects, and taxation of rentier sectors of the economy rather than workers, as a continuation of the line of classical economists today

Quotes

 * The one sure mark of a con, though, is the promise of free money.
 * "The $4.7 trillion pyramid: Why Social Security won't be enough to save Wall Street" in Harper's Magazine (April 2005)


 * If you look at the speeches he gave just before he left the Fed, it's pretty much “After me - the Deluge. I'm getting out while my reputation's intact”.
 * "BBC World Service", Speaking about Alan Greenspan, BBC.co.uk (Sept. 17, 2007)


 * To the deficit commission, a depression is the solution to the problem, not a problem.
 * "Why Government is More Afraid of Debt than Depression" Video Interview, Real News  Network (TRNN), (December 16, 2010)


 * if you increase living standards you make labor more productive. This is why Asia today is becoming more productive than the United States.
 * "Higher Taxes on Top 1% Equals Higher Productivity", Video Interview (13:28), Real News Network (TRNN),  (January 1, 2011)


 * You could say that GDP (National Income) and prosperity and wealth grows fastest when income tax rates are highest. And wealth slows, the economy slows, when taxes are cut. That's counter intuitive but if you look at any chart comparing tax rates and economic growth rates that's what you find. The 19th century knew it, the 18th century knew it but today you have a kind of counter revolution of junk economics that is basically anti-labor economics.
 * [http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=6000 "Higher Taxes on Top 1% Equals Higher Productivity", Video Interview (13:28), Real News Network (TRNN),  (January 1, 2011)


 * Well, companies themselves have been causing this crisis as much as speculators, because companies like Amazon, like Google, or Apple especially, have been borrowing money to buy their own stock. Corporate activists, stockholder activists, have told these companies, we want you to put us on the board because we want you to borrow at 1 percent to buy your stock yielding 5 percent. You’ll get rich in no time. So these stock buybacks by Apple and by other companies at high prices can push up their stock price in the short term. But when prices crash, their net worth is all of a sudden plunging... this morning in the stock market was a huge wipeout of borrowed money on which people thought the market would go up, and the Federal Reserve would be able to inflate prices.
 * Behind the Market Crash: The Smoke and Mirrors of Corporate Buybacks, CounterPunch, (26 August 2015)


 * The job of the Federal Reserve is to increase the price of wealth and stocks and real estate relative to labor. The Federal Reserve is sort of waging class war. It wants to increase the assets of the 1 percent relative to the earnings of the 99 percent, and we’re seeing the fact that this, the effect of this class war is so successful it’s plunged the economy into debt, slowed the economy, and led to the crisis we have today.
 * Behind the Market Crash: The Smoke and Mirrors of Corporate Buybacks, CounterPunch, (26 August 2015)


 * The end of America’s unchallenged global economic dominance has arrived sooner than expected, thanks to the very same Neocons who gave the world the Iraq, Syria and the dirty wars in Latin America... The United State['s]... violent regime change warfare against Venezuela and Syria – and threatening other countries with sanctions if they do not join this crusade – is driving European and other nations to create their alternative financial institutions....
 * Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony, CounterPunch, (1 Feb 2019)


 * The Deep State is reacting with shock at how this right-wing real estate grifter has been able to drive other countries to defend themselves by dismantling the U.S.-centered world order. To rub it in, he is using Bush and Reagan-era Neocon arsonists, John Bolton and now Elliott Abrams, to fan the flames in Venezuela. It is almost like a black political comedy. The world of international diplomacy is being turned inside-out. A world where there is no longer even a pretense that we might adhere to international norms, let alone laws or treaties.
 * Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony, CounterPunch, (1 Feb 2019)


 * The Neocons who Trump has appointed are accomplishing what seemed unthinkable not long ago: Driving China and Russia together... After the crescendo of pretenses and deceptions over Iraq, Libya and Syria, along with our absolution of the lawless regime of Saudi Arabia, foreign political leaders are coming to recognize what world-wide public opinion polls reported even before the Iraq/Iran-Contra boys turned their attention to the world’s largest oil reserves in Venezuela: The United States is now the greatest threat to peace on the planet.
 * Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony, CounterPunch, (1 Feb 2019)


