Debtwatch goes blog

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A sub­scriber to my Debt­watch newslet­ter sug­gest­ed that I estab­lish a blog. I plan to pub­lish my month­ly Debt­watch report here, as well as send­ing it out to sub­scribers.

Next month I will also start a USA ver­sion of Debt­watch. The recent pan­ic on Wall Street can be seen as yet anoth­er “cor­rec­tion”, but it might also be the begin­ning of the unwind­ing of Amer­i­ca’s long-run­ning hous­ing bub­ble, which has dri­ven pri­vate debt lev­els there to over 160 per cent of GDP–higher even than Aus­trali­a’s. While we def­i­nite­ly have enough debt “home brew” of our own to trig­ger a cri­sis, we are as always just min­nows next to the USA; the old say­ing that “if the USA sneezes, Aus­tralia catch­es a cold” may come home very pow­er­ful­ly soon if the world’s largest econ­o­my actu­al­ly comes down with the pneu­mo­nia of a debt defla­tion.

ABC PM has an item on the US sub-prime melt­down tonight; I am inter­viewed for it, as is Ian Rogers from The Sheet and David Ten­nant from Care Inc Finan­cial Coun­selling Ser­vice and the Con­sumer Law Cen­tre of the ACT.

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About Steve Keen

I am Professor of Economics and Head of Economics, History and Politics at Kingston University London, and a long time critic of conventional economic thought. As well as attacking mainstream thought in Debunking Economics, I am also developing an alternative dynamic approach to economic modelling. The key issue I am tackling here is the prospect for a debt-deflation on the back of the enormous private debts accumulated globally, and our very low rate of inflation.