Distressed governments are told to sell valued land and natural resources. Buyers want fire sale prices. Bankers and other financial predators profit greatly.
Lucrative bank loan financing is created. Privileged 1% players profit. Indebtedness and mass privatizations benefit them. Ordinary people end up severely harmed.
Austerity advocates lie. Central banks only print new money to wage war, destroy property, and benefit financial interests, other corporate favorites, and super-rich elites.
Fundamental infrastructure and popular needs go begging. Effective policies are spurned.
"Governments need to provide the economy with money and credit to expand markets and employment. They do this by running budget deficits, and this can be done by creating their own money."
Bankers oppose what harms their interests. Washington is Wall Street occupied territory. What banking giants and other major financial companies want they get.
They "captured mainstream economics." They're "winning (their) war against the economy at large." They want ordinary people to think there's no alternative.
Political Washington and media scoundrels support them. Much better alternatives than force-fed austerity and debt peonage exist, says Hudson. Part two will explain more.
Late Friday afternoon, Obama expressed modest optimism. He met with congressional leaders. Senate Minority Leader Mitch McConnell (R-KY) said:
"We had a good meeting at the White House, and we are engaged in discussions". in hopes that we can come forward (with a plan) as early as Sunday."
Senate Majority Leader Harry Reid (D-NV) called discussions "constructive." He added that "whatever we come up with" won't be perfect.
Expect a December 31 Senate vote. Majority Democrats will pass what Obama endorses. House Republicans may or may not agree. Failure will let yearend tax breaks and unemployment benefits expire. Explaining it to constituents won't be easy.
Obama wants wealthy Americans "to pay a little more." Republicans object. Expect eventual compromise.
Obama said what fiscal conservatives want to hear. He wants spending cut "in a responsible way."