Comments on: Debtwatch 27 October 08: The Failure of Central Banks

By: The Debt Binge « American Armageddon

The Debt Binge « American Armageddon — Mon, 08 Dec 2008 15:40:53 +0000

[...] also imbibed deeply the sweet elixir. The White Man’s Burden, it turns out, is debt. The chart below from Australian economist Steve Keen makes the [...]

By: Clinto

Clinto — Mon, 03 Nov 2008 09:51:49 +0000

Thank you, always a good read… keeps me on track with my thoughts about why I have not bought in the last couple of years.

happily waiting for calmer days and corrected prices.

Clinto the happy gen-X-er.

By: Jonmeboy

Jonmeboy — Mon, 03 Nov 2008 05:23:53 +0000

G’day Steve,
So you are disappointed that you are going to have to buy gold!? I assume that your disappointment is related to the collapse or failure of all schools of Economic Theory belief systems to which you are tied. Welcome to the world of the Goldsmiths and bullion holders. Very rich families have been buying, holding and controlling gold for centuries and that hasn’t occurred by accident. They have held it tightly and have set the price of it for the past few hundred years. They have emptied the vaults of western Central banks and have taken possession of it through various means, the most obvious being confiscation and by the more nefarious method of the printing press. As you have stated, the area of study called economics, is not a science but at best is a hodgepodge of mathematical theories presented as science but in essence an intellectual attempt at alchemy, through price fixing (Interest).
Gold functions as money in a far more honest and identifiable manner. It acts as a store of ones labour, it holds its value over time, it is everlasting, transportable, not subject to whimsical creation, (as opposed to the contrived paper derivatives of gold that we use today), is internationally recognised as money and easily assayed for authenticity.
Most economists have been misled in their search for the holy grail: the search for the credit note that requires no bond by the issuer, a credit note that requires no settlement on presentation to the issuer. A credit note that can be used as payment for goods and services with unending supply. A credit note that having all these traits, still must be seen to have and hold value. You have your wish, you call it money and you expected it to thrive. You must be mad.
Buy some gold Steve and welcome your disappointment. It’s not a new idea, just a forgotten one.

By: Bazza

Bazza — Tue, 28 Oct 2008 12:13:04 +0000

Hi Steve, great work. you have a huge following here. Keep exposing the myths. You are our mythbuster that is helping the masses break out of the debt trance.

quote from above article DebtWatch Oct08
“With its Neoclassical eyes fixated on the rate of inflation, …….They were looking at their mathematical models, which ignore private debt (and indeed money!), rather than at the real world, where debt is king.”

The other very important thing missed by most is that there are people involved in buying and selling and all the emotion that goes with it either positive or negative. They fail to take into account the social mood.

By: James Haughton

James Haughton — Sun, 26 Oct 2008 23:37:49 +0000

The New York Times today has an “interactive presentation” on debt in america called “the debt trap”, including figures over the entire century for household debt and savings levels.
http://www.nytimes.com/interactive/2008/07/20/business/20debt-trap.html#

By: Paul Nollen

Paul Nollen — Fri, 17 Oct 2008 12:03:39 +0000

Hi Steve

this seems to me a very good presentation

http://www.chrismartenson.com/crashcourse

Kind regards

Paul

By: Paul Nollen

Paul Nollen — Thu, 16 Oct 2008 12:41:19 +0000

Hi Steve,

Is it possible to apply your model to a no growth situation (steady state economy) or even an economy in recession?

quote:
My next major academic work will be a book on debt-deflation. An essential part of this will be an explanation of the creation of money and debt. This paper and presentation explain the basic logic, which contradicts the standard “deposits cause loans” theory of money that dominates conventional economics.unquote.

Kind Regards

Paul

By: tomt

tomt — Wed, 15 Oct 2008 21:06:01 +0000

Mike, now you are talking the ‘real truth’!! We do not need these ‘foreign debt hoodlums’!! We have our own “wealth for toil”!! who needs them?
Let us abandon the rubbish ‘traders’ and go it alone! The switzerland of Asia! “……..for we are young and Free….”.

By: Contrarian Investors' Journal

Contrarian Investors' Journal — Sun, 12 Oct 2008 09:31:38 +0000

Hi Mark! You can take a look at BUYING BONDS FROM THE RESERVE BANK at the RBA's web page.

By: Mark W

Mark W — Sat, 11 Oct 2008 12:50:45 +0000

Steve,

A really important question. How do we (the public) invest in long-term Aus government debt (treasuries)? Could you advise in your next post?

Thanks Mark