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Engineers, Finance, and IT Pros: Learn 50+ years of Real Economics in only 7 Weeks. Weekly with me. Learn more: apply.stevekeenfree.com OR Join ~10,000 others in downloading my free 'Funny Money' Bundle (2 books, worth ): new.stevekeenfree.com -- Who is Dr. Steve Keen? Dr. Steve Keen is an influential economist who has dedicated over 50 years to challenging mainstream economic theories. Since his days as a university student, he has been engaged in a David vs. Goliath battle against conventional economic models. Holding a Ph.D. in economics, Dr. Keen is well-known for his critical analysis and advocacy for more realistic economic approaches. His work emphasizes the importance of accounting for financial instability and incorporates elements of complex systems theory. Engineers,
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| Engineers, Finance, and IT Pros: Learn 50+ years of Real Economics in only 7 Weeks. Weekly with me. Learn more: apply.stevekeenfree.com OR Join ~10,000 others in downloading my free 'Funny Money' Bundle (2 books, worth $60): new.stevekeenfree.com -- Who is Dr. Steve Keen? Dr. Steve Keen is an influential economist who has dedicated over 50 years to challenging mainstream economic theories. Since his days as a university student, he has been engaged in a David vs. Goliath battle against conventional economic models. Holding a Ph.D. in economics, Dr. Keen is well-known for his critical analysis and advocacy for more realistic economic approaches. His work emphasizes the importance of accounting for financial instability and incorporates elements of complex systems theory. Engineers, finance professionals, and IT experts will appreciate his methodical breakdown of economic phenomena and his development of the Minsky software, which models financial crises. Dr. Keen's contributions are crucial for anyone seeking a deeper understanding of how economic systems can impact technological and financial environments. His teachings offer valuable insights into the economic forces shaping our world. By following his analysis, professionals can gain a better grasp of economic dynamics that influence their fields. |
The problem with inflation (money debasement) is that it causes bubbles, financial and real estate. The 1920's is a great example. Today's biggest bubble is the national debt, the interest on which is going to cause much higher inflation.
What if you mix up cause and effect? What if those bubbles cause money debasement.
National debt is the consequence of those bubbles. In order to keep things going the government must stabilise demand. It does it by taxing less than it should and therefore enable more demand where saving reduces it.
The problem are the rich. They make more money than they will ever spend for consumption. By this, they destabilise the economy.
So make them much much poorer by higher wages. They should have not much more than to afford an expensive house and a few expensive cars etc. to live a rich life. This is enough of an incentive.
Also, there are several measures to cope with the natural end of the (monetary) market system: General Market Saturation. Consumer debts, money thrown into the masses to try to increase consumption and so demand for labor just a little longer. Also FIAT money, interests and stock market gambling are creating incomes, purchasing power, when those who could afford it satisfied their needs and consume less which leads to the total collapse in a chain reaction of deficiency of purchasing. The market religion is based on BS-Jobs since the post WWII collapse which was propagated as oil crisis, but in fact was just the inevitable Market Saturation which is happening around every 10-20 years and then a restart is required, ideally with a war to destroy all the finished work to create a lot of jobs when everything must be redone and consumption booms because people need to get back what they lost. Afterwards they did what Paul Mazur said and reeducated people to consumers and breed them as such by using Public Relations Propaganda, this helped to make the (monetary) market system work for a couple decades but at the expense of human sanity, literally, todays societies are lead by self-esteem and identity disorders and try to cope with mindless consumption, which lead to planet overshoot. S Second round of consumerism is not possible and so the market religion will be maintained with a Cradle To Cradle renting system, "you will own nothing and be happy".
@@ThomasVWorm That's exactly it, creating bubbles to try to increase consumption for a little longer to cope with general Market Saturation.
@@ThomasVWorm you are clueless about economics and just repeating socialist crap.
@@Wilson84KS market saturation is a false diagnose. You cannot increase consumption when there is a saturation on the demand side.
What we do see instead is a malfunction of the market regarding distribution. Those, who provide the labour to produce and want to consume don't get enough money to be able to demand, what they produce.
