Will unz.com carry the rest of these Hudson Reports?

Very perceptive. While my mortgage took away my options other than to work, I had not considered it in historical perspective. I suppose the British Building Societies of the time (cooperative ownership) side stepped the issue. Mortgages have become much more of an issue since the banks entered the market.

Not really. They say it’s the first of an ongoing series, so they’ll be able to get more into substance, presumably.

Also, they succeed in bringing up their main topic: debt, and make some important claims:

1) Debt and its cyclic cancellation, by whatever means, were important and regular patterns of ancient life.

2) There’s currently an incredible blindness to the cost of debt in current official macroenomic statistics such as GDP.

Well, that was hardly an analysis at all. More like idle chit-chat. I’m disappointed that such an important topic was merely chatted over.

We cannot now replicate such Jubilees in a single stroke, because most financial contracts are intermediated via financial institutions, and the Sovereign has mutated from chief creditor to main debtor, (Section 6). But we can try to replicate the former objectives of such social engineering.

Hudson is brilliant, and we need him thinking.

Unfortunately, Hudson is mute on Sovereign Money. Modern Monetary Theory is not Sovereign Money. Modern Money is banking credit, which in turn is banking corporations. These corporations are the financial institutions, who have inserted themselves as a third party into our operations. We can go back to a Sovereign System, it is a simple law change. It is a sad commentary that the Sovereign has mutated to a debtor – a sad joke on us.

http://www.sovereignmoney.eu

A sovereign money system morphs money supply from bank credit into treasury money. Once the money supply shifts into money, then public jubilees become easier to do. These plans to convert the money supply are already done and ready to go, it is a simple matter of replacing Federal Reserve Notes (bank money) with U.S. dollars as loans are paid down in a 1:1 ratio. Banks are then forbidden from creating credit.

In a sovereign system, the source, or headwaters where money is created is the State (Treasury or monetary authority), and at the uptake or Tax level is the State. At the private creditor/debtor level people still make credits and debts with each other, but they have to use Treasury Money.

The true nature of money is law, and “financial institutions” have taken/usurped law into their own hands. Finance creating the credit is money power unrestrained and unlawful. At least in the past, a constitutional KING had his subjects best interests at heart.

Hungary’s constitutional Kingdom lasted nearly 1000 years, so it must have had some sort of King mechanism for erasing debts.

Hudson’s debt ideas and equity ideas are a form of Sovereign money power, but are ignoring the elephant in the room…. private bank hypothecations of credit have hosted society with usurious debts. Money power has to be ripped away from the claws of private banking corporations – maybe Hudson will advance his thinking in this area.

Perhaps the key question is whether the private sector provides such insufficient equity funding for SMEs that it is worth going down the admittedly dangerous route of establishing a public sector equity fund for SMEs?

Canada answered this question 1938-1974.

Debt Free money issued from Bank of Canada to build infrastructure ultimately became wages. These wages accrued as savings. Said savings were put into trusts.

To buy a home meant going to a Trust, and the paying back of said loan would be to pay back saving creditors. The Trust was Gyro like a Savings and Loan in the U.S.,… it only loaned existing money with no hypothecations of new credit.

These Trust creditors tended to be the elderly who had saved over their lifetime; hence the money cycle was virtuous with young benefiting from house loans from the old, and the old benefiting from interest payments from the young. The old then buying the produce and output of the young.

Small and Medium Size businesses formed as neighbors and relatives had savings and skills, thus banks were bypassed.

Small and Medium size business formation kept large usurious type business at bay, as small tends to be more nimble and efficient.

4 big banks get 7.5 trillion in secret.
New Zeland banks get 500 billion over night from Ben.
Madicare and madicaid paid 400 dollars for a pil and still the insurance-farmacy ara allowed to get “copayment” of 80 dollars from a poor man.
And Puerto Rico is the issue for you?

Cancelling Puerto Rico’s debts would be a small price to pay for their independence. Or should I say, our independence.

The government needn’t void a private contract.
It can offer a voucher to debtors for the face value of debts for debts subject to the Jubilee, payable to the creditors. The debtors then use these vouchers to pay their creditors. Creditors redeem their vouchers for cash at a bank. Cash is created to fulfill and terminate the vouchers the same way it was created to buy toxic mortgage backed securities under quantitative easing.

Seems like a political platform that deserves to be tested.

There was a Jubilee for holders of Mortgage Backed Securities, why shouldn’t there be a Jubilee for your revolving credit and student loans?

Combine that platform, and simple rhetorical question, with a much softened stance and rhetoric on Latin-Americans – especially the many who are citizens, and combine it with some rhetoric on how uncontrolled immigration hurts African-Americans and controlled immigration plus a Jubilee would really, really, really help African Americans, and you may have the combination that upends the whole game.

The problem is governments being stupid enough or criminal enough to allow their nations’ exchange mediums to be created as debt at usury in the first place. Debt necessarily tears economies down to total destruction as everything about debt is a minus, there is no plus except to the OWNER OF THE DEBT.
A proper medium of exchange must be MONEY, NOT ”credit,” which is just a euphemism for DEBT. The only way to get DEBT into circulation is by LOANS which must be repaid WITH INTEREST BUT THE INTEREST IS NEVER CREATED BY THE LOAN. This is simply a conveyor belt of all wealth to the owner of the DEBT. Moreover, AS THE DEBT MUST BE REPAID PLUS INTEREST, there must FOREVER BE NEW AND BIGGER LOANS TO COVER THE DEFICIT, otherwise there is soon NO EXCHANGE MEDIUM WHATSOEVER. This constantly growing deficit is the real inflation and usually becomes THE NATIONAL DEBT to boot.
REAL MONEY is SPENT into circulation by its proper creator, the government of the people. It stays in circulation for the constant use of the people AT NO COST TO ANYONE. It is not based on ANY SORT OF COMMODITY but is BACKED BY THE ABILITY OF THE PEOPLE OF THE NATION TO CREATE NEW WEALTH.
With REAL MONEY, there is never a need for a jubilee.

