Michael Hudson: The Big Context (pessimism)

Michael Hudson posted an interview he did recently – The Big Context.

I have noticed a change in Michael Hudson’s interviews. He isn’t mincing words anymore. He is openly airing his full pessimism. Here is the shortest excerpt that I could come up with that gives a hint as to his current thinking.

The US economy cannot recover its industrial power. Its debt is too high, its cost of medical care, 18% of GDP is too high, it’s the rent is so high, 48% of income. There’s no way in which the United States can grow again. Every business recovery since 1945 has started from a higher and higher and higher level of debt, and now it’s reached the limit. A year ago the Federal Reserve said that half of Americans could not raise 400 dollars in a crisis. The recent increase in interest rates have raised credit card rates and debt service by about 450 dollars per average American. So here are people who couldn’t raise it.

All of a sudden they are shifting their consumption patterns to downsizeable. The dollar stores’ spam is now in short supply because people are moving from expensive meat on to that. So Americans are going downhill. So what is it that Russia and China and India represent? They’re countries that are industrializing and moving forward. The American economy and American society is run by the financial sector; they’ve shifted planning away from government to the financial sector which lives in the short run, and essentially the growth of the one percent is shrinking the ninety-nine percent.

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