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Bruce Banner

Economist Steve Keen On Hardtalk.

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His suggestion is... print money and give it directly to the population (helicopter money).... but, make it compulsory that, if an individual is in debt, the money must be used to pay off the debt...



Could it work?


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His suggestion is... print money and give it directly to the population (helicopter money).... but, make it compulsory that, if an individual is in debt, the money must be used to pay off the debt...

Could it work?

Yes.

But ...

- Currency would be toast. Zimbabwe, As soon as inflation kicks in its hard to stop.

The UK needs productive growth.

The way to achive that is to spend on infrastructre not a load of outreach + stop smoking publci workers and fat ar5ed single parents.

Cut income tax.

Cut benefits.

tax economic rents - housing.

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His suggestion is... print money and give it directly to the population (helicopter money).... but, make it compulsory that, if an individual is in debt, the money must be used to pay off the debt...

Could it work?

It will work brilliantly if it goes to an indebted BTL'er

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His suggestion is... print money and give it directly to the population (helicopter money).... but, make it compulsory that, if an individual is in debt, the money must be used to pay off the debt...

Could it work?

Hes been saying this for years.

Only trouble with this is, that the individuals debt will be cleared very nicely thankyou, but that £30k 2nd hand Maserati that i might have treated myself to, has just hit £50k overnight.

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It will work brilliantly if it goes to an indebted BTL'er

In the case of those jokers I doubt it would touch the sides, although it would force them to reduce their debt by that amount and presumably there would be some mechanism to stop them ramping it up again.

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If the bank bailouts due to greed and loose lending controls caused (rightly IMHO) a cry of 'moral hazard'

why should a borrower bailout due to greed and lack of self-restraint not warrant a cry of 'moral hazard' also?

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In the case of those jokers I doubt it would touch the sides, although it would force them to reduce their debt by that amount and presumably there would be some mechanism to stop them ramping it up again.

What about if you're at a level of debt leverage you have to do community service to reduce it to an acceptable and sustainable level, through minimum wage payments? Be a good lesson for for the greedy and debt is wealth mentality. This isn't a serious suggestion, I just like thought of seeing a load of nasty greedy BTLers shaming in public painting a fence or cleaning a wall in high viz jackets!

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I don't agree with it at all, just as I didn't agree with Adair Turner's "radical" proposal to bailout borrowers and forgive their debts.

It doesn't address the fundamental issues relating to inequality of asset holding. Issuance of credit and the increase in the money supply has massively boosted the value of property and other assets. If you issue yet more money, only some of which is to pay down debts, then net net you have increased the money supply further (particularly base money) and caused further increases in asset values and inequality.

I would only support such a measure if we implemented a meaningful Land/Wealth tax and raised rates to reduce the money supply and reduce asset values with the view to a broader re-distribution and flattening of inequality.

Well meaning but poorly thought through. Not the sort to listen.

+1.

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Why be productive if money is free? Less production equals everyone poorer.

Fact these absurd ideas are being seriously discussed is clear sign something is very wrong.

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Why be productive if money is free? Less production equals everyone poorer.

Fact these absurd ideas are being seriously discussed is clear sign something is very wrong.

Good point. The main thing that made me ***** up my ears while listening was not the suggestion of money printing as a way forward but that here was someone, on a mainstream media programme, saying that the country is drowning in personal debt and a housing bubble. Exactly what many here have been saying for years.

Edit: I can't believe that P R I C K is in the swear filter :lol:.

Edited by Bruce Banner

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At least it's not giving the few the first access to the money to buy everything up and bump up prices before everyone else gets some dribble down.

With this form of helicopter money the few will pre-empt it by bumping up prices to start with - they'll still be the only ones really benefiting - and borrowers will get their assets/houses for free again with a bit of a boost to the capital value (then a bit of compo on top if they're in a Nimby area with nearby house building).

Probably kicks the can for a short period then there'll have to be more of the same.

Crazy - another NuEconomics something for nothing variation.

No doubt Nero was given plenty of similar ideas in his day.

Edited by billybong

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Why be productive if money is free? Less production equals everyone poorer.

Fact these absurd ideas are being seriously discussed is clear sign something is very wrong.

..something must be wrong or not working......instead of pumping more money into the system should we not be extracting it so that we don't require so much of it to live?......reset. ;)

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His suggestion is... print money and give it directly to the population (helicopter money).... but, make it compulsory that, if an individual is in debt, the money must be used to pay off the debt...

Could it work?

If the money is paid off debt then it should be removed from the system afterwards.

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It's worth pointing out that SK advocates a debt jubilee only as an emergency measure to prevent a Great Depression after everything else has conspicuously failed. Reforming the economics curriculum and replacing the dominant neoclassical, rational expectations model with a scientifically literate one is his principal ambition.

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..something must be wrong or not working......instead of pumping more money into the system should we not be extracting it so that we don't require so much of it to live?......reset. ;)

Quite so.

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His suggestion is... print money and give it directly to the population (helicopter money).... but, make it compulsory that, if an individual is in debt, the money must be used to pay off the debt...

Could it work?

Genius, im surprised Gordon Brown didnt come up with such a policy!

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Genius, im surprised Gordon Brown didnt come up with such a policy!

Gordon Brown, and Cameron/Osborne, bailed out the indebted. This proposal, as I see it, would put money (albeit devalued) into the pockets of the prudent whilst forcing the indebted to pay off debt that they had never intended to.

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Well something needs to be done. The ponzi economy is now eating the productive economy. In the long run everyone looses out except for the 1%. Personally at this stage I'd prefer money spent on infrastructure projects via people's QE. Especially projects that can be independently shown to be fiscally positive (such as a house building program) and projects that end up lowering everyone's energy costs. That benefits business in the long run too - lower energy costs plus investment in automation with decent wealth redistribution is a viable long term aim. Transport needs investment in lowering fares on rail and increasing rolling stock. The Tories only seem interested in what benefits capital - which is why overcrowded trains syphoning off money for shareholders is seen as preferable to a decent public transport system.

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£500 Billion helecopter money given to the banks since 2008.

Interest rates down to 0.25% given to the people.

Great New Deal.

Exactly, "given to the banks".

This proposal would put it into individuals' bank accounts and it would be cancelled out by any debt.

Personally, I'd prefer it if interest rates were raised and the over-indebted thrown to the wolves.

Edited by Bruce Banner

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His suggestion is... print money and give it directly to the population (helicopter money).... but, make it compulsory that, if an individual is in debt, the money must be used to pay off the debt...

Could it work?

Just another banker bailout. The money will go straight to the banks or the rich. The £ will devalue and the idiots celebrating the "free" money will be much worse off.

Could it work....it's f**king criminal theft indirectly.

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