Tag Archives: Michael Hudson

2016 Summer Newsletter

 Greece Workshop Report

During the last week of June I conducted a weeklong workshop and colloquium on Innovation in Exchange and Finance at the Alexandros campus of the Kalikalos Holistic Summer School on the beautiful Pelion peninsula overlooking the Aegean Sea in Greece.

I had planned this to be a collaborative, interactive and problem-centered workshop that would bring together skilled and accomplished people to produce significant innovations in the areas of exchange, finance, and economics. We were fortunate in being able to draw together an excellent cohort of participants having diverse knowledge, skills and experience. Nine of these were full-time and several more participated in various parts of the workshop, particularly the June 25-26 weekend when we had a number of Greek participants from Volos and Athens. The Volos contingent shared their experiences over the past four years in creating and operating the Volos TEM trade exchange. It was very useful for all of us to hear about their difficulties and false starts and the lessons they have learned which will be applied as they move forward into the next phase of their project.

In addition to the registered workshop attendees who came from Australia, India, Ireland, Serbia, Sweden, the US and the UK, several Kalikalos staff members participated in some aspects of the workshop. We were disappointed however that one registrant from Saudi Arabia was unable to attend because his entry visa was denied by the Greek government.

Our work sessions were loosely structured to allow space for each person to share not only their questions but also their experiences and insights, and for the spontaneous emergence of ideas action plans. In addition to my presentations of foundational concepts using slide shows and videos, the format included a number of participatory exercises. Participants had opportunities to showcase their ongoing or planned projects and receive feedback from the group, and as is usual in any such gathering, informal discussions and networking were an important part of the experience.

Kalikalos has invited me to return again next year to conduct another similar workshop on monetary and financial innovation. It will be scheduled in the general timeframe of the second week of June (exact dates to be determined soon). My colleague Matthew Slater, one of this year’s participants who has particular expertise in IT, crypto-currencies, has agreed to assist me in that workshop, and over the coming months we will be working to further develop the format and the program.

I am hoping to once again attract participants who are ready, willing and able to put their knowledge and understanding into action. As Malcolm Gladwell points out, it takes mavens, connectors, and marketers working together to make a project successful, but most of all I think it takes entrepreneurs who are able to bring harmony to the mix, to hold the vision and to dedicate themselves fully to its realization.

As the time approaches, we and the Kalikalos team will be asking you to help us get the word out to our target groups— trade exchange operators, social entrepreneurs, local government officials, serious students, and enthusiastic agents of change.

In the face of the ongoing global economic and financial crisis and increasing political uncertainty, the creation and deployment of innovative decentralized mechanisms for reciprocal exchange and equitable finance are becoming ever more urgent and the opportunities have never been greater. We are now on the brink of ushering in a new more just and sustainable economic paradigm that will enable small producers and local enterprises to thrive, and communities to gain more control over their own destiny and quality of life.

Before and after my workshop I spent an additional three weeks at Kalkalos living in community at the Kissos campus. That in itself was an enlightening and enjoyable experience.

Upcoming presentation – Malaysia

In October I’ll be presenting at the International Forum on Inclusive Wealth (http://www.ifiw.my/) in Kuala Lumpur, Malaysia. I’ll be outlining my revolutionary plan for a decentralized global exchange network based on direct control of credit by producers.

“IMF admits disastrous love affair with the euro and apologises for the immolation of Greece“

In a July 29 article in The Telegraph, journalist Ambrose Evans-Pritchard dissects a recent report by the IMF’s Independent Evaluation Office (IEO). He says the report, “goes above the head of the managing director, Christine Lagarde. It answers solely to the board of executive directors, and those from Asia and Latin America are clearly incensed at the way European Union insiders used the fund to rescue their own rich currency union and banking system.”

He concludes that “The injustice is that the cost of the bailouts was switched to ordinary Greek citizens – the least able to support the burden – and it was never acknowledged that the true motive of EU-IMF Troika policy was to protect monetary union. Indeed, the Greeks were repeatedly blamed for failures that stemmed from the policy itself. This unfairness – the root of so much bitterness in Greece – is finally recognised in the report.” Read the full article here.

Recommended reads and views

Chris Hedges: The Revenge of the Lower Classes and the Rise of American Fascism.

Michael Hudson interview: The new global financial cold war

Basic Income gaining ground:

General Wesley Clark, former Supreme Allied Commander of NATO, testifies in this 2-minute video that the US planned to overthrow seven countries after 9/11.

Wishing you a relaxing and enjoyable summer,


The Pace University Left Forum Panel Reconvenes and Henry George is Rebranded

Scott Baker has provided a comprehensive summary of a very important recent event that featured some visionary thinkers in economics, money and finance. His description begins…

The team of panelists from last year’s Pace University Left Forum panel – reviewed in the March/April, 2012 issue of GroundSwell – reconvened this year on June 8, 2013, minus Kucinich adviser Dave Kelley who was sidelined due to a back injury.   The remaining panelists were Dr. Michael Hudson, Dr. Cay Hehner, and Chair Andy Mazzone.   The title of this year’s panel was “Wall Street’s War to Impose Austerity.”