What’s wrong with assortative mating?

Are Hindus clever enough? Some are, most aren’t.

America is an Oligarchy. It has never been, and is especially now, not, a democracy.

So, in a sense, we agree.

Every dollar printed by the government, over a certain amount, results in the devaluation of outstanding dollar obligations, as well as that money held in every ones wallets. The value of future payback dollars is therefore less than it would have been if the excessive printing had not occurred. The further into the future, the greater the devaluation effect, especially if the government prints excessive amounts on a regular basis.

In effect, this is a form of Jubilee debt abnegation. Not total, but substantial.

Most of the homes taken for free by bankers during the financial crisis were fraudulent loans underwritten by the Government. In other words, banks wrote themselves their own paychecks over bubbled collateral backstopped by the US Government. A guarantee of success.

I agree that Milton Friedman is a false god in the panoply of some deluded conservatives. What strikes me as good about the idea of a Jubilee is that forgiveness of debt to the government would have only good results. Depriving politicians of money to play with would hurt nobody who didn’t richly deserve to suffer.

The authors managed to stray from that concept into the territory of socialism’s ideal of wealth redistribution. Forgiveness of debt between parties who agreed to the terms is rightfully left up the lenders. Seizure of property for nonpayment of taxes is a crime committed by government against citizens, but forfeiture of property pledged as collateral in a loan agreement isn’t something that government should have any say over.

Sorry for going off topic in my reply, anarchyst. I tend to do that now that I’m old.

When Michael Hudson refer to financial parasite are killing the host he is referring to the Jews and also to the white anglo – Saxon that are accomplice and help the jews .

Crime is tax free. Right junior?

This is the same Milton Friedman who came up with the idea of “withholding” income taxes. Previous to WW2 federal income taxes were not withheld from employees’ paychecks. Taxes were due and payable in full by April 15.
Withholding made it easy for the government to raise taxes at will…
Imagine getting rid of withholding today.
The result would be the 16th amendment being repealed.

China owns about 1,3 trillion of US debt. Say all countries around the world together including China own around 3 trillions.
So still 17 trillion debt is own by the US citizens, mostly 1% rich Jews.
So when the bond market will collapse who will be hit most?

Given that this massive global private debt of $233 trillion is unsustainable and a drag on the economy, the real economy, not the fictitious financial economy that sit atop it like a tumor, it should be a serious consideration, especially since it has been DISHONORABLY created over the past forty years.

Neoliberalism has been exposed as “fantasy or junk economics”, not at all a reflection or compatible with the real world and its reign has reached its zenith, now in its twilight. An ever growing movement of economic students worldwide are demanding to be taught economic history (imagine!) and MMT, the actual representation of the operational reality of the economy.

The wizards of “oz.” have granted themselves a unique responsibility that has been appallingly abused, the creation of money. Sovereign nations have had the power all along to have a healthy, robust public sector. It’s time we demand it.

Prof. Steve Keen agrees that the global private debt must be addressed:

“Thus, if the State is to reduce the indebtedness of certain groups in the population (while maintaining its own fiscal solvency), it can do so only by redistributing wealth from the wealthy and powerful. The greater weight of such redistribution in any modern simulacrum of debt cancellation is bound to evince strong opposition from those at the receiving end.”

Strong opposition means co-option and propaganda to get the hicks to do the dirty work. Remember how the Freedom Works teabaggers flocked like sheep to protest any possible help for the millions who were going to be tossed out of their houses? These intellectual lightweights will shoot their own neighbors if their favorite conservative movement tells them to.

34 Dutch Boy > The present usurious system ought to be replaced by a non-usurious banking system

A gigantic Islamic-finance industry exists in the world today. Quite gigantic.

I invite Mr Dutch Boy to put his money where his mouth is, and start lending money with no interest charged.

I breathlessly await, Michael Hudson & Charles Goodhart putting their money where their mouth is

No license is needed to lend money, guys….. put up or shut up

All governments should know looking after the wellbeing of its people is their first order of business; neither ideology nor religion should be their business. Perhaps the American is born out of the Europeans who are a religious based civilization, therefore the elites who run the US government still carries their ancestor’s root and run the USA like their old continental forebears and put ideology/religion before the wellbeing of the people.

Apparently, you only read the title of the article. The Jubilee primarily cancelled debts to the government, such as unpaid taxes and fees. It left business loans between private entities intact. The author did wander around off the subject, but that was the basis of the article.

The present usurious system ought to be replaced by a non-usurious banking system. These could be state-owned banks or private banks licensed by the government to issue loans at no interest (only reasonable fees to cover the cost of originating the loan and insurance in case of default). Modern banking is merely the creation of money, which is a state responsibility. Allowing private banks to create money and charge interest for doing so is nothing but legalized theft and creates an enormous flow of wealth from those who have less to those who have more. Those who wish to earn money with investments would use investment banks, which would be forbidden to invest in debt instruments.

Morphing “Inflating away debt via debasement of fiat currency as a slow motion debt jubilee” is as brilliant as claiming bombing, killing and waterboarding on the fabricated phantom WMD allegation as humanitarian intervention. Following your logic, I guess all the Americans can stop paying their credit cards outstanding balances, student loans, mortgages, payday loans, etc., and wait for the inflation to work its magic to the way of their debt Jubilee, meanwhile forgetting about the compund interests of those loans and debts as well as all their incurred fees and charges.

