Paying debt service to banks leaves less income to buy goods and services.
MICHAEL HUDSONSo we are in for years of debt deflation. That means that people have to pay so much debt service for mortgages, credit cards, student loans, bank loans and other obligations that they have less to spend on goods and services. So markets shrink.
More Michael Hudson Quotes
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People are putting their money into treasuries because they worry that the risk of putting their money into the bond market, the stock market or even the money markets is very high.
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This is the sector that backs the political campaigns of senators, presidents and congressmen, and they use this leverage to make sure that their people dominate the Federal Reserve, Treasury and the federal housing agencies.
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The Eurozone die is cast. Countries must withdraw from the euro so that governments can create their own money once again, and resist creditor demands to carve up and privatize their public domain.
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If the bank goes under, they get to keep all of these salaries and options – and the government will bail out the bank. These guys will take their money and run, which is pretty much what they’re doing now.
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When you say “paying the banks,” what they really mean is paying the bank bondholders. They are basically the One Percent.
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Seventy-eight percent of millennials are worried about not having enough good paying job opportunity to pay off their student loans. Seventy-four percent can’t pay the health care if they get sick.
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The one sure mark of a con, though, is the promise of free money.
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Europe is acting in a very self-destructive manner, but is doing so because it’s trying to be loyal to the United States.
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The companies aren’t hiring, because consumers don’t have enough money to buy the goods and services.
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If you look at payments to labor as a proportion of national income or gross domestic product, you find profits going way up, investment and savings going up.
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We’re still in the collapse that began after 2008. There’s not a new collapse, there hasn’t been a recovery.
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Education is something that should not be organized on a for-profit basis, because in that case its purpose is not really to provide an education.
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You’re having government spending on the economy being cut almost everywhere. That means that the only source of spending for growth has to come from borrowing from the banking system.
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Inflation usually helps the economy at large, but not the 1% if wages rise. So the 1% says that it is terrible.
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Nobody prefers to earn income any more, because that’s taxable. Rich people prefer to make capital gains.
MICHAEL HUDSON