Why (and how) the U.S. Has Launched a New Financial World War

BEIJING - OCTOBER 29:  Chinese and American na...

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Any, reasonably well informed and right-minded person must have been wondering just what the hell has been going on with the money being pumped into the financial system and continuing to “disappear”!?

The article, from which this extract is taken can be found here. It MAY answer some pretty obvious questions…and pose plenty of new ones!

Finance is the new form of warfare – without the expense of a military overhead and an occupation against unwilling hosts. It is a competition in credit creation to buy foreign resources, real estate, public and privatized infrastructure, bonds and corporate stock ownership. Who needs an army when you can obtain the usual objective (monetary wealth and asset appropriation) simply by financial means? All that is required is for central banks to accept dollar credit of depreciating international value in payment for local assets.

Victory promises to go to whatever economy’s banking system can create the most credit, using an army of computer keyboards to appropriate the world’s resources. The key is to persuade foreign central banks to accept this electronic credit.


The Author: Michael Hudson is a former Wall Street economist. A Distinguished Research Professor at University of Missouri, Kansas City (UMKC), he is the author of many books, including Super Imperialism: The Economic Strategy of American Empire(new ed., Pluto Press, 2002) and Trade, Development and Foreign Debt: A History of Theories of Polarization v. Convergence in the World Economy. He can be reached via his website, mh@michael-hudson.com

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Euro – Austerity to fund failed institutions

German Logo of the ECB. 

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I am not alone in “banging on” about the lack of TRANSPARENCY in the banking system (and wider financial sector). The man on the street didn’t know or care much for how the sector conducted business as long as the had a job (income) and could afford the odd “luxury”. Many were happy in their ignorance and content to leave Governments to get on with the job in hand BUT MUCH HAS CHANGED and with the likelihood of more Corporate defaults (Connaught has been coming for some time), as well as at sovereign and state levels in EU and USA respectively, imminent the levee is gonna break.

What is the difference between a global recession and a global crisis!?

European Banks Still on the Brink

The EU banking system is in big trouble. That’s why European Central Bank (ECB) head Jean-Claude Trichet continues to purchase government bonds and provide “unlimited funds” for underwater banks. It’s an effort to prevent a financial system meltdown that could wipe out bondholders and plunge the economy back into recession.

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The Enigma of Capital and the Crises of Capitalism

David Harvey (Geographer/Radical Sociologist) delivers a fascinating lecture at RSA.

The crises are not, exclusively, ECONOMIC. Nor is it entirely due to the global inter-connectedness but the “solution” does begin with tracking the inter-connectedness and managing rising complexity within every domain to attempt to bring about CULTURAL CHANGE and to rebuild for a SUSTAINABLE future.

“Capital is the lifeblood that flows through the body politic of all those societies we call capitalist, spreading out, sometimes as a trickle and other times as a flood, into every nook and cranny of the inhabited world”

Harvey maintains that: modern economics has buried its head in detail but ignored the systematic character of capital flow, he claims, and it is time for a restore an understanding of how capital works.

Statements like “The capitalist class will never willingly surrender its power,” and “It will have to be dispossessed” echo the words of Dr Joseph Tainter (The Collapse of Complex Societies) and of Ulrich Beck – refer links to previous blog items below.

Who am I to argue!?

The book:

The Enigma of Capital and the Crises of Capitalism
David Harvey
Profile Books, 256pp, £14.99

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