 * It is worthwhile to note that our global imposition of the mythical “efficiencies” of forcing Latin American countries to become plantations for export crops like coffee and bananas rather than growing their own wheat and corn has failed catastrophically to deliver better lives, especially...in Central America.... witness the caravans and refugees across Mexico. Of course, our backing of the most brutal military dictators and crime lords has not helped either. Likewise, the IMF has been forced to admit that its basic guidelines were fictitious from the beginning...It is as if the IMF now operates out of a small room in the basement of the Pentagon in Washington... It’s now out in the open...
 * Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony, CounterPunch, (1 Feb 2019)


 * When Biden gave his speech last week, there was a very marked change, right in the middle of it. The very beginning was very calm, offering means of improvement for the American economy, and a set of proposals that were so wonderful that they don’t have the chance of being enacted. And that was simply to co-opt what calls itself the left wing of the Democratic Party, if that’s not an oxymoron. And when all of a sudden, his body language changed, his voice changed, and there was just an anger towards Russia and towards China, a visceral anger that brought back the whole 30 years of his tenure in Congress... he’s escalating the cold war against Russia and China, in the belief that somehow if he can impose sanctions and punish them economically, that will lead to a fall of the government. Well, you can see what he’s projecting here.
 * The World’s Absentee Landlord, michael-hudson.com (13 May 2021)


 * There was actually no liquidity crisis whatsoever... the reason that the regular newspapers don't report it is the loans violated every element of the Dodd-Frank laws that were supposed to prevent the Fed from making loans to particular banks that were not part of a liquidity crisis... these three banks, Chase Manhattan, Goldman Sachs – which used to be a brokerage firm – and Citibank, that the Federal Reserve laws and the Dodd-Frank Act explicitly prevent the Fed from making loans to particular banks... month after month, the Fed was pumping money into JP Morgan and Citibank and Goldman... these really weren't Citibank and Morgan Chase; it was to their trading affiliates. Now this is exactly what Dodd-Frank was supposed to prevent...
 * Quoted by Ben Norton, in Economist Michael Hudson explains inflation crisis and Fed's secretive $4.5 trillion bank bailout, Geopolitical Economy Report, (8 Jan 2022)


 * As President Biden explained, the current U.S.-orchestrated military escalation (“Prodding the Bear”) is not really about Ukraine. Biden promised at the outset that no U.S. troops would be involved. But he has been demanding for over a year that Germany prevent the Nord Stream 2 pipeline from supplying its industry and housing with low-priced gas and turn to the much higher-priced U.S. suppliers.... So the most pressing U.S. strategic aim of NATO confrontation with Russia is soaring oil and gas prices, above all to the detriment of Germany. In addition to creating profits and stock-market gains for U.S. oil companies, higher energy prices will take much of the steam out of the German economy.
 * America Defeats Germany for the Third Time in a Century, michael-hudson.com,  (28 February 2022)


 * It’s a tectonic shift [the decline of an empire and the rise of another one].   Let’s look at this from Russia’s point of view. This is everything that Russia has been aiming at and insisting upon for the last five years. President Putin and Foreign Minister Lavrov have been leading the understanding that the world needs to be de-dollarized, that the United States has declared an economic war against Russia, China and their allies, really against Eurasia.   So, in effect, by drawing the sanctions — not only the sanctions — but the most important thing is by seizing Russia’s foreign holdings in the United States, its treasury bond holdings and the bank deposits.
 * Grab Bag Imperialism, michael-hudson.com, (31 March 2022)


 * What the United States has done itself is exactly what both Lavrov and President Xi of China have been saying the world must move towards. They’ve been saying we must have a multinational world, multipolar world. We must be de-dollarized. We must cut free of the dollar and isolate, protect ourselves from the United States’ ability to use sanctions, to interrupt our economic activity, to use oil to threaten any country that doesn’t follow U.S. policy from having their energy reserves cut off, to protect countries that don’t produce their own food from being able to buy food and feed themselves... So everybody thought for the last five years: How will Russia and China and their allies, India, Iran, create this new world order? Well, the United States... has destroyed itself.
 * Grab Bag Imperialism, michael-hudson.com, (31 March 2022)


