The debt explosion: How neoliberalism fuels debt crises (with Radhika Desai & Michael Hudson)
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- Опубликовано: 20 сен 2024
- Political economists Radhika Desai and Michael Hudson discuss the massive explosion of debt in the US and around the world, and how neoliberal economics leads to large bubbles based on speculation and asset-price inflation.
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Every Empire has ended with an over extended military & a mountain of debt.
That's like saying every person who lost their house through unemployment is over extended and has a mountain of debt, it doesn't explain why.
USA 20 years max will be irrelevant Geo politically is my opinion
@@thecelt4807the problem is that as they decline they may become desperate enough to escalate one of their many wars around the globe into a major world war - In fact I'd bet on it.
So true! The sun eventually set on Sparta, Greece, Romans, Ottomans, Napoleon, the British-Portuguese-Spanish Empires and so too on the US.
Thank you Rad and Mike for your continued hard work informing us economic trends and pitfalls.
Oligarchs encourage debt because it reduces the masses to debt slavery.
It makes the masses financially weak, fearful, and grovelingly compliant.
(18:50) Debt Swamp began with 1980s Volcker Recessions: the ridiculous interest rates suited no one but oligarchs.
The 1960s and 70s pissed off the powerful with democratic demands.
Using financial fear gratified oligarch power lusts.
(20:10) Total Non-Financial Debt is 3 times GDP: This fact and the debt curve shows US economic assets have been swamped by debt.
Consequently US dollars are completely debased.
It shows the US economy is worthless because all assets were pumped into the police-prison-military sectors.
The rest has been appropriated by oligarchs.
This happened after the 2008 Great Financial Fraud when banks swallowed suddenly distressed housing assets.
These are destructive economic activities. They NEVER produce anything valuable because it’s better to appropriate and concentrate assets than create them.
These sectors and the criminal sector produce the illusion of GDP growth and a good economy.
I cannot express how grateful I am for these lectures by two of the greatest minds alive. The level of knowledge we are given, free of charge, is astronomical.
Please never stop.
Thank you so much to all those who have made this possible.
Thank you for educating me again and again. ❤
The best show on RUclips
It is always a pleasure listening to Professors Radhika Desai and Michael Hudson! Thank you very much for sharing your insights!
Brilliant show! Thank you both!
😘 both of you so much.
Thank you for your jewels of information. So needed these days!
A lot of info, a bit difficult to follow for a leyman worker, but I'm going to rewatch and do my own research to better UNDERSTAND. TY!!!
A jorney of a thousand miles begins with a single step....
They overcomplicate things so that they can justify having an "expert" to pretend to know what they are talking about. Long story short, Capitalism and Free Market are all disguises for corruption, theft and injustice. It is what helped create this dog-eat-dog world, for someone to win, someone else has to get shafted. Theoretically speaking, incurring debt make sense when the value and return is greater than the principal and interest of the loan. Practically speaking, creditors/banks don't care if someone asking for a loan is creating value, they don't incur any additional risk with giving out loans, as long as the loan is being serviced (i.e., payments are made regularly), they are happy. If a client defaults, they give him a month or two to get his ducks in a row, if he/she can't, they take whatever collateral was put up at the beginning of the loan agreement. Client goes through foreclosure/bankruptcy, bank still wins. If a large percentage of a bank's clients default, a bank has all this collateral assets but they're not getting getting cash inflow and the bank itself defaults on payments to the central bank which loaned them out the money to begin with. In that scenario, the government bails them out (using tax revenue and printing additional currency) and the bank continues to be operational, the bank still wins.
Now imagine, if the banks giving out loans became partners in whatever business plan a client proposes, they share the risk. So, if the business fails, both the client and bank lose, if the business succeeds, both the client and bank win. Do you think the bank will give out loans willy-nilly? The answer is no, they would selectively give out loans to clients with business plans that have a higher probability of succeeding and that add value to society.
Here’s a little puzzle... An ancient King of Egypt dies & all his wealth, gold etc, fits in a 1m box. Apply 4%pa interest to his wealth. How big is the box now?
