Thursday, September 25, 2008

Debt expansion and forgiveness: Bring the Jubilee

I've read a few interviews with Michael Hudson, a former Wall Street economist and professor of economics, and have found them relatively easy to follow (given how confusing all the Wall Street gobbledygook can be) and very insightful. Here he talks about the history of credit and debt, and the role of debt forgiveness (i.e., the Biblical Jubilee). This entire piece is well worth reading.

No economy can grow at steady exponential rates; only debts can multiply in this way. That is why Mr. Paulson’s $700 billion giveaway to his Wall Street colleagues cannot work.

What it can do is provide a one-time transfer of wealth to insiders who already have been playing the debt-credit system and siphoning off its predatory financial proceeds to themselves.

The idea is to take as much as you can. As the saying goes: “You only have to make a fortune once in a lifetime.”
Their plan now is for icing on the cake — to take Mr. Paulson’s $700 billion and run. It’s not a “bailout of the financial system.” It’s as giveaway — to insiders, to sell out all their bad bets.
This change always is sudden, arranged under emergency conditions.
These bad loans are toxic because they can only be sold at a loss — if at all, because foreign investors no longer trust the U.S. investment bankers or money managers to be honest. That is the problem that Congress is not willing to come out and face.
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1 comment:

Seven Star Hand said...

Hello Rev,

You've hit the nail squarely on the head. The time of the long prophesied jubilee is just around the corner. Pass the good word along. Great things are afoot and humanity is about to be freed from the great deceptions of money, religion, and politics.

Here is Wisdom...