guy is right. problem is, the government can't even discuss this, because if they did it would cause an instant stampede for the exits. it's going to have to be done sooner or later, the question is how to do it without creating a panic.
Writing from Japan I can say Steve Keen has it exactly right, which is why his advice will never happen. The Banksters would prefer a 100 years of misery than be wiped clean. They hold such a throttle-grip on world governments that it will need The Revolution. Every country (incl. much of China's local governments) is in debt. Not so much is owed to pensioners' and widows' funds as banks claim. They can be kept whole. But the vast majority is owed to a handful of shadowy owners aka Rothschild
Remove interest rates, the debt is not the problem, yes a 21st century Jubilee. To give you some idea, why have currency based on gold, why not on resources, each nation has a resource in people or in possessions. Australia has the worlds largest iron or, aluminium etc, the true value of the worth of each Aussi is in fact stolen by the system, a series of government that have given into corporate greed, get rid of the banks, stock market, interest rates
Steve Keen is a hero, only an Aussie economist could come out with the line "stop these financial bastards".... superb. Steve Keen tells it how it is, and probably how it will be.
private banks are granted the privilege to engage in fractional reserve banking by loaning out up to ten times as much "money" than they have in actual reserves. the only reason this is sustainable is because the federal reserve will bail them out when the bubble bursts.
@The funny thing is if you think peter schiff is right (inflation) or Steve keen (deflation), we are screwed no matter what... There track record speaks for itself, and they both agree we are heading for a major crash, just via different routes.
as soon as the"Crime" and "Treason" variables are added to any analysis, any and all metrics will prove out. just like a balanced algebra equation. the problem is that these analysts all, refuse to accept pragmatic reality. that's why "economics" is anything but a science. now "Political Economy" WAS a science. it factored in corruption, treason, and crime into all considerations. just IMHO of course. FT
Inflation won't come from rich people flooded with cash that are trying to spend it, it will come from the US $ losing all its value. Steve Keen is smart but I really think he's wrong about deflation. Big time.
I agree. He does not seem to take into account the vast dollar holdings in foreign countries and when they move out of the dollar and the federal deficits and 0% cashrate continue it will make individuals loose confidence in the value of the dollar this will lead to a rise in velocity of money and this will be when the inflation strikes. In my view it could be as bad as hyperinflation.
I think Max Keiser is a little "on the edge" !! lol screaming and shouting all the time. Yanks have too much emotion which is what caused this great problem in the first place. Try to be more pragmatic you lunatic
I'd like to ask Mr. Keen, if we are in deflation why is the dollar falling? Can someone out there show me anytime in history where a fiat based currency ever went through deflation? Since fiat money is infinite, how in the hell can you have deflation? Look at what has happened to our dollar since we have gotten off the gold and silver standard. I'm sorry, what we are going through right now is an inflationary depression. Mr. Keen in opnion is dead wrong. But only time will tell who is right.
so steve says printing money is not inflation. but, isn't it true when you print too much it devalues the currency. second, given we are a debt based economy, when we print money, doesn't it mean than it will be hard to issue bonds. third, most of the businesses are coming from govt. (so we are getting our salaries not from productive work, but govt. stimulation - which means printed money circulating through the economy) and the whole inflation/deflation is bs.
further, there are huge dollar reserves overseas (china, japan) and it is a reserve currency. when, the govt. is printing so much it affects other economies (their interest rates depend on the dollar). more printing again means (countries with huge reserves want to diversify their holdings). more printing, means further tax obligations (given that banks are not lending) means high unemployment. so debt is high, gdp is low. simple USA has to default and dollar is doomed. buy gold
now if you call it debt deflation (that means we defaulted on our debt and lose worldwide status or you call it inflation. (because once dollar is not reserve currency, commodities will be priced is prolly SDR and americans will have to work harder to earn a living. (so current standard of living falls). so whether you call it inflation/deflation it is the same thing. a sinner cannot exist without a saint and neither can love exist without hate.
it dont take an idiot to figure this out anybody that says printing money wont cause hyper inflation is full of shit. like gold theres only so much gold on this planet you they dont have a machine or press to make gold thats what make its price so high its a rare metal unlike money u can just print as much ass you like more money the less the value its the same with anything
Americas 6th largest financial collapse: Colonial Bank!
