Stacy Summary: We interview Steve Keen of DebtDeflation.com
@ Ageo. I pretty much agree with all you say. The growing problem with us has been that to downsize away from taxation leaves you with an income that no longer meets basic living costs. And yes, a good days labour from an employee deserves a fair days wage.
@Farang. I’m not in the U.S. And it’s not just about the taxation but also about all the time consuming bureaucracy that goes with it and vicious fines when you don’t get things right. Of course you can pay an accountant to help sort it out but he is costly and will try and sell you an insurance policy to protect you from the cost of government investigation. The list of expenses goes on and on..
Instead of demanding wage increases, consider the ‘employer’ being squeezed to death, then what do you have? NO JOB! Oh yeh, now force that bankrupt business owner (that is losing his home and has ‘no’ pension) to pay higher taxes to fund public union benefits. Oh yeh, the same regulatory public assholes that forces closure of small local business and chases large business overseas.
Typical leftist progressive stupidity, Oh yeh, your winning! Oh good!
Lol. Yeh, all those poor corporations were “chased” overseas. Oh Daddy you are a cheer leader for the race to the bottom.
This episode reminded me why I started watching Max and Sherbert: Excellence. Professor Maxwell showed up. And then a contortion bug took a’hold of him something awful….must be something he caught in Greece…I think I used to see vidoes of someone in a leisure suit dance like that at NYC discos in the 70s…Maxwell, was that you???
Discovered drhousingbubble, have ya Sherbert? He predicted it from the bubble down….Max is correct about US housing prices……I see a 50% drop in California real estate from here to 2014-2015 (for those still drinking the bubble kool-aid and think their houses will sell for 2006 prices)….I have no sympathy for them, even a simpleton had to ask where the wages to support the price levels California real estate reached in 2006 was going to come from…hell, I was asking that during the 85-90 bubble.
Only question I have now is does Keen think if wages get raised as Uncle Ben keeps whipping up those Minute FRNs….as he said “increasing it at unprecedented levels”…”doubling the supply in two years”….that hyperinflation approaches? Not opposing raising wages (under proper terms and conditions), far from it, just stating what the conditions are I detect.
Raising wages in putting a band-aid on a broken system. Either America addresses it’s politician’s imperialist motives and cuts the funding through voting in new parties and politicians, or they will suffer the consequences like all other hubris-filled empires in history: wither internally from military expenditures/adventures abroad.
You see, these same simpletons that can’t link their town’s income levels, employment levels to the real estate price level…are same ones that can’t detect where all their tax money goes, why teachers are getting canned, why they have to drive Johnny and Sally to games after school now and buy the uniforms..why all the local merchants are withering away while Walmart has a superstore every 5 miles……..they think they can support 1000 bases abroad…through a “never-ending” printing press Reserve Currency.
We Shall See.
I still like silver.
I agree about the tax thresh hold thing we struggle every month just
to meet power bills, health registration, public liability on and on
in fact just manage to not lose the lot. No holidays in 4 years but
you just battle on tell yourself at least its yours. I still think beats
having a boss..any boss.
I agree it really was a great show lots of great comments
although I don’t think dogma is helpful on either side of
this debate because the only winners end up being the
top 1% Steve Keen is telling debt story 100% correct
you know taking all of your last comment in,
probably the best food for thought out of every
@DaddyWarbucks. Exactly right. Some people here can talk from personal experience others have swallowed the latest financial whizz kid”s blog.
Right? He has a point but in his analysis he has blamed his employee
for Overstepping greed of bureaucracy His “regulatory public assholes”
line does have a ring of truth. But they are led from the top thats where the
real stupidity lays.
Steve Keen is an academic. Lets remember that.
As for the whining employers who think if they go bust the world will end.
Greed has gt us into a debt spiral, and employers cave in to government regulations and insurance companies etc etc. They get squeezed because they have stupidly huge mortgages. The workers should all pop over for a swim in your pool.
If the employer is running on such a razor thin margin, than maybe they should think about not bothering,
This ofcourse does not apply in the United States because you would starve on the streets like a stray dog. I never ever tip when in the United States. I hate watching workers grovel for tips like that. Its humiliating to watch.
I always tell them when asked for a tip, “Form a union, go on strike for better pay” Strangely for suggesting they improve their lot, they attack me for being a communist. Bizzare
No swimming pools here bud, just real dirt on working hands.
Aren’t the large corps run by academics? Aren’t Governments
run by academics? Don’t worry no need to fear ordinary
mortals entering the public forum. Even though we know
we caused the problem. So you know what we do, yourself
plumber? tradie? private sector worker? come on give us
While I have an academics ears I never got an answer
to this question. Not that i’d understand any implications
I do have a question for Steve. How much of that “Private sector Debt”
is derived from “Public Sector” wages and salaries? Just one small
aggregate number seem hard to find in Government issued Stats.
