According to US economist and former Wall Street analyst Michael Hudson, due to sanctions warfare, the US and EU might become failed economies.
The US’s attempts to use sanctions to destroy the Russian economy have failed miserably, hurting not only the US but also allies who adopted ineffective economic warfare strategies.
According to US economist and former Wall Street analyst Michael Hudson, surveys conducted in the US reveal that between 70 and 80 percent of respondents believe their nation’s economy “is getting worse and is being mismanaged.”
According to research conducted by The New York Times, Western companies suffered losses of more than $100 billion after leaving Russia.
In an interview, Hudson maintained that just 10% of Americans benefit from the US’s growing gross domestic product, leaving the other 90% of people in poverty.
Subscribe to GreatGameIndia
“So what you are having in the West is a bifurcated economy: it is very good to be a billionaire, it is very good to have stocks and even bonds; it is not good at all if you are a wage earner and have to pay for your housing and your food and your consumption out of what you’re earning,” he explained.
The “destruction of German heavy industry as a result of the Nord Stream blow-up and the sanctions against Russia have pushed Germany into a decline,” Hudson added, indicating that conditions in Europe are not much better on the other side of the Atlantic.
Due to the substantial impact Germany’s export surplus had on the Eurozone balance and foreign exchange, the problems facing the German economy in turn threatened the “entire euro’s exchange rate.”
According to Hudson, there is “pressure on the euro to go down against the [US] dollar, and the euro is becoming a sort of failed currency” in the absence of German exports and revenues.
“So there is talk now in both Europe and America, ‘Is America a failed economy? Is Europe a failed economy?’ That’s really what we should be talking about, not simply whether the economy is growing or not,” he pointed out.
US economist Hudson brushed off US President Joe Biden’s boasts about the country’s expanding economy, pointing out that the growth is primarily the result of the Federal Reserve “pumping money into the stock market and that is pushing up stocks.”
“For Mr. Biden, the contributors to the Democratic Party are the financial sector, and for the financial sector, it is doing just fine. So Mr. Biden’s economy is thriving,” Hudson continued. “Unfortunately, the economy for the 90% is not thriving, that is not Mr. Biden’s economy and that is why Mr. Biden’s approval ratings have fallen to the lowest approval of any sitting president since World War II, since statistics began to be covered.”
The United States is currently facing a health crisis, a housing catastrophe, and a “general economic malaise,” he continued.
Hudson also offered his opinions on several other topics, including the effects of Western nations seizing Russian overseas assets and the US dollar’s function as a weapon of control in Washington.