LUMPENPROLETARIAT—Free speech radio’s Guns and Butter has been airing, now, for years.  It is broadcast out of KPFA (Berkeley, CA) radio across the Pacifica Radio Network and many of its affiliates across the nation.  Some of us have been listening to the weekly broadcasts regularly since its inception.  Host Bonnie Faulkner has interviewed many economists and leading figures in various areas of expertise.  One notable recurring guest economist heard on Guns and Butter is Dr. Michael Hudson (University of Missouri-Kansas City).

Dr. Michael Hudson joins free speech radio’s Guns and Butter to discuss debt deflation and the evils of capitalist modes of production as well as touching upon his 2015 book, Killing the Host:  How Financial Parasites and Debt Destroy the Global Economy.  Listen (and/or download) here.

Messina

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[Programme summary from KPFA.org archive page]

The Slow Crash  with Michael Hudson
We discuss in detail, the concept of debt deflation; housing, student loan and automobile debt; the oil market; the stock market; negative interest rates; currencies; and the shrinking of the real economy.

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[Working draft transcript of actual radio broadcast by Messina for Lumpenproletariat and Guns and Butter]

GUNS AND BUTTER—[6 APR 2016]  “This is Guns and Butter.  [intro theme plays]

DR. MICHAEL HUDSON:  “Most people think of the economy as being producing goods and services, and paying labour to buy what it produces.  But a growing part of the economy in every country has been the finance, insurance, and real estate sectors, the assets and debt structure.  More and more money is sucked out of the production and consumption economy to pay the FIRE sector.  And that’s what shrinks markets and causes debt deflation.  If you pay the banks, you have less to spend on goods and services.”

BONNIE FAULKNER:  “I’m Bonnie Faulkner.  Today on Guns and Butter:  Dr. Michael Hudson.  Today’s show:  The Slow Crash.

“Dr. Hudson is a financial economist and historian.  He is president of the Institute for Long Term Economic Trend, a Wall Street financial analyst, and Distinguished Professor of Economics at the University of Missouri-Kansas City.  His 1972 book, Super Imperialism: The Economic Strategy of American Empire is a critique of how the United States exploited foreign economies through the IMF and the World Bank.  His latest book is Killing the Host: How Financial Parasites and Debt Destroy the Global Economy. [1]  Due out soon:  J is For Junk Economics.

“Today, we discuss in detail the concept of debt deflation; housing, student loan and automobile debt; the oil market; the stock market; negative interest rates; currencies; and the shrinking of the real economy.

“Michael Hudson, welcome.” (c. 2:20)

DR. MICHAEL HUDSON:  “It’s good to be here, again, Bonnie.  (c. 2:22)”

BONNIE FAULKNER:  “You have indicated that, as a result of the United States and European debt deflation, that there is an economic slowdown.

“First of all, how would you define deflation?”  (c. 2:35)

DR. MICHAEL HUDSON:  ” [SNIP] ”  (c. 3:41)

BONNIE FAULKNER:  “Well, thank you for that because that is confusing because I think a lot of people consider deflation simply a decrease in price.  Does that have anything to do with it?”  (c. 3:54)

DR. MICHAEL HUDSON:  ” [SNIP] ”

BONNIE FAULKNER:  ” [SNIP]

DR. MICHAEL HUDSON:  ” [SNIP] ”  (c. 36:00)

BONNIE FAULKNER:  ” [SNIP]

DR. MICHAEL HUDSON:  ” [SNIP] ”  (c. 38:00)

BONNIE FAULKNER:  ” [SNIP]

DR. MICHAEL HUDSON:  ” [SNIP] ”  (c. 39:00)

BONNIE FAULKNER:  ” [SNIP]

DR. MICHAEL HUDSON:  ” [SNIP] ”  (c. 40:19)

BONNIE FAULKNER:  “I’m speaking with financial economist and historian Dr. Michael Hudson.  Today’s show:  ‘The Slow Crash’.  I’m Bonnie Faulkner.  This is Guns and Butter.

“Do you think that the United States is conducting a financial war against Europe?”  (c. 40:39)

DR. MICHAEL HUDSON:  “That’s a byproduct.  The financial war is aimed mainly at, first of all, at China; secondly, at Russia.  But Europe is the collateral damage in this because the natural geopolitical arrangement is for Europe to be part of Eurasia, especially for Germany to develop trade and investment relationships with Russia.

“But the US opposition to Russia and China has entailed sanctions against Russia.  And Russia, in turn, has made counter-sanctions against Europe.

