Shock Doctrine: Break The Economy, Lower Wages By 20 Percent. Doesn't Sound So Farfetched Anymore

[Amerigo Vespucci]

Run time: 03:03 https://www.youtube.com/watch?v=ySwPMm0ALjA   Posted on YouTube: February 19, 2011 By YouTube Member: mebadgett Views on YouTube: 393   Posted on DU: April 13, 2011 By DU Member: Amerigo Vespucci Views on DU: 1160

 

April 12, 2011 04:00 PM
Shock Doctrine: Break The Economy, Lower Wages By 20 Percent. Doesn't Sound So Farfetched Anymore, Does It?

By Susie Madrak

I've thought for a while that our leaders, both political and private sector, are actually trying to create another depression, but I wasn't quite clear on why. I mean, I figured they make money on it, of course, but I didn't connect all the dots.

This interview with liberal economist Michael Hudson is a few months old, but it has the ring of truth and explains so much:

PAUL JAY, SENIOR EDITOR, TRNN: So President Obama's deficit commission has reported. The press, the media, and most of the political punditry all seem far more worried about government debt than depression. Why?

HUDSON: Because they're essentially appointed by the banking interests. When the government runs into debt, it has to borrow from the banks. They want to scale down government debt in order to scale down government taxes. So it's part of a one-two punch against the economy, basically. To the deficit commission, a depression is the solution to the problem, not a problem. That's what they're trying to bring about, because you need a depression if you're going to lower wages by 20 percent.

JAY: And why do they want to do that?

HUDSON: Because they have the illusion that if you pay labor less, somehow you re going to make the economy more competitive, and the economy can earn its way out of debts --meaning their employers, the banks and the companies and make more profits and pay more bonuses and stock options, and somehow their constituency, Wall Street and the corporate economy, will become richer if they can only impoverish the economy.

http://crooksandliars.com/susie-madrak/shock-doctrine-break-economy-lower-wa

[szatmar666]

1. again, I agree except I don't think this is simply about "more profits"

This is about dismantling the elite's political opposition which is the middle class. they don't want your kids to be prosperous because they perceive the middle class as a class enemy just as the commies perceived the bourgeoisie as their class enemy. I doubt they expect to profit, in fact I am sure they count on significant economic sacrifice from their own part on the long run but it's worth it for them because they see the world in a Manichean black and white terms and for them we are "the bad guys" as long as we have any political power.

[aquart]

2. Uh huh. And then what?

What will those geniuses have achieved? What's a doctrine but a crappy statement of entitlement?

We're going to have the equivalent of the Black Death, you know. World population has already begun to destabilize. Wanna buy a car made in Japan? Let's just whip out that trusty geiger counter. Got an order due from Thailand? Mighta washed away in that flood.

We have stashed huge quantities of wealth in overseas properties that might not be looking so lovely anymore. How about Mexico? Will they kidnap the gringo if they're not paid a weekly fee?

All that money that ran out of America may want to come crawling back in fairly soon...unless Iceland says okay and lets the Golden Geese in.

The Black Death changed the status of European labor. I don't know how many we're going to lose to climate change and how many to idiots in Congress and other governments, but even the rich are going to have to hold on tight while the house is shaking.

Don't assume anything about the future.

[Yavin4]

9. Your Post Clearly Explains Why We're Spending $700 Billion Annually on Defense

Our defense budget IS NOT a defense budget. It's a protect the overseas assets of Multi National corps. budget. You're right that worldwide labor is going to start demanding better pay and working conditions, so our military is there to tamp down any labor dissent.

In a sense our MNCs have become the new colonial powers.

[DeSwiss]

3. Revolution doesn't sound so far-fetched anymore either.

- K&R

[szatmar666]

4. Historically the only possible answer left

[Badsam]

10. LOL at my first thought when seeing this picture

Im have become so use to Obama backing down from the GOP and selling out that when I saw the picture I assumed we were beating a dead horse.

[Mnemosyne]

11. Welcome to DU, Badsam! I almost saw that horse too!

Good one... :hi::rofl:

[girl gone mad]

5. Why isn't Michael Hudson a household name?

Why don't Democrats put him front and center to explain what sound fiscal and monetary policy should look like?

Here we have a genius economist, one of the best in the world, but outside of working with Dennis Kucinich, he's basically been ignored. It's absurd.

This is something I've thought about a few times recently. Our President should be getting advice from Michael Hudson. I have no idea why the smartest people on our side of the political system are consistently shunned by the party in favor of a bunch of corporate tools who can't think their way out of a paper bag.

[democracy1st]

7. democrats are a major player in this game of fraud,anyone that speaks truth to power loses!

[democracy1st]

6. K & R great post AV!

[defendandprotect]

8. k

[yurbud]

12. I wish I saw this in time to rec it

[JohnyCanuck]

13. Me too n/t

[yurbud]

14. I reposted the text at this thread:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=103&topic_id=598339&mesg_id=598339