The FDIC is run by Sheila Bair, a Lawyer, and the dean at the Isenberg Institute. Her and her staff of Zio-clowns are not about to arrest the directors, the executive management, the auditors, or the investment oversight board.
This clueless clown belongs behind the counter of a McDonalds. He is cooking the 'Health Scheme' where doctors, hospitals, and Hispanic immigrants get a $ trillion dollars.
You can print all the money you want and give it to the banks, but if the banks aren't lending it out, and the consumers aren't asking for it because no one has the credit, or is underwater in debt, or even more likely, have finally come to realize that going into debt is stupid, then that money isn't affecting anything except helping banks that should have died stay alive. The dumb thing was giving the money to the banks in the first place.
about time someone mentioned the awful word: debt cancellation. the whole concept of the profit motive has twisted the economics of corporations and governments so badly, i dont even know what capitalism is anymore
If the massive bailout funny money disappeared into a electronic treasure chest buried in Davy Jones Data Warehouse it never gets out to chase goods and consume. Nor does it fire production of goods. It is of no effect except maybe as a tool to merge more
i dont know where he gets that. but i agree with letting the parasitic banks die off!... and alot of other points; like private debt dwarfing government debt.
not too sure about this guy, says all economists are wrong, but lays out many similar concepts to the austrian school.
also states private debt is larger than government debt, gov only spent 1.6 trillion, will not run up inflation. fails to recognise the government has and will insure all bad private debt and already injected far more than the 1.6 trillion.
he ends with stating that the ultimate solution is to nationalise everything, giving the government more control. nice one steve.
I´M with you. In my country we had for 40 years!!!! a nationalized banking system and it all went very wrong. After 1990 we had to privatise them with huge losses which one - of course - taxpayer have had to pay. To nationalise everything solves absolutely nothing but just creates more problems
I think the biggest indicator of his confusion is that he constantly distinguishes between "private" and "government" money... It's as if he doesn't understand that the banking system is a government enforced banking cartel/monopoly and there is no true "private" banks.
He admited that all economists do more harm than good by standing in the way of natural market forces. And he is one of them, for sure. These guys do not realize that being a good economist also includes deep knowledge of geopolitics, history and most of all - common sense. It is quite possible that this guy has created his own academic bubble of self-importance like many before him. Nationalizing as solution? And who will be nationalizing - the government who is in bed with banking cabal? Joke.
If you tell a dog to sit and the dog sits you give it a cookie and say "Good dog". If you tell another dog to sit and the dog bites you, you say " Bad dog, you starve, now play dead."
I say "Bad Banks, you starve, now play dead." Come on "Jubilee"
I hope it does turn out to be like Japan's experience, yet as Schiff points out, the people had the savings to lend to the Gov't and they had thriving industry.
Nope not convinced. There are too many instances in history that better correlate wit hour situation. We are set up to follow the likes of Argentina.
Nationalize the banking system?! I would rather die in the revolution before that happens. What an idiot. Oh yea, and let's nationalize health care, and the auto industry and the airline industry and the steel industry too while we are at it. I mean government has such an amazing track record. Why don't you brain dead bone-headed morons wake up?
Yea, let them go bust, and start over with a *NATIONALIZED FINANCIAL SYSTEM* This guy is a complete moron and a total hack. Period. The simple fact of the matter is that he *JUST DOESN'T GET IT* The problems we have today are *because* of government involvement in the financial system. Wake up people.
I think repealing of The Glass Steagall Act was the beginning of the end and as such regulation is required... I suppose the evidence of Japan's economic situation should be taken into account also.
Oh no, the beginning of the end was the Community Reinvestment Act. I agree with you repealing Glass Steagall was also a mistake. You can thank our government for being so wise as to remove good regulation and introduce bad regulation. I for one do not want these dimwits in control of a nationalized financial system. No chance of corruption there for sure! ;-)
The FED & Treasury are the purveyors of US T Bonds. But for many years, big banks like JP Morgan & Goldman Sachs have sold T Bonds that they had no authority to sell; which is essentially counterfeiting those bonds: Selling short Bonds that dont even exist
The FCC had all records on criminals like Paulson, Geithner, Ruben, Summers & others engaging in that illegal activity. But all the records of those illegal trades were destroyed when WTC 7 was brought down by thermite on 9/11!
