Naked Capitalism has published the article Michael Hudson: How an “Act of God” Pandemic Is Destroying the West: The U.S. Is Saving the Financial Sector, Not the Economy.
When reading this article always remember that Hudson is talking about private debt owed by money users. This does not apply to public “debt” owed by money creators like the Federal government. In the USA, there are no money creators like the Federal government. Only the federal government can create money.
China is using an age-old policy common ever since Hammurabi and other Bronze Age rulers promoted economic resilience in the face of “acts of God.” Unless personal debts, rents and taxes that cannot be paid are annulled, the result will be widespread bankruptcy, impoverishment and homelessness. In contrast to America’s financialized economy, China has shown how natural it is for society simply to acknowledge that debts, rents, taxes and other carrying charges of living and doing business cannot resume until economic normalcy is able to resume.
What angers our oligarchs so much about China is that China can figure this out, but our oligarchs hate this solution because it works.
If we can’t take our blinders off to see the obvious, our downfall is nobody’s fault but our own.