Debt Jubilee is only an interesting topic, a fancy idea or even a bad commie joke? Not applicable in the democratic society like the USA? As Milton Friedman defined captialism was the prerequisit of democracy, debt/loan, interest and peonage are the pilliars of Capitalism, denying these pilliars is denying capitalism hence denying democracy, thus debt jubilee can no do in the USA, doing so will be denying the USA is a democracy.

Low wage earners can get a supplement for basic necessities from the government or private charities

Even more evidence that you don’t live in the real world.

because the public should be intelligent enough not to use the product.

Do you live in the same town as Garrison Keillor, where all the kids are above average? Half the population would have a hard time pouring urine from a boot , even if you wrote the instructions on the bottom for them.

ANOTHER uppity ethnic! Unz, you must keep the lesser breeds from polluting this great site.

There is no excuse for taking a payday loan. The people who take them are idiots who can’t delay gratification. Low wage earners can get a supplement for basic necessities from the government or private charities. These people have typically burned bridges with other lenders like credit card companies. They are dishonest people who don’t pay their debts.

“Could/Should Jubilee Debt Cancellations be Reintroduced Today?”

So what you’re saying is that because i DIDN’T go into massive debt i’m a fucking idiot and those that just borrowed with reckless abandon with not a care in the world about paying it back are the “smart” players of this stupid game?

A jubilee rewards the reckless and punishes the prudent……..yeah,, that makes total sense.

Fool paycheck loans were introduced because the sharks were well aware that with the low wages the people would need somewhere to go, seeing the mafia had been pretty much run out of town,and one of their favorite places were the reservations where the troops hang out and train some call them military post…

“…Nowadays, however, governments of our democratic societies are almost invariably large financial debtors, often the economy’s most highly indebted sector. There is no likelihood of this reversing…”

There is a way to do this. Dump the Federal Reserve of all countries and go to a government owned bank. Each bank buys all the debts of each other and then cancels the debt.

Debt money creation is worse than just printing the money. It makes sense because if you just print the money then you only have inflation for the amount printed. If the government borrows the money then not only is the money created but there’s a debt that continuously compounds along with the money creation. I might add much of the banker money created, by volume, rarely trickles down to the average person. Most is used by banks to buy the structure of the economy for which they charge us monopolist rents whether it be power, water, internet, phones, etc.

I also don’t care much for high property or land value taxes. It means they are constantly shearing you just to have a space to rest your head. I had an Aunt who lived in New Jersey who had to sell her house because the taxes were higher than the house payments.

There’s a guy who ran for President last time who has some excellent ideas. This guy invented Moprtage Backed Securities.

https://web.archive.org/web/20160126102250/http://www.scottsmith2016.com/#scott-smith-home-1

We need to address “what comes next”. How do you replace the money supply from a debt based system? How do you tax income or what do you tax? This guy has a plan and while I’m not sure all of it works it’s damn interesting. It cuts taxes of most people, replaces the banking system and ends all US debt in five years. He’s not some crazy person he is the actual person that invented “Mortgage Backed Securities”. In his original version they had normal valuations for housing and he had extra fees accounted for any housing that couldn’t be paid for. You can say the non Judophile version. It worked great because it provided money for housing and a stable known quantity investment for large pension funds, insurance companies and big investors.

If all the goods and services in the economy were backed or shadowed by an equivalent amount of currency we would have a situation were there would be debt but it would be owed to no one in particular. The cash would be a direct substitute for goods and services. Benjamin Franklin wrote about the currency in Pennsylvania that worked like this but based on land. It worked very well and provided prosperity for the whole community. Of course when the Bank of England found out about it the King made them stop causing the whole community to crash into a downward spiral. Possibly being one of the reasons for the revolution.

http://www.philadelphiafed.org/publications/economic-education/ben-franklin-and-paper-money-economy.pdf

Since the debt is compounding it can’t be sustained. They’ve already got this figured out. They’re going to Special Drawing Rights SDR’s. There will be a big financial crisis and SDR’s will come in to save the day. It will of course be the same rip off but on a bigger scale.

We should go to a money system that’s based on total goods and services. It could be inflationary, or not, but not necessarily any more than what we have now. All debt these days (bonds) are essentially monetized or currency anyways. You just borrow money on the value of the bonds. So doing away with bonds would not necessarily cause a cash inflation spiral as the bonds are likely monetized (cash) as it is.

For revenue instead of getting most from income taxes he would get revenue from settlements. Like every time you buy something or deposit a check in the bank, etc. The value of this is it massively raises the tax base so that the amount of each transaction is minuscule. I read, “For Good and Evil: The Impact of Taxes on the Course of Civilization” by Charles Adams a book on taxes and it talked a lot about raising the tax base in order to lower the percentage taken from each transaction and to spread out where revenues came from.

Let’s look at the numbers he quotes.

Payrolls total $15 trillion.
Not much for filling a $4 trillion federal spending.

The base for what he calls payments, (transactions), is 3,600 Trillion. Big difference. So using this big difference he would only take a tax rate of just 1/8 of a percent.

He also would stop charging interest as the money is made and backed by the taxpayers. He would only give banks a service fee. (I don’t agree with this. I think a small interest paid to the Federal Gov. would be helpful providing the majority of it went to the treasury and bypassed the FED and banks.)

