Ending Today's Economic Crisis Simply and Easily, in America and Globally

Stephen Lendman

May 27, 2009

Some of the best ideas are often the simplest. When applied to the global economic crisis, the solution is easier than imagined. What's hard, in fact a Gordian Knot, is the political will to embrace it. But even matters that great can be solved by a bold stoke, and according to legend, Alexander the Great's "Alexandrian solution" was achieved with one stroke of his sword, cutting the Knot in half. Applied to the global economic crisis, it means addressing it with effective policies, not ones wrecking America and other troubled nations worldwide.

Economist Michael Hudson explains that "debt leveraging is what caused our economic collapse," so piling on more ("The Recovery Plan from Hell" he calls it) makes things worse, especially the way it's done:

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Paul Craig Roberts: Was the Bailout Itself a Scam?

Eliot Spitzer, the former New York Governor who was set-up in a sex scandal to prevent him investigating Wall Street’s financial gangsterism, pointed out on March 17 that the real scandal is the billions of taxpayer dollars paid to the counter-parties of AIG’s financial deals. These payments, Spitzer writes, are “a way to hide an enormous second round of cash to the same group that had received TARP money already.”

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The Bush/Obama bailouts require serious investigation. Were these bailouts necessary, or were they a scam, like “weapons of mass destruction,” used to advance a private agenda behind a wall of fear?

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Michael Hudson over de G20

Michael Hudson op Counterpunch:

The U.S. economy has been living on a combination of foreign dollar recycling and bank credit that has been used simply to “create wealth” by inflating asset prices, not by financing new capital formation.

As matters have turned out, the banks have gone broke doing this. The Treasury has given them trillions of dollars of aid, and even more as special tax favoritism, loan and deposit insurance guarantees. This can only continue as long as banks can make the inevitable collapse of compound interest schemes appear to be unthinkable. That attempt is what doomed the G-20 meetings this weekend, and it will doom any future U.S. administration that tries to follow in its footsteps.

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Michael Hudson over neoliberaal Europa

Zeer aanbevelenswaard interview op Guns and Butter met Michael Hudson,en van de laatste Mohikanen onder de economen die nog begrijpen hoe de wereldeconomie in elkaar zit.

Michael Hudson levert regelmatig bijdragen aan a.o. Globalresearch.ca, en onafhankelijke radiostations. Ook is Hudson hoogleraar aan één van de academische instellingen waar de Chicago-school van Milton Friedman c.s. nog niet de echte economische wetenschap heeft verdrongen.

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