Bigger than our entire galaxy, by an order of magnitude, depending on which King you picked. This is the power of the exponential function, of which we have little understanding, interest being but one example. Its totally unsustainable.
The late Professor Al Bartlett would certainly agree with you!
Thank you .
Thank you 🙏
Thanks as always
Tanks both of you and continue this way.
The US government doesn't "borrow a lot". The US government creates the dollars with which it spends and with which it pays interest on its dollar-denominated bonds. It sells bonds in exchange for dollars it has already spent into the economy and only does so to a) provide a safe zero-default-risk asset for investors and b) to drain excess reserves from the banking sector to prevent the interbank overnight interest rate from falling to zero. There is no functional reason that the US government has to issue bonds at all except to preserve the fiction of central bank independence by forbidding the treasury from running an overdraft at the fed. Not that countries can't have problematic debt if they take on obligations not denominated in their own free-floating fiat currency of account. Just that the US is not in that position and gets a free ride due to the pricing of oil and IMF loans in dollars as well as the US being the largest consumer market as well as the largest most widely distributed government spender on the planet through its global archipelago of military castra for the pentagon's foreign legions based around its geopolitical competitors.
The US government does not create money. Only the Federal Reserve has the authority to create money. The Federal Reserve is actually a private bank cartel / cabal. It operates independently and does not answer to anyone. IT IS NOT THE GOVERNMENT.
THANK YOU!!!!!
"the pricing of oil and IMF loans in dollars" - for the time being. But what happens to the average US citizen when the dollar is no longer the reserve currency? That day is coming.
The IMF and World Bank, both headquartered in the US, some say are both an arm of the us military probably isn't going to change, and the petrodollar is around 10% of the total trade in US dollars, if half the people stop using it for oil then around 5%. The US citizen won't be affected by much imo. @@lesterarbusto3535
@@lesterarbusto3535That doesn't matter!
I know nothing about trading /investment and l'm keen on getting started. What are some strategies to get started with?
The first step to successful investment is figuring your goals and risk tolerance either on your own or with the help of a financial professional but it's very advisable you make use of professional
Please do you mind sharing any means of reaching out to her easily?
Wow. I'm so excited seeing Nancy been mentioned here also. Didn’t know she has been good to other people too, this is wonderful.
The fact that i got to learn and earn from her program is everything to me think about it, it's a win for both ways.
Thanks a lot for the recommendation.
Debt, Debt, Debt, and more Debt. Finance capitalism at its finest. 😳
Colonialism and imperialism slave masters 😂😂😂
Happy New Year, Radhika and Micheal. Allow me to thank you for helping to lift the dark nasty veil of financial and geopolitical ignorance from myself and others by your truth spreading in the ocean of lies,spin,propaganda, delusions, gaslighting and deliberate blocks of viral information.
Ceasefire now, Netanyahu? Biden? Austin? Blinken?
100%
Wonderful Interview
Hi ive been waiting! ty
Love these episodes! Thank you for all you do 🙏🏾
I love to see real journalism from your channel 🙏😊
Nice analogy with the drug prices. One thing that perplexed me. Why did many of the left stupidly forgot that big pharma and captured agencies lie? Why did you line up for their sales pitch that we now know is ineffective if not dangerous? Why did y'all screw us that asked questions?
Thanks 😮
Excellent 👌 program and excellent use of charts.
Winning formula for the Duo. ❤❤
Looking forward ⏩ to the next program.
The irony about "ownership" of property is that you never really own it. the tax man owns everything. Don't pay property tax and see what happens.
Reading Michael's book waiting for the next . Thankfully I had a father that I chose that is Michael with Richard Wolfe and his wife to be logical. I spread the words of both of you to every person I meet.
I listened to Wolff and Hudson interviews... Wolff still don't get it that it is rent and devaluing of industrial economy that is causing the crisis and in the end Wolff did his 'democracy at work' routine. There is, of couse, the neoliberal model that is based on "If the market worked this way" or the hope strategy. Other models that are seem to be anti neoliberal are also based on faulty "If marx one was all there is to understanding economies" then things would be better if you had "democracy at work" not understanding marx two and three...
