The 8th episode of “Front Running” with Max Keiser and Stacey Herbert and guests Randy Voller and Michael Hudson discusses the madness that has Wall Street pumping up asset bubbles as it consigns Americans into impossible levels of debt.
Michael Hudson suggests that the Democrats are now so tied into Wall Street, that it cannot permit Bernie Sanders to win the race to Democratic Party pre-selection. Donald Trump is a better proposition for them than Bernie!
To say Wall Street is ‘winning’ at the expense of Main Street is no socialistic exaggeration: it’s happening before our eyes, and the levels of private debt bear this out.
If they’ve paid off their homes and not in debt, maybe some baby-boomers are feeling relatively comfortable, but their kids are still paying off their student debt, and any deep scrutiny of the American economy is damning.
Most people are in impossible debt, so a financial crash is inevitable.
So, come the crunch, how do we reset?
- We bail out people – not the banks: “Too big to fail” has failed us!
- We introduce a universal basic income at a generous rate.
- We shift taxes off productivity and onto economic rents, in order to (a) protect the currency* (b) generate real jobs (c) abolish private rent-seeking. [*We should seek to capture all economic rent – on land, minerals, electromagnetic spectrum, &c.]
- We institute a proportional representation voting system for all elections
- We do away with the misguided notion of ‘balanced federal budgets’, replacing it with spending on projects deemed worthy on the basis of sound cost-benefit analyses. [*The currency is protected from inflation, as above.]
This reset ain’t too hard. It’s both doable and essential, if we’re not to experience a lingering socio-economic depression.