Prof Steve Keen: Will there be a Double Dip in the USA? Part Two

Professor Keen explains the private debt dynamics that caused both the Great Depression and the Great Recession. The Great Recession will end when private debt is much lower than it is now--even though it's fallen by 30% of GDP since the peak, it's still 100% higher than at the start of the Great Depression. A slowdown in the rate of decline of debt actually caused much of the recent recovery, but Professor Keen expects that this slowdown will pass and a double dip will occur. Part Two of the interview.

http://www.debtdeflation.com/blogs/

Category:

News & Politics

Tags:

• Great Recession
• Great Depression
• Double Dip
• Economics
• Housing
• Housing Bubble
• Steve Keen
• Debt Deflation
• Economy

[juujuuuujj]

Great video. I think the reason why both Japan and the US basically ended up doing the same thing is regulatory and government capture by the FIRE sectors. The only hope for eliminating debt is something like the Iceland scenario, where given the right to vote, people will actually take a much better decision than their leaders.

[mikedsmith1]

Really impressed with the quality of these new videos

[gwynedd1]

@dexndi

With zombie banks collecting the interest and principle? Hyperinflation is almost always caused by the destruction of the underlying economy. I can't believe how Wiemar and Zimbabwe keeps coming as if war and foreign debt don't matter. I suppose tsunamis are really just an issue of monetary policy.

[KenMacMillan]

Moral of the story, everyone needs to get out of debt.

[mrzack888]

so the idiot libertarians that LUV austerity and Gold are actually digging their own graves with precious metals investments.

[whereismybailouttv]

For the next nine days, it's a spin battle for money and power.

[whereismybailouttv]

What's the standard line politicians use to raise the debt ceiling? It's been done before. So why wouldn't we do it?

Answer? it's never accomplished anything. The Democrats have a go at Reagan (he did it five times). Clinton did it and the economy grew. So it MUST be ok to do! I could also say that Clinton did away with the telecommunications Act and the Glass-Spielgel act. Look how brilliantly those turned out.

[whereismybailouttv]

Fast forward to now. In the next nine days, it's going to be pure spin. Each side will spin as much as possible to blame the other side(so that way they'll win in 2012). At the very last minute w/no agreement, Obma will step in and invoke the 14th Amendment whcih allows him to raise the debt ceiling. He'll then go on TV and the message will be, I had no choice. The Republicans forced me to do this.

[shankyxyz]

excellent explanation prof keen. i however think it will not be a quadruple but a 20-tuple dip. also this constant cycling of the economy, and the concurrent volatility in the market, is one way in which the banks make profit and hope to cover their bad debts. but it never works. also unlike japan, i dont think capitalism can survive 20 years of japan style stagnation in the US.

[dexndi]

@caparn100 Are you for real? Printing money does not work well for the value of the US dollar. Ever heard of "Hyperinflation"?