"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved."
- Ludwig von Mises

Thursday, November 11, 2010

Michael Hudson on the Impending Dollar Collapse

RT interview done just before today's G20 meeting of Dr. Michael Hudson in which he describes what is really going on in the world today.  To be fair, his criticism of the US does ignore Chinese mercantilist policies.  What I'm saying is that China is not just a victim here - it artificially pegs its currency to the US Dollar which allows it to flood the world with cheap Chinese goods.  Both countries are acting in their self interest, and they are both engaged in a "finance race", similar to the US-USSR "arms race" in which one country's actions requires an immediate reaction by the other. 

Nonetheless, Dr. Hudson gives a good description of what is transpiring.  I agree with his conclusion, and I have written about it in the past in my post The Rape of America, that the US Banking System poses a great threat to US national security and its superpower status.

No comments: