(3 of 3) Steve Keen on debt and the economy: How do we pay for all this? Oct 09.

Uploaded to youtube with permission from Associate Professor Steve Keen.
Canberra, October 2009. Speaking at the Per Capita annual conference Policy Exchange 09, economist Steve Keen looks at the rising national debts in Australia and the United States, paying particular attention to their historical relationship with recessions, growth and unemployment. He suggests that the levels of debt in both countries have reached a point which virtually guarantees a very difficult economic road ahead in the long term.
Canberra, October 2009

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• steve
• keen
• economics
• debt
• crisis
• historical
• recession
• hyman
• minsky
• housing
• home
• national
• 2009
• october
• canberra

[GoonOfFortune]

very good videos and extremely interesting, had i known more about the australian and US economic situation and what drives housing here i would never have bought last November because now i want to sell before this november but if i do i will take a 46.5% capital gains tax on all my capital growth... ouch!

[halfasheep]

@GoonOfFortune Are you planning to live elsewhere by November? If you and your bank have purchased a structure atop the queens land and it is affordable, all is good, IMHO.

Perhaps housing is more about the almighty dollar these days than anything else.

[whereismybailouttv]

Thanks for posting these!

[halfasheep]

@whereismybailouttv I recognise your YT moniker. Glad you enjoyed Keens presentation.

[Raycheetah]

Wow. I learned more from these three segments than I had known previously (and am already starting to forget much of it!), and I only regret that the hidebound economists who are guiding the ships of state can't see an alternative point of view such as this. ='[.]'=

[halfasheep]

I'm glad that it was worth your while.

[burstz]

So for all these years we've been following a disproportional neo-classical perspective of economics.

well after what has and is happening in 2008-09 (credit crunch, great recession/depression) and the consequences 2010 (Debt crisis, hyperinflation catastrophe, second leg down or dip).

Time to recycle our 'obselete' economics texts books and focus the new ones on reality.

[peterpetersbng]

America is ruled by the Astrological planet Gemini.and Australia is ruled by Sagittarius .Sagitarius and Geminis are opposites steve  keen being an Australian has the exact opposite solution to what the Americans want.The Americans want feed the banks . possibly for ulterior motives (federal reserve ) but Steve Keen wants give money direct to the debtors The public to solve the problem.. which shows the opposite in American (gemini thinking) Australian sagitarius thinking )

[peterpetersbng]

Then basically whats hes saying is. is that the banks are dictating how we run our economies not only financially  but also politically ..... !

[ragp1cker]

@PrismaMD Unless those losers are banks, of course.

[ApocalypticAang]

@maggiemold Err, he's "running around the barn" cos this is an academic forum, not a 5 min TV Talk Show/Interview...

And his fellow economists expect him to to go through his entire "model", especially since it is a new/different one... So he can't just throw off terms like "fractional reserve banking" or Austrian economics-- because he's NOT using (or agreeing with) them.

[ApocalypticAang]

LOL, now Obama, Bernanke & Geithner have effectively "disproved" the multiplier effect in neoclassical economics by pumping "money" to no avail, can they stop teaching it in schools and stop using it in finance?

Economic theories which fail during bust periods should just be declared bankrupt... as if they are failed banks-- stop bailing those theories and banks out with more and more economic fiction!

[maggiemold]

Keen makes some good points, but he runs around the barn and beats on the front door. The core problem is fractional reserve banking which facilitates credit inflation. As the Austrian mal-investment model of Von Mises demonstrates, artificial stimulation through inflation, whether done with banknotes or fiat loanable funds, causes wealth redistribution and economic distortions which must be corrected. In credit inflation, the correction generally accompanies debt destruction, ie deflation.

[GoonOfFortune]

@halfasheep No it is an investment property in coastal NSW so i can sell it with no big issues, if i can still sell easily at that time which hopefully i can before our bubble pops like in america/spain/ireland/greece/p­ortugal, i think its in the governments interest to keep it inflated for as long as they can especially if they want to get this carbon tax through, but i guess theres always a tipping point...