What you have now is worse than nationalization. Tax-payer money going into the coffers of pirates without public oversight, with the tacit understanding that there will more money to the few banking behemoths if needed.
And then there's the Keynesian policy of injecting huge sums of government money into select defence contractors, which none of the Free Market fetishists complain about. Why? Because it is done to 'defend the Capitalist System'.
If your banking system is corrupt, and you create a government-run banking system, you just add more opportunity for corruption to the government agencies in question: the government-bankers will have exactly the same motivations for corruption as the private-bankers, and more ability to implement it due to the power of the state.
More of Dr Steve Keen,but in the neo-liberal atmosphere of Europe debt jubilees are not going to happen.With Germany at the polls before the end of this mont(Sept2009)debt forgiveness will not be an issue,just the enslavement of German taxpayers.Clear the system,shhot the bankers out of the cannon and start again.
guy is right. problem is, the government can't even discuss this, because if they did it would cause an instant stampede for the exits. it's going to have to be done sooner or later, the question is how to do it without creating a panic.
unabonger777 7 months ago
Writing from Japan I can say Steve Keen has it exactly right, which is why his advice will never happen. The Banksters would prefer a 100 years of misery than be wiped clean. They hold such a throttle-grip on world governments that it will need The Revolution. Every country (incl. much of China's local governments) is in debt. Not so much is owed to pensioners' and widows' funds as banks claim. They can be kept whole. But the vast majority is owed to a handful of shadowy owners aka Rothschild
Tobacc0 7 months ago
Do it, cause even an idiot can see what ever theyre doing now isnt working. One day were try something new. Sooner rather than later i hope.
wiggledytoes 7 months ago
Keen should run for Prime Minister. Who's with me?
whereismybailouttv 1 year ago
OMG ... did he say that at 6:15?!?!
0muffins0 1 year ago
Remove interest rates, the debt is not the problem, yes a 21st century Jubilee. To give you some idea, why have currency based on gold, why not on resources, each nation has a resource in people or in possessions. Australia has the worlds largest iron or, aluminium etc, the true value of the worth of each Aussi is in fact stolen by the system, a series of government that have given into corporate greed, get rid of the banks, stock market, interest rates
MichelleNye 2 years ago
Steve Keen is a hero, only an Aussie economist could come out with the line "stop these financial bastards".... superb. Steve Keen tells it how it is, and probably how it will be.
SpunkyyJoe 2 years ago 4
private banks are granted the privilege to engage in fractional reserve banking by loaning out up to ten times as much "money" than they have in actual reserves. the only reason this is sustainable is because the federal reserve will bail them out when the bubble bursts.
chainzdown2dadik 2 years ago
No wonder the Government is back to trying to force banks to making bad loans again. Using the old money multiplier scheme to prevent deflation.
Very interesting video. A little different perspective then Peter Schiff.
Pnkbong 2 years ago 3
@The funny thing is if you think peter schiff is right (inflation) or Steve keen (deflation), we are screwed no matter what... There track record speaks for itself, and they both agree we are heading for a major crash, just via different routes.
LuqmanNaq 1 year ago
This has been flagged as spam show
Well,,,check this out
Iran firing off more missiles
Sunday, 27 September 2009
Google this headline:
Iran missile tests stoke tensions
It fired off two short range missles and
Iran is announcing that they will test a long-range Shahab-3 missile,
on Monday 9/28, which would have the capability to reach Isreal....
Hang tight and keep oil in your lamps!
behearsoon 2 years ago
as soon as the"Crime" and "Treason" variables are added to any analysis, any and all metrics will prove out. just like a balanced algebra equation. the problem is that these analysts all, refuse to accept pragmatic reality. that's why "economics" is anything but a science. now "Political Economy" WAS a science. it factored in corruption, treason, and crime into all considerations. just IMHO of course. FT
FellowTraveller 2 years ago
Inflation won't come from rich people flooded with cash that are trying to spend it, it will come from the US $ losing all its value. Steve Keen is smart but I really think he's wrong about deflation. Big time.
imre1000 2 years ago
I agree. He does not seem to take into account the vast dollar holdings in foreign countries and when they move out of the dollar and the federal deficits and 0% cashrate continue it will make individuals loose confidence in the value of the dollar this will lead to a rise in velocity of money and this will be when the inflation strikes. In my view it could be as bad as hyperinflation.
