Michael Hudson and Ian Proud Debate Economic Warfare and Sanctions Against Iran

In a discussion on Naked Capitalism, former diplomat Ian Proud and economist Michael Hudson analyze the economic dimensions of the US conflict with Iran. Hudson argues that sanctions and blockades are self-defeating, forcing targeted nations toward self-sufficiency while harming the global economy. He warns of a potential depression as oil disruptions cause deflation and financial contagion, with the US financial system highly exposed. Proud notes that Iran and Russia have turned economic pain back on the West, and that military Keynesianism fails to stimulate real growth. The conversation highlights the lack of public debate on war costs, contrasting with the Vietnam era, and predicts that prolonged economic warfare will isolate the US as other countries seek alternative financial systems.