It is notable that the Soviet Union all they though about was marx one and as a result were sitting ducks for the Chicago school Pinochet policies of the 90's
@@urrywest To be fair, Lenin, in 'Imperialism: The Highest Stage of Capitalism' (1917) did analyze finance capitalism and emphasize imperialism's financial traits..
@@mythili.. Sounds good. I tend to think we are in a counter revolution [as described in words like impiralism, finachialized capitalism, neoliberalism] to the capitalist revolutoion. If you listen to Hudson these counter revolutions havre been destroying civilizations for about 3,000 years as well as restance to these couter revolutions like the bible.
In my earlier comment I was expressing disapointment with Wolff who seems to think that if we proliferate co-ops then we can wrest control of the over arching economy... Even a reading as simple as *Deficit Myth* by Stepany Kelton and you see the results and techniques of these over-arching institutions.
I believe it was Obama that stopped the Occupy Wall Street movment where we were training people for the next zombie apocalypse- asset deflation. We definately need a lot of people to understand these processes so that we are ready at the next inflectionm point.... Wolff don't feed the bulldog.
@@mythili.. I done wrote three paragraphs that don't seem to post. It is frustrating .. We need a lot of people able to step up when the next asset bubble-zombie apocolipse comes.... We need to understand these things...
@@mythili.. Sounds good.... I tend to think we are experiencing a counter revolution to the industrial or captial revolution.
towards end I said surely this 20 min video almost over until I touched the screen, fantastic
The important thing here is that the Federal Reserve does not dip its hand into a pot of “tax dollars” to pay military contractors, nor is it required to check some mythical account where tax dollars live before it wires the money. In fact, that account doesn’t exist. As former Federal Reserve Chairman Ben Bernanke once noted, when the government pays for things, it is “not taxpayer money. We simply use the computer to mark up the size of the account.” Alan Greenspan, Bernanke’s libertarian predecessor at the Fed further clarified, “There’s nothing to prevent the federal government from creating as much money as it wants and paying it to someone.” The implication is that if Congress can pass a bill that requires some form of spending, the Federal Reserve can and will spend that money without limit, as is the case with the military. This directly contradicts ideas about government money espoused by leading politicians. The most prominent example was in 2009, when a C-SPAN host asked President Barack Obama, “At one point do we run out of money?” to which he responded, “Well, we are out of money now.” These statements are mutually exclusive; only one can prevail. So who is right? newrepublic.com/article/158221/government-can-afford-anythi-wants
Happy New Year to all (wishful thinking). Thank you for your work.
At 25:37: The bond holders come first (economically because they are the government members' campaign contributors). So the government itself has been privatized (the Federal Reserve is privately owned, since 1913). That's what neoliberalism is (fascism; liberty for the banks and debt serfdom for the population at large). ~ Michael Hudson
At 49:38: It's a failed economy because of the austerity that this debt apartheid has created. ~ Michael Hudson
39:41 Financial Apartheid economy
Stop Netanyahu now, Israel.
Request: please invite Stephanie Kelton to talk about money, debt and taxation.
Thanks you are the background for my ;morning Fat Patrol I have been rereading Killing the host... recommended.
Also available as audiobook on youtube, for those that can't access it otherwise.
It appears that the average, middle-class American has yet to experience any significant deleterious economic impacts from the past two decades of neo-liberalism. Many lower income households are suffering and homelessness is undoubtedly increasing, but there still exists a large percentage of economically comfortable middle income citizens. That might change in the years to come and it might eventually lead to social unrest. However, there is little evidence that middle America is yet suffering sufficiently to create any meaningful backlash against their government.
"the average, middle-class American" - every day, more people are pushed to the edge of the middle class and then fall off, into poverty and even homelessness. According to CBS News, 60% of all US citizens live from paycheck to paycheck. What does that do to the notion of the "average middle-class American"?
In any other country in the world, there would already be mass demonstrations in the streets. That is due to the total lack of political consciousness in the US. That in turn has to do to the omnipresent propaganda that has convinced US citizens that their country is unique. You say there is "not yet social unrest"? What you have is a radical social gulf between two halves of the population. Once US people see past the cultural programming and realize that their plight is of a political and economic rather than cultural nature, watch out.
