Geopolitical Economy Report As stock market crashes, is US facing new financial crisis? Economist Michael Hudson explains
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Aug 7, 2024 
Economist Michael Hudson discusses the recent stock market crash and looming financial crisis. He dives into extreme market volatility, the unraveling Japanese yen carry trade, and the impact of the AI bubble on Big Tech. Hudson unpacks important geopolitical tensions involving Russia, Ukraine, and Iran, highlighting how these factors influence global stability. He critiques the short-sightedness of current economic analysis and challenges listeners to rethink the disconnect between wealth and real economic conditions.
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Debt Overhang Blocks US Recovery
- The US economy is burdened by excessive debt that hinders recovery and growth.
- Financial gains flow to a small creditor class while the broader economy shrinks and stagnates.
Yen Carry Trade Sparks Crash
- The unwinding of Japan's yen carry trade triggered global margin calls and a stock market crash.
- Rising Japanese interest rates forced speculators to sell US stocks to cover costlier yen-denominated debt.
US Actions Fuel De-Dollarization
- US sanctions and geopolitical tensions prompt global shift away from the dollar and US markets.
- China and BRICS countries lead efforts to de-dollarize and reorient trade toward growing economies.