by Summary:
I wish the last one was true
Topics:
Steve Keen considers the following as important:
This could be interesting, too:
I wish the last one was true
Topics:
Steve Keen considers the following as important:
This could be interesting, too:
Jeremy Smith writes UK workers’ pay over 6 years – just about keeping up with inflation (but one sector does much better…)
Robert Vienneau writes The Emergence of Triple Switching and the Rarity of Reswitching Explained
Lars Pålsson Syll writes Schuldenbremse bye bye
Robert Skidelsky writes Lord Skidelsky to ask His Majesty’s Government what is their policy with regard to the Ukraine war following the new policy of the government of the United States of America.
| I wish the last one was true |
I see the point, but I have no idea, how this debt can rise to this level.
The job of the banks is to take care that it does not.
Credit is very simple: I can buy as much now as much I can give later.
In some cases, things may not go like expected. But this can be handled like an insurance: others step in to fill the gap.
So when banking is done right, this problem never should appear.
Yes maybe you can. But if a million people do it at the same time then things work different.
And debt levels for an economy grow exponentially but GDP doesn't. There will then always be a crunch. That's Michael Hudson his point.
@@webfreakz why should it make a difference, when million people do it? The net effect of credit is: you buy from yourself and if you can produce, there is no problem.
And I do not see, why the debt level should grow at all. And gdp does grow exponentially, when you do have eg. 2% growth. gdp growth in Germany since 1950 looks very exponential.
@@ThomasVWorm When basic living goes up faster and is more expensive that wages they get, people will go into debt they can not pay back.
@@glenwarrengeology but this would only happen if banks do not understand their job. It makes no sense to give a loan to somebody, who is not able to pay it back. It is like lending your car to someone who is known for not giving it back.