06/09/2024
Hudson explains the financiers provide loans, knowing that there is no capacity to repay, because that gives them control of the economy. If governments enforce policies favorable to them, they provide them additional loans to enable repayments. If they do not like the governments, they withhold loans, causing governments to fall.
In “House of Debt,” Amir Mian and Atif Sufi unveil the hidden yet pivotal role private debt plays in triggering macroeconomic crises. Surprisingly, most macroeconomics textbooks overloo…