Economist Steve Keen on BBC has solution to the ‘debt crisis’

‘Gloom and doom economist,’ Steve Keen is interviewed about how to solve the debt crisis.

Keen has a solution. It might be bitter and distasteful, but perhaps an improvement on a loss of two decades, a ‘Depression’ (which he says we have already entered), and enormous global social disruptions. Think WWII,  angry multitudes, starvation, and the decline of civil life worldwide. Which is the better choice?  Wipe the present debt with a ‘jubilee’, or suffer ‘living in interesting times,’ as the Chinese curse goes?

His proposal sounds almost plausible….. many economists disagree… but quite a number agree with Keen.  I wonder what Noriel Roubini would say?  How we accomplish this debt forgiveness, given modern political realities, he doesn’t propose.



2 thoughts on “Economist Steve Keen on BBC has solution to the ‘debt crisis’”

  1. Ola! Admin,
    This question may be a little off-topic, Occupy Wall Street is a protest movement against inequality, greed, corporate-government nexus and police brutality which broke out on September 17, 2011 in Zuccotti Park of Wall Street in New York. The international protest was named “Occupy Movement” and in other parts of the United States, the movement was called “Occupy Together”. There is no formal, explicitly stated leadership and the protestors are mostly young and unemployed. However, there are moderators, and as it happens in any society, movement or organization, leaders have emerged. The noise, complete lack of civility and violence in the movement has often been pointed out by the critics. Police brutality is rampant and many protestors were arrested.
    Nice One!
    In America: governments, businesses, individuals are now buried under a mountain of debt. A mountain of debt that will never be repaid.

    Who will borrow when they can’t make the payments on the debt that they have already? The math alone calls for a system reset, a debt jubilee.

    Investors are already losing… in a rigged monetary casino that rewards usury, speculation, and currency manipulation while looting main street.

    There is a moral principle that debts should be honored. That is, debts between businesses that buy and sell real products, not bundled ponzi schemes, debts between individuals, between friends and businesses that know each other to be rational and moral, debts based on investments where there is a rational expectation of return.

    There is also a moral principle that unjust debts should be cancelled, and usury legislated against. Debts that are ‘odious’, debts based on fraud, debts to dictators, debts arranged by oligarchs without the consent of the general population (the 99 percent who have been left out of the equation), debts based upon compound interest upon compound interest, that should have been written off long ago, the debts need to be cancelled in a general jubilee. Think outside the box. It’s time for a jubilee.

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