Michael Hudson
Michael Hudson
adam avoiding banks care central debts dollar foreign fund government health intend paying pension private repay smith trillion
They're never going to be repaid. Adam Smith said that no government had ever repaid its debts and the same can be said of the private sector. The U.S. government does not intend to repay its trillion dollar debt to foreign central banks and, even if it did intend to, there's no way in which it could. Most of the corporations now are avoiding paying their pension fund debts and their health care debts.
debt wipe fresh-start
Normally, if someone goes bankrupt, you wipe out the debt and get a fresh start. But that's not permitted with student loans. So the effect is to impoverish many graduates with very high debts.
writing done debt
Throughout history, the only way of restoring stability is to write down the debts. That is treated now as if it's something that can't be done. But it's the only thing that's going to revive the economy.
writing shrinking debt
Basically, unless you're willing to write down debts and save the economy, you're going to have deflation and a steady drain in purchasing power - that is, shrinking markets.
people income debt
The price decline is a result of having to pay debts. That drains income from the circular flow between production and consumption - that is, between what people are paid when they go to work, and the things that they buy.
debt pay interest
As you have to pay more interest and amortization on what you owe, you're left with less and less money to buy goods and services - unless you borrow even more and go further into debt.
people debt crash
Stocks always go down much faster than they go up. That's why it's called a crash. People who put their money into the stocks will find, all of a sudden, that stock prices are no longer being supported by the debt leveraging that's been holding them up.
fire debt pay
More and more money is being extracted from of the production and consumption economy to pay the FIRE sector. That's what causes debt deflation and shrinks markets. If you pay the banks, you have less to spend on goods and services.
debt pay economy
Mathematically, debts grow exponentially at compound interest. Banks recycle the interest into new loans, so debts grow exponentially, faster than the economy can afford to pay.
income debt goods
Paying debt service to banks leaves less income to buy goods and services.
corner forces lebanon others seriously sufficient supporters turn unlikely
Certainly, anti-Syrian forces in Lebanon feel on the defensive, nervous, frightened, depressed. The Syrians may be out in one way, but in others they're always right around the corner and have sufficient friends and supporters in Lebanon that make it unlikely it will turn into a seriously anti-Syrian place.
among construct difficult government iraqi military militia security situation tainted
It's very difficult for the Iraqi government to govern because the security situation is still very unstable. Among the most pressing problems, the most pressing is to try to construct a military and security bureaucracy that is not essentially tainted by militias or militia loyalties.
advantage certainly county experience gain lead road serve
If I serve well as county commissioner, the experience I gain could lead to other opportunities down the road that I will certainly take advantage of.
fall mean europe
Deflation means a slowdown of income growth. Markets shrink, new capital investment and employment also taper off, so wages decline. That is what's happening as deliberate policy in Europe and the United States. Falling or stagnant prices are simply the result of having less income to spend.