The Treasury Privatized?

Michael Hudson has posted the video The Treasury Privatized?.

Radhika Desai and Michael Hudson are trying to rap you upside the head with the proverbial two by four to try to get you to see what is happening.

Can they finally get the public to understand what is being done to them?

I picked out the following excerpt from somewhere in the middle to see if I can tease you into watching this video.

MICHAEL HUDSON: Well I think then we need to define “predatory” and as you said, it basically means “unproductive overhead the non-financial economy has to bear.”

I think a predatory loan is one that does not provide the means to help the debtor repay its creditor.

For instance, people believe that they’re getting rich by borrowing from the bank to buy a house whose value goes up, but the value of housing going up is because so many people are borrowing that the housing is worth whatever a bank will lend, and it’s all been bid up on credit.

So what’s really gone up is the housing debt.

People say, “My house is worth a lot more.” But the equity that people have in their houses has been falling and falling and falling as the economy becomes more debt-leveraged.

So it’s not simply wages and profits that banks want. What they want is to transform property into financial gains. It’s all about capital gains. It’s about asset-price inflation that they love, as opposed to wage-inflation.


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