Steve Keen Rebutted - His printing press creditor bailout does NOTHING for Domestic Economy

Keen would have creditors bailed out with treasury fiat -- "Lincoln greenbacks" in the US -- to give the up front the present value of all the debt that households in the current hyper-Deflation are unable to pay. The inflation goes to the creditors while none of this printing-press bailout goes to the household or the domestic production sector to end our deflationary depression here. Keen's plan bails out the creditors the amount deflation prevents household debtors from paying -- while at the same time maintaining starvation of purchasing power in the household-production sector loop -- which deflation of course gives a windfall to all debt holders.

Don't imagine this is populist in any way. It is printing press bailout for the international speculators and continued hyper-Deflation for national economies. The end result is that the creditors who hold their dollars outside the domestic economy loop will have that many more dollars which will appreciate in value as the deflation in the domestic economy continues unaffected.

Keen is promoting a new class warfare weapon -- the state pays out debts -- but we get no purchasing power from it -- and then the state owns us because of the "favor" --

I wonder how many economists they approached with the offer to float this idea before they found Keen?

Populist alternative to Keen's printing press handout exclusively to Big Finance is 1) repudiation, 2) treasury money and 3) the origination of ALL NEW MONEY FROM NOW ON in the hands of the household sector -- replacing wall street lending -- so this ever fortified consumer purchasing power can be the wealth pump that builds the economy with unfailing demand to prosper producers, households and tax-financed government.

http://www.youtube.com/watch?v=sYZ0-A1tncs

http://www.youtube.com/watch?v=q40nXVkZsbE

End Debt Slavery Now - American National Credit
http://youtu.be/p_wv4NTNrxU



Fisher's Debt-Deflation Theory of Great Economic Depressions
http://fraser.stlouisfed.org/docs/meltzer/fisdeb33.pdf

"two loop" analysis and social credit solution elaborated in detail
http://www.citizensamericaparty.org/socialcredit.htm

Arthur Kitson

The Money Problem
http://www.yamaguchy.com/library/kitson/kitson_index.html

The Fraudulent Standard
http://www.yamaguchy.com/library/kitson/kitson_index.html

Anthony Migchels

Saving and Stagflation
http://realcurrencies.wordpress.com/2011/01/25/stagflation-explained-at-last/

Gold Revisited
http://realcurrencies.wordpress.com/2010/02/16/gold-revisited/



Margit Kennedy

Why Do We Need Monetary Innovation?
http://www.margritkennedy.de/index.php?id=105&ord=56

If Money Rules the World - Who Rules Money?
http://www.margritkennedy.de/index.php?id=115&ord=57


Clifford Hugh Douglas -

Social Credit (1924)
http://douglassocialcredit.com/resources/resources/social_credit_by_ch_dougla... or
http://www.mondopolitico.com/library/socialcredit/toc.htm


Thoughts of Douglas (excerpts from his writings)
http://www.alor.org/Library/ThoughtsofDouglas.htm



Gertrude Coogan

Money Creators (1935)
http://yamaguchy.com/library/coogan/coogan_01.html


Irving Fisher

The Debt-Deflation Theory of Great Depressions
http://fraser.stlouisfed.org/docs/meltzer/fisdeb33.pdf


Frederick Soddy




Wealth, Virtual Wealth and Debt
http://www.sdnl.nl/mistake.htm


Social Credit in Australia
http://www.alor.org/Library1.htm

Category:

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[DavidByrne85]

@waldentree lol. Very shushpishush.

[cyrusp100]

You obviously haven't properly listened to Professor Keen. His solution would bankrupt most of the banks. His solution would kneecap the creditor class.

[feelthewyrd]

are you sure that he only advocates jubilee to those heavily in debt? If so then keen is a dick head or a crook. But the reason why such an idea is crazy is not because the poor underclass recieve nothing .... its because the worst borrowers and their creditors get bailed out. Decent borrowers and lenders are left to carry on with the crisis. But as i have questioned, the steve keen jubillee could apply across the board.

[waldentree]

I've become suspicious of Steve Keen. He believes in man-made global warming, for example.

[gwynedd1]

Paying the creditors principle does not pay creditors a thing. The principle is a liability on their books and would simply cancel the interest bearing debt. So if Keen wants to pay creditors with green backs that would be fine. Principle has no value to a bank other than its ability to earn interest.

[Zantorc]

You seem to have misunderstood Keen's proposal. The money goes to ALL citizens and firms. After paying any debt the remaining money is free to be spent.