He’s got some great ideas on lots of issues. He’ll never get any publicity from the media with his cut out the FED ideas but they’re worth thinking about. My biggest problem is just how, even with such small percentage of tax, he would keep corporations and the 1% from gaming it so they pay none.

Another thing Smith wants to do is pay the debt off. He points out that all the debt pays interest so it gets bigger and bigger. There’s a not so evident twist to the debt. Here it is…as soon as the debt is issued it is financialized. It becomes money. It may be debt but in today’s world you can use this promise to pay to raise cash. Therefore the money supply is already inflated by the debt. Get it? Debt becomes cash through financialization.

He says,”…Coupon stripping would not be inflationary
because it would replace our existing supply of interest bearing
money with non-interest-bearing money…”

When he says coupon stripping he’s talking about the old time bonds. Here’s a picture.

Each bond has coupons that when torn off at a certain date become money. He says we pay all the bonds off with non interest bearing CASH now instead of letting the debt inflate further. The bonds have become cash already so it’s not necessarily inflationary to turn them into cash.

Here’s another quote,”…Ironically, we would have inflated the money supply less if we had issued new money to pay for the deficit each year rather than selling Treasury bonds. At least ordinary money does not accrue interest…”

That being the case he says we should pay off all debt within five years.

Here’s a link to his pay off the debt page.

https://web.archive.org/web/20170203085112/http://www.scottsmith2016.com/wp-content/uploads/2016/03/Pay-Off-the-Debt.pdf

I think he’s somewhat right about turning debt into cash not being inflationary but not 100%. Some debt is parked and if they were forced to accept cash I have no doubt they would buy assets for cash causing some inflation. His point over all I believe is sound. That printing cash is less damaging to the economy than continuously expanding debt. Yes there is a limit to this. The damage is less when you have instant inflation than the delayed case of delayed debt. When you have instant feedback from printing cash you also can see the damage and correct it faster. The debt is hidden as it takes some money out of circulation while NOT extinguishing it. When debt is turned to cash it’s influence can’t be stopped as easy.

https://web.archive.org/web/20160126102250/http://www.scottsmith2016.com/#scott-smith-home-1

There can be no debt jubilee – the enacted system itself is debt and it won’t begin to change until the demographics change, which they are. Hindus and Chinese, playing the long game, won’t be content to be slaves to Jews, and they’re the future in every dead western land:

https://sspcdn.blob.core.windows.net/files/Documents/SEP/STS/2017/Program-Books/Scholars.pdf

I could link to at least a hundred other indicators that show that debt-riddled Europeans are the past, vanishing like snow in spring.

Taxes.

Declaring all debt America obtained fighting wars for neocons and the state of Israel to be Odious debt would be a good start.

Payday loans were introduced because there is a class of people who don’t have the ability to delay gratification or understand the basics of personal finance. On average, a payday loan user has a high probability of not repaying his debts and is still spending more than he brings in, mostly on non essential items. They shouldn’t need to be outlawed because the public should be intelligent enough not to use the product.

1. debt jubilee ? ? ? sure, just give a little advance notice so i can run up my credit card balance…
.
2. meta comment on site: REALLY don’t give a shit about watching most/(all?) site’s ‘podcasts’, vidyos, whatever; i come to this site to read op/eds and articles, not waste time watching a 30 min vidyo for 1 minutes worth of information better gleaned by reading…
yeah, old school, i know…
accidentally clicked on the vidyo link once when i saw the topic i was interested in, but then saw it was a useless vidyo, with no transcript, to boot, so, buy-bye…
.
if’ns i wants to watch me some vidyos, i’ll go to Utubby…
some itches are better left unscratched, meester unzzz…

The CIA probably wants a civil war to shake things up a bit. It always works. Go Amazon!

Interesting article, but I would have to think about the proposed solution, I doubt it.

As the authors go to the Jubilee in the Bible, apparently invented by Sumers, there are two other proposals in the Bible also.

One is the story of Joseph claiming to be c. 1700 BC or something, supposedly invented what Egyptians invented a thousand years earlier, storing grain in good years for bad years, but Joseph made a nasty twist to this well working system: he taxed grain in good years and sold it with usury prices in bad years robbing Egyptian peasant of money, livestock, land and finally reduced them to slaves. This being one of the main teachings of the Old Testament (alongside of various ways of cheating and robbing by Abraham and Jacob) the way of usury was well known around 700-500 BC.

The other one is Jesus forbidding taking interest, which is also what Muhammad wrote. It has been tried, but usually not fully, i.e., Jews were allowed to take interest from non-Jews both in Christianity and Islam, which totally ruined the idea. With no interest on loans there would not be private banks, but there could be a public bank, as the state gets the profit from taxes. It would hinder economic development, but that may be not so bad after all, if critical functions are secured in some way. In some way this may work and be a stable system.

Certainly the present economic system cannot be continued infinitely, it needs some kind of a reform.

Mafia won’t go for it. They need the debt slaves to feed the welfare and entitlements of the Pentaplex and the middle class delusion. We know who’s really in debt.

One question that comes to mind is, how would a debt jubilee work in a society in which the currency is an instrument of debt? A Federal Reserve Note is an instrument of debt, created out of thin air and loaned into existence.

To Hudson & Goodhart,
A long long article…. but I read it all in detail. At least the authors are looking at and thinking about solutions to an immense problem that must be addressed, unlike many authors who whine and complain without offering solution oriented arguments. Keep up the publishing boys!

Not only should but a debt cancelling jubilee on the national level ie the national debt is the only way to go, however the Zionist privately owned FED should be abolished first.

The FED is as federal as Federal Express ie being privately owned by the Zionist banking cabal that creates money out of thin air and then loans this money to the gov and we taxpayers at interest thus making the FED the greatest PONZI scheme in the history of the world.