 * And now this foreign exchange is going to be not recycled to the U.S. to support the dollar. It’s going to be spent on gold and on mutual currency swaps. Well, what that means is that the dollar no longer has the free ride, no longer has the free support. And other countries will protect themselves against the depreciating dollar by doing what the United States did against Germany in 1921 after World War I, a century ago, by imposing special tariffs against depreciating currencies. So they get it, the game is over. And it’s not over because Russia and China and India and Iran defeated America. It was the self-defeating policies of this blindly arrogant, greedy, Republican, Democratic, deep state philosophy.
 * Grab Bag Imperialism, michael-hudson.com, (31 March 2022)


 * President Biden has indeed got a regime change, but the regime change is in the United States itself. When Biden said last week, well, we’ve got to make America make a lot of great sacrifices to support the Nazis in Ukraine... Biden really may succeed in rolling back the economy to the mid-19th century. And that basically is not just Biden, of course, it’s the people around him. And ultimately it’s the deep state. Whether you’re a Republican or a Democrat, their policy is identical... You could say that American foreign policy is based on accelerating global warming because Biden said the future is oil and coal.
 * Grab Bag Imperialism,michael-hudson.com, (31 March 2022)


 * America is basically the blob, the State Department, the C.I.A., the national security state, and its ideology is to shift economic planning away from government to Wall Street and other financial centers in England and France. And I don’t see that financialization and neoliberalism changing. That’s their religion. And you’re going to have, instead of the reform that you’d like to see, you’re going to see an increasingly violent vicious fight against anyone proposing this reform, just as they fought against Allende in Chile and against against Cuba and as they’re fighting against China and Russia today.
 * Grab Bag Imperialism,michael-hudson.com, (31 March 2022)


 * 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. economic orbit? U.S. Cold War strategy is not alone in thinking how to benefit from provoking a famine, oil and balance-of-payments crisis. Klaus Schwab’s World Economic Forum worries that the world is overpopulated – at least with the “wrong kind” of people. As... Bill Gates has explained: “Population growth in Africa is a challenge.”
 * Is US/NATO (with WEF help) pushing for a Global South famine?,michael-hudson.com, (6 June 2022)


 * It is unlikely that German industrialists will act to prevent their country’s de-industrialization, given the US/NATO stranglehold on Eurozone politics and the past 75 years of political meddling by US officials. German company heads are more likely to try and survive with as much personal and corporate wealth intact as they can in the wake of Germany being turned into a Baltic-state-type economic wreckage.... Of course the Nord Stream pipelines are recoverable. That is precisely why US political pressure from Secretary of State Blinken has been so insistent that Germany, Italy and other European countries double down on isolating their economies from trade and investment with Russia, Iran, China and other countries whose growth the US is trying to disrupt...
 * Escaping the Western Rentier, michael-hudson.com,   October 6, 2022


 * The European political leaders are unwilling to resist U.S. demands. All they can do is complain at their mistreatment. That has led to a split between German and other European businessmen and the European political parties. The problem is that Europe cannot withdraw from NATO without dissolving the European Union, which commits military policy to NATO and hence to an immense balance-of-payments drain to purchase high-priced U.S. arms as well as other necessities. If the question is how long Germany and Europe can put political and military loyalty to the United States over their own economic prosperity and employment, the answer by the Greens is that “shock therapy” will help make Europe greener. At first glance that is right as heavy industry is shut down. But it seems that Europe’s fuel of the future is coal and cutting down its forests.
 * Pressures - Questions from Al-akhbar Newspaper, Lebanon. Mohammad Itmaizeh,michael-hudson.com, (1 December 2022)


 * Blaming today’s price inflation on workers earning too much is simply an excuse to impose a new class war against labor. It is obvious that wage levels did not force up prices for oil, gas, fertilizer and grain. These price rises are the result of U.S. sanctions. But the central claim of today’s neoliberal economic orthodoxy is that all problems are caused by labor being too greedy, and putting its own living standards above the ideal of creating a wealthy rentier class to lord it over them.... The economy is to be Thatcherized – all by riding the crest of the American anti-Russian sanctions and claiming that this creates a crisis requiring dismantling of public infrastructure and its privatization and financialization.
 * Pressures - Questions from Al-akhbar Newspaper, Lebanon. Mohammad Itmaizeh, michael-hudson.com, (1 December 2022)

