- Current Latest Page
- All Contents of Site – Index
- New blog – The Feral Press
- Sign the Ban Blair-Baiting petition here
Or – Tweet this post
26th November, 2011
At 2:05am this morning, just as I was thinking of nodding off, the BBC World Service’s HARDTalk caught my ear. Especially so since I recall suggesting something similar recently (within the bounds of my admitted economic ignorance!) I was informed that it is unworkable to generate cash in order to give the people £1,000,000 each to sort out their own messes (where applicable) and as a consequence that of our economy(ies) by business-building and simply by buying again.
It may well be unworkable. The devil is always in the detail. However, in Keen’s suggestion there certainly seems to be some unacceptable uniform “socialist” (communist) inferences which would not go down well with those against increased state power, i.e. most “liberals”.
I thought the BBC’s Sarah Montague asked some useful questions, by the way. All in all, a very good interview.
Australian Steve Keen, the ‘Merchant of Gloom’ gives his take on avoiding the economic depression
I’ve taken some excerpts from HARDTalk programme –
“We’re already in a depression … best we can hope for is a lost two decades … lost generation only has one outlet – that’s frustration and violence … Hitler rose to prominence due to despair over last Great Depression … Occupy Wall Street broad-based … heartening because they’ve had their trust in society betrayed, not socialists … I’m opposed to capitalism parasiting itself … politicians are reactive individuals, not leaders, most of them … too interconnected to do it in the old-fashioned way of a jubilee … negative when we borrow money to gamble on assets … caused a bubble in house prices … [Asked – “write off mortgages of even people who can afford to pay? “]… Yes [more or less!?] … fundamentally households did not make the bad decisions. The bad decisions were made by the banks to lend in the first place … a systemic process by which we reduce the level of debt-financed money in the economy and increase the amount of government created money … give money to debtors rather than the creditors … bizarre, ineffective [as given to banks thus far] … system has failed, not the individuals in it … everybody gets a boost … trying to eliminate a 40-year mistake, the debts build-up to simply unsustainable scales … won’t be repaid so … have to work out how we DON’T repay them [debts]… banks make money by creating debt … the meaning of ‘mortgage’ is ‘death contract’, in Latin … only reason we take on more debt than we need is because we get persuaded that we can make a gain out of it by leverage speculation … you have to prevent the possibility of asset bubbles being financed by leverage, again … back to a private debt bubble … economists have a mythical view of how money is created … that basically sees banking as being an intermediary between people who are patient and therefore save money and people who are impatient and therefore want to spend money and all you’re doing is transferring spending power from the patient to the impatient so you can forget about the aggregate level of debt … unfortunately I can’t see anybody [a politician] on the horizon right now [to implement this].”
My observation on Steve Keen’s last remarks, for what it’s worth –
– mainly because it would need a worldwide agreement? There is no One World Government, despite some telling us there is, and that it is run by the banks.
Hmmm. Back to the drawing board?
Another observation. Agree with him or not we certainly cannot accuse Mr Keen of tinkering around the edges of this worldwide economic problem. Nor of simplistically and WRONGLY accusing the country’s (and world’s) debts of being all the doing of the previous (British) government.
Grown-up economics, at last. The present Conservative/Liberal Democrat government – do take note.
Another Great Depression is all but inevitable’ – that’s the view of Steve Keen. No wonder he’s been called the ‘Merchant of Gloom’.
But then Keen is one of the few economists to have predicted the global financial crisis.
And while he used to be a lone voice challenging the economic consensus, more and more people are now listening to him.
His way of avoiding depression? Write off the debt, bankrupt the banks, nationalize the financial system, and start all over again.
Listen to Hard Talk (for next 7 days)
Larry Elliott blog on Keen on HARDTalk
Comment samples follow from the Ban Blair-Baiting petition
1. I completely agree with everything that has been said on this website. As Prime Minister, Tony Blair worked tirelessly and selflessly in the interests of the people, and continues to do so today. He is primarily a humanitarian, and doesn’t deserve any of the vitriol that has been levelled at him. He was a great Prime Minister, is a thoroughly decent man; and should in my opinion, be awarded the Nobel Peace Prize for his outstanding work. – David Miliband (New Labour’s heir) for the next PM!
2. Best politician in Britain by a long way.
3. Fully support the petition. The criticism of Mr Blair has gone way beyond anything acceptable and seems to be carried out mainly by those who are looking to wash their hands of any involvement in supporting the Iraq war at the time. It is very easy to be ‘wise after the event’ and to make assumptions about how much Mr Blair knew or did not know before the war. In these people’s eyes, the former PM is guilty whatever the evidence.
4. An excellent petition this for a very undervalued PM. A PM who is not only the best in my lifetime but my parents lifetime too!