Choros22 2 years ago
well there is no such thing as good. good exist because of evil and besides evil when reversed is live :)
joshrain1 2 years ago
All these "nationalizer" european economists are bogus.
I like listening to guys like Steve Keen and F W Engdahl, and LaRouche sometimes, but they're wrong the the solutions.
juice797 2 years ago
he's like the Australian version of Microsoft Sam
AaronKilleen 2 years ago
I think Max Keiser is a little "on the edge" !! lol screaming and shouting all the time. Yanks have too much emotion which is what caused this great problem in the first place. Try to be more pragmatic you lunatic
Dandaniels1978 2 years ago
MONEY!MONEY!MONEY!MONEY!....ummm.....jesus?.....AHHH!!!MONEY! MONEY!! MONEY!!!.....umm I'm a Christian.... BACK TOOOOOO MONEY! MONEY! MONEY! MONEY! MONEY!!!
okturus 2 years ago
I have a feeling Max wanted to go off on this guy and tell him he's a damn fool.
zackvanhalen 2 years ago
I'd like to ask Mr. Keen, if we are in deflation why is the dollar falling? Can someone out there show me anytime in history where a fiat based currency ever went through deflation? Since fiat money is infinite, how in the hell can you have deflation? Look at what has happened to our dollar since we have gotten off the gold and silver standard. I'm sorry, what we are going through right now is an inflationary depression. Mr. Keen in opnion is dead wrong. But only time will tell who is right.
infopatriot 2 years ago
so steve says printing money is not inflation. but, isn't it true when you print too much it devalues the currency. second, given we are a debt based economy, when we print money, doesn't it mean than it will be hard to issue bonds. third, most of the businesses are coming from govt. (so we are getting our salaries not from productive work, but govt. stimulation - which means printed money circulating through the economy) and the whole inflation/deflation is bs.
joshrain1 2 years ago
further, there are huge dollar reserves overseas (china, japan) and it is a reserve currency. when, the govt. is printing so much it affects other economies (their interest rates depend on the dollar). more printing again means (countries with huge reserves want to diversify their holdings). more printing, means further tax obligations (given that banks are not lending) means high unemployment. so debt is high, gdp is low. simple USA has to default and dollar is doomed. buy gold
joshrain1 2 years ago
now if you call it debt deflation (that means we defaulted on our debt and lose worldwide status or you call it inflation. (because once dollar is not reserve currency, commodities will be priced is prolly SDR and americans will have to work harder to earn a living. (so current standard of living falls). so whether you call it inflation/deflation it is the same thing. a sinner cannot exist without a saint and neither can love exist without hate.
joshrain1 2 years ago
i find economists arguing over inflation/deflation funny and childish and not seeing the big picture.
joshrain1 2 years ago
Stop the financial bastards. lol
2008liberty 2 years ago 4
Steve Keen was a mathematician first looking at non linear dynamic systems before he turned to economics.
DavidAKZ 2 years ago
is keen bullish on gold? why?
infowwarsdotcom456 2 years ago
Gold has a history of responding well in deflationary environments as well. The Great Depression is a prime example.
infopatriot 2 years ago 2
it dont take an idiot to figure this out anybody that says printing money wont cause hyper inflation is full of shit. like gold theres only so much gold on this planet you they dont have a machine or press to make gold thats what make its price so high its a rare metal unlike money u can just print as much ass you like more money the less the value its the same with anything
SuperGozzy 2 years ago
And what about all the Trees needed for so much paper?..They do use wood pulp,dont' they!?
BrodyLuv2 2 years ago
True, but not in all cases, Australia for instance uses polymer notes.
nichaeloz 2 years ago
Hidden from news:
Americas 6th largest financial collapse: Colonial Bank!