Dr. Michael Hudson, Killing the Host: How Financial Parasites and Debt Bondage Destroy the Global Economy, Islet 2015

 * Debts that can't be paid, won't be paid. p 25
 * The taproots feeding financial power are real estate rent, natural resource rent and monopoly rent....   Instead of investing in plant and equipment to hire more labor to produce more output, money is made financially... "fictitious capital."...   In alliance with other rent-extracting sectors, finance acts above the industrial economy to indebt it then rake off debt service, inflating prices to housing, education and infrastructure. p 390-391
 * Labor may be paid more and more, but its rising wages are stripped away to pay the Finance, Insurance and Real Estate (FIRE) sector.    p 391
 * One way or another, today's debts will not be paid....  As long as savings mainly by the 1% takes the form of debt claims on the rest of society, they will grow exponentially to hold the 99% in deepening debt...
 * If debts to creditors are paid by forced privatization, the public domain and infrastructure will be turned into rent-extraction tollbooth opportunities and economies will be impoverished by rentier austerity.
 * The neoliberal strategy is a new Dark Age of enclosures and privatization that will bury the Enlightenment's drive to free economies from rentier privilege....  In this war the financial powers and other rentiers fight... precisely because they realize there is no moral justification for income and wealth obtained by extractive means instead of earned productivity.
 * Those who obtain or inherit predatory wealth and privilege realize the ultimate means of imposing austerity and demolishing the power of democracies is deception, junk economics....
 * To prevent this pro-rentier end of history it is necessary for populations to revive the long classical fight to free economies.   The alternative is neofeudalism.  p. 435

Michael-Hudson.com 1998-2023

 * The most serious problems lie in the financial sphere, where the economy’s debt overhead has grown more rapidly than the ‘real’ economy’s ability to carry this debt. … The essence of the global financial bubble is that savings are diverted to inflate the stock market, bond market and real estate prices rather than to build new factories and employ more labor.
 * Financial Capitalism v. Industrial Capitalism (September 3, 1998)


 * Overconsumption by US citizens, US buy-outs of foreign companies and dollars the Pentagon spends abroad all end up in foreign central banks. These governments face a hard choice: either recycle the dollars back to America by buying US Treasury bonds or let the “free market” force up their currencies relative to the dollar – thereby pricing their exports out of world markets, creating domestic unemployment and business failures. US-style free markets hook them into a system that forces them to accept unlimited dollars. Now they want out. … The US is the world’s largest debtor, yet has avoided the pain of “structural adjustments” imposed on other debtor nations. US interest rate and tax reductions in the face of exploding trade and budget deficits are seen as the height of hypocrisy in view of the austerity programmes that Washington has forced on other countries via the International Monetary Fund and other vehicles.
 * Washington cannot call all the shots (June 14, 2009)


 * Europe is to be turned into a banana republic by taxing labor – not finance, insurance or real estate (FIRE). Governments are to impose heavier employment and sales taxes while cutting back pensions and other public spending. … The financial privatization and credit-creation monopoly that governments have relinquished to banks is now to really pay off – at the price of breaking up Europe. … The unelected members of the European Central Bank have taken over planning power from elected governments. Beholden to its financial constituency, the ECB has convinced the EU commission to back the new oligarchic power grab. … In sum, the Neoliberal Revolution seeks to achieve in Europe what the United States has achieved since real wages stopped rising in 1979: doubling the share of wealth enjoyed by the richest 1%. This involves reducing the middle class to poverty, breaking union power, and destroying the internal market as a precondition.
 * Who Wins? (October 3, 2010)


