Apr 18, 2012 by CapitalAccount
Welcome to Capital Account. European banks are under pressure to raise capital and the Euro could collapse triggering panic in financial markets and another great depression. These are all warnings coming out of the international monetary fund. Central banks haven’t been waiting — they appear to be moving away from the euro by buying more gold. We’ll talk about it. And while we are on the topic of the IMF as policymakers descend upon Washington for the Spring meeting — it seems all about raising money to boost the IMF’s fire power aimed at putting out Europe’s debt crisis. But what about defaulting on the debt? How much debt can you throw at a problem caused by too much debt? Economist Michael Hudson joins us to give us his take. He always says “debts that cannot be repaid won’t be repaid.”
And in our loose change segment, we cover recent efforts by British MPs who say savers that have been penalized by the Bank of England’s money printing should be compensated for it, while Citigroup investors say executives shouldn’t be compensated so handsomely for poor performance. This is a first for big US banks, but it doesn’t matter! We’ll tell you what we think.
Michael Hudson is a former Wall Street economist. A Distinguished Research Professor at University of Missouri, Kansas City (UMKC), he is the author of many books, including Super Imperialism: The Economic Strategy of American Empire (new ed., Pluto Press, 2002) and Trade, Development and Foreign Debt: A History of Theories of Polarization v. Convergence in the World Economy. He can be reached via his website, email@example.com.