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Will We Crash Again- Steve Keen Presentation

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Steve Keen talking about how private debt affects the economy causing boom/bust.

The BoE have published that 97% of money in the economy is created by banks when they make loans, so IMO the mainstream experts and media are either not listening or illiterate. Just like they did before 2008 and ignored private debt.

If you can spare a few minutes it's worth a look at what we could face as private debt appears to correlate HPI. :D

In addition with the BTL brigade being led to the slaughter might be time to grab some popcorn :P

http://www.debtdeflation.com/blogs/2015/07/09/will-we-crash-again-ftalphaville-presentation/

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Sure but his solution of Debt Amnesty is just as ridiculous.

Ultimately every penny of every debt ahs to be repaid, if not by the borrowers then by the lenders. - C V Myers

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Steve Keen talking about how private debt affects the economy causing boom/bust.

The BoE have published that 97% of money in the economy is created by banks when they make loans, so IMO the mainstream experts and media are either not listening or illiterate. Just like they did before 2008 and ignored private debt.

If you can spare a few minutes it's worth a look at what we could face as private debt appears to correlate HPI. :D

In addition with the BTL brigade being led to the slaughter might be time to grab some popcorn :P

http://www.debtdeflation.com/blogs/2015/07/09/will-we-crash-again-ftalphaville-presenta

Edited by or in excess of

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Steve Keen talking about how private debt affects the economy causing boom/bust.

The BoE have published that 97% of money in the economy is created by banks when they make loans, so IMO the mainstream experts and media are either not listening or illiterate. Just like they did before 2008 and ignored private debt.

If you can spare a few minutes it's worth a look at what we could face as private debt appears to correlate HPI. :D

In addition with the BTL brigade being led to the slaughter might be time to grab some popcorn :P

http://www.debtdeflation.com/blogs/2015/07/09/will-we-crash-again-ftalphaville-presenta

I`ve been grabbing popcorn since 2004

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Sure but his solution of Debt Amnesty is just as ridiculous.

Ultimately every penny of every debt ahs to be repaid, if not by the borrowers then by the lenders. - C V Myers

Ultimately it's credit on a spreadsheet, nothing more.

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This is a great presentation.

This work highlights the gulf of difference between the very hawkish sounding Fed and the Bank of England to my mind. We know the BofE gets endogenous money theory because of their paper in 2014. But I don't think the Fed actually does get it and that is why if they put through a couple of rate rise they are going to get more imported deflation followed by a deleveraging and then the wheels will come of their ponzi in a pretty quick way. If you contrast this with the Bank who have resisted QE for a long time now. They also are doing on a relatively basis, a lot behind the scenes, with MMR and making noise about systemic risk of BTL etc i.e. they are trying to remove some of the pro-cyclical props in asset markets.

So why are the BofE talking hawkish at the moment? Because they can. Ignoring deflation, al the other economic indicators on the surface look very robust, plus talking IRs up will have a small dampening effect on private credit creation and help dampen things before any accidents happen.

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After the thousands of years of banking and financial research etc and they try to pretend that they don't know what Keen calls the "simply obvious".

Only crooks and charlatans.

Edited by billybong

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