 * So the Bush-Obama administration has taken a fiscal stance diametrically opposed to that of the patron saint of free enterprise. While escalating war in Afghanistan and maintaining over 850 military bases around the world, the administration has run up the national debt that Smith decried. By shifting the tax burden off property and off rent-seeking monopolies – above all, off the financial sector – this policy has raised America’s cost of living and doing business, thereby undercutting its competitive power and running up larger and larger foreign debt.
 * Adam Smith critiques the Deficit Reduction Commission (December 6, 2010)


 * So the game plan is not merely to free the income of the wealthiest class to “offshore” itself into assets denominated in harder currencies abroad. It is to scrap the progressive tax system altogether. … How stable can a global situation be where the richest nation does not tax its population, but creates new public debt to hand out to its bankers? … The “solution” to the coming financial crisis in the United States may await the dollar’s plunge as an opportunity for a financial Tonkin Gulf resolution. Such a crisis would help catalyze the tax system’s radical change to a European-style “Steve Forbes” flat tax and VAT sales-excise tax.... More government giveaways will be made to the financial sector in a vain effort to keep bad debts afloat and banks “solvent.” As in Ireland and Latvia, public debt will replace private debt, leaving little remaining for Social Security or indeed for much social spending. … The bottom line is that after the prolonged tax giveaway exacerbates the federal budget deficit – along with the balance-of-payments deficit – we can expect the next Republican or Democratic administration to step in and “save” the country from economic emergency by scaling back Social Security while turning its funding over, Pinochet-style, to Wall Street money managers to loot as they did in Chile. And one can forget rebuilding America’s infrastructure. It is being sold off by debt-strapped cities and states to cover their budget shortfalls resulting from un-taxing real estate and from foreclosures. Welcome to debt peonage. This is worse than what was meant by a double-dip recession. It will be with us much longer.
 * Obama's Bushism (December 8, 2010)


 * In America, despite the amazing rise in productivity we’ve had in the last 30 years, real wages have actually gone down. All of the increase in productivity has been taken by the finance, insurance, and real estate sector, called the FIRE sector, almost all of it by the financial sector. … So instead of having industrial capitalism a century ago, we have a finance capitalism that actually is stifling industrial capitalism here. So what Alan Greenspan and others call the postindustrial economy is really neo-feudalism. It’s a financialized economy where all of the surplus goes to the banks.
 * Deficit Hawks One Two Punch (December 16, 2010)


 * [The World Bank]... was set up basically by the United States in 1944, along with its sister institution, the International Monetary Fund (IMF). Their purpose was to create an international order like a funnel to make other countries economically dependent on the United States. To make sure that no other country or group of countries – even all the rest of the world – could not dictate U.S. policy. American diplomats insisted on the ability to veto any action by the World Bank or IMF. The aim of this veto power was to make sure that any policy was, in Donald Trump’s words, to put America first. “We’ve got to win and they’ve got to lose.”
 * The IMF and World Bank: Partners in Backwardness (5 July 2019) by Bonnie Faulkner, reporter for CounterPunch


 * Most World Bank loans are for transportation, roads, harbor development and other infrastructure needed to export minerals and plantation crops. The World Bank doesn’t make loans for projects that help the country develop in its own currency. By making only foreign currency loans, in dollars or maybe euros now, the World Bank says that its clients have to repay by generating foreign currency. The only way they can repay the dollars spent on American engineering firms that have built their infrastructure is to export – to earn enough dollars to pay back for the money that the World Bank or IMF have lent.This is what John Perkins’ book about being an economic hit man for the World Bank is all about. He realized that his job was to get countries to borrow dollars to build huge projects that could only be paid for by the country exporting more – which required breaking its labor unions and lowering wages so that it could be competitive in the race to the bottom that the World Bank and IMF encourage.
 * Quoted in  The IMF and World Bank: Partners in Backwardness, - Bonnie Faulkner, CounterPunch, (5 July 2019)


