The Fed Tackles Kalecki

Naked capitalism has the article The Fed Tackles Kalecki.

Given the nature of the current supply shocks affecting our weak Covid-battered economies, orchestrating another Volcker-style scenario by creating yet another deep recession is chilling. Besides, it would appear to be somewhat in conflict with the above assessment of former US Fed Chair Janet Yellen in 2019 as well as with the research of these two US Fed economists, Ratner and Sim, who suggest that the slope of the Phillips Curve is actually relatively flat and it has remained so for decades, for reasons that have little to do directly with the Volcker shock of the early 1980s.

Does anybody factor in the de-industrialization of the USA economy which is facilitated by China’s ability to substitute its industry for the industry the USA is giving up? How long can this substitution continue to increase? As long as it is more profitable to let China do all the manufacturing, why should the USA capitalists put their money into less profitable increases in domestic capacity? Leaving out de-industrialization and de-dollarization is leaving out the main factors influencing our economy. How can you have a good analysis and prediction when you leave out the most important factors in your models.

A Philosophy for a Fair Society (Part I) | Michael Hudson & Jonathan Brown   Recently updated !

YouTube has the video A Philosophy for a Fair Society (Part I) | Michael Hudson & Jonathan Brown

Welcome to the Shepheard Walwyn podcast and a two part interview with Michael Hudson, perhaps to the world’s most influential (but rarely acknowledged) economist. Michael has had a remarkable career starting off as a practical or reality-based economist working for a variety of institutions looking and how banks really behave.

He looked at the balance of payments economics for David Rockefeller at Chase Manhattan Bank; worked for Herman Kahn at the Hudson Institute, and advised the US State Department on how they could fund the Vietnam War when the gold was running out. He now advises the Chinese Government on how to maintain an industrial economy and avoid the traps the US Finance economy has fallen into.

Michael’s most famous work is Super Imperialism, the Economic Strategy of American Empire but has also written extensively on ancient economies in the Near East.

He is one of our longest running writers having co-written the soon to be re-released eBook, A Philosophy for a Fair Society with Kris Feder and the late GJ Miller and. Incidentally, this book is a great introduction to his whole body of work so do check it out!

In this first episode we looked at how economics got corrupted from industrial economics where people made money by making things, to a finance economy where a small elite group makes money by manipulating financial instruments. There’s some meaty topics but I promise it’s worth your time.

Michael Hudson goes into details that I have never heard before in any of his writings. There are a couple of places where he talks about things happening in the 1980s and 1990 when he actually means 1880s and 1890s.

Here is the second part of the interview.

The links to the two halves of the interview are published on Michael Hudson’s web site as Economic Rent and Exploitation

Prof. Richard Wolff: How to Fix Inflation

The Zero Hour has the interview, Prof. Richard Wolff: How to Fix Inflation.

A lot of babble that I can agree with, but some of it I don’t.

My memory of the time of Nixon was what he did not succeed in bringing down inflation. The combination of Paul Volcker and Ronald Reagan succeeded in controlling inflation by creating such a deep recession that people couldn’t afford to buy things anymore. What they didn’t buy included gasoline which broke the power of OPEC.

In Nixon and in Roosevelt’s times we didn’t depend on outsourcing so much to supply consumer demand. We can’t put a price freeze on what China sells us. We can raise the prices of what China sells us by fighting a trade war, but that is the opposite of keeping prices down. We can also fight an economic war with Russia to take their energy supplies out of the market. Our economic war with Russia only makes inflation worse.

As Michael Hudson explains on so many of the posts that I have put on this politics blog of mine, the financialization of the USA economy puts such a debt burden overhead on our workers, that we can no longer compete in the international market for labor.

Marxism: From Critique of Capitalism to Alternative System

Democracy At Work has the post Marxism: From Critique of Capitalism to Alternative System [May 2022].

The title is most appropriately applied to about the last half hour which I originally saw as a stand-alone video. The video below is the whole hour.

I originally wrote the following comments about the last half of this video,

Here is one idea that Richard Wolff is promoting. It is an interesting admission of the problems of early attempts at socialism. I am not convinced that he has the solution, but it is something worth trying. Let’s avoid the mistakes of the past where we had a wholesale adoption of an untested idea. That adoption is a dangerous way to find out what works., or worse, what does not work.

I am not sure China has figured it out. Having a mix of two versions of the same thing may not be the ultimate solution, if there is an ultimate solution.

One problem that I see is in the perversion of democracy that we now have in our government. How do we know that democracy in the work place won’t suffer from the same perversion?

Sleepwalking Into Fascism: Why CIA/NATO’s Foreign Policy Has Been Consistent for the Past 77 years

The Canadian Patriot has the article Sleepwalking Into Fascism: Why CIA/NATO’s Foreign Policy Has Been Consistent for the Past 77 years

[This is the final installment to a five-part series. Refer here for Part 1, Part 2 goes over how Ukrainian Nationalism was bought and paid for by the CIA post-WWII, Part 3 goes over NATO’s Operation Gladio, Part 4 goes over the role of the CIA and NATO in the global heroin trade, Miami as the new center of International Fascism and how President Kennedy’s murder is connected to this.]

Even part 5 was too long for me to read in one sitting. I will post the article here, and the links to the other parts, in case I ever get the time to read all of it.

One other excerpt, I posted on my Facebook page.

One CIA analyst judged that, “some form of nationalist feeling continues to exist [in the Ukraine] and… there is an obligation to support it as a cold war weapon.”

Russia Rewrites the Art of Hybrid War

Pepe Escobar has written the article Russia Rewrites the Art of Hybrid War that FB does not want you to see.

Russia is winning not only militarily but also to a large extent geopolitically – 88% of the planet does not align with NATOstan hysteria – and of course in the economic/financial sphere…Serial Western sanctions package hysteria ended up triggering Russia’s so far quite successful counter-financial moves. Hybrid War is being fought predominantly in the economic/financial battleground – and the pain dial for the collective West will only go up: inflation, higher commodity prices, breakdown of supply chains, exploding cost of living, impoverishment of the middle classes, and unfortunately for great swathes of the Global South, outright poverty and starvation.

If you want to post a link to this article that bypasses the FB censorship, here is an image of a tiny url that works. Only paste the image, not the actual link.



This is the first interview with Scott Ritter that I have seen recently where he has had a chance to account for the realities of what is happening in the Ukraine. He is starting to recognize some shortcomings in the Russian battle plan. We are pushing Russia into more of a corner than they had anticipated. That could have serious negative consequences for the USA.