Hudson: Financialization of Production

[don]

Michael Hudson

[Chris Coles]

Re: Hudson: Financialization of Production

Thanks Don, very interesting.

"it is easier to create a Ponzi scheme than create a new product......" says it all.

[don]

Re: Hudson: Financialization of Production

Thanks Don, very interesting.

"it is easier to create a Ponzi scheme than create a new product......" says it all.

No muss, no fuss and messy labor, along with fixed capital investment, just disappears . . .

I think the Vikings, or was it Attila, first came up with this business model

[don]

Re: Hudson: Financialization of Production

pick your poison . . . .

" . . . if the governments don’t plan to make subsidies and tariffs and taxes, then if you dismantle government planning, then by default all of the planning passes into the hands of bankers. And the bankers end up allocating the nation’s resources, because it’s the bankers who give the credit. And instead of the government deciding how to steer the economy forward—by subsidizing education, by building private infrastructure—all of a sudden the infrastructure and the division of labor and the resources are passed on to the banks, and the banks are going to decide, okay, sell all the public domain, sell the roads and the railway systems and the power systems, and we will decide who gets the credit, and we’ll do the planning."

[Chris Coles]

Re: Hudson: Financialization of Production

Don,

it has become much more insidious than that; we are now in a period where the executive government's need for borrowing debt from the banking system is so acute that they are always acting in cohorts with the banks to maximise their borrowings. So both sides are outside of any perception of responsibility for the wider national interest.