Steve Keen’s Debt Watch

The Economics Cult Ignoring Reality.

Money is often dismissed as a mere tool. People think it doesn’t matter in the grand scheme of things. This belief is a dangerous fallacy. Money creation by banks is the lifeblood of economic growth. When banks lend money, they create new deposits. This process fuels spending, investment, and ultimately, growth. Ignoring private debt in economic models is like ignoring the engine in a car. Without it, the vehicle won't move. Mainstream economists, like Ben Bernanke,...

House Price Bubble About to Burst?

Climate change is often viewed as a distant threat. Many believe that economic growth will simply continue, unscathed. This is a dangerous misconception. Ignoring the reality of climate change is like ignoring a storm brewing on the horizon. It’s easy to think it won’t affect you until it’s too late. To mitigate climate change's economic impact, we need to act decisively. First, reducing private debt levels is crucial. High debt levels limit investment in...

"The tools that the Federal Reserve are using are fundamentally directed at reducing inflation—wage inflation, not markups. They don't really understand it because they've never read Kaleski. They're neoclassical economists. They think ... Milton Friedman is right, and fortunately, Milton Friedman was wrong." --- Join ~10,000 Other Truth-Seekers by Downloading my new 'Funny Money' Bundle for Free at https://new.stevekeenfree.com Are you an engineer, finance, or IT...

Future Economic Collapse Ahead?

Mainstream economics is fundamentally flawed. It's like trying to drive a car without knowing how an engine works. Ignoring the role of energy in production is a critical oversight. Imagine a chef who believes cooking is just about mixing ingredients. What happens when they forget to turn on the stove? The meal remains raw, unappetizing, and ultimately inedible. This is what mainstream economics does when it disregards energy. It creates models that are disconnected from...

Wealth Effect is a Myth!

To mitigate climate change's economic impact, we need to rethink our approach. First, let's talk about private debt. Imagine trying to swim with a heavy backpack. That’s what private debt does to our economy. It weighs us down. Reducing private debt levels frees up resources. People can invest in their future. They can spend on sustainable options. Next, consider renewable energy infrastructure. Think of it as planting a garden. You nurture it, and it grows....

Next Crisis: GDP Growth Near Zero?