Michael Hudson is a research professor of economics at the University of Missouri, Kansas City and a research associate at the Levy Economics Institute of Bard College. What Prof. Hudson describes in his essay are partially my thoughts and opinions of a parasitic banking system that slowly absorbs and destroys all the savings that would otherwise be available for productive investments.
The US debt problems are imo not much better than the situation in Greece. If all unfunded liabilities are included the US debt situation is probably worse since almost all 50 states have passed the point of no return. They will never ever be able to get there debt problems under control without a ” debt restructuring” the modern term for partial default. The US economy is turning down again, unemployment is understated by at least 5%. Among the African-American segment of the population, the not-seasonally adjusted U-3 unemployment rate for May 2011, including both sexes of the age group 16-19 year olds, is 40.6%. A ticking time bomb that only an Afro-American president can halt, temporarily imo.
The FED ( still ) prints the world’s reserve currency. Once this outrageous privilege is lost, US “debt restructuring” is inevitable.
Here is the article published on John Mauldin’s Outside the Box with some excerpts as a teaser:
“This prompted EU Fisheries Commissioner Maria Damanaki “to ‘speak openly’ about the dilemma facing her country,” warning: “The scenario of Greece’s exit from the Euro is now on the table, as are ways to do this. Either we agree with our creditors on a programme of tough sacrifices and results … or we return to the drachma. Everything else is of secondary importance.”
“Technological determinists believe that technology drives. If this were so, rising productivity would have made everybody in Europe and the United States wealthy by now, rich enough to be out of debt. But there is a Chicago School inquisition insisting that today’s needless suffering is perfectly natural and even necessary to rescue economies by saving their banks and debt overhead – as if all this is the economic core, not wrapped around the core.”
“The upcoming Greek referendum poses this question just as did Iceland’s earlier this spring. As Yves Smith recently commented regarding the ECB’s game of chicken as to whether Greece’s government would accept or reject its hard terms:
This is what debt slavery looks like on a national level. … ”
“Without a common union based on mutual support within a mixed economy – one capable of checking financial aggression – the European Central Bank replaced the military high command. Its bold gamble is whether the Greeks will be as stupid as the Irish, not as smart as the Icelanders.”