The zionists have used the FED and the IRS since 1913 to force America into debt producing wars starting with WWI and on through to the Mideast wars to produce a debt that put America in a debtors prison from which there is no escape.

All wars are zionist banker wars and these wars have enriched the banksters while endebting the American taxpayer.

ABOLISH THE FED and have the gov issue the currency as it was prior to the zionist takeover of the gov in 1913.

ABOLISH THE FED and set Americans free.

The Left has long called for debt cancellation when its a matter of blacks owing huge money to white Gentiles. What I’d like to see is a specific call for Jewish owned businesses to cancel debts.

Of course, just as it would be anti-Semitic to cal for Israel to open its borders to hordes of black and brown Mohammedan refugees, it would be anti-Semitic to call for Jews to cancel debts., doubly so when those who owe money to Jews are white Gentiles.

And that hypocrisy is not confined to Jews (or to Semites: the Arabic version is awful as well). Anybody who thinks Germany, or any Germanic country in the senses of language spoken and the ancestry of the nation’s builders and shapers, would allow its Elites to lose money through sweeping debt forgiveness is hopelessly naive. The Germany of today intends to squeeze the poorer nations of the EU to the point of near death, which makes Germany’s overlordship that much more powerful. allowing Germany to Do Good by inviting millions, then tens of millions, more black and brown Mohammendans into the EU.

There is a most important reason that Yiddish is German, not a Germanized Hebrew or Aramaic. Yiddish is German with a few Semitisms. Nor is it a wild, and unaccountable, accident of history that Jews have adopted English as their new Yiddish – the universal Jewish vernacular – and that Angles and Saxons (as well as Jutes, Frisians, Danes and other Vikings) were Germanic.

You cannot solve the ‘Jewish Problem’ without also, simultaneously, solving the specifically ‘WASP problem’ and more generally ‘Germanic problem.’

You cannot separate

The real power these days isn’t Russia or the Pentagon or some CIA created ISIS thugs, it’s the bankers that have taken over the western world.

With their command of both the central banks and most nations Treasuries, they have absolute power to do whatever they want, whether that is getting corrupt legislators to pass laws in the US tossing people into prison for debt or to fraudulently push the stock market up, then pop the entire mess, but not before they and their buddies get out with a load of loot. All the while remaining above prosecution.

The USA is so far in debt now that we are forced to borrow from those bankers just to pay the interest on the money we’ve already borrowed, a banker’s dream but a nightmare for Americans.

To think that some kind of debt Jubilee is going to upset this very lucrative apple cart is a waste of time.

The only real change will come when Americans discover they still have a backbone and do another 1776.

Hudson, the closet marxist, should read the column to the left of this one titled “Its Time to Drop the Jew Taboo”.

Like all the other Zio-Sycophants his column amounts to some interesting history and a bunch of communist drivel. He needs to open his eyes and realize that the entire west lives under ZOG.

The jews are not going to allow goyim to escape debts owed to jews. If Hudson wants to start to correct the wrongs that have lead the west to the massive over-leverage, he should advocate that all goyim debt to people with “stein”, “berg”, “rosen”, “gold” in their family names should be “jubileed”. That would of course include banks with managers and directors like “lloyd Blankfein” or “Jamie Dimon” as well.

Hudson also does not mention what his favorite tribe has done to white, as well as other colors, families. All his blather about citizens paying taxes, serving in military and civil projects is worthless when social capital has been destroyed. In the US all the blacks and mexicans and other illegals want is welfare or a cushy state job payed for my Hudson’s beloved progressive income tax.

The real truth is that virtually all the massive productivity gains of since the beginning of the industrial revolution were stolen by the money changers and their (((central banks))) through inflation and games played with freshly created money. Throw in 150 years of wars for Israel, and it is clear who has destroyed the “middle class” (they always call the “middle class” the “bourgeoisie” right before they have them executed). The west should be the land of milk and honey, not depravity and debt.

It is important also to note that Hudson fails to mention the invasion of the west by third worlders and what they would expect from a Jubilee.

The sad part is that this debt enslavement of white people and where it eventually leads has been so well documented by the jews themselves. It is in the Talmud, Oded-Yinon, Coudenhove-Kalergy, The Protocols. Yet our intelligentsia, of which Hudson certainly thinks he belongs, not only refuse to acknowledge that it exists, they will happily call you an anti-semite and nazi if you even dare to mention it.

…expect to say goodbye to a functionning democracy in a not too distant future.

2 questions.

1. What’s so sacred about democracy?

2. If you’re saying the US has or ever had a democracy that functioned in the interests of the majority then please inform me of when that happened.

Might be a good idea but will never happen, so no point discussing it.

Brilliant article! Simply Brilliant.

“… most financial contracts are intermediated via financial institutions ….”

One person’s debt is another person’s asset, and debt is not just intermediated to institutions but farther down the food chain to the savings, investment and retirement accounts of average people.

Here’s a twist to encourage a little more social reponsibility: A 1000% excise tax on personal security firms or persons hired for that purpose by anyone, companies included, and disallowing of tax deductability for any security measures by those employing them.

Considering many debts have been introduced because wages have not been kept up with the cost of living, I think that many of them should be. Take Payday loans for example. They are very clearly a form of predatory lending meant to get their debtors caught in a loop.

The whole reason why they exist? Real wages have not risen for decades. They’ve all gone to the very rich.

I mean take a look at the situation with housing, healthcare, automobiles, etc – they’ve all gone up, while the wages have gone down.