 * When China sends its students to the United States, especially when it sends central bankers and planners to the United States to study (and be recruited), they are told by the U.S. “Do as we say, not as we have done.” The United States is not telling China... how to get rich in the way that it did, by protective tariffs, by creating its own money and by making other countries dependent on it. The United States does not want you to be independent and self-reliant. The United States wants China to let itself become dependent on U.S. finance in order to invest in its own industry... The neoliberal plan is not to make you independent, and not to help you grow except to the extent that your growth will be paid to US investors or used to finance U.S. military spending around the world to encircle you and trying to destabilize you in Sichuan to try to pry China apart.  Look at what the United States has done in Russia, and at what the International Monetary Fund in Europe has done to Greece, Latvia and the Baltic states. It is a dress rehearsal for what U.S. diplomacy would like to do to you, if it can convince you to follow the neoliberal US economic policy of financialization and privatization.  De-dollarization is the alternative to privatization and financialization.
 * Note to China,michael-hudson.com, (14 January 2020)


 * Nearly half a millennium ago Niccolo Machiavelli’s The Prince described three options for how a conquering power might treat states that it defeated in war but that “have been accustomed to live under their own laws and in freedom: … the first is to ruin them, the next is to reside there in person, the third is to permit them to live under their own laws, drawing a tribute, and establishing within it an oligarchy which will keep it friendly to you.”[Niccolo Machiavelli, The Prince (1532), Ch 5:] Machiavelli preferred the first option, citing Rome’s destruction of Carthage. That is what the United States did to Iraq and Libya after 2001. But in today’s New Cold War the mode of destruction is largely economic, via trade and financial sanctions such as the United States has imposed on China, Russia, Iran, Venezuela and other designated adversaries. The idea is to deny them key inputs, above all in essential technology and information processing, raw materials, and access to bank and financial connections, such as U.S. threats to expel Russia from the SWIFT bank-clearing system.The second option is to occupy rivals. This is done only partially by the troops in America’s 800 military bases abroad. But the usual, more efficient occupation is by U.S. corporate takeovers of their basic infrastructure, owning their most lucrative assets and remitting their revenue back to the imperial core.
 * America’s Neoliberal Financialization Policy vs. China’s Industrial Socialism,michael-hudson.com, (14 April 2021)


 * America no longer has the monetary power and seemingly chronic trade and balance-of-payments surplus that enabled it to draw up the world’s trade and investment rules in 1944-45. The threat to U.S. dominance is that China, Russia and Mackinder’s Eurasian World Island heartland are offering better trade and investment opportunities than are available from the United States with its increasingly desperate demand for sacrifices from its NATO and other allies...The most glaring example is the U.S. drive to block Germany from authorizing the Nord Stream 2 pipeline to obtain Russian gas for the coming cold weather. Angela Merkel agreed with Donald Trump to spend $1 billion building a new LNG port to become more dependent on highly priced U.S. LNG. (The plan was cancelled after the U.S. and German elections changed both leaders.) But Germany has no other way of heating many of its houses and office buildings (or supplying its fertilizer companies) than with Russian gas.
 * America’s Real Adversaries Are Its European and Other Allies,michael-hudson.com, February 8, 2022


 * The only way left for U.S. diplomats to block European purchases is to goad Russia into a military response and then claim that avenging this response outweighs any purely national economic interest.'''
 * America’s Real Adversaries Are Its European and Other Allies,michael-hudson.com, February 8, 2022


 * As hawkish Under-Secretary of State for Political Affairs, Victoria Nuland, explained in a State Department press briefing on January 27: “If Russia invades Ukraine one way or another Nord Stream 2 will not move forward.” The problem is to create a suitably offensive incident and depict Russia as the aggressor.
 * America’s Real Adversaries Are Its European and Other Allies,michael-hudson.com, February 8, 2022


 * China, like Russia, has been reducing its dollar holdings as much as possible, just keeping enough to prevent the currency from being destabilized by the dollar inflows. China, Russia are buying gold instead of U.S. dollars as much as possible. China is trying to escape from buying Treasury securities. Why would any government want to buy Treasury securities yielding 0.1% when the dollars coming into China are trying to make loans or buying countries, making 15% profit or interest a year? Nobody would want that situation to continue. China doesn’t want it to continue. As long as it [China] is part of an international economy that is dollarized, it [China] is forced to take a loss, a sacrifice, year after year, subsidizing the U.S. economy. The only way that it can avoid that is to isolate itself from the U.S. dollar. No country until this time since 1945 has ever had the critical mass to be able to do it. That is the objective, the stated objective of Russia, China and their allies. Of course, they don’t want to buy treasury bills. That doesn’t mean that, yes, they found a wonderful investment making 0.1% a year and subsidizing the United States. That is not what China or any other country wants.
 * China – a Sub-Imperial Ally of the West?,michael-hudson.com, (3 April 2022)


