Hudson notes that the existing economic theory, the Chicago School in particular, serves rentiers and financiers and has developed a special language designed to reinforce the impression that there is no alternative to the status quo.
Hudson sees consumer protection, state support of infrastructure projects, and taxation of rentier sectors of the economy rather than workers, as a continuation of the line of classical economists today.
[citation needed] His father, Nathaniel Carlos Hudson (1908–2003), received an MBA from the University of Minnesota in 1929, the year the Great Depression struck.
Hudson, who had studied music from his childhood, moved to New York in 1960 in hopes of becoming a pupil of the conductor Dimitris Mitropoulos, but these plans were not to be realized.
Hudson's childhood best friend was Gavin MacFadyen, later a documentary film maker, founder in London of the Centre for Investigative Journalism and director of WikiLeaks.
His master's thesis was devoted to the development philosophy of the World Bank with special attention to credit policy in the agricultural sector.
In fact, they are not taught in any university departments: the dynamics of debt, and how the pattern of bank lending inflates land prices, or national income accounting and the rising share absorbed by rent extraction in the Finance, Insurance and Real Estate (FIRE) sector.
Based on export earnings and other international payment data, Hudson had to determine the income the bank could derive from the debt that these countries had accumulated.
Since 1934, when frightened by Adolf Hitler, Europeans began to buy US government securities, thereby shifting their gold and foreign exchange reserves to US banks.
At the same time, their value was included in the United States export statistics as a credit, therefore the government sector has been in sizable deficit on a payments-flow basis during 1960–1968, resulting mainly from its military operations.
In exchange for providing a net surplus of assets, commodities, debt financing, goods and services, foreign countries were forced to hold an equal amount of US treasuries.
Hudson views foreign central banks buying treasuries as a legitimate effort to stabilize exchange rates rather than a currency manipulation.
the right to stabilize exchange rates and expect repayment of the resulting loans even as industry shifts from the United States to creditor nations.
Dollar Diplomacy leads to subjecting other countries to unfair trade and investment intending to strip foreign assets and natural resources.
Parasitic finance techniques (including Western-style tax breaks) are used to extract the maximum amount of the country's surplus and cripple it as an economic competitor to the US, rather than providing fairness and promoting each nation's self-sufficiency.
In their investigation of the origins of debt and usury they found the first and by far the earliest major creditors were the temples and palaces of Bronze Age Mesopotamia, not private individuals acting on their own.
It was set purely for simplicity of calculation in the local system of fractional arithmetic, i.e., 1/60th per month in Mesopotamia and later one-tenth per year for Greece and 1/12th for Rome.
The rise of personal debt, past a certain low threshold, begins to reduce worker productivity—even if it makes the elite financial class wealthier.
Hudson stated: "In the early 1990s I tried to write my own summary, but was unable to convince publishers the Near Eastern tradition of Biblical debt cancellations was firmly grounded.
Two decades ago economic historians and even many Biblical scholars thought the Jubilee Year was merely a literary creation, a utopian escape from practical reality.
From the beginning of the 2000s, Hudson pays special attention to the issues of inflating fictitious capital, which entails the withdrawal of funds from the real economy and leads to debt deflation.
Hudson states parasitic non-productive, rent-seeking finance looks at industry and labor to determine how much wealth it can extract by fees, interest and tax breaks.
Compounding interest naturally results in increasing the size of debt which eventually demand more wealth be extracted than production and labor are able to pay.
According to Hudson, bankers and rentiers as early as 1880s started to search ways to rationalize untaxing and deregulating finance, real estate and monopolies.
Hudson stresses world success of neoliberal Dollar Diplomacy and financialization is closely connected with its educational support in all big universities.
The junta then closed down every social science department and fired, exiled or murdered critics of its ideology in the terrorist Project Condor program waged throughout Latin America and spread to political assassination in the United States itself.
Its remarkable success in the United States and elsewhere thus has been achieved largely by excluding the history of classical, conservative economic thought from the early 1800s, which culminated in many ways with Marx.
[21] Hudson wrote, Marx and many of his less radical contemporary reformers saw the historical role of industrial capitalism as being to clear away the legacy of feudalism—the landlords, bankers, and monopolists extracting economic rent without producing real value.
Tax favoritism for real estate, privatization of oil and mineral extraction, and banking and infrastructure monopolies add to the cost of living and doing business.
In Capital, Volume III, Marx discusses the tendency of productivity and supply to increase at a faster pace than the consumption power and demand.