Michael Hudson, a professor of Economics at the University of Missouri, Kansas City, is a sharp critic of what he considers the “rent seeking” behavior which has come to dominate the world of global finance. Once upon a time, governments regularly expunged debts to prevent the crises and turmoil that overindebtedness caused. But then came the Romans. For the Romans, “a debt was a debt was a debt”. And since then, it has become standard fare to enforce debt contracts even when they are unpayable. Hudson now sees a parasitic financial industry that looks only to determine how much wealth it can extract via fees, interest income, and tax breaks, rather than providing capital to increase.
Gonzalo Lira believes that ultra-easy monetary policy will be the demise of the US dollar. In part two of our conversation with Gonzalo, he also explained that his pessimism about the US dollar emanates from his view that the United States has become a “kleptocratic oligarchy” in which investment in capital has become passé and the financialization of the economy benefits a select few.
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