There are limits, but is GDP really the appropriate measure.
We are in agreement there are limits to how high debt ratios can go. I think this is one of the issues Steve Keen was contemplating in his article. He seems to be saying there wasn't sufficient deleveraging and now debt ratios are taking off again (from high bases). So I return to my original contention that he hasn't "moved on" (as you put it). I think he's now looking for the next crisis which will occur when debt ratios become too high again.
Quote:
Assuming we are talking about a currency issuer like Australia, then both the public sector and the private sector, including households can manage the level of debt that they can pay back. If you disagree then tell me how our economy would fare in a world without debt, because in that scenario no one would have any money.
You seem to have backtracked a bit with your statement, "both the public sector and the private sector, including households can manage the level of debt that they can pay back". In a previous post you suggested it was very important who held the debt. Now you say it can be the public OR the private sector — in other words, it doesn't matter who holds the debt which renders your previous statement more or less irrelevant.
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Now stop trolling.
You can call me a troll repeatedly but I intend to allocate more of my time from now on to scrutinising your platitudes. I suspect that on closer inspection many of them might be found to be hollow.
I respect Mr. Keen very much. He is a one trick pony that is very good at his trick. BUT he is surrounded by 6 billion other one trick ponies. Led by masters. He needs to mature. Good luck Steve. Peter
There are limits, but is GDP really the appropriate measure.
We are in agreement there are limits to how high debt ratios can go. I think this is one of the issues Steve Keen was contemplating in his article. He seems to be saying there wasn't sufficient deleveraging and now debt ratios are taking off again (from high bases). So I return to my original contention that he hasn't "moved on" (as you put it). I think he's now looking for the next crisis which will occur when debt ratios become too high again.
Truly I don't care what you think, but I do listen to what Steve Keen thinks, whether or not I agree.
Quote:
You seem to have backtracked a bit with your statement, "both the public sector and the private sector, including households can manage the level of debt that they can pay back". In a previous post you suggested it was very important who held the debt. Now you say it can be the public OR the private sector — in other words, it doesn't matter who holds the debt which renders your previous statement more or less irrelevant.
Governments can hold debt, and the private sector can hold debt, but debts have to be managable although for a currency issuer like Australia the government can't default as long as the debts are denominated in our own currency.
When you get down to the debt in the private sector, at the individual level then it's very important that the person or entity holding the debt has the capacity to repay it. How on earth is that hard to understand?
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You can call me a troll repeatedly but I intend to allocate more of my time from now on to scrutinising your platitudes. I suspect that on closer inspection many of them might be found to be hollow.
You have turned yourself into a troll.
Steve Keen wrote an article that was published in Business Spectator I think maybe on Xmas eve 2013 or thereabouts. I don't recall the exact date and it's probably paywalled, there will be a link somewhere, it may have even been posted here.
I hope that I can embed this tweet which was part of a conversation that I had with him at the time. I haven't done this before so I may get it wrong, but the text is there.
<blockquote class="twitter-tweet" lang="en data-scribe-reduced-action-queue="><p>Yes <a href="https://twitter.com/peterfraserbris">@peterfraserbris</a> <a href="https://twitter.com/CCASHMORE_BUYER">@CCASHMORE_BUYER</a> whiz is why we have to fight the austerity meme. Almost certain it will dominate Aus politics in 2014.</p>— Steve Keen (@ProfSteveKeen) <a href="https://twitter.com/ProfSteveKeen/statuses/415063949336268800">December 23, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
I urge you to read Steves article and start thinking about how Howard transferred public debt to the private sector by selling state assets off and using that money to repay government debt, and how the government should try to rebalance that by transferring that private debt back to the public domain, and what the best ways of doing that might be.
Understand that all money has been created by debt in a double entry bookkeeping financial world, so clearing all debt isn't a viable option, but rebalancing it is a viable option.
And then stop your useless trolling. Do something constructive with your day for a change.
I can't believe Collyer is still going after this Housing Bubble - Don't Buy Now: http://youtu.be/9Aur7a44QDY
Mustapha Mond
13 Mar 2014, 11:16 AM
I respect Mr. Keen very much. He is a one trick pony that is very good at his trick. BUT he is surrounded by 6 billion other one trick ponies. Led by masters. He needs to mature. Good luck Steve. Peter
I never understand people that put their name at the bottom of every post.
Why not put it in your signature?
Or even use it as your avatar?
We get that you've read some Huxley but it doesn't make you interesting.
Herbert : popcorn thing that Peter doesn't do after every post:
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