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

Posted with permission from Prof 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

Category:

Education

Tags:

• steve
• keen
• australia
• economics
• crisis
• markets
• debt
• housing
• 2009

[LuqmanNaq]

3.00 hey listening to that made me truly realize why Michael Ruppert (who predicted the crash of 08), is so adamant that the derivatives market is one of the fundamental reason for our global economic collapse. Speculative borrowing and dervatives don't increase productive capacity, they only increase debt and the number of liablities. Simple really, but finally came together in my mind due to relistening to this video. Thanks for posting!

[halfasheep]

@LuqmanNaq Michael Ruppert confronts CIA director about Drug Laundering watch?v=4t3pl5Wxgyg

[LuqmanNaq]

@halfasheep Yeah, Mike's a legend. It was because of him I began learning about economics and peak oil and realized that we are heading for a collapse.

[halfasheep]

@LuqmanNaq Ha ha, same. I came across Ruppert due to his 9/11 research, and then proceeded to learn about economics and peak oil also. He had me wanting to buy gold in 02/03. He certainly played an important part in the early days of 9/11 research.

[lukegranger89]

Did he say rat shit

[peterpetersbng]

@LuqmanNaq its good to have insight ,, but its deadly to take things for granted.. at this moment in time people need to take a step back breath and think deeper about this problem......but the problem needs to be addresed in an open way with people like Steve Keen having his say.... letting the people who have got us into this problem in the first place solve the problems they have made is in my eyes the wrong move . they need to admit they have f----ed and change

[ApocalypticAang]

@LuqmanNaq Err, your question could have been deleted because it shows that you weren't really listening to the video (& might have looked like you're "trolling")...

I mean, he basically said that "fractional reserve banking is NOT how money is created in the real world" (the definition of "money" in his model obviously differs from neoclassical economists)-- and you went to ask him why he "presented the fractional reserve banking as infinitely sustainable"?

[ApocalypticAang]

@LuqmanNaq Err, you've misunderstood him by conveniently "importing" your model of fractional reserve banking (as well as other neoclassical ideas/assumptions) into his/Minsky's Financial Instability Hypothesis...

Fortunately, Steve Keen has started putting up his entire series of lectures on Behavioral Economics on his youtube channel-- so you can go there & learn why "mainstream" (neoclassical) economics CANNOT explain the Global Financial Crisis (or why his model works).

[heckler73]

When is Keen going to get his Nobel Prize? another 10 years?

And will he give the committee the finger as his acceptance speech?

"Thanx for the money, you ignorant bitchez!"

Why isn't he running the Reserve Bank of Australia?

[halfasheep]

@LuqmanNaq Hey, cheers for having a go. Hmmm...I would try again at some point.