21 July, 2011

Rare honesty

Michael Hudson has a lauditory (and rare) skill: he's an economist who tells the unvarnished truth.

From Wall Street’s Euthanasia of Industry | Michael Hudson:
[Interviewer] "Michael, I read the in the newspapers that the great recession, so-called, has long since ended, but unemployment remains stubbornly high with only a measly 18,000 jobs created in June. I believe the term that was coined some time ago is a jobless recovery. What is a jobless recovery?

[Hudson] We call that a depression – in this case, caused mainly by debt deflation. Just because the stock market is being inflated by the Federal Reserve doesn’t mean that the economy itself is growing. It’s shrinking – from a combination of families and businesses having to pay off debts rather than spend their income on goods and services, and the government’s shift of taxes off finance, insurance and real estate (FIRE) onto labor and industry."
There's a lot more where that came from.

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