Just posing the question? no high horses please.
No swimming pool here either. What do you not understand? No more money means NO MORE MONEY. Zero in the bank. Zero under the bed. Cards maxed out. Shout and scream all you like. No more money. It’s a hard thing for a small business man who lives or dies by his local reputation to lay men off. And you’ve got it right, that is exactly what we are saying…not worth bothering. Sell your skill to who ever wants to buy it and keep away from employing anyone.
His tourniquet analogy works to the extent it gets across the point that it was private debt that led up to the 2008 debacle.
But it fails because the bailouts didn’t staunch the flow of private funds into bad investment. Quite the opposite in fact. The bailouts were more like sticking a bucket underneath the amputated limb and collecting the blood; more like amputating the other arm to make the blood loss symmetrical or something; more like applying leeches.
The fact of the matter was that there already were tried and true enough tourniquets on hand to deal with the so-called credit market seizure or whatever they want to call September 2008: bankruptcy courts.
@ ageofreisling @Specky4eyes
Thanks dudes. Great question “t “Private sector Debt”
is derived from “Public Sector” wages and salaries?
I’d like to ask the academic that one. Then maybe see what a real world biz person says too.
@ Specky Sell your skill to who ever wants to buy it and keep away from employing anyone.
Thats the way they want it. The big companies. Back to the cash economy. Go on the dole, work for cash, make BHP bankroll the gov.
Wer need to get the private insurance firms out of the small biz arena. They are poison.
@Alkyder. In that respect then they have won. In the UK a new law has just been passed granting new fathers several weeks paid paternity leave. How can this possibly help small businesses in a recession. They are out to close us down and they are winning. I wish I had an answer to all this. I have a spiritual answer and a certain hope in Jesus Christ. But I see a lot of the financial turmoil we are in as judgement. We die, as a society, by the sword we thought to live by, Mammon.
Rumours of our demise may have been exaggerated Specky……keep calm and carry on….Britain was bankrupted by the First World War….so “our” British politics has been a complete sham ever since then.
Our futures depend on Americans and their EU fascist dictatorship……all the politics and social opinion and Westminster legislation is without our control. Lie back and think of England!
Yes, a sham indeed. What sort of “capitalism” takes from the poor to bail out the rich. That is a skewed kind of communism.
@ Al Kyder
100% Insurance companies period parasites agreed!! Need some
serious law reform their like, going back to justice equity,
Common law, Common sense. I did not make a claim about
“Public” v”Private” debt merely how much. You added the
leading , prejudicial vent to the quite plain initial question.
Gov stats are rubbery in their differentiation even an old
communist knows that. And I would really like to know.
@ Specky4eyes @ ageofreisling
Thank you both again for your comments. Especially those first two. Comments straight from the heart like that are worth more than gold. People can empathise.
Mah! what are we gonna do, Mow rich peoples lwans for 30 bucks an hour. We’ll hit peak rich people fast. We’ll have to eat em then.
Some kind of mass default would suit Australia. A mass default on insurance payments. We need t go for specific targets. Like Maq Bank, AAMI, Allianz, AON, APIA, AXA, CommInsure and the other bank arms. Maybe storm APRA
the Australian “Perpetual” Regulation Authority.
A boycott of tolls would also be interesting, Esp. for Maq.
At least in the UK people are fighting back. Whenever you see the anarcho-sydicalist flags at those protests, (the black and red diagonal) they are fighting for your right to have the life you earned. So they love you. Good to know there lots of that going around in the UK.
With the money we save from killing the bankster insurance companies, we can triple wages just with the money we saved !!!!!!
I agree with Keen for the most part. The thing is that competitivism IS the death spiral. It’s like that Highlander movie, “there can be only one” as they said. We see the results every day. Less businesses, less workers, greater unemployment, more monopolies, all the money/assets in the hands of those who are still standing.
I don’t say it’s either good or bad. If you’re with the top 1%, it’s great. It’s like Buffet said, you’re winning. But if you’re with the bottom 90%, then things are going south. The thing is that the bottom 90% don’t need the top 1%, they just need the assets. They should take them and get on with their lives. It’s not unethical. The top 1% are doing it for years and years. They may be doing it in a more delicate way, but then they are less, and they can’t just go on and take them.
More democracy, no oligarchy.
@Kosta. In some ways I agree with you. What you describe as “competitivism” is the evolutionists “survival of the fittest. Capitalism without social responsibility backed by government in the hands of the elite inevitably leads to what you describe. What R.C. Sproul describes as “stewardship capitalism” is a better model. But with a society that denies God His rightful place and rejects moral absolutes we are left with the law of the jungle.