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Michael Hudson interview:

http://kpfa.org/archive/id/48892

Quite a "dystopic" view of our future he presents here.

by kjr63 on Mon Mar 9th, 2009 at 07:27:14 PM EST
The free markets today are supposed to refer to what Adam Smith and the classical economists wrote about free markets. When they talked about free markets, the meant a market free of unearned income. A free market is was where people   would earn what they produce. That meant... the number one aim of classical economics was to tax the free lunch, to tax land rent and interest. And the idea was to have an economy that had minimum property rental interest, that wasn't that taxed. The idea was to shift the tax base off labour on to the landlord class and on to the financial class. That's what Adams Smith wrote, it's what John Stewart Miller wrote, that was the ideal. In order to make an economy more competitive you had to bring market prices in line with the actual cost of production that ultimately could be reduced to the cost of hiring labour, including the labour that made the machinery, the labour that made the raw materials. The cost basically of most products was reducible to labour. And the idea was to minimize the cost of the FIRE sector. Today the free market means free to the FIRE sector, for the banks and for the real estate sector, and the insurance companies like AIG to essentially loot the economy, to impose toll booths everywhere that it can: toll booths for credit, toll booths for rent, toll booths for public utilities, and to maximize the ratio of interest and economic rent and monopoly pricing relative to overall pricing, leaving less and less for actual cost of production, so that instead of having an economy whose costs reflect what technologically necessary for production you have an economy where as much as possible goes to the parasite - for the finance, insurance and the real estate sector.
That supports my diary... But ok, I was already influenced by Hudson.
by das monde on Tue Mar 10th, 2009 at 01:25:33 AM EST
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You could say that our economy has been consumed by FIRE.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Mar 10th, 2009 at 01:54:49 AM EST
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Rampant FIRE.
by das monde on Tue Mar 10th, 2009 at 02:13:43 AM EST
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das monde:
That's what Adams Smith wrote, it's what John StewartStuart Miller wrote, that was the ideal.


Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith
by Migeru (migeru at eurotrib dot com) on Tue Mar 10th, 2009 at 04:52:04 AM EST
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From Google's first-liner, I thought this fellow fit the bill.
by das monde on Tue Mar 10th, 2009 at 05:14:15 AM EST
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LOL

Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith
by Migeru (migeru at eurotrib dot com) on Tue Mar 10th, 2009 at 05:30:15 AM EST
[ Parent ]

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