NY Times Is Wrong On Dedollarization: Economist Michael Hudson Debunks Paul Krugman’s Dollar Defense

NY Times Is Wrong On Dedollarization: Economist Michael Hudson Debunks Paul Krugman’s Dollar Defense

From Global Economy Report

[Matthias Chang’s comments: Prof Michael Hudson is the most sought after economist in the current global crisis and he made mincemeat of Nobel Laureate Paul Krugman’s explanations of the continued dominance of the US dollar, thereby exposing Krugman’s intellectual dishonesty. This in itself is worth reading the entire interview. But more importantly, bankers must fully understand the true nature of the dollar hegemony and why, the days of the $ hegemony are numbered. I invited Prof. Michael Hudson to Malaysia during the peak of the global financial crisis of 2008 together with Prof. Michel Chossudovsky (founder of the renowned Global Research website) and Ellen Brown, the author of the Web of Debt, to Malaysia as advisers in a Closed Door Dialogue – a No-Holds-Barred Exchange, with Malaysian policy makers etc. chaired by Tun Mahathir Mohamad. So, please give your fullest attention.]       

Transcript of Interview starts below:

BEN NORTON: Hi everyone, I’m Ben Norton and this is Geopolitical Economy Report.

I’m joined by the economist Michael Hudson, a friend of the show, a brilliant economist, the author of many books, and also the co-host of the program Geopolitical Economy Hour here with Radhika Desai.

Today we’re going to be talking about de-dollarization. Michael and Radhika just did a series on the decline in the US dollar system and the move by countries around the world to seek alternatives to the dominance of the US dollar.

Specifically, I wanted to bring on Michael today to respond to articles that were published in the New York Times by the economist Paul Krugman, arguing against de-dollarization, arguing in defense of the US dollar system.

We’re going to look at two articles that Krugman wrote, one in April and the other in May.

Michael, I’m going to start with the article that Paul Krugman published in April, called “International Money Madness Strikes Again“. He has this very dismissive tone in this, saying that it’s “madness”.

And essentially in this article, he creates a straw man, where he says that if you think that the dominance of the US dollar is in decline, that you think that there’s going to be hyperinflation in the United States.

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