Out of habit, American economists worry about federal debt. But federal debt can be redeemed by the Federal Reserve printing the money with which to retire the bonds. The debt problem rests with individuals, companies, and state and local governments. They have no printing press.The Unz Review
We have explained that the indebtedness of the population means there is little discretionary income with which to drive the economy....
It Is Time to Remove the Debt Barrier to Economic Growth, by Michael Hudson and Paul Craig Roberts
Michael Hudson, 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 Guest Professor at Peking University, and Paul Craig Roberts | formerly Assistant Secretary of the Treasury for Economic Policy, associate editor of the Wall Street Journal and a columnist for Business Week, Scripps Howard News Service, and Creators Syndicate; and Paul Craig Roberts, formerly Assistant Secretary of the Treasury for Economic Policy, associate editor of the Wall Street Journal and a columnist for Business Week, Scripps Howard News Service, and Creators Syndicate
3 comments:
Who could of ever guessed that government privileges for private credit/debt creation could drive a population into debt?
Quite agree with Andrew. If taxpayers subsidize banks (thanks to banksters stuffing wads of $100 bills into politicians back pockets), then we get more debt creation, which is basically what banks do.
As for Michael Hudson's article, thats nonsense. Near the start it says, it says “…indebtedness of the population means there is little discretionary income with which to drive the economy.” Actually one person’s interest payments are someone else’s interest RECEIPTS (and or salary at the bank which organised the loan). Ergo increased interest payments have no effect on “discretionary income”.
But in any case, interest payments as a proportion of household incomes are at a record 20 year LOW. Doh.!!!
Somebody tell Hudson interest rates are negative...
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