It is absolutely pointless to produce only to hoard money. But this is what the rich do. They imbalance supply and demand by hoarding money instead of paying reasonable wages.
This is not market saturation but what generates a permanent instability of the market and which makes a population live far below their abilities because of one economic crisis following another.
An imbalance of the household of the government, which is complementing the imbalance of the market therefore stabilises the market.
But since the imbalance of the household of the government comes from taxing less, the wealth of the rich are taxes not yet being yet. Which means, the rich owe a part of their wealth to the government.
So the fix is not to make the market crash but to tax the rich.
A depreciating currency leads to buying gold and property by the rich, and a breakdown of long term wealth acquisition by the poor.
As the currency would depreciate before they can buy a home.
So what you are advocating is entrenching poverty and class embedded societies where property owners will own everything and everyone else would be a slave.
Nice try.
Depreciating money is like the spoilage limit from classical liberalism, or entropy from thermodynamics. So it kind of makes sense, except, why would we try to have an economy that requires us to work more? Surely, the purpose of progress is to work less?
German coal, Soviet , Iranian, Iraqi and then Saudi oil and n. gas followed by Chinese coal – burned and exported mountains, seas and atmospheres daily – is what's driven what we call today – Economy.
No chart worth watching unless intersecting with Energy resources, wars, social engineering, pandemic and 'financial crises' trends.
Steve Keen, the genuine voice highlighting the role of Entropy, since 2016 and earlier, should stick to the fundamentals – Energy;
"In any system of energy, Control is what consumes energy the most.
No energy store holds enough energy to extract an amount of energy equal to the total energy it stores.
No system of energy can deliver sum useful energy in excess of the total energy put into constructing it.
This universal truth applies to all systems.
Energy, like time, flows from past to future" (2017).
Their economic policies were smoke and mirrors and even looting essentially all of Europe failed to make them solvent.
Steve tell us where is your 40 % are you an apprentice professor or you are mountain climber or maybe car salesman "WHAY I WAS WRONG " ???????
Because my interview with Kerry O'Brien in October 2008 led to O'Brien savaging a clearly rattled Kevin Rudd the next day on the bubble. A week later the Rudd government doubled to trebled the money given to first home buyers, which restarted the housing bubble. You can read about that here: https://www.macrobusiness.com.au/2016/02/how-steve-keen-got-the-housing-bust-wrong/ (where you will see that the Cabinet inserted the policy, and not the Treasury); and you can read my reaction to it when what I christened the First Home Vendors Grant was first announced: https://www.debtdeflation.com/blogs/2008/10/19/rescuing-the-economy-or-the-bubble/
PS Since then the government, Labor or Liberal, has kept the housing bubble alive, using the power of the State to create money as explained by MMT–even if they don't understand the mechanism. So I've given up on the bubble bursting until politics shifts enough that the voters–who will be disenfranchised young people who can never afford to buy a house–force the politicians to change. But I wouldn't expect that for another decade.
@@ProfSteveKeen Houses should not be seen as assets for generating wealth. The lack of accountability among politicians persists, as many young people are becoming disillusioned with society due to their lack of ownership over assets—or even autonomy over their own bodies. It seems we are on a path leading back to a form of modern-day feudalism.
Money origins in credit and vanishes with credit repayment.
Credit has a term.
Therefore: money has a term.
When the debtors cannot pay back their debt, because of long term saving, they go bust.
When to many go bust, the bank goes bust.
When the bank goes bust, the savings are lost.
Money does have a term.
Silvio Gesell was brilliant. A luminary economist out of the Libcom camp. An early theorist pertaining to Market Socialism.
It's all so contrived.
FusionHemp model l8quidated. For fission products.acquisition.
I also think he overlooks the destructive power of inflation, he claims 3-5% is good for a productive economy which means goods will rise at this price and double every 14-25 years so cost of living will increase at a compounded rate but wages will never keep up but also assets like property and equities will rise eventually causing speculative bubbles and increasing the wealth of asset holders against the working class causing an ever increasing wealth gap, so essentially incentivizing rent seeking assets and dis-incentivizing productive works
When wages don't keep up, the production cannot be bought and therefore not be sold.