Millions of people will never recover..........
There are significant differences in Homeownership by ethnicity. Buts it's like a 50% difference(45% vs 75%) about a 50% difference, not a factor of 5 or 10. BTW, off the topic, what are the two of you doing to maintain life when SHTF?
Is there a reason for financial equality among ethnic groups? It’s got nothing to do with race whether you can afford your home or not.
23:05 the banks already own the federal reserve. It should be pointed out that Andrew Jackson got rid of the central bank during his presidency. It was in 1913 that Congress abdicated the role of US treasury to the federal reserve.
The banks do not own the fed, the people who create the money and banks only use our deposits for investments, what power are you assuming?
Money is a product, that gains interest, it is the feds job to get as much of it out there as they can.
@@antonyjh1234 the Fed is appointed by the president. At least, I am pretty sure that’s how it works. Of course, it is all comedy. The banks tell the president who to appoint. Why do you think Trump‘s nominee is still there?
The creature from jeykell island, it's a good listen.
Banks don't tell the president anything they don't know, one organisation could and they aren't really a bank, although the system was set up by bankers 110 years ago, for bankers, the govt is more the middle man.
I'm not from America so trumps nominee doesn't matter because the same system is here.@@Guitarpima
Radials made the most important question what has to happen if were going to change this economy
The debt started with the US defaulting on the gold standard in 1971. Then subsequent presidents of the US and prime ministers in UK multiplied the debt thousand folds.
Housing got to be a utility again, rather than a speculative asset. Keeping blackstone out of the renting business, keeping rates around 5%, taxing gains on house price, making sure the housing stock is sufficient (subsidies), should help.
Billionaires livelihoods is an excellent in Capitalism systems but normal condition for ordinary people is not good things to life in Capitalism systems
Arguably banks are the reactinaries to the captialist revolution and are essentially fudalist.
资产阶级专政国家当然是资产阶级获利了
We're screwed.
Learning saves the ❤ from breaking. Thank you both :)
Capitalism systems and Capitalism economic development is for billionaires and wellness riches people's but not for ordinary people with ordinary jobs
Duh~😮
Arguably they are talking about the couter revolution to the capitalism revolution or fudalism.
I wonder what the home building rate is in 2023? How many new single family homes are being built? Is there a stat for this? If so, is I cant find it.
Why is there so much debt ? Because it can't be avoided : If you look at any business, they produces 2 things, goods, and buying power. Since the wages are paid with the income, the buying power can never exceed the income, which is the result of the volume of goods being sold. SO every business produces LESS buying power than product it sold and that why the whole system is always in over production crisis. And the lack of effective demand can only be compensate by debts.
When can we hear your next video on the solutions
You need debt to pay the debt + interest. Money has to be created into existence, once it stops the whole system fails
the system is already failing and a failure and it was invented by humans, so it is not a foregone conclusion.
i guess i'm the only one that has watched " Money as Debt " ---------on RUclips .
38:00 sub prime
great :)
46:45
Leaving a comment to test whether my comments get deleted. 🤨
25:49 it is interesting that those who cause the problems, get bailed out. It would seem that the rich people loan the money to the US government, and then the US government gives the money loaned back to the rich people. This means the national debt is not what US Americans owe themselves, it is what rich people owe US Americans.
No, the bankers use your money to lend out, if the value of the properties went down then the system fail starts with the first person putting less money all the way back to the central bank. There are two sorts of bankers, ones who create money and others who spread our money around taking a cut.
The national debt is owed to the fed, a private organisation that controls the money supply due to govt and large business directions they take but a return must be made.
The creature from Jeykell Island is an audio book
@@antonyjh1234 the government needs money. Rich people buy bonds from the US treasury. Now that people have bought bonds, the government has money. The bank, only has to have 10% of anyone’s money on reserve. However, I believe that rule is no longer in effect. This means when the United States government prints money, it is created as debt. Where does all this money go? Weapons contractors, construction conglomerate, any other friends of Republicans and Democrats? What about quantitative easing? We bail out the stock market with our tax dollars and these people buy their stocks back. The federal reserve in the stock market or parasitic infections on the monetary system. Never mind, the monetary system is obsolete. Why? We have the technology. We are capable of creating more than enough stuff for every woman and man on this planet.
