Steve Keen’s Debt Watch

Climate change is often dismissed as a minor inconvenience. The belief that it will only cause a 1.4% drop in GDP is laughable. This figure is based on models that ignore tipping points. Tipping points are like the moment a dam breaks. A small crack can lead to catastrophic failure. When climate models fail to account for these tipping points, they underestimate the damage. Real-world impacts will be far more severe. Imagine a factory that relies on stable weather patterns....

Neoclassical Myths Exposed

To reduce private debt and stabilize the economy is a common belief. Many think that simply cutting government spending will solve our economic woes. This is wrong. When governments cut spending, they inadvertently reduce the money supply. This creates a vicious cycle. Less money means less spending. Less spending leads to lower demand. Lower demand results in businesses cutting back, leading to layoffs. The economy shrinks, and private debt becomes more burdensome....

Main Street Gets Left Behind.

The more debtors pay, the more they owe. This isn't just a catchy phrase. It's a harsh reality. Imagine trying to fill a bucket with holes. You pour in water, but it keeps leaking out. That's what happens when debtors try to pay off their debts in a deflationary environment. Each dollar they pay back becomes worth more. So, while they might reduce the number of dollars owed, the value of what remains skyrockets. It's like running on a treadmill set to a steep incline. You...

Private Debt Feeds Economic Collapse.

Quantitative easing has worsened inequality. Think of it like pouring water into a glass. If the glass is already full, the water spills over. The wealthy hold most of the glass. They benefit from the overflow. The rest of us? We’re left with dry cups. This isn’t just a metaphor; it’s reality. When central banks pump money into the economy, they inflate asset prices. Stocks, real estate, luxury items—these soar. Who owns these assets? The rich. The majority,...

Mainstream Economics Ignores Credit's Role.

Mainstream economists believe climate change will have a trivial impact on the economy. This is a common misconception. It’s like saying a small leak in a dam won’t matter because the water level is still low. But what happens when that leak becomes a flood? A 10°C rise in temperature would submerge Florida. It would devastate agriculture worldwide. Ignoring these facts is like ignoring a fire in a crowded theater. You might think it’s just a small flame....

Debt Relief Could Have Changed Everything.