At this point, Michael Hudson has the right ideas. The game is rigged against us lowly peasants. That’s the real problem – the elites on top only care about themselves and are willing to loot society to make themselves richer. We need an economy that works for us, the people, not the small globalist elite that is ravaging society.

Ron Unz himself has a good article on this one: http://www.unz.com/runz/chinas-rise-americas-fall/

Not saying the Chinese elite are perfect (far from it), but they seem to realize that they have to deliver to the people as well, which they’ve done a far better job than our elite.

nobody master, nobody slave

I don’t want to be pedantic, but,

what is “middle class” ?

just a personal interpretation is fine with me

A very good article (though extensive).

A well-worth read, very thought provoking, that joins some of my personnal pet peeves. Basically a strong and free society has to rely on a majority of free landowning citizens. If we don’t restore a strong middle class, expect to say goodbye to a functionning democracy in a not too distant future.

Debt jubilees would be a good solution to that. I really like author’s solution of Equity financing for college , as I see higher eduction as an investment in human capital, therefore it would make sense to have the state co-invest.

Inflating away debt via the debasement of a fiat currency constitutes a SLOW MOTION DEBT JUBILEE…….the kind of invisible relentless debt jubilee that maybe one in one thousand can recognize unless the inflation gets out of control. When inflation exceeds 2 year CD returns by about 5%, even a college professor or economist can spot the debt liquidation and defrauding of the creditor.

Look forward to this book, very interesting topic.

The theory of money and credit is not about lending at interest rates, but about the mismatches in repayment structures between assets and liabilities of banks that lead to low interest rates and their consequences. The banks usually do not fail because the rate is too low, but because of a liqidity crisis.
And mises never defends the banks, on the contrary…he is heavily critisizing the then prevailing practice… So you got that wrong, sorry

Further, catholic theoligicians have had alternating view on this matter over the courseo fthe last two millenia and have revised their views, as far as I know. Pointing out a specific quote (out of context) is not really satisfactory.
If you want to refute mises, you better bring some (logical) arguments, rather than some vague reference to jewish morality….
As mises said: there is only ONE logic….

The same thought occurred to me. But hey, all of Hildabeast’s major donors are Jews and one of the biggest (Haim Saban) has come right out and said he is a one issue guy and that issue is Israel. Not America, Israel.

So our next President will have been bought and paid for by agents of a foreign country. And they don’t even try to hide it. That tells you the true power the Jews and the Holocaust narrative they never shut up about.

neither me nor any Austrian has ever advocated the heavy use of consumer loans.
However, Empirical evidence tells us that forbidding them leads to loan sharking, price ceiligns lead to workrounds in the form of fees etc. So your measures likely wont work. But maybe that state of affairs is preferable….
By the way: the high interest rate on consumer loans isnt only about default risk, but about the comparatively high cost of collecting a, say 3000 usd loan…
Dont get me wrong: i have the same view on the toxic nature of these loans, but I believe they exist due to money supply expansions, i.e. In a sound money system they would barely exist.
Consumer loans are highly unattractive for banks. The reason it looks profitable for some banks in the us, is because the money supply has been only going up, i.e. The banks have yet to pay a price for that…subprime lending did not work out to well, if you remember…

By the way: 30 year mortgages are problematic as well, from an Austrian perspective (Tough not from a neoclassical one, so do not put these two schools in one basket please)

Conclusion: fix the money supply, and after a wave of defaults there will be way less consumer loans. No need for usury laws that are difficult to enforce anyway…(not to say there wont be any consumer loans at all)

Have you ever read Mises’s “Theory of Money and Credit”? Austrian economic theory is merely an extension of Jewish morality, and was created and is still supported solely to defend the lending of money at interest. Of course they want to keep money and credit as a private enterprise. In what other “business” can you “earn” a lot of money without doing anything productive? Jesus Christ and early Christian morality went against this. There is a reason that Jesus Christ threw the money changers out of the temple. He understood that the usurious rates of interest charged by money lenders far exceeded economic productivity, and the superior position of power of the money lenders could only result in the concentration of wealth and power that society produced into very few hands, and the destitution and slavery of everyone else. This is why Austrian economics has an important role for the entrepreneur in the economy — because the super productivity of the few gifted entrepreneurs is needed to make and keep money lending lucrative. Prof Hudson’s classical economic perspective, especially its attack on rentier monopolies, is right on. Money lending is the ultimate rentier monopoly that Austrian economic theory was established to defend. This is the only reason Austrian economic theory hasn’t been consigned to the dust bin of history.

Hmm – 3036 words on the history of debt in the last 5,000 years, and not one word is – Jew!

This is indicative of why America can never come up with the right conclusions and answers to its problems. If the problem involves Jews – then the whole truth cannot be discussed and wrong answers prevail – this is killing America.

Look at the last thirty years – American debt has skyrocketed and the banking system that revolves around interest – pays no interest. The whole big money system has become a means to transfer wealth to the Jew tribe.

The Federal Reserve’s job is to regulate credit and debt for the WHOLE nation. Bubbles Greenspan, Helicopter Ben Bernanke, and Granny Yellen (all Jews) have financial bubble after financial bubble — junk bonds, savings and loan, the internet, housing, collage, and now the stock market. In the process the average American has less disposable income and Jew wealth has compounded. The wealth in America now goes to the supper wealthy 1% Jews.

Those are the hard undisputable facts. When are those facts going to be written about?

As history must reckon – this is a crime – a stone cold criminal outcome.

Ideally, I think recourse lending to consumers should be illegal. A creditor should get, at most, his security in the event of default. In addition, I think there should be fairly strict price controls on interest rates. I can’t think of a reason a consumer should pay more than a 10% real rate ever. Even that seems high. So, maybe lower. Business lending is different, though even there I think the current regulatory structure likely encourages too much debt.

