Thursday, May 26, 2011

Steve Keen: Will the US double dip?

Part 1 (2:25)


Part 2 (5:54)


Short answer, yes. It's the debt, stupid.

4 comments:

TomatoBasil said...
This comment has been removed by the author.
googleheim said...

The graphic which shows private real economy debt going away ( slope negative slanted downwards to the right ) with the government debt going up ( same slope but positive slanted upwards to right ) ...

the government spending is the means by which private debt has been reduced.

everything else is mumbo jumbo you are turning Japanese and all that.

Bernanke is smarter than this guy, though is a hotter seat.

They just need to bail to a different tune and not allow the double dip or quadruple dip.

give me a break

Musgrave said...

Googleheim, Your claim that “government spending is the means by which private debt has been reduced” is not quite right – the word “the” should be replaced with “a”. In other words govt spending (i.e. vertical money or central bank money) does reduce private sector debts, but also the private sector creates its own debt and it’s own money (horizontal money or commercial bank created money), which incidentally nets to nothing. I assume it’s the latter to which Steve Keen refers, so I think he’s got a point.

googleheim said...

Hi Musgrave,

you said :
"I assume it’s the latter to which Steve Keen refers, so I think he’s got a point."

Who is "he" that has a point ?
Keen or me ?

I am well pointless of course.