Days of Revolt: Junk Economics and Financialized Markets
In this episode of teleSUR’s “Days of Revolt,” host Chris Hedges interviews economist Michael Hudson on the history of classical economics and examines the Financialization of global economies with what Hudson calls Junk Economics.
[Wall Street] depicts itself as part of the economy. Not as a wrapping around it, not as external to it, but actually the part thats helping the body grow, and that actually is responsible for most of the growth. But in fact it’s the parasite that is taking over the growth. The result is an inversion of classical economics. It turns Adam Smith upside down. It says what the classical economists said was unproductive parasitism is actually the real economy. And that the parasites are labor and industry that get in the way of what the parasite wants, which is to reproduce itself, not help the host, which is labor and capital.
Michael Hudson is a Distinguished Research Professor of Economics at the University of Missouri, Kansas City. He is the author of The Bubble and Beyond and Finance Capitalism and its Discontents. His most recent book is titled Killing the Host: How Financial Parasites and Debt Bondage Destroy the Global Economy.
Posted by the Real News Network.