When the economic crisis hit in 2008, economists started to admit that neoclassical economics was wrong.Specifically, they started to admit that the assumption that the economy is inherently stable is false, and that their models were faulty and needed…
Posts Tagged ‘Steve Keen’
Greece → Ireland → Portugal → Spain → Italy → UK → ?
November 26th, 2010 |
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It is now common knowledge that there is a potential domino effect of European sovereign debt contagion in roughly the following order:Greece → Ireland → Portugal → Spain → Italy → UKWhile some people have been writing about this for well ove…
Bill Gross: Bernanke Running a Bigger Ponzi Scheme than Charles Ponzi
November 1st, 2010 |
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Bill Gross writes today:Check writing in the trillions is not a bondholder’s friend; it is in fact inflationary, and, if truth be told, somewhat of a Ponzi scheme. Public debt, actually, has always had a Ponzi-like characteristic. Granted, the U.S…
The Elephant In The Room: Debt Grows Exponentially, While Economies Only Grow In An S-Curve
October 30th, 2010 |
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Michael Hudson is a highly-regarded economist. He is a Distinguished Research Professor at the University of Missouri, Kansas City, who has advised the U.S., Canadian, Mexican and Latvian governments as well as the United Nations Institute for Trai…
“A Sustainable Level of Bank Profits Appears to be About 1% of GDP”. Higher Bank Profits Lead to a Ponzi Economy and a Depression
August 13th, 2010 |
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I’ve previously noted that concentration of all the poker chips in a couple of hands ends the poker game.And I’ve repeatedly pointed out that when banks get too big, it hurts the economy.I’ve also noted that the government actually encouraged the big b…
No Wonder the Outlook for the Economy is “Unusually Uncertain” … the Fed is Killing It
July 21st, 2010 |
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Fed Chairman Ben Bernanke testified today that the outlook for the economy is “unusually uncertain”.That’s not surprising.Nothing has changed since I made the following points last December.High-Level Fed Officials Slam BernankeFed Vice Chairman Donal…
People Now Trust Bankers Less than Random People on the Street
March 22nd, 2010 |
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As I have repeatedly written, the economy will not recover until trust is restored.Now, a distinguished international group of economists (Giancarlo Corsetti, Michael P. Devereux, Luigi Guiso, John Hassler, Gilles Saint-Paul, Hans-Werner Sinn, Ja…
Questions for Bernanke’s Senate Confirmation Hearing
December 1st, 2009 |
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The Senate Banking Committee will be chatting with Ben Bernanke this Thursday to vote on his reappointment.Demand that the Committee ask the following questions for our esteemed Esteemed Chairman (and contact your own Senators also and demand that they…
The REAL Battle Over America’s Banking System
October 12th, 2009 |
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The battle to reform the American banking system needs to include reimposing the barrier between investment banking and depository banking (Glass-Steagall), pay incentives based on what is best for Americans and not just the top executives, the end of …
How Well Has The Federal Reserve Performed for America?
September 27th, 2009 |
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How well has the Federal Reserve performed for America? Mainstream pundits, of course, say that Bernanke has saved the world . . . . but they said the same thing about Greenspan. So let’s look at the actual historical record to determine how well the…
If Credit is Not Created Out of Excess Reserves, What Does That Mean?
September 21st, 2009 |
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We’ve all been taught that banks first build up deposits, and then extend credit and loan out their excess reserves.But critics of the current banking system claim that this is not true, and that the order is actually reversed.Sounds crazy, right?Certa…
2 Nobel Economists Confirm that Credit is NOT Created Out of Excess Reserves
September 20th, 2009 |
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We’ve all been taught that banks first build up deposits, and then extend credit and loan out their excess reserves.But critics of the current banking system claim that this is not true, and that the order is actually reversed.Sounds crazy, right?Certa…
Steve Keen Out-Thinks Larry Summers
September 20th, 2009 |
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Inside the beltway and among mainstream economists, Larry Summers has the reputation of being a genius.But Australian PhD economist Steve Keen points out a huge gap in the thinking of Summers – and all neoclassical economists.Specifically, in an essay …
The Economy Will Not Recover Until Trust is Restored
September 10th, 2009 |
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A 2005 letter in premier scientific journal Nature reviews the research on trust and economics: Trust … plays a key role in economic exchange and politics. In the absence of trust among trading partners, market transactions break down. In the absenc…
The Case for Deflation
August 29th, 2009 |
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As Absolute Return Partners wrote in its July newsletter:The most important investment decision you will have to make this year and possibly for years to come is whether to structure your portfolio for deflation or inflation.So which is it, inflation o…