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.
Posted by at
Labels: , ,

4 comments:

TomatoBasil said...
This comment has been removed by the author.
May 26, 2011 10:55 PM
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

May 27, 2011 12:32 AM
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.

May 27, 2011 5:25 AM
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.

May 27, 2011 12:13 PM

Post a Comment

Subscribe to: Post Comments (Atom)

Disclaimer

The views expressed may contain certain forward-looking statements. Although they are forecasts, actual results may be meaningfully different. This material represents an assessment of the market and conditions at a particular time and is not a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding any security in particular. The opinions expressed here are the author's and do not reflect any opinion of John Thomas Financial, my Broker/Dealer, or any of its Affiliates. Securities offered through John Thomas Financial, Member FINRA/SIPC/NASDAQ. Accounts are carried by Sterne Agee, LLC, Member NYSE/SIPC.