 * 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... European trade and investment prior to the War to Impose Sanctions had promised a rising mutual prosperity between Germany, France and other NATO countries vis-à-vis Russia and China. Russia was providing abundant energy at a competitive price, and this energy was to make a quantum leap with Nord Stream 2. Europe was to earn the foreign exchange to pay for this rising import trade by a combination of exporting more industrial manufactures to Russia and capital investment in developing the Russian economy, e.g. by German auto companies and financial investment. This bilateral trade and investment is now stopped – and will remain stopped for many, many years, given NATO’s confiscation of Russia’s foreign reserves kept in euros and British sterling, and Europe’s Russophobia being fanned by U.S. propaganda media.
 * The Dollar Devours the Euro, michael-hudson.com, April 7, 2022


 * There are essentially two types of society: mixed economies with public checks and balances, and oligarchies that dismantle and privatize the state, taking over its monetary and credit system, the land and basic infrastructure to enrich themselves but choking the economy, not helping it grow.
 * The Destiny of Civilization, michael-hudson.com, May 15, 2022


 * The decline of the West is not necessary or historically inevitable. It is the result of choosing policies dictated by its rentier interests. ...The threat posed to society by rentier interests is the great challenge of every nation today: whether its government can restrict the dynamics of finance capitalism and prevent an oligarchy from dominating the state and enriching itself by imposing austerity on labor and industry. So far, the West has not risen to this challenge.
 * The Destiny of Civilization,michael-hudson.com,   May 15, 2022


 * Oligarchic control of government has been a major distinguishing feature of Western civilization ever since classical antiquity. And the key to this control has been opposition to strong government – that is, civil government strong enough to prevent a creditor oligarchy from emerging and monopolizing control of land and wealth, making itself into a hereditary aristocracy, a rentier class living off land rents, interest and monopoly privileges that reduce the population at large to austerity. ... To save themselves from being swept into the whirlpool of economic destruction now engulfing the West, countries in the world’s rapidly growing Eurasian core are developing new economic institutions based on an alternative social and economic philosophy. With China being the largest and fastest growing economy in the region, its socialist policies are likely to be influential in shaping this emerging non-Western financial and trading system.
 * The End of Western Civilization – Why It Lacks Resilience, and What Will Take Its Place, July 13, 2022


 * 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 Euro Without German Industry, michael-hudson.com, October 4, 2022


 * 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 companies were forecasting that they would have to go out of business entirely – or shift operations to the United States – if Germany did not withdraw from the trade and currency sanctions against Russia and permit Russian gas and oil imports to resume, and presumably to fall back from their astronomical eight to tenfold price increase... If policymakers were to put German business interests and living standards first, NATO’s common sanctions and New Cold War front would be broken. Italy and France might follow suit. That prospect made it urgent to take the anti-Russian sanctions out of the hands of democratic politics.
 * The Euro Without German Industry, michael-hudson.com, October 4, 2022


 * Look at what’s happened in Florida — in the last two months the insurance rates have doubled, tripled, and quadrupled so much that people are now unable or unwilling to buy new homes in Florida because the insurance rates are so high... Nobody could really afford that... The government getting into subsidized insurance has been a disaster. The one area that the government has got into are [beachfront] houses for millionaires. These houses, because they’re near the ocean — there [are] hurricanes, they [are] flooded again, and again, and again. So the government will (not quite every year, but every few years) for free, keep giving a 1 million dollars to rebuild a house. 5 years later, [it will] happen again, another 1 million dollars to [rebuild] the house. The government insurance for real estate is spent for the One Percent of the population that has beachfront property and it’s utterly corrupt.
 * Systemic Sponsors of Self-Interest,michael-hudson.com,  January 17, 2023