Steve Keen vs Chris Caton

Discussion in 'Markets & Economies' started by Trichter, Aug 5, 2011.

  1. Trichter

    Trichter Member

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    Here is an interview on ABC's PM with Steve Keen and Chris Caton. The transcript is included.

    http://www.abc.net.au/worldtoday/content/2011/s3286793.htm

    An excerpt:

    MARK COLVIN: Alright, let me, we ought to wind up gradually.

    Chris Caton, what do you think are the chances of avoiding stagflation and what should we do about it?

    CHRIS CATON: Well there's no inflation to be stagflation. The

    MARK COLVIN: In Australia, what about the world?

    CHRIS CATON: Well the issue is avoiding

    STEVE KEEN: Deflation, debt deflation.

    CHRIS CATON: I would say we're 80 per cent likely to avoid a double-dip recession in, well either in Europe, or the US, or the world in general. It is clear this is a period that the world economy has lost a lot of momentum. My suspicion is that this is a temporary thing it's going through.

    MARK COLVIN: Steve Keen?

    STEVE KEEN: I think it's permanent until the debt levels are paid down. We're in a debt deflation where deleveraging by the private sector is going to reduce aggregate demand below aggregate supply and will slowly grind down.

    MARK COLVIN: And the question of what we do about it?

    STEVE KEEN: We have to abolish the debt. The debt should never have been issued in the first place and the financial institution that issued should go bankrupt.
     
    Trichter, Aug 5, 2011
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  2. errol43

    errol43 New Member Silver Stacker

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    I thought there would have been a bigger response to this post than none at all..Three hours on a Friday night ..Maybe SS members are too busy watching the roller coaster ride at the silver carnival..

    Thanks for this post.. well worth a read!

    Regards Errol 43
     
    errol43, Aug 5, 2011
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  3. kram

    kram New Member

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    Finished listening to it a little earlier

    cracked up a bit when Steve buts in during this

     
    kram, Aug 5, 2011
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  4. Old Codger

    Old Codger Active Member Silver Stacker

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    Chris Caton is much like all economic talking heads on TV.

    Still has his head in a Year 12 text book.



    OC
     
    Old Codger, Aug 5, 2011
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  5. Trichter

    Trichter Member

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    In contrast, Steve Keen has honed his rhetoric significantly in the last couple of years and is laconic and precise. It's pretty rare to hear the whole mess summed up in such few words... and on national radio no less. $2.1 trillion in market value was wiped off the MSCI All Country World Index this week alone (much of it disappearing from banks) and there is no government that can counteract that. Neither the EU or America has a lazy few trillion to spend.
     
    Trichter, Aug 6, 2011
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