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What causes inflation? Economists Radhika Desai & Michael Hudson explain

Geopolitical Economy Report

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What Is the Federal Reserve Doing?

Radica: The financial sector is not productive. What does it produce? It produces debt. That's what yields interest. So the financial sector produces overhead and the effect is to polarize the economy. And if we can create enough unemployment, then workers will become so desperate to eat that they will have to avoid homelessness by actually taking minimum wage jobs. They've twisted all of the meetings into an Orwellian double thing. Radica: I mean, what is the Federal Reserve doing and what is right and wrong with it? Perhaps wrong with it?"

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