Katie Halper: Professor Michael Hudson, thank you so much for joining us. We’re really excited to have you. We wanted to start off by asking you if you could provide an overview of what the economics driving this conflict are—and by conflict, I mean the conflict between Russia and Ukraine, and, of course, with the rest of the world, or really the conflict between Russia and US, and the economic fallout.
Michael Hudson: Well, it depends on what side you’re looking at. From the Russian side, I don’t think the economic factors were primary. They were threatened by NATO’s expansion and really a plan to attack the Russian-speaking areas of Ukraine. So, I think Russia’s calculations were simply military. The West’s calculations were quite different.And if you looked at what the results of the conflict are, you have to assume that everybody was talking about the results [as] were known. They’re very clear. The results are a very large increase in fuel prices, oil, and energy prices, a very large increase in agricultural prices with declining supplies. This will leave most of Africa and Latin America—third-world countries, the Global South—unable to pay their foreign debts, which is going to result either in a massive debt default or it will result in a debt repudiation.
Michael Hudson Archive
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