Michael Hudson Quotes

Blaming today’s price inflation on workers earning too much is simply an excuse to impose a new class war against labor. It is obvious that wage levels did not force up prices for oil, gas, fertilizer and grain. These price rises are the result of U.S. sanctions. But the central claim of today’s neoliberal economic orthodoxy is that all problems are caused by labor being too greedy, and putting its own living standards above the ideal of creating a wealthy rentier class to lord it over them.... The economy is to be Thatcherized – all by riding the crest of the American anti-Russian sanctions and claiming that this creates a crisis requiring dismantling of public infrastructure and its privatization and financialization.

The European political leaders are unwilling to resist U.S. demands. All they can do is complain at their mistreatment. That has led to a split between German and other European businessmen and the European political parties. The problem is that Europe cannot withdraw from NATO without dissolving the European Union, which commits military policy to NATO and hence to an immense balance-of-payments drain to purchase high-priced U.S. arms as well as other necessities. If the question is how long Germany and Europe can put political and military loyalty to the United States over their own economic prosperity and employment, the answer by the Greens is that “shock therapy” will help make Europe greener. At first glance that is right as heavy industry is shut down. But it seems that Europe’s fuel of the future is coal and cutting down its forests.

It is unlikely that German industrialists will act to prevent their country’s de-industrialization, given the US/NATO stranglehold on Eurozone politics and the past 75 years of political meddling by US officials. German company heads are more likely to try and survive with as much personal and corporate wealth intact as they can in the wake of Germany being turned into a Baltic-state-type economic wreckage.... Of course the Nord Stream pipelines are recoverable. That is precisely why US political pressure from Secretary of State Blinken has been so insistent that Germany, Italy and other European countries double down on isolating their economies from trade and investment with Russia, Iran, China and other countries whose growth the US is trying to disrupt...

Is the proxy war in Ukraine turning out to be only a lead-up to something larger, involving world famine and a foreign-exchange crisis for food- and oil-deficit countries? Many more people are likely to die of famine and economic disruption than on the Ukrainian battlefield. It thus is appropriate to ask whether what appeared to be the Ukraine proxy war is part of a larger strategy to lock in U.S. control over international trade and payments. We are seeing a financially weaponized power grab by the U.S. Dollar Area over the Global South as well as over Western Europe. Without dollar credit from the United States and its IMF subsidiary, how can countries stay afloat? How hard will the U.S. act to block them from de-dollarizing, opting out of the U.S. economic orbit? U.S. Cold War strategy is not alone in thinking how to benefit from provoking a famine, oil and balance-of-payments crisis. Klaus Schwab’s World Economic Forum worries that the world is overpopulated – at least with the “wrong kind” of people. As... Bill Gates has explained: “Population growth in Africa is a challenge.”

America is basically the blob, the State Department, the C.I.A., the national security state, and its ideology is to shift economic planning away from government to Wall Street and other financial centers in England and France. And I don’t see that financialization and neoliberalism changing. That’s their religion. And you’re going to have, instead of the reform that you’d like to see, you’re going to see an increasingly violent vicious fight against anyone proposing this reform, just as they fought against Allende in Chile and against against Cuba and as they’re fighting against China and Russia today.

President Biden has indeed got a regime change, but the regime change is in the United States itself. When Biden said last week, well, we’ve got to make America make a lot of great sacrifices to support the Nazis in Ukraine... Biden really may succeed in rolling back the economy to the mid-19th century. And that basically is not just Biden, of course, it’s the people around him. And ultimately it’s the deep state. Whether you’re a Republican or a Democrat, their policy is identical... You could say that American foreign policy is based on accelerating global warming because Biden said the future is oil and coal.

And now this foreign exchange is going to be not recycled to the U.S. to support the dollar. It’s going to be spent on gold and on mutual currency swaps. Well, what that means is that the dollar no longer has the free ride, no longer has the free support. And other countries will protect themselves against the depreciating dollar by doing what the United States did against Germany in 1921 after World War I, a century ago, by imposing special tariffs against depreciating currencies. So they get it, the game is over. And it’s not over because Russia and China and India and Iran defeated America. It was the self-defeating policies of this blindly arrogant, greedy, Republican, Democratic, deep state philosophy.

