Most Popular Choices
Share on Facebook 41 Printer Friendly Page More Sharing
OpEdNews Op Eds    H2'ed 10/25/20

How an "Act of God" Pandemic is Destroying the West

By       (Page 4 of 4 pages) Become a premium member to see this article and all articles as one long page.   7 comments
Message Michael Hudson, Dr.
Become a Fan
  (11 fans)

China has an option that Western economies do not: It is in a position to do what Hammurabi and other ancient Near Eastern palatial economies did for thousands of years - write down debts so as to keep the economy resilient and functioning. It can suspend scheduled debt service, taxes, rents and public fees from having to be paid by troubled areas of its economy, because China's government is the ultimate creditor. It need not contend with politically powerful bankers who insist that the economy at large must lose, not themselves. The government can write down the debt to keep companies in business, and also their employees. That's what socialist governments do.

The underlying problem is finance capitalism. Its roots lie at the heart of Western civilization itself, rejecting the "circular time" permitting economic renewal by Clean Slates in favor of "linear time" in which debts are permanent and irreversible, without public oversight to manage finance and credit in the economy's overall long-term interest.

It often is easier to get rich in such times of disaster and need than in times of normal prosperity. While the U.S. economy polarizes between creditors and debtors, the stock market anticipates fortunes being made quickly from the insolvency of business with assets and property to be grabbed. Coupled with the Federal Reserve's credit creation to support the financial and real estate markets, asset prices are soaring (as of June 2020) for companies that expect to get even richer from the widespread distress to come in autumn 2020 when evictions and foreclosures are scheduled to begin again.

In that respect, the corona virus's effect has been to help defeat the financial sector's enemy - governments strong enough to regulate it. The fiscal squeeze resulting from widespread unemployment, business closedowns, rent and tax arrears is being seized upon as a means of dismantling and privatizing government at the federal, state and local levels, at the expense of the citizenry at large.

Photo by SwapnIl Dwivedi on Unsplash

Next Page  1  |  2  |  3  |  4

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

Must Read 3   Well Said 2   Valuable 2  
Rate It | View Ratings

Michael Hudson, Dr. Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Michael Hudson is President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of J is for Junk Economics(2017), Killing the Host (2015), The Bubble and Beyond(2012), Super-Imperialism: The Economic Strategy of American Empire (1968 & 2003), Trade, Development and Foreign Debt (1992 & 2009) and of The Myth of Aid (1971), amongst (more...)
 

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines

 
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

De-Dollarization: Dismantling America's Financial-Military Empire The Yekaterinburg Turning Point

Peter "Socialist" Schiff _ Exposed by MMT's Michael Hudson

The IMF forgives Ukraine's debt to Russia

The American Empire self-destructs.

The Euro Without German Industry

US Coronavirus 'Bailout' Scam is $6 Trillion Giveaway to Wall Street

To View Comments or Join the Conversation:

Tell A Friend