by Here, Steve Keen goes over his familiar ground of too much private debt which will lead to the next financial crash so a debt jumble is required. Well, you will all be familiar with that but it is still a great interview nonetheless. Where it got really interesting is near the end where Steve Keen talks about private banking and China.Private banks can make the money out of thin air and charge a small interest to cover the costs of the service, but if the borrower fails to repay some of his loan the bank can claim the borrowed assets, or home, or business, and for this reason Steve Keen says banks should be heavily regulated.About China, he says their banks are creating deficits at 15% of the economy which is three times greater than the New Deal. He then talks about China's ghost cities
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Lars Pålsson Syll writes Andreas Cervenka och den svenska bostadsbubblan
Mike Norman writes Trade deficit
Merijn T. Knibbe writes Christmas thoughts about counting the dead in zones of armed conflict.
Lars Pålsson Syll writes Debunking the balanced budget superstition
Private banks can make the money out of thin air and charge a small interest to cover the costs of the service, but if the borrower fails to repay some of his loan the bank can claim the borrowed assets, or home, or business, and for this reason Steve Keen says banks should be heavily regulated.
About China, he says their banks are creating deficits at 15% of the economy which is three times greater than the New Deal. He then talks about China's ghost cities which are badly made and buildings often don't have services yet, but he says everyone is busy and has a job. He considers the ghost cities to be a failure but now Nomi Prins is saying how the Chinese high speed rail is joining the cities up and people are moving into them.
What Steve Keen does praise is how China spent money on its high speed rail. He says the Chinese are not imperialist and do not demand that a country privatise all its infrastructure so that its elite can buy everything up, like the West does. Instead they say to a country we will pay for all the high speed rail we put in your country and you can use it how to please sending goods and services to other countries, including China, as along as we can send goods and services to your country and other countries further along the line. It's a win, win, for everyone.