Same happens with rent seeking: those, who are able to pay the rent will become less and less.
But when inflation comes from wages, the world looks totally different: it reduces profits and requires investments into production to increase profits by getting rid of the workers.
At the same time, when inflation comes from wages, labour is a scarce resource. Others will use those unemployed to make money too.
This generates growth and growing wealth.
@@ThomasVWorm you need to stop commenting on youtube and go back and learn austrian economics 1st as you clueless.
"but also assets like property and equities will rise eventually causing speculative bubbles"
You are confusing CPI and asset inflation. Not only are they different things, but CPI is driven by pushing spending up while asset price inflation is driven by pushing spending down compared with asset investment. Of course this ignores, as one should, nominal changes to currency that have to be factored out to look at changes to standards of living.
It is precisely the low inflation hawks that have created the everything bubble.
Read the Nazi Party economic manifesto, ignore the race and war stuff , today it would be considered something to aim for
As "The Secrets Of Oz" video shows, the smashing of Script money is historically common. As is the peculiar assassinations or attempted assassinations of the People who backed it. Lincoln, Jackson, Kaiser Bill, Garfield, JFK. The later signed a presidential order to come off debt money weeks before he mysteriously got popped off.
What you describe is a necessary function of money. The self-balancing of savings and spending. When the value of the currency is rising, people save more, but only up to a point. When it gets strong enough, they spend it because they have more savings than they need. It is an automatic balancing act.
I almost think economist want boom and bust cycles and all the pain and suffering associated, because this makes themselves more relevant and important than they deserve to be.
So basically what Germany did since WW2 is to keep wages caped not allowing inflation go up and German companies pocket big earnings on huge export. Employment was high and tax flow for government was huge enough.
Ouh my market gods… What caused that first short "miracle" was rebuilding the infrastructure of Germany that created a lot of jobs and so purchasing power and so a short-term consumption boom because people needed to get back what they lost.
Creating an own currency was only done to delete all consumer debts that are thrown into the masses to try to increase consumption and so demand for labor for a little longer to cope with the natural end of the (monetary) market system: General Market Saturation. But consumer debt like other measures lead to inflation.
Then the mother of planned obsolescence was required again to destroy all the finished work and to rebuild everything afterwards which again creates jobs and so purchasing power and leads to consumption boom: War.
Hitler didn't rise into power and he didn't do anything, he was put in and made popular by using Public Relations Propaganda, exploiting peoples fears and hopes and social nature and so on.
At the beginning it sounded like he would tell how money is giving the opposite feedback of what is required for economizing, goods that are becoming scarce only increase prices which makes them even more scarce, in a real economy the feedback is that more goods must be produced.
But hey, "economists", those people who don't even know what the word "economizing" means and why we have to economize, those who believe that everything is happening in the vacuum of space, just two people agree, no conditions, no influencing factors, nothing, market gods swing their invisible hand and cause economical miracles with magical pricing and the "economists" look at their glass sphere and do their foreseeing.
Fear and uncertainty create major wealth. It's those who take the risk and have strong gut to endure the bloody days. When i notice extreme dips i tend to actually move more money to crypto
I feel sympathy for our country, low income people are now suffering to survive yet inflation and recession keep increasing daily, many families can't even enhance the good cost of living anymore. You've helped me a lot Sir Brian! Imagine I invested $50,000 and received $190,500 after 14 days
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian C Nelson.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
Periods of hyperinflation are kept for longer in the common memory because:
– People that use money as a store of value get nuked, so they don't like that.
– People that have fixed incomes from wages or pensions will fall on hard times.
The thing with unemployment generated by deflation is that while hyperinflation affects everyone, unemployment affects only a percentage of the population.
So it's more convenient to create narratives based on hyperinflation than on deflation.
So let me get this straight. Listening to an antisemite will cure unemployment?
Couldn’t be any worse off with the business cycle….. stop all intervention and let the free market work
The free market doesn't always work. The fair market price for natural gas being piped into your house by whoever buried the lines is, "How much ya got?"