I purchased during the derivative market, if it had not been for rents increasing, I may have regretted doing so.😳
Financial apartheid good point
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I gotta say, economics is like alchemy to me -- it makes no bloody sense. I spent most of the video utterly confused. When it comes to political economy, only politics seem to make sense to me. I'm amazed anyone can parse the economic side. I mean, what does all this mean to a normal person? How does it affect me? Why should I care? I've always been poor. That's normal, even if it does suck. What does debt have to do with all this? I know I'm missing something big, but that's why I'm commenting.
I agree. It's all very complicated.
Fed is the banks sugar daddy, I like that
❤
3:10
USA 20 years max will be irrelevant Geo politically is my opinion
Big reset will goming.
Why does this chart show 60 trillion in debt, when we're told there's thirty-four trillion. Thanks!
Can government debt keep growing for ever?
Perhaps in the USA but not in other countries, because they cannot print dollars?
Open your eyes! Dedollarization is a global and unstoppable trend. Dollar can’t hold its value for long before crash/burn of the empire
this is why the new BRICS system and the growing global south offers a new system an option away from the petro dollar , hence all the chaos
dang!
👍🏾
🙏🏻🙏🏻🙏🏻❤️❤️❤️💕💕💕
Congratulations Michael we’re living a libertarian ideal of freedom for
The banks to privatize the government
in serbia we say "money spins where drill cannot"
Gonzalez Larry Lee Ruth Anderson Robert
Neoliberalism lmfao, should be called socialism. Any form of liberalism died the moment the Federal Reserve was created and used to fund government. And even more socialism, or stateism, or corporate fascism, increased with world wars funding, and then normalization of deficit spending in the postwar/1950s.
Ever since, we have not been living in a liberal or capitalist society.
A debt economy, funded by mainly government created money, is never capitalist or liberal. It's a weird amalgamation of centralized socialist economy, where politicians dictate who gets rich, and gets political power and a hyperinflated to tier society.
Stop coping, capitalism cannot exist without the intervention of the government.
@@thanasis-_- governments are merely the mangers class on behalf of the 1% elites over the working class (the 99%) with in the pyramid structure they flaunt on the one dollar bill
Can some explain to me what is "dead labor", as if I'm 6 years old?
Dead labor means the work that has already been expensed to create existing goods. When the price of the existing goods increases, it effectively means that "dead labor" is competing with the "live labor" (that which produces new goods) for funds, e.g. money going into speculation of assets instead of financing new businesses.
Does this financial accumulation of mortgages emulate the buying of intercessions for tickets to illusory heaven, or some sort of equivalent posthumous fantasy?
Can't make sense of it because there isn't any?
We're IMFing ourselves so hard!
Can you also do a video about reparations for Black Americans and why the US government is so against it? Could it be that reparations are a direct threat to US imperialism? Thanks for taking my request. 😊👍
Congratulations radiika on dead labor. Necromancy
She forgot to include the Crisis on Infinite Earths... 🙄🙄
I love these two. But at 10:13 Radhika is wrong. The government never has to borrow from the Market.
She did say the market they are used too, which of course is the private organization of money printers.
No bud, taxes are the way for the money to exit the battery that humanity is, the govt is a function of the monetary system and taxes a way for debt to leave and be paid back to who they borrow from.
The govt doesn't create any money, only debt, which is then turned into money. @@jason8434
@@jason8434 again, not how it works.
@@jason8434 Since when is taxation "borrowing"?
@@DISASTERJOEIn a way it is...
You get it partly back when you're on the pension .
^ When the Bush crash occurred
I wish I could download the transcript and edit out all the stammering and halting speech. Great content but the delivery makes it difficult to listen to. I want to share but its not professionally produced and can cause people to stop listening. (Like my husband)You might consider having some voice artists to re-enact the script and have a clear transcript available. Keep up the good work.
Why don’t you tell the viewers that debt is endogenously created. Most people don’t know how it is done.
Modern Monetary Theory baloney.
Radhika speaks pretty well for a woman.
Buy gold
essentially?.