To see the problem, consider your likely reaction to these limitations. You’re going to tell me that creditors need recourse and high interest rates to compensate them for risk of default. And that the poor won’t be able to get loans if the risk of lending to them can’t be compensated. But significant risk of default comes, specifically, from people taking out loans they should not take out or from people being the kind of people who should never take out loans. So, it’s fine that that kind of risk should not be compensated for, and it’s fine (not fine, good) that those people can’t get loans. They are better off without them.

The limitations I suggest would not interfere with responsible borrowing at all. You could still get a mortgage or a car loan, for example. Likely, you couldn’t get a student loan, though. Many people wouldn’t be able to get credit cards or unsecured personal loans. These are good things. And, yes, I do know better than stupid people what financial products they should use.

Getting people addicted to credit card debt is not doing them a favor, and both Austrians and Neoclassicals are full of crap when they say it is. I was once a utilitarian, libertarian, neoclassical kind of guy, so I understand the arguments, and they really do rely on the agents being smart enough not to do obviously self-destructive things.

The fact that airline price regulation was stupid doesn’t mean usury laws are stupid. The fact that leftoids were wrong about Standard Oil being evil doesn’t mean they are wrong about Capital One being evil. Stopped clocks and all that.

Yes, IF permitted…
Whether it is permitted or not, depends on a hos t of cultural, etc. Factors….
Factors, which have nothing to do with economic ananlysis per se.
I do not see how your point invalidates my statements.
And yes, there are lots of idiots around. So what? Whats your solution? No debt contracts at all…

Although the specifics of the arguments change, what remains constant is the idea that white people of European descent are inherently smarter, better, more “civilized” than members of other races

Not really. HBD types like Wade, Sailer, Derbyshire, etc typically think that East Asians are smarter and more civilized than are whites.

Oh, come on. If indentured servitude (or organ harvesting, say) is permitted as a collection device, it will be present in most consumer debt contracts. It’s either illegal or common. The reason indentured servitude, debtors’ prisons, and organ harvesting are bad ideas is that the world is full of stupid people who will sign contracts not in their own interest.

Right wing economists don’t really fail to understand this. They pretend to fail to understand it in public. In private, it’s all “then don’t be stupid, you morons!!! Ha, ha, ha. More cheese for me!”

In case anyone’s interested, this gives some of the background on Drusus, who was preceded by the Gracchus brothers. The whole affair, spanning decades, is incredibly interesting and is amazingly relevant today.

Here’s a sample, from Appian, The Civil Wars
Horace White, Ed.
CHAPTER I

“They did these things in order to multiply the Italian race…so that they might have plenty of allies at home.

But the very opposite thing happened; for the rich, getting possession of the greater part of the undistributed lands… and adding to their holdings the small farms of their poor neighbors…

The ownership of slaves itself brought them great gain from the multitude of their progeny…

Thus the powerful ones became enormously rich and the race of slaves multiplied throughout the country, while the Italian people dwindled in numbers and strength, being oppressed by penury, taxes, and military service.

If they had any respite from these evils they passed their time in idleness, because the land was held by the rich, who employed slaves instead of freemen as cultivators.”

Bingo!

Also, due to Just Sayin’s comment (thank you “Just!), I went back and reviewed Durant (Durant, “The History of Civilization,” Chap VI, Book 2, Vol 3, pages 111- 127) and also read the article I’ve linked, https://www.armstrongeconomics.com/writings/2012-2/anatomy-of-a-debt-crisis/

The bottom line is just what mtn cur stated. The particular history is utterly fascinating, and it will take some study to become familiar with the details, but so far it appears that those who criticize Hudson regarding the “Social Wars” are somewhat off the mark if not totally in error. I hope they flesh out their arguments.

The online Encyclopedic Britannica and others would seem to agree with Hudson on that point, but I could be wrong, and hope that a good discussion of this ensues.|

“… Drusus made the last nonviolent civilian attempt to reform the government of republican Rome. Drusus began by proposing colonial and agrarian reform bills. He attempted to resolve the tensions between the senatorial order (the political class) and the equestrian order, or knights (the commercial class).

Disturbances involving Drusus’s supporters among the allies increased, and the reformer was murdered. His assassin was never discovered. The immediate consequence of his murder was the Social War (91–87), the revolt of the Italian allies.”

- From “The Encyclopedia Brittanica,” online Written by: E. Badian

https://www.google.com/search?q=Marcus+Livius+Drusus&oq=Marcus+Livius+Drusus&aqs=chrome..69i57j69i59j69i60&sourceid=chrome&ie=UTF-8

The idea of all this is the transfer of all property to the fat cats, such that a return to absolute monarchy, wherein citizens are property of the state, and the “nobility” are the state. That is to say, governance by those with the motives of swine.

And Alexander Hamilton was a man of the people. Ha!

Money brings in corruption, wars and Holocaust – the hallmarks of Western Civilization.

Werner Sombart (died 1941), German sociologist and author in his 1911 book, ‘The Jews & Modern Capitalism’, claimed that Jewish elites were the dominant beneficiary of Capitalism.

India’s famous human rights activist and author, Arundhati Roy, in her new book, ‘Capitalism: The Ghost Story’, examines the dark side of democracy in contemporary India, and shows how the demands of the globalized western capitalist banking system has subjugated billions of peoples to the highest and most intense form of racism and exploitation. Watch a videos below to understand the evil world of capitalism and the evildoers who benefit from this system.