The FDIC is run by Sheila Bair, a Lawyer, and the dean at the Isenberg Institute. Her and her staff of Zio-clowns are not about to arrest the directors, the executive management, the auditors, or the investment oversight board.
This clueless clown belongs behind the counter of a McDonalds. He is cooking the 'Health Scheme' where doctors, hospitals, and Hispanic immigrants get a $ trillion dollars.
sugarpuddin88 2 years ago
You can print all the money you want and give it to the banks, but if the banks aren't lending it out, and the consumers aren't asking for it because no one has the credit, or is underwater in debt, or even more likely, have finally come to realize that going into debt is stupid, then that money isn't affecting anything except helping banks that should have died stay alive. The dumb thing was giving the money to the banks in the first place.
tryptala 2 years ago
The End Game Is World Communism..Its' kinda' plain to see..Failing that WW4 ..not to be too gloomy!!
BrodyLuv2 2 years ago
Parasites is too kind a term. How about vampires instead? And their minions run all through government.
tryptala 2 years ago
negative interest rates, central banks will pay national banks money to take up a debt that will never be repaid .....
that would be the next logical propaganda the BANKSTER and GOVTS will sell us the SLaves
LastReplaySC 2 years ago
about time someone mentioned the awful word: debt cancellation. the whole concept of the profit motive has twisted the economics of corporations and governments so badly, i dont even know what capitalism is anymore
cheomire 2 years ago 2
print a $trillion. burn a $trillion.
If the massive bailout funny money disappeared into a electronic treasure chest buried in Davy Jones Data Warehouse it never gets out to chase goods and consume. Nor does it fire production of goods. It is of no effect except maybe as a tool to merge more
ginormous entities. Ponderable.
tenagliac 2 years ago
SvrchovaneCechy ,good post.
This is what Prector wrote a book about and said the same thing.Nothing new here.
Deflation, crash ,then hyper-inflation.
Question is , time frame.
cpgone 2 years ago 2
nationalize the financial system??? lol. Thats what got us here - extreme govt involvement in finances. IDIOT!
pairunoyd 2 years ago
i dont know where he gets that. but i agree with letting the parasitic banks die off!... and alot of other points; like private debt dwarfing government debt.
psbyowner 2 years ago
and what about sound money, government policy as a root cause for the phony credit bubbles?
worst guest max has had one so far.
MattyS54 2 years ago
not too sure about this guy, says all economists are wrong, but lays out many similar concepts to the austrian school.
also states private debt is larger than government debt, gov only spent 1.6 trillion, will not run up inflation. fails to recognise the government has and will insure all bad private debt and already injected far more than the 1.6 trillion.
he ends with stating that the ultimate solution is to nationalise everything, giving the government more control. nice one steve.
MattyS54 2 years ago
I´M with you. In my country we had for 40 years!!!! a nationalized banking system and it all went very wrong. After 1990 we had to privatise them with huge losses which one - of course - taxpayer have had to pay. To nationalise everything solves absolutely nothing but just creates more problems
grossleinbach 2 years ago
Let the banksters fail. China is refusing to pay trillions in derivatives losses to the crooked banksters. F U Goldman Sachs.
TonyUnplugged 2 years ago 8
I think the biggest indicator of his confusion is that he constantly distinguishes between "private" and "government" money... It's as if he doesn't understand that the banking system is a government enforced banking cartel/monopoly and there is no true "private" banks.
HowardATreesong 2 years ago
He admited that all economists do more harm than good by standing in the way of natural market forces. And he is one of them, for sure. These guys do not realize that being a good economist also includes deep knowledge of geopolitics, history and most of all - common sense. It is quite possible that this guy has created his own academic bubble of self-importance like many before him. Nationalizing as solution? And who will be nationalizing - the government who is in bed with banking cabal? Joke.
SvrchovaneCechy 2 years ago
If you tell a dog to sit and the dog sits you give it a cookie and say "Good dog". If you tell another dog to sit and the dog bites you, you say " Bad dog, you starve, now play dead."
I say "Bad Banks, you starve, now play dead." Come on "Jubilee"
buzmach 2 years ago
Debt money? This is bullshit. Inflation is the situation.
alphaknave 2 years ago
too bad bankers don't have gold teeth!!
hehe
italianpolitics 2 years ago 2
I hope it does turn out to be like Japan's experience, yet as Schiff points out, the people had the savings to lend to the Gov't and they had thriving industry.
