Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Monday, December 02, 2013

American Oligarchs Will Never Cancel the Debts Owed to Them

University of Missouri economic historian and former Wall Street economist Michael Hudson explains one of the best-kept and most pernicious secrets of contemporary capitalism: Unless the financial scheme underpinning society is restructured, the bulk of debts owed by working and poor Americans can’t and won’t be repaid. The result is an ever-growing class of permanent debt slaves.

The clip below comes from a 2011 documentary called “Surviving Progress.” In it, Hudson states that the problem originates with the privatization of finance. “Every society in history for the last 4,000 years has found that the debts grow more rapidly than people can pay,” he says. “The problem is a small oligarchy of 10 percent of the population at the top to whom all of these net debts are owed to. You want to annual the debts to the top 10 percent. That’s what they’re not going to do. The oligarchy is running things. They would rather annul the bottom 90 percent right to live than to annul the money that’s due to them. They would rather strip the planet and shrink the population and be paid rather than give up their claims. That’s the political fight of the 21st century.”

Hudson’s belief that the problem cannot be solved without a radical reorganization of finance comes from his experience on Wall Street. “My job on Wall Street was to be balance and payments economist for Chase Manhattan bank in the 1960s. My first job there was to calculate how much debt could third world countries pay, and the answer was ‘Well, how much do they earn?’ And whatever they earned, that’s what they could afford to pay in interest. And our objective was to take the entire earnings of a third world country and say ‘Ideally, that would be all paid as interest to us.’ ”


Original Article
Source: truthdig.com
Author:  Alexander Reed Kelly

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