Interview with economist Dr. Michael Hudson on the proposed $700 billion heist in the U.S.
BASILONE: So this neoliberal economic model, then, is this proof that it doesn’t work? Or are we going to still see more of this?
HUDSON: To its proponents it’s not proof, they’ll never admit it. It’s a demonstration of the impossibility of the magic of compound interest doubling and redoubling the volume of debt, and trying to pay retirement savings and pension funds, and making people rich by continually doubling the amount of debt in the economy. This is a crazy way. No other economy in history has ever got rich off debt, and this economy can’t either.
BASILONE: So it’s a pyramid scheme.
HUDSON: Yes.