Trump's protectionist policies threaten to radically unbalance the balance of payments and exchange rates throughout the world, preventing countries from earning the dollars needed to pay their debts.
As usual Hudson has managed to squeeze so much vital information and understanding into one short article. He is my go to person on economics and this article reinforces my view. It’s a must read if you want to know what’s in store for us. Very scary but prescient
Excellent economic and geopolitical analysis by the brilliant prof. Michael Hudson.
IMO, the global corporate-banking oligarchy operates through BOTH its wings, both the fake left and the fake right. Both through liberal democrats (who aren't liberal at all) who use inauthentic slogans of love and compassion (which they don't mean) to advance billionaire profiteering & domination , and through the oligarchy's other wing- the fake "populist" billionaires (who are sold to their propagandized worshippers as "anti-elite" and "pro-freedom" while IN REALITY are tyrant oligarchs who work diligently to enrich the 0.1% and to build the digital techno prison of humanity for the domination of the few over tje many.
The tragedy is the most of humanity has been herded into partisan enclosures where we are taught to cheer for one or the other wing of the global oligarchy and to view the other half as 'the evil elite'.
It's not just the incoherent ststements by this infantile bully (who talks and behaves like a 4 year old), it's also his ACTUAL HORRIBLE ACTIONS in his first few hours in office. Like a true tyrant, raining down a barrage of executive orders to usher in technocratic oligarch rule by AI and to alter government institutions and change the manner in which the country is run so that the president and group of billionaires around him make all decisions which are then rubberstamped by his obedient congress. This political action is then paralleled by a media blitz in tje billionaores' media, and repeated in social media like the GOP's X algorithms and numerous paid influencers on the mainstream "alternative media". See more about this and his barrage of dictatorial executive orders for the oligarchs here https://substack.com/home/post/p-155613776
And his unbelievably dumb, gullible and deceived cult of worshippers keep believing (becasue that is what is being repeatedly hammered into their head by the social engineers in their echo-chamber) that his numerous actions for the empire to enrich the ultra-rich and to cement the control of his billionaire oligarchs over humanity (see the links above and below) is really just a very sophisticated 5D chess that that he is playing against the deep state, in his infinite wisdom. The same old Qanon deception and idiocy. His hypnotized worshippers still believe in this stuff. In the infantile and deceived Qanon/MAGA world, the messiah can do no wrong. When he does do obvious things for the billionaires' empire against the people, then this is inversed in the MAGA/Qanon world into "no no, you don't understand, he really means the opposite of what he does in reality. He is really playing a very sophisticated 5D chess game with the deep state, it's so sophisticates that only the most wise (like our messiah) can understand it. He really means the opposite of what he does. We know it becasue we know he's just like us, a man of the people who came to save us from the elite, and besides, he told us that he loves us"
Every tyranical plutocratic regime in history relies on a mass of hypnotized gullible zombies who live in an alternate reality (these days, dictated by the social media enclosures/echo-chambers that the ruling wealth class has herded us into) that blindly worship the beloved great leader, who supposedly came on the scene to protect the people from an evil monstrous threat of the enemies (either external evil monster enemies, or internal "traitors to the nation" who supposedly do tje bidding of the monster evil scary enemy"). This billionaores' trick works like a charm every single time and people keep falling for it again and again and again and again in every generation. See this mist-read essay to learn exactly how they play this trick on us again and again and again https://www.pdrboston.org/oppressors-need-bogeyman-enemies
Oligarch rule cannot happen without the full worship and cheering of the heavily-propagandized and deceived fools (who ironically call themselves "red-pilled" and pat themselves on the back for how supposedly "awake" they are..)
"There also is a strong balance-of-payments cost to Mexico, and indeed to other countries whose citizens have sought work in the United States. A major source of dollars for these countries has been money remitted by workers who send what they can afford back to their families. This is an important source of dollars for families in Latin America. Deporting immigrants will remove a substantial source of revenue that has been supporting the exchange rates of their currencies vis-à-vis the dollar."
Ecuador relies principally on remesas, or money sent to EC families from abroad. 5 billion dollars last year while the bankers raise taxes, interest rates and offer no public projects. They just steal, and steal and steal.
America as an attitude to another nation back in the 1930's and will end up the same way. Like Nazi Germany in WW2 the Anglo-Zionist Empire will have the rest of the world against us. The Neocons and Zionists of AIPAC🇺🇸🇮🇱 have the same mindset and have turned our nation into the world's foremost terrorist state.
Not mentioned (but perhaps implied) in this excellent article is the role BRICS could play as the US blindly pursues its imperial delusions. Rather than sending its dollars back to the US as bond purchases, China might find it very useful to recycle its surplus dollars into imports of resources from US dollar indebted nations, gravitating them more towards China and BRICS, while allowing those countries to repay dollar debts and lessening reliance on the US dollar in the longer run. It also seems from Prof Hudson's analysis that countries that are more financialised within the US dollar system are those less able to break from it thus risking severe de-industrialisation, the UK being an example.