Baker follows with his “Abstract” summary…

Wall Street had a record year in profits last year. Bonuses were up and stock prices zoomed. Meanwhile, the productive classes continued to see their wages stagnate as they have for 40 years, while under-reported inflation figures and regressive tax schemes took more of their paychecks, if they could find work. But now Austerity threatens to siphon whatever is left from the bottom to the banking elites. Faux progressive organizations like Third Way in the U.S. are attempting to privatize Social Security to pour billions into Wall Street for further gambling. From Cyprus’ confiscation of up to 70% of bank deposits to Greek pro-recession budget slashing, the road to neo-feudalism continues. Based on Professor Dr. Michael Hudson’s book “Finance Capitalism and its Discontents” and “The Bubble and Beyond”, panelists Dr. Michael Hudson, Dr. Cay Hehner, Dave Kelley, and Chair Andy Mazzone will discuss specific austerity measures that are designed to confiscate, impoverish, and destroy the middle class, while widening the already historic wage gap even further. Learn how the expansive forces of industrial capitalism have been subverted by today’s predatory finance capitalism aided by junk economics and failure to collect the economic rent. What is the rentier class and how does it collect 1/3 of GDP? Is government regulation always wrong? What is the best tax policy? Why the 1% versus the 99%?

Current president of the Henry George School, Andy Mazzone, gave the opening, and after introducing himself as an ex-CEO of a Fortune 500 company, and a trained economist in Marxism, said he now classifies himself as a neo-Georgist — defined as “someone who believes all forms of monopoly should be taxed” while untaxing all forms of earned income — wages, sales, capital.   (In previous discussions with Mr. Mazzone, I have challenged this tax-all-monopolies philosophy a bit, relying on my experience in the fast-changing world of Information Technology where I was a Manager of Information Systems for over 2 decades, and where monopolies may last no longer than the next business cycle.   I think we get into questionable territory in advocating taxing patentable innovations (though I would agree that patents are too easily granted nowadays).   The land monopoly is different, of course, because land, unlike capital, cannot be created by people, is finite, and generally appreciates, while capital goods depreciate and are replaced by newer “improvements,” just as Henry George said over a hundred years ago when improvements came along at a much slower rate.)

Mazzone went on to say that Michael Hudson’s book, “Super Imperialism” basically forecast the current crisis and the financialization of everything, and the subsequent collapse from de-industrialization.

The full report goes on for six pages and includes a number of arguments relating to social justice and economic fairness as well as some essential historical perspective. You can read the rest of it here.

Why Obama Won, and What We Can Expect Next

Michael Hudson is one of the few academic economists who is not completely deluded. He is worthy of your attention. This is is recent article that appeared in COUNTERPUNCH.–t.h.g.

By Their Fruits Ye Shall Know Them


The Democrats could not have won so handily without the Citizens United ruling. That is what enabled the Koch Brothers to spend their billions to support right-wing candidates that barked and growled like sheep dogs to give voters little civilized option but to vote for “the lesser evil.” This will be President Obama’s epitaph for future historians. Orchestrating the election like a World Wrestling Federation melodrama, the Tea Party’s sponsors threw billions of dollars into the campaign to cast the President’s party in the role of “good cop” against stereotyped opponents attacking women’s rights, Hispanics and nearly every other hyphenated-American interest group.

In Connecticut, Senate candidate Linda McMahon spent a reported $97 million (including her earlier ego trip) to make her Democratic challenger look good. It was that way throughout the country. Republicans are pretending to wring their hands at their defeat, leaving the Democrats to beat up their constituency and take the blame four years from now. …More…


What’s the “Occupy” movement all about?

Occupy Wall Street and the many related offshoot occupations are raising a lot of questions. These will not be quickly answered, but one thing is clear–increasing numbers of people are fed up with the political and economic status quo. They are not only expressing their dissatisfaction and disgust, but they are looking  for ways to make positive changes that will benefit everyone, not just the few who are presently in control.

Michael Hudson is one of the few university economists who understands the systemic nature of our global economic malaise, and is willing to speak frankly about it. The following is a recent interview that is worth watching.–t.h.g.

Iceland, a case that deserves careful study

Iceland was one of the first countries to experience the financial crisis that plagues the world. It seems to be the canary in the coal mine, and as such, it may be showing us not only what is in store for the rest of us, but also a way out of our dilemma.

In this series of 5 videos, Prof. Michael Hudson explains very clearly what happened to Iceland and shows it to be an example of the pattern that is being played out in the rest of the world.

In the time since that interview was recorded, the people of Iceland have taken action that may get to the root of the problem. Instead of bailing out the banks and rewarding those who caused the problem in the first place, Iceland has, according to one of my correspondents:
– Totally recalled its government.
– Nationalized its main banks.
– Decided not to honor the claims from the UK and Holland due to their speculative policies.
– Created a popular assembly to rewrite its constitution.

Strangely, there has been very little about that in the media.

I would very much like to see reports that detail these actions, so I invite any of my readers who find them to pass them on by making comments to this post–t.h.g.

Prof. Michael Hudson explains today’s financial parasitism

This presentation by Prof. Michael Hudson at this year’s conference of the American Monetary Institute is highly informative. Please pay close attention.