What the United States has done itself is exactly what both Lavrov and President Xi of China have been saying the world must move towards. They’ve been saying we must have a multinational world, multipolar world. We must be de-dollarized. We must cut free of the dollar and isolate, protect ourselves from the United States’ ability to use sanctions, to interrupt our economic activity, to use oil to threaten any country that doesn’t follow U.S. policy from having their energy reserves cut off, to protect countries that don’t produce their own food from being able to buy food and feed themselves... So everybody thought for the last five years: How will Russia and China and their allies, India, Iran, create this new world order? Well, the United States... has destroyed itself.

It’s a tectonic shift [the decline of an empire and the rise of another one]. Let’s look at this from Russia’s point of view. This is everything that Russia has been aiming at and insisting upon for the last five years. President Putin and Foreign Minister Lavrov have been leading the understanding that the world needs to be de-dollarized, that the United States has declared an economic war against Russia, China and their allies, really against Eurasia. So, in effect, by drawing the sanctions — not only the sanctions — but the most important thing is by seizing Russia’s foreign holdings in the United States, its treasury bond holdings and the bank deposits.

As President Biden explained, the current U.S.-orchestrated military escalation (“Prodding the Bear”) is not really about Ukraine. Biden promised at the outset that no U.S. troops would be involved. But he has been demanding for over a year that Germany prevent the Nord Stream 2 pipeline from supplying its industry and housing with low-priced gas and turn to the much higher-priced U.S. suppliers.... So the most pressing U.S. strategic aim of NATO confrontation with Russia is soaring oil and gas prices, above all to the detriment of Germany. In addition to creating profits and stock-market gains for U.S. oil companies, higher energy prices will take much of the steam out of the German economy.

There was actually no liquidity crisis whatsoever... the reason that the regular newspapers don't report it is the loans violated every element of the Dodd-Frank laws that were supposed to prevent the Fed from making loans to particular banks that were not part of a liquidity crisis... these three banks, Chase Manhattan, Goldman Sachs – which used to be a brokerage firm – and Citibank, that the Federal Reserve laws and the Dodd-Frank Act explicitly prevent the Fed from making loans to particular banks... month after month, the Fed was pumping money into JP Morgan and Citibank and Goldman... these really weren't Citibank and Morgan Chase; it was to their trading affiliates. Now this is exactly what Dodd-Frank was supposed to prevent...

When Biden gave his speech last week, there was a very marked change, right in the middle of it. The very beginning was very calm, offering means of improvement for the American economy, and a set of proposals that were so wonderful that they don’t have the chance of being enacted. And that was simply to co-opt what calls itself the left wing of the Democratic Party, if that’s not an oxymoron. And when all of a sudden, his body language changed, his voice changed, and there was just an anger towards Russia and towards China, a visceral anger that brought back the whole 30 years of his tenure in Congress... he’s escalating the cold war against Russia and China, in the belief that somehow if he can impose sanctions and punish them economically, that will lead to a fall of the government. Well, you can see what he’s projecting here.

It is worthwhile to note that our global imposition of the mythical “efficiencies” of forcing Latin American countries to become plantations for export crops like coffee and bananas rather than growing their own wheat and corn has failed catastrophically to deliver better lives, especially...in Central America.... witness the caravans and refugees across Mexico. Of course, our backing of the most brutal military dictators and crime lords has not helped either. Likewise, the IMF has been forced to admit that its basic guidelines were fictitious from the beginning...It is as if the IMF now operates out of a small room in the basement of the Pentagon in Washington... It’s now out in the open...

The Neocons who Trump has appointed are accomplishing what seemed unthinkable not long ago: Driving China and Russia together... After the crescendo of pretenses and deceptions over Iraq, Libya and Syria, along with our absolution of the lawless regime of Saudi Arabia, foreign political leaders are coming to recognize what world-wide public opinion polls reported even before the Iraq/Iran-Contra boys turned their attention to the world’s largest oil reserves in Venezuela: The United States is now the greatest threat to peace on the planet.

The Deep State is reacting with shock at how this right-wing real estate grifter has been able to drive other countries to defend themselves by dismantling the U.S.-centered world order. To rub it in, he is using Bush and Reagan-era Neocon arsonists, John Bolton and now Elliott Abrams, to fan the flames in Venezuela. It is almost like a black political comedy. The world of international diplomacy is being turned inside-out. A world where there is no longer even a pretense that we might adhere to international norms, let alone laws or treaties.