In our view the cause of deflationary pressures lies with the ongoing Global Financial Crisis (GFC), which has not as yet been resolved. On the contrary the economic model that fostered the crisis remains intact, with only some tinkering at the margins of the banking system. As a result the GFC continues, rolling around from the core (the Anglo-American economies) to first the Eurozone, and now hitting emerging markets, including China. The GFC, as we now know, was caused by the bursting of excessive and unpayable private debt bubbles: bubbles that were punctured from 2006 onwards by high real rates of interest.Debtonation
It is wrong to blame China for the global economy’s woes
Ann Pettifor
5 comments:
If you find this person agreeing with your theory it should at least cause one to re examine one's theory....
I like Ann Petifore, I read her book, Just Money, and I thought it was very good. I get her tweets now and, crikey, she's as Left as me, I must be a moderate.
You'll find that she thinks everything can be fixed by jiggering around with interest rates. She still very much in the 'magic of the central bank' camp.
Neil-
I think part of the sickness that infects the modern neo-liberal left is this debilitating fear and distaste for regulations. So if private debt explodes its not because we've removed all restraint and oversight coming from the Govt and cut our regulating bodies' budgets and funding its because real interest rates are too low or too high.
I've yet to meet anybody who gives the proverbial about 'real interest rates' - particularly as everybody's own inflation rate differs.
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