Michael Hudson on crisis in Europe and the machinations of the rentier class
On Thursday, the Swiss National Bank abolished its policy of keeping the franc artificially weak at a peg of 1.20 to the Euro and fallout from the move ricocheted throughout the markets and around the world. The wild swing in the Swiss currency hit global banks with tens of millions of dollars in losses and triggered the collapse of several brokerage firms. The trading losses occurred within minutes of the SNB’s announcement as the Swiss Franc jumped 30% against the euro almost instantaneously. Erin weighs in.
Then, Erin is joined by Michael Hudson, distinguished professor of economics at the University of Missouri in Kansas City. Michael tells us about the connection between volatility in places like Switzerland and Greece and the underlying economic fundamentals. He also gives us his take on US sanctions.
After the break is Defining Moments, showcasing the best comments from our guests this week on topics like Greece, the US budget deficit, commodities, the Swiss Franc, oil, the "mainstreaming" of economics, and infrastructure spending.
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