April 12, 2009
April 10, 2009
Michael Hudson's analysis of the financial crisis
This article addresses Washington's financial coup d'etat in the context of discussing Michael Hudson's important, very lengthy and detailed April 5 Global Research.ca one titled: "The Financial War Against Iceland - Being defeated by debt is as deadly as outright military warfare." It reviews its key information in advance of Hudson's April 14 scheduled appearance on The Global Research News Hour to discuss....
Lessons for Iceland and Other Nations
Iceland "is under financial attack from outside as well as within - by foreigners supported by a domestic banking class. To succeed (they need) to convince the population that all debt is productive, and that the economy benefits to the extent that its net worth rises (that is, make its asset values appear greater than its debt)."
The fact is that prices don't fall, "and if they do, debts should (remain), even (at the expense of) negative equity." Icelanders are being manipulated to believe they have "no alternative but to pay debts that a few insiders (accumulated, ones) that accrue interest when (they're) unpaid." In fact, demanded debt amounts exceed what the country can pay, but the strategy is to conceal this as long as possible "to proceed with the foreclosure and voluntary pre-bankruptcy sell-off of national assets to pay" predators.
What's true for Iceland, holds everywhere Wall Street and the IMF target, and here's the scheme:
shift wealth and property upwards to a financial oligarchy; and
price "labor and industry out of world markets as a result of the heavy financial charges built into (the) pricing system."
Iceland is a "model test case for economic justice." Hopefully it will "confront reality sooner than later" and not get trapped into perpetual debt bondage by succumbing to global creditor pressure or seduction. What benefits them harms people, and everyone needs to know it. Bankers "aim (for) a return to 'normalcy,' defined as new exponential (debt volume) growth" producing more destructive bubbles like the last ones.
Iceland must reject Wall Street's medicine or perish, and the same holds elsewhere, including in America. Bankers, not nations or people, should take the pain. Hudson asks: "How can Iceland (or Hungary, Latvia, Ukraine, or many other nations) pay its debts without bankrupting itself, (in Iceland's case) abandoning its social democracy and polarizing its (people) between a tiny creditor oligarchy and" everyone else? They're threatened by "a new ruling class that will control (their) destiny for the next century" or beyond. It's their choice to reject it and stay free.
Their "foreign currency loans should be denominated in domestic currency at written-down (and de-indexed) interest rates, or repudiated outright." The guiding principle should be to annul debts taken out under (destructive and extractive) terms benefitting creditors at the expense of their prey.
They aim to dominate societies - "above all .to maximize the power of debt over labor. The worse the economy does, the stronger" they get. It's a vicious cycle "recipe for economic suicide (from perpetual) debt peonage." Iceland can be a test case model against it. It comes down to whether it will back its people or, like America, surrender to financial predators. It's much the same globally, the result of the greatest ever economic crisis opportunity for plunder. The perpetrators love it. It's high time they got their comeuppance.
Imagine tiny Iceland taking the lead and fighting back against what another former high-level Wall Street and government insider warns - Catherine Austin Fitts, Assistant Secretary of Housing and Federal Housing Commissioner under GHW Bush and Dillon Read & Co. Managing Director and board member.
In her latest quarterly review, she predicts that "Obama will do more to help bankers achieve centralized control and one world government than any (previous) US politician." In less than three months in office, he's shown bankers they can count on him - to the tune of trillions of dollars, further open-ended checkbook amounts on request, and global "diplomatic" pressure on targeted nations to surrender. It's for public rage, tiny Iceland, and other over-indebted nations to demand "no more." Hopefully enough of them have backbone to do it.