British-born Jewish science journalist, author and former columnist at the Jew York Times, Nicholas Wade in book, A Troublesome Inheritance, has claimed that Jews possess a genetic “adaptation to capitalism”. Wade also argues that humans can be divided into discrete races, and that between those races, there are differences in behavior, temperament, intelligence, and even political and economic structures. Although the specifics of the arguments change, what remains constant is the idea that white people of European descent are inherently smarter, better, more “civilized” than members of other races, especially black Africans and their descendants……

https://rehmat1.com/2015/01/22/capitalism-is-jewish/

In Latin Socii means allies.

While I claim scholarship in neither Roman history nor Latin, I do know enough about translation in general and Latin in particular to point out that the word “socii” has more than one meaning. Here are a few of them:

Companions, fellows partakers sharers partners, men (as a group), servants, folks…

Furthermore, as I’m sure you’re aware, the meaning of a word also depends on the context and then there are idioms which cannot be directly translated, so your comment suffers from too limited a translation at least.

His concern was not debt but the extension of Roman citizenship to all Latin citizens in Latin cities allied with Rome.

If you’re saying he had only one concern, then I’d bet you’re in error here as well in a sense similar to the idea that WW1 was started by the assassination of the Ferdinand. Nothing could be further from the truth because there was a lot of background to that. The “start” of wars is generally multifactorial and it’s extremely simplistic to attribute wars or the initiation of them to one specific item.

If you got the basic history right you might just begin to get the economic history right and maybe eventually gain a grasp of basic economic principles.

First of all, every serious historian knows that there are many interpretations of “history,” some more valid than others. It would be most interesting to read in some detail, what your views of that history are and it would be nice to know what basic economic principles you can teach us.

In my opinion, Hudson is second to none in his field and I look forward to reading his material. If you can do better, I invite you to do so.

In any case, one of Hudson’s points is that the useful tool of debt can be misused to the point of abuse and any enlightened society has ways of preventing that and dealing with it if it occurs. If you have any other valid insights to add, I’d like to hear them.

Anyway, here’s one of my favorite debt quotes.:

“The curse of usury, it must be owned, is inveterate in Rome, a constant source of sedition and discord; and attempts were accordingly made to repress it even in an older and less corrupt society…

Financial ruin brought down in its train both rank and reputation, till the Caesar came to the rescue by distributing hundred million sesterces among various counting-houses…”

TACITUS, ANNALS, Book VI (beginning)1

http://penelope.uchicago.edu/Thayer/E/Roman/Texts/Tacitus/Annals/6A*.html

You’re right about the Social War which took place in 91-88 BC, decades after the Gracchi. Hudson clearly got that wrong. But your implied criticism of his economic analysis does not follow. That’s a separate issue and requires a substantive criticism, which you have not provided.

Interesting piece.
Just where do you have it from that the Austrian school “protects” the creditors from the debtors. Where do you see an Austrian taking sides in this conflict? How does it folow that beeing pro market means being pro debtor (it seems you were yourself led astry by some bank lobbyists)…
Short summary:
Certainly no Austrian has ever advocated debt bondage/slavery as collecting payments or tweaking the rules after the deal.(there might have been debates on whether one might Voluntarily agree on that as part of the contract design. This is an ethical question, etc). Certainly no Austrian would confer this right unilaterally to the government for the nonpayment of taxes which you say was the main source of bondage in antiquity.
Further, no Austrian has ever defended “the right” to create money, for ANY institution private or state (you seem to have less problems with the state inflating). On the contrary, they want this right to be taken away from anybody. The reason is that due to the non-neutrality of money it can be shown that money creation is akin to fraud (and it causes nasty business cycless)….independently of whether the state or private sector inflates, btw.
This is why they like gold, as its supply is more or less free from the whims of banks and governments (generally the supply of gold from mines is minuscule compared to the stock, obviously not true when you discover a new continent or california)..not perfect, but better than a printing press…
Hope that helps

From Mesopotamia in the third millennium BC to the modern world, the way in which society has dealt with the buildup of debt has been the main force transforming political relations.

However, I believe racial changes are the biggest transformative force in a nation’s history.

“so Jesus was running a debt cancellation program, no wonder He gained popular support.”

And no wonder the Jews hated him.

Thanks for your excellent piece.

Rome’s own Social War opened with the murder of supporters of the pro-debtor Gracchi brothers in 133 BC.

Almost every word in this sentence is wrong. The Social War began with the assassination of Marcus Livius Drusus. His concern was not debt but the extension of Roman citizenship to all Latin citizens in Latin cities allied with Rome. I’m guessing that you misunderstand even that the term Social War involves a misunderstanding. In Latin Socii means allies. The Latin term “War of/with the Allies” is inappropriately translated into the English “Social War”. If you got the basic history right you might just begin to get the economic history right and maybe eventually gain a grasp of basic economic principles.

It’s nice to read Hudson’s erudite views on these matters. When I look at America’s political system, I am disheartened. The entrenched interests have no desire to mitigate their greed or lust for power.

Even if we get a crash of the system it is hard to see how it could be corrected.

After Jesus had fasted in the desert and was tempted by the Devil, He started His public career by proclaiming the Acceptable Year of the Lord (reading from the Book of Isaiah):

The Spirit of the Lord is on me, because he has anointed me to preach the gospel to the poor; …., to preach deliverance to the captives, and recovering of sight to the blind, to set at liberty them that are bruised

The Acceptable Year was the Jubileum Year when the debts were to be cancelled; so Jesus was running a debt cancellation program, no wonder He gained popular support

“forgive us our debts, as we forgive our debtors”