I thought having md degree made someone smart enough to understand the obvious as dr Hudson explains…but no such luck.. I can only vouch for admiration and total agreement about f..king chaos menacing the whole world. I want to move to china or Russia where they have GOOD GOVERNMENT…..notes from poor poor Canader!!
“…Trump told the Davos Economic Forum January 23: “My message to every business in the world is very simple: Come make your product in America and we will give you among the lowest taxes of any nation on earth.” Otherwise, if they continue to try and produce at home or in other countries, their products will be charged tariff rates at Trump’s threatened 20%.…”
It’s completely unnecessary to splay Trump’s name all over this.
Biden and the Dems already said it twice. Once in form of the so called Inflation Reduction Act, which already peeled off European industrial companies to invest in American factories and shut down plants in Germany. And after that by blowing up the gas pipelines supplying cheap energy to those factories.
And before that Obama attempted it with the failed “free trade agreements” basically designed to open up Europe to American imports while impoverishing European workers.
It’s not about Trump. It’s longstanding US policy.
All very true and learned I'm sure. But I didn't see the green energy transition nor the environmental crisis mentioned. The economic crisis will probably starting biting in the next few decades, same time as the climate one. The downturn in production may help a bit, but with so much warming, species extinction and changes to the AMOC etc is set in, it's not going to be pretty.
The Global economy would bounce back sooner than expected. As for the US economy… Good luck with that…would most likely drag Exceptional Ameica Proxy economies down along with it.
Thanks for this informative article never read your stuff before really great. Let me get this straight back USA is buying goods with junk dollars and asking countries to pay tariffs on the goods stolen with junk bits of paper?
They think they'll get cheaper energy in USA but won't because as Canada already cutting exports and they've pist of Mexico?
I believe the reason all this is happening is two fold long term America is about hegemony so it has destroyed the possibility of a trade block between Europe and Russia which would have rivaled them plus with it's own trade currency, I see the hand of American intelligence behind the breakup of the European Union and brexit. Second Short term reason is that American capitalism is controlled by wall street and crashing the economy would mean huge bail outs.
America has other problems while it thrashes about in the dying stage of imperialism it is seriously pissing off its minions, Japan's and Germany been totally screwed over, the UK can't even get a trade deal, Trump is going the cause a dialectical increase in Americas decline, and a stampede towards BRICS, shortest empire EVER.
We are skidding off the map into uncharted territory. Couple this with anthropogenic climate change, the probable outcomes point to disaster in many forms. Good intentions always come in second to greed and hubris. Buckle up!
As usual Hudson has managed to squeeze so much vital information and understanding into one short article. He is my go to person on economics and this article reinforces my view. It’s a must read if you want to know what’s in store for us. Very scary but prescient
Excellent economic and geopolitical analysis by the brilliant prof. Michael Hudson.
IMO, the global corporate-banking oligarchy operates through BOTH its wings, both the fake left and the fake right. Both through liberal democrats (who aren't liberal at all) who use inauthentic slogans of love and compassion (which they don't mean) to advance billionaire profiteering & domination , and through the oligarchy's other wing- the fake "populist" billionaires (who are sold to their propagandized worshippers as "anti-elite" and "pro-freedom" while IN REALITY are tyrant oligarchs who work diligently to enrich the 0.1% and to build the digital techno prison of humanity for the domination of the few over tje many.
The tragedy is the most of humanity has been herded into partisan enclosures where we are taught to cheer for one or the other wing of the global oligarchy and to view the other half as 'the evil elite'.
It's not just the incoherent ststements by this infantile bully (who talks and behaves like a 4 year old), it's also his ACTUAL HORRIBLE ACTIONS in his first few hours in office. Like a true tyrant, raining down a barrage of executive orders to usher in technocratic oligarch rule by AI and to alter government institutions and change the manner in which the country is run so that the president and group of billionaires around him make all decisions which are then rubberstamped by his obedient congress. This political action is then paralleled by a media blitz in tje billionaores' media, and repeated in social media like the GOP's X algorithms and numerous paid influencers on the mainstream "alternative media". See more about this and his barrage of dictatorial executive orders for the oligarchs here https://substack.com/home/post/p-155613776
And his unbelievably dumb, gullible and deceived cult of worshippers keep believing (becasue that is what is being repeatedly hammered into their head by the social engineers in their echo-chamber) that his numerous actions for the empire to enrich the ultra-rich and to cement the control of his billionaire oligarchs over humanity (see the links above and below) is really just a very sophisticated 5D chess that that he is playing against the deep state, in his infinite wisdom. The same old Qanon deception and idiocy. His hypnotized worshippers still believe in this stuff. In the infantile and deceived Qanon/MAGA world, the messiah can do no wrong. When he does do obvious things for the billionaires' empire against the people, then this is inversed in the MAGA/Qanon world into "no no, you don't understand, he really means the opposite of what he does in reality. He is really playing a very sophisticated 5D chess game with the deep state, it's so sophisticates that only the most wise (like our messiah) can understand it. He really means the opposite of what he does. We know it becasue we know he's just like us, a man of the people who came to save us from the elite, and besides, he told us that he loves us"
Every tyranical plutocratic regime in history relies on a mass of hypnotized gullible zombies who live in an alternate reality (these days, dictated by the social media enclosures/echo-chambers that the ruling wealth class has herded us into) that blindly worship the beloved great leader, who supposedly came on the scene to protect the people from an evil monstrous threat of the enemies (either external evil monster enemies, or internal "traitors to the nation" who supposedly do tje bidding of the monster evil scary enemy"). This billionaores' trick works like a charm every single time and people keep falling for it again and again and again and again in every generation. See this mist-read essay to learn exactly how they play this trick on us again and again and again https://www.pdrboston.org/oppressors-need-bogeyman-enemies
Oligarch rule cannot happen without the full worship and cheering of the heavily-propagandized and deceived fools (who ironically call themselves "red-pilled" and pat themselves on the back for how supposedly "awake" they are..)
