Michael Hudson as Chase Manhattan balance of payment analyst - also thought he was part of something good - until; "Back in the 1960s, I was Chase Manhattan Bank’s balance of payments analyst, and my job was to focus on the Latin American countries: Argentina, Brazil, and Chile, and my job was to calculate how much of a balance of payments surplus they could generate, and the idea of the bank marketing department was the entire economic surplus could be used to pay debt service to the seven major Americam banks. Pretty quickly we found out that there wasn’t any surplus to pay the banks, and there was an international department that got very upset because he said “Look, I get promoted for making loans, and the real estate guys are making all the loans, you’re telling us they can’t afford to repay!” And he took it up to David Rockefeller, we went across the street to the Federal Reserve bank, and the Federal Reserve bank said “It’s in America’s interest to make these loans to Latin America. Mr. Hudson, according to your calculations, Britain can’t afford to replay any more.” “That’s right. I don’t see any way in which it can get the money to repay the debt.” And the Federal Reserve man said “Ah! But did you take into account the fact that the US Treasury is always going to lend Britain the money to pay? We will never let it go down.” I said, “Well, that’s a deus ex machina from outside the system. Yes, you can lend them the money to repay.” A video of Michael Hudson making a speech - re the above - at a conference of the Institute of Institute for New Economic Thinking - in Berlin 2012; youtube/watch?v=gX5RHhX8E2k Michael Hudson wrote this seminal document re money system reform April 2012 ineteconomics.org/sites/inet.civicactions.net/files/hudson-michael-berlin-paper.pdf
Posted on: Sun, 08 Sep 2013 00:07:43 +0000
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