Finance Capitalism Hits a Wall
The Oligarchs' Escape Plan - at the Treasury's Expense
By Prof. Michael Hudson
The financial "wealth creation"
game is over. Economies emerged
from World War II relatively free of debt, but the 60-year global run-up has
run its course. Finance capitalism is
in a state of collapse, and marginal
palliatives cannot revive it. The U.S. economy cannot "inflate its way out
of debt," because this would collapse
the dollar and end its dreams of
global empire by forcing foreign countries to go their own way. There is too
little manufacturing to make the economy
more "competitive," given its high
housing costs, transportation, debt and tax overhead. A quarter to a third
of U.S. real estate has fallen into Negative
Equity, so no banks will lend
to them. The economy has hit a debt wall and is falling into Negative
Equity, where it may remain for as far as
the eye can see until there is a
debt write-down.
February 18, 2009 "Global Research" -- - Mr. Obama's "recovery"
plan based on infrastructure spending
will make real estate fortunes for
well-situated properties along the new public transport routes, but there is
no sign of cities levying a windfall
property tax to save their finances.
Their mayors would rather keep the cities broke than to tax real estate and
finance. The aim is to re-inflate property
markets to enable owners to pay
the banks, not to help the public sector break even. So state and local
pension plans will remain underfunded
while more corporate pension plans go
broke.
Full : http://archives.econ.utah.edu/archives/a-list/2009w07/msg00048.htm
_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l