Well said!!
"There also is a strong balance-of-payments cost to Mexico, and indeed to other countries whose citizens have sought work in the United States. A major source of dollars for these countries has been money remitted by workers who send what they can afford back to their families. This is an important source of dollars for families in Latin America. Deporting immigrants will remove a substantial source of revenue that has been supporting the exchange rates of their currencies vis-à-vis the dollar."
Ecuador relies principally on remesas, or money sent to EC families from abroad. 5 billion dollars last year while the bankers raise taxes, interest rates and offer no public projects. They just steal, and steal and steal.
Thank you Michael Hudson...........chaotic times ahead.
Do read this everyone.
America as an attitude to another nation back in the 1930's and will end up the same way. Like Nazi Germany in WW2 the Anglo-Zionist Empire will have the rest of the world against us. The Neocons and Zionists of AIPAC🇺🇸🇮🇱 have the same mindset and have turned our nation into the world's foremost terrorist state.
Not mentioned (but perhaps implied) in this excellent article is the role BRICS could play as the US blindly pursues its imperial delusions. Rather than sending its dollars back to the US as bond purchases, China might find it very useful to recycle its surplus dollars into imports of resources from US dollar indebted nations, gravitating them more towards China and BRICS, while allowing those countries to repay dollar debts and lessening reliance on the US dollar in the longer run. It also seems from Prof Hudson's analysis that countries that are more financialised within the US dollar system are those less able to break from it thus risking severe de-industrialisation, the UK being an example.
I thought having md degree made someone smart enough to understand the obvious as dr Hudson explains…but no such luck.. I can only vouch for admiration and total agreement about f..king chaos menacing the whole world. I want to move to china or Russia where they have GOOD GOVERNMENT…..notes from poor poor Canader!!
“…Trump told the Davos Economic Forum January 23: “My message to every business in the world is very simple: Come make your product in America and we will give you among the lowest taxes of any nation on earth.” Otherwise, if they continue to try and produce at home or in other countries, their products will be charged tariff rates at Trump’s threatened 20%.…”
It’s completely unnecessary to splay Trump’s name all over this.
Biden and the Dems already said it twice. Once in form of the so called Inflation Reduction Act, which already peeled off European industrial companies to invest in American factories and shut down plants in Germany. And after that by blowing up the gas pipelines supplying cheap energy to those factories.
And before that Obama attempted it with the failed “free trade agreements” basically designed to open up Europe to American imports while impoverishing European workers.
It’s not about Trump. It’s longstanding US policy.
All very true and learned I'm sure. But I didn't see the green energy transition nor the environmental crisis mentioned. The economic crisis will probably starting biting in the next few decades, same time as the climate one. The downturn in production may help a bit, but with so much warming, species extinction and changes to the AMOC etc is set in, it's not going to be pretty.
The Global economy would bounce back sooner than expected. As for the US economy… Good luck with that…would most likely drag Exceptional Ameica Proxy economies down along with it.
Thanks for this informative article never read your stuff before really great. Let me get this straight back USA is buying goods with junk dollars and asking countries to pay tariffs on the goods stolen with junk bits of paper?
They think they'll get cheaper energy in USA but won't because as Canada already cutting exports and they've pist of Mexico?
I believe the reason all this is happening is two fold long term America is about hegemony so it has destroyed the possibility of a trade block between Europe and Russia which would have rivaled them plus with it's own trade currency, I see the hand of American intelligence behind the breakup of the European Union and brexit. Second Short term reason is that American capitalism is controlled by wall street and crashing the economy would mean huge bail outs.
America has other problems while it thrashes about in the dying stage of imperialism it is seriously pissing off its minions, Japan's and Germany been totally screwed over, the UK can't even get a trade deal, Trump is going the cause a dialectical increase in Americas decline, and a stampede towards BRICS, shortest empire EVER.
We are skidding off the map into uncharted territory. Couple this with anthropogenic climate change, the probable outcomes point to disaster in many forms. Good intentions always come in second to greed and hubris. Buckle up!
I love to read me some Hudson!
Countries that borrow in foreign currency are placing a bet against the appreciation of that currency. That is real stupid.
https://www.social-protection.org/gimi/Media.action;jsessionid=ICajzL25Rp5uNTUd3q5QnduhFqmIaxXG6KTQgHgNklIDM2aakjTs!345078878?id=15579
I never liked those silly Bob Hope/Bing Crosby movies, anyway. 😜