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Michael Hudson On Debt-Ridden Countries IMF’d As “Euro Collapse” Threat Lures Bailout Bucks

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 rasing 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.

# European Central Bank

# european debt crisis

Capital Account: James Rickards on the Fed’s European Bailout and a Global Central Bank (11/30/11)

More rounds of ammunition were fired off in the global currency wars today, as six of the world’s central banks including the Federal Reserve, Bank of England, and the European Central Bank coordinate to get cheap dollars to starving european banks. Meanwhile, across the pacific, China is cutting its reserve requirements by 50 basis points for the first time in nearly 3 years, a sign that the world’s second largest economy and biggest exporter is now reversing its policy of trying to curb inflation and loan growth. We are joined by James G. Rickards, author of Currency Wars to discuss these issues, as well as the growth in gold buying and gold repatriation by foreign central banks, the world over. We also speak to Jim Rickards about the role he thinks the IMF and its global SDR will play in the years to come, and if the latest bailout 600 billion euro italian bailout rumor may be just the opportunity for the IMF to step up as a player in the global currency war. He says the IMF is turning into a global central bank and that the federal reserve is looking more and more like a hedge fund. And on the issue of gold, speakers at a UFO convention in South Africa insist that extraterrestrials visited out planet in search of gold about 300,000 years ago, cloned their genetic make-up and gave rise to mankind. Ever since, they’ve been in contact with world leaders, and ever since, we have been obsessed with gold! And if aliens are a bit far fetched for you, what about super heroes? Phoenix Jones, a Seattle Superhero and his crew have been guarding nights in the rainy city, chasing down criminals and restoring justice. On November 26, 2011 a man was stabbed in Belltown, and Phoenix Jones and his crew chased the suspect for approximately 8 blocks. They were able to subdue him until the police arrived. We will show you the video.

Coordinated Central Bank Rescue: The Smell of Money

Central Banks Take Joint Action to Ease Debt Crisis … The Federal Reserve moved Wednesday with other major central banks to buttress the financial system by increasing the availability of dollars outside the United States, reflecting growing concern about the fallout of the European debt crisis. The banks announced that they would slash by roughly half the cost of an existing program under which banks in foreign countries can borrow dollars from their own central banks, which in turn get those dollars from the Fed. The banks also said that loans will be available until February 2013, extending a previous endpoint of August 2012. “The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity,” the banks said in a statement. – NY Times

Dominant Social Theme: Thank goodness the cavalry is here.

Free-Market Analysis: This is, of course, the Anglosphere power elite’s fundamental dominant social theme. Our Money Power is good and we use it wisely and well on YOUR behalf. The “system” cannot be allowed to falter or fail. Not an inch of it. Of course, we ask, “Whose system is it, exactly?”

It is not the system of about three billion people who live, around the world, on a dollar a day. It is not the system of homeless people in the West. It is not the system of a hungry child. It is not the system of a Latino day-worker. It is not the system of the beret-clad performance artist in Greenwich Village. It is not even the system of a US Marine fighting in Afghanistan.

It a system that is of peculiar benefit to the elites. They own it. They run it. They utilize its awesome power as necessary. How can one doubt the existence of a power elite when one watches the sort of spectacle described above by the New York Times (see excerpt)? Here’s some more: