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World News See other World News Articles Title: The Free Lunch is Over - Prof. Michael Hudson Poster Comment: I will take notes on this for you. Since 2008 the US economy has shrunk for the bottom 95% and grown for the top 5%. Housing used to be how the middle class made money. 20% down and the mortgage was no more than 25% of your income. Homes in downtown London and NYC are owned by foreigners who spend mots of the year away. Employers in London buy train tickets for their most valuable people because they can't afford to live in London. In Australia real estate is so expensive that Australians cannot buy homes. Bankers will tell you that we don't need industry because employers cannot pay enough to buy a home. Australians benefit from rich neighbors meaning China. The Chinese buy their iron ore. Who needs factory workers? 9:00 Only 30% of the average homeowners income is available to buy goods and services. They pay income and sales taxes, Social Security taxes, mortgage payments, credit card payments and even student debt. In NYC half of the retail stores on some streets are empty because nobody can buy what they used to buy. The economy has not recovered since 2008. Obama decided to save the banks and not the voters. 11:00 Vancouver B.C. has high real estate prices but is not in a bubble as banks have to loan money to create a bubble. Homes are bought for 100% cash by foreigners and hedge funds. Vancouver homes are going up so high that they are in what Dr Hudson calls a Debt Deflation. The Financial system is decoupled from the real economy. Car sales are down because people can no longer afford them. Our wages after tax and payments is declining. 13:00 Every recovery since WW II has been weaker and weaker because each recovery has come with a greater debt burden. London and NYC made short subway lines in wealthy areas for about $6 billion dollars each. They increased real estate values in those areas rise by $6 billion. Banks are willing to loan as much as people are willing to pay. People make money from asset price inflation. 10 million homes in America have been foreclosed and bought up mostly by hedge funds. He wants to tax land. I would prefer to limit population growth so there is no more demand for higher real estate prices. He wants to let population grow and tax increases in property values. I want to kick out the illegal aliens and most of the people with Green Cards. Stopping the growth in property values is one way to help people. Another way would be to ban interest bearing currencies and issue non-interest bearing US Treasury Notes similar to Lincoln's Greenbacks. And also ban fractional reserve banking. Of course we need Debt Cancellation. Arrest the Bankers and seize the tens of trillions of dollars they stole from us. And charge them for all the phony wars they got us into. Then we use that money to fund Worldwide Debt Cancellation. Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest
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