“So, Europe is, essentially, sacrificing its opportunities for trade and investment in order to remain part of NATO and is also agreeing to bomb Syria in the near east, creating a wave of refugees, that now it doesn’t know what to do with.  And it’s amazing that Europe says: What are we going to do with these refugees?  And it’s as if it doesn’t realise that by being a part of NATO and bombing these countries, so giving them the choice:  Do you want to live by fleeing?  Or do you want to stay and get bombed? 

“But Europe is creating the flight of refugees, that’s tearing it apart, politically, and leading the right-wing nationalist parties to gain power, that want to withdraw from the Eurozone.

“So, Europe is acting in a very self-destructive manner.  But it’s doing so because it’s trying to be loyal to the United States.  And most of the European leaders look at themselves as having to follow the United States because, otherwise, if the U.S. opposes them, there’ll be a regime change.”  (c. 42:21)

BONNIE FAULKNER:  “Yes.  It seems as though it’s more important to the United States to conduct this financial war against Russia and China than it is—it’s as if the United States is willing to sacrifice Germany and the rest of Europe over it.”  (c. 42:36)

DR. MICHAEL HUDSON:  “Well, you said the United States.  We’re talking about, really, the neocons and a particular group within the U.S. government.  The neocons are led, you know, by the old Bush/Cheney people, including Obama, who is to the right of, even, Cheney, but also Hillary Clinton, who is also to the right of Cheney.

“Hillary says we should go back into Libya, that we should fight even more.  And she said that Putin is Hitler.  And that means, when she comes to power, you can be pretty sure that there will be a confrontation.  And, if there is, a number of former generals in America, have been warning that the chances of atomic war have never been higher.  And, if Hillary gets in, Russia is going to go on an immediate nuclear alert.  And there’s a very good chance of war.”  (c. 43:32)

BONNIE FAULKNER:  “—”

DR. MICHAEL HUDSON:  “But Hillary Clinton is not the United States, although the United States may end up electing her, in which case, in my mind, there will be a disaster.”  (c. 43:33)

BONNIE FAULKNER:  “Yes.  [SNIP] ”

DR. MICHAEL HUDSON:  ”      [SNIP] ”  (c. 45:00)

BONNIE FAULKNER:  ” [SNIP]

DR. MICHAEL HUDSON:  ” [SNIP] ”  (c. 47:25)

BONNIE FAULKNER:  ” [SNIP]

DR. MICHAEL HUDSON:  ” [SNIP] ”  (c. 49:00)

BONNIE FAULKNER:  ” [SNIP]

DR. MICHAEL HUDSON:  ” [SNIP] ”  (c. 50:33)

BONNIE FAULKNER:  ” [SNIP]

DR. MICHAEL HUDSON:  ” [SNIP] ”  (c. 50:45)

BONNIE FAULKNER:  ” [SNIP]

DR. MICHAEL HUDSON:  ” [SNIP] ”  (c. 51:45)

BONNIE FAULKNER:  ” [SNIP]

DR. MICHAEL HUDSON:  ” [SNIP] ”  (c. 52:45)

BONNIE FAULKNER:  ” [SNIP]

DR. MICHAEL HUDSON:  ” [SNIP] ”  (c. 53:40)

BONNIE FAULKNER:  ” [SNIP]

DR. MICHAEL HUDSON:  ” [SNIP] ”  (c. 54:33)

BONNIE FAULKNER:  ” [SNIP]  (c. 59:59)

Learn more at GUNS AND BUTTER.

[This transcript will be expanded as time constraints, and/or demand or resources, allow.]

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[1]  On Dr. Michael Hudson‘s latest book, Killing the Host: How Financial Parasites and Debt Bondage Destroy the Global Economy (2015):

“How financial parasites and debt destroy the global economy. Professor Hudson continues the discussion on the financialization of capital and its global effects.  KILLING THE HOST exposes how finance, insurance, and real estate (the FIRE sector) have gained control of the global economy at the expense of industrial capitalism and governments.  The FIRE sector is responsible for today’s economic polarization (the 1% vs. the 99%) via favored tax status that inflates real estate prices while deflating the “real” economy of labor and production.  The Great 2008 Bailout saved the banks but not the economy, and plunged the U.S., Irish, Latvian and Greek economies into debt deflation and austerity.  This book describes how the phenomenon of debt deflation imposes austerity on the U.S. and European economies, siphoning wealth and income upward to the financial sector while impoverishing the middle class.”

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[7 APR 2016]

[Last modified 18:17 PDT  7 APR 2016]

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