Favoring Creditors: The Power Dynamics of Economic Systems

This chapter explores the interplay between the financial and political systems in the U.S., emphasizing the advantages granted to creditors. It also reflects on historical economic perspectives and compares American practices to China's economic strategies.

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Episode notes

Michael Hudson is Distinguished Research Professor of Economics at the University of Missouri, Kansas City and President of the Institute for the Study of Long-Term Economic Trends. He researches domestic and international finance, the history of economics, and the role of debt in shaping class stratification, among many other topics. This is Michael’s fifth appearance on the show. He was also a guest on episode 180, where he and Robinson discussed neoliberalism, industrial capitalism, and the rentier economy, and on episode 198, where they discussed Marxism, economic parasites, and contemporary debt cancellation. He has also joined with Richard Wolff. In this episode, Michael and Robinson discuss how the Crusades shaped the future of economics, the role of economics in political history, the current budget of the Republicans, problems with social security, the effects of AI on economics, and more. Michael’s most recent book is Temples of Enterprise (ISLET, 2024).

Michael’s Website: https://michael-hudson.com

Temples of Enterprise: https://a.co/d/a3c53dm

OUTLINE

00:00:00 Introduction

00:00:37 Why Historians Missed How the Crusades Shapes Economics

00:10:39 What Motivated the Crusades?

00:20:09 The Problem of Financing Wars

00:29:23 How The Roman Catholic Church Invented Financial Interest

00:40:08 Importing Jewish Merchants to England

00:45:12 The Intolerance of the Catholic Church

00:48:51 The Origin of Roman Catholic Indulgences

00:58:39 Using Indulgences to Finance the Crusades