Nope not convinced. There are too many instances in history that better correlate wit hour situation. We are set up to follow the likes of Argentina.
InTheSticks1881 2 years ago 3
Nationalize the banking system?! I would rather die in the revolution before that happens. What an idiot. Oh yea, and let's nationalize health care, and the auto industry and the airline industry and the steel industry too while we are at it. I mean government has such an amazing track record. Why don't you brain dead bone-headed morons wake up?
XulChris 2 years ago
He said to let them go bust... Not nationalize the loss like they are doing
ozwasp 2 years ago
Yea, let them go bust, and start over with a *NATIONALIZED FINANCIAL SYSTEM* This guy is a complete moron and a total hack. Period. The simple fact of the matter is that he *JUST DOESN'T GET IT* The problems we have today are *because* of government involvement in the financial system. Wake up people.
XulChris 2 years ago
I think repealing of The Glass Steagall Act was the beginning of the end and as such regulation is required... I suppose the evidence of Japan's economic situation should be taken into account also.
ozwasp 2 years ago 4
Oh no, the beginning of the end was the Community Reinvestment Act. I agree with you repealing Glass Steagall was also a mistake. You can thank our government for being so wise as to remove good regulation and introduce bad regulation. I for one do not want these dimwits in control of a nationalized financial system. No chance of corruption there for sure! ;-)
XulChris 2 years ago
I'm actually in Australia, but yes we may as well be the 51st(?) state of the US
ozwasp 2 years ago
That'll be Area 51..Hence the name.
BrodyLuv2 2 years ago
So what is the UK to America?... The deputy?
ozwasp 2 years ago
Oh,that Old Slight of Hand..America is the Military arm of the UK's For-thought.
BrodyLuv2 2 years ago
lol
ozwasp 2 years ago
Little or no public sector debt here courtesy of 10 years of Howards' fiscal prudence. The debt in Australia is ma9inly private
DavidAKZ 2 years ago
The beginning of the end was the FED. If you don't know that, then you ARE a dimwit.
mengwise36 2 years ago
The FED & Treasury are the purveyors of US T Bonds. But for many years, big banks like JP Morgan & Goldman Sachs have sold T Bonds that they had no authority to sell; which is essentially counterfeiting those bonds: Selling short Bonds that dont even exist
The FCC had all records on criminals like Paulson, Geithner, Ruben, Summers & others engaging in that illegal activity. But all the records of those illegal trades were destroyed when WTC 7 was brought down by thermite on 9/11!
sugarpuddin88 2 years ago 4
Most of Wall Street is naked short selling. It's institutional. Remember that Madoff was a founder of NASDAQ. It's all smoke and mirrors.
CarryANationIII 2 years ago 2
XulChris,
You're posting in the wrong list, bro. Take it somewhere where you will be appreciated .... a teabag party? Sarah Palin rally? the 700 club?
flimflamman 2 years ago
What you have now is worse than nationalization. Tax-payer money going into the coffers of pirates without public oversight, with the tacit understanding that there will more money to the few banking behemoths if needed.
And then there's the Keynesian policy of injecting huge sums of government money into select defence contractors, which none of the Free Market fetishists complain about. Why? Because it is done to 'defend the Capitalist System'.
flyhead2 2 years ago 11
If your banking system is corrupt, and you create a government-run banking system, you just add more opportunity for corruption to the government agencies in question: the government-bankers will have exactly the same motivations for corruption as the private-bankers, and more ability to implement it due to the power of the state.
flowmytea 2 years ago
Better red than dead I guess
DavidAKZ 2 years ago
thanks
galikazoid 2 years ago
6:50
ejbh3160 2 years ago
kill the parasites
jryan1971 2 years ago 7
More of Dr Steve Keen,but in the neo-liberal atmosphere of Europe debt jubilees are not going to happen.With Germany at the polls before the end of this mont(Sept2009)debt forgiveness will not be an issue,just the enslavement of German taxpayers.Clear the system,shhot the bankers out of the cannon and start again.
justjacqueline2004 2 years ago 3