Archive for ‘January, 2009’

9 results.
Jan31

Steve Keen’s DebtWatch No 31 February 2009: “The Roving Cavaliers of Credit”

by Steve Keen on January 31st, 2009 at 11:21 am
Posted In: Debtwatch

“Talk about centralisation! The credit system, which has its focus in the so-called national banks and the big money-lenders and usurers surrounding them, constitutes enormous centralisation, and gives this class of parasites the fabulous power, not only to periodically despoil industrial capitalists, but also to interfere in actual production in …

385 Comments
Jan28

A China Tale

by Steve Keen on January 28th, 2009 at 12:55 pm
Posted In: Debtwatch

I’ve just been interviewed for an SBS News piece on China (for non-Australian readers, SBS is Australia’s multicultural television station, and its news has a strong international focus).

Ordinarily I don’t comment on China, because I don’t know enough about their economy right now–except to deride the belief that was popular in Australia last year …

76 Comments
Jan23

Ballmer Gets “It”

by Steve Keen on January 23rd, 2009 at 7:07 am
Posted In: Uncategorized

Ordinarily I’d simply post a link to a media report in either my Gems or Brickbats page. But this quote from Microsoft CEO Steve Ballmer shows that he really understands what is going on now, in a way that no other person in authority seems to have done as yet. The full report can …

160 Comments
Jan16

Debwatch on a new ISP

by Steve Keen on January 16th, 2009 at 7:56 pm
Posted In: Uncategorized

I have just moved the blog to a new ISP after my previous provider IXWebhosting proved to have intractable problems with malware.

The new hosting is being provided pro bono by Cyanide Web Hosting, which I greatly appreciate.

Some posts may have been lost in the process, but that was preferable to putting up with a …

84 Comments
Jan11

Bernanke an Expert on the Great Depression??

by Steve Keen on January 11th, 2009 at 3:09 pm
Posted In: Great Depression, Money dynamics, USA

Note: This post has been modified ni the light of comments that the initial version quoted Bernanke out of context.

A link to this blog from a US legal advisory website the Practising Law Institute’s In Brief ( “DEFLATION IN THE REAL WORLD”) reminded me of  Bernanke’s book Essays on the Great Depression, which I’ve been aware …

50 Comments
Jan04

A Couple of Gems

by Steve Keen on January 4th, 2009 at 10:38 am
Posted In: Uncategorized

One blog participant brought a post by George Monbiot to my attention. I frequently comment that the financial regime initiated after WWII omitted key ideas that Keynes proposed–in particular, a new currency for international trade and controls on the behaviour of surplus nations as well as those running deficits. Monbiot provides the historic detail of …

63 Comments
Jan03

Neoclassical Wage Restraint Madness

by Steve Keen on January 3rd, 2009 at 8:29 am
Posted In: Uncategorized

It had to happen: neoclassical economists are now advising that the anticipated recession will be much milder if only workers would accept wage cuts.

When I saw this crisis was imminent in December 2005, one major factor that motivated me to go public with my analysis was the certainty that, when the crisis hit, neoclassical …

22 Comments
Jan02

Ponzi Maths–Part 3

by Steve Keen on January 2nd, 2009 at 11:32 pm
Posted In: Uncategorized

This is getting a bit like Star Wars, but I promise–this will be the last post in this series. In the previous two, I constructed a model of a pure credit economy in which the money supply and economic activity can expand smoothly of time.

Of course, that’s not the real world. As we know …

1 Comment
Jan02

Ponzi Maths–Part 2

by Steve Keen on January 2nd, 2009 at 9:31 pm
Posted In: Money dynamics

In the previous post, I outlined my basic model of a pure credit economy, in which a single initial loan allowed a continous flow of economic activity (at a constant level) over time. The basic flowtable of that system was:

 

Type
1
-1
-1
-1

Account
Firm Loan (FL)
Firm Deposit (FD)
Bank Deposit (BD)
Worker Deposit (WD)

Interest on Loan
+A
 
 
 

Interest on Deposit
 
+B
-B
 

Pay Interest on Loan
-C
-C
+C
 

Pay …

4 Comments