They're getting pissed off with Steve Keen

[marvenger]

the Author of this article int he SMH, Gerard Henderson executive direrector of the Sydney Institute, is getting a little peeved by Steve's doomsayer predictions.

Its good to see Steve's finaly getting under some peoples skin and those in high places are obviously starting to take him more seriously, although this piece is trying to suggest the opposite. Gerard keeps saying that no economists are given an opportunity to rebut Steve; I would suggest that this is because they have nothing to say, they are stuck in their dogmatic views of static equilibrium models of the economy, whereas Steve's dynamic analysis where uncertaintly is allowed for is far more rooted in reality. The author says Steve's predictions are economic determinism, whereas he's merely pointing out a highly probably scenario that established neoclassical economics believes is impossible and therefore this regressive school of thought has nothing to say on the matter.

Wake up Gerard!

[The Outback Oracle]

Re: getting pissed off with Steve Keen

What a disgraceful juvenile attack on Keen!!!!!!

He had a whole page to come up with something to debunk Steve's opinion and produced not a single iota of data or argument!!! I was trying to find his address to challenge him a little but he is not willing to accept comment apparently.
Those with a self-interest in keeping the current lot of balls in the air are proving very solid. One thing, I forget the proportion of State Govt revenue drawn from Stamp Duty and Property taxes is very high. If RE falls, they are all in serious trouble, particularly NSW. The forces lined up against Steve are many, powerful, desperate, amoral, and willing to sacrifice the whole of the rest of Australia if necessary to keep this real estate based national game alive.
Who knows they may be successful in pumping it all up one last time before they run out of assets to sell! If they do...boy am I going to be ready for the next one...self-contained concrete bunker...illegal cache!

[marvenger]

Re: getting pissed off with Steve Keen

What a disgraceful juvenile attack on Keen!!!!!!

yeah mate, I think that sums it up.....and such a pathetic piece made the opinion pages! Sad state of affairs!

[marvenger]

Re: getting pissed off with Steve Keen

i can't find it in the online SMH but in today's paper SMH there a front page article that cites Rainmaker Information as a source for establishing that more than half of the $63b of the Future Fund is sitting in cash with the Australian banks. A good move in light of alternative investments, but you'd think that they could demand a little more in return than cash....the bankers need to be punished not given cheap money and everything running as normal as possible

[Verrocchio]

Re: getting pissed off with Steve Keen

What a disgraceful juvenile attack on Keen!!!!!!

He had a whole page to come up with something to debunk Steve's opinion and produced not a single iota of data or argument!!! I was trying to find his address to challenge him a little but he is not willing to accept comment apparently.
Those with a self-interest in keeping the current lot of balls in the air are proving very solid. One thing, I forget the proportion of State Govt revenue drawn from Stamp Duty and Property taxes is very high. If RE falls, they are all in serious trouble, particularly NSW. The forces lined up against Steve are many, powerful, desperate, amoral, and willing to sacrifice the whole of the rest of Australia if necessary to keep this real estate based national game alive.
Who knows they may be successful in pumping it all up one last time before they run out of assets to sell! If they do...boy am I going to be ready for the next one...self-contained concrete bunker...illegal cache!

Quo bono, eh? The beneficiaries of the FIRE system know no other game from which they stand to benefit so richly. They will keep this one running as long as possible, all the better for squeezing another thousand, or thousand thousand, out of the usual suckers.

[Verrocchio]

Re: getting pissed off with Steve Keen

i can't find it in the online SMH but in today's paper SMH there a front page article that cites Rainmaker Information as a source for establishing that more than half of the $63b of the Future Fund is sitting in cash with the Australian banks. A good move in light of alternative investments, but you'd think that they could demand a little more in return than cash....the bankers need to be punished not given cheap money and everything running as normal as possible

And on what grounds shall they be punished? The banksters haven't actually broken any laws. They first made sure that the laws were "properly" written. So, immoral? Yes. Illegal? No.

Still, why hand them cheap, or free, money after they have fed heavily at the trough for these many years?

[The Outback Oracle]

Re: They're getting pissed off with Steve Keen

Hehe! Is that why the Govt guaranteed all the deposits??????

I keep wondering what happens if the Derivatives thing blows up here. John Stewart, when questioned if there were any more Derivative bombs inside NAB...rubbed his nose and said he didn't know!

[metalman]

Re: getting pissed off with Steve Keen

And on what grounds shall they be punished? The banksters haven't actually broken any laws. They first made sure that the laws were "properly" written. So, immoral? Yes. Illegal? No.

Still, why hand them cheap, or free, money after they have fed heavily at the trough for these many years?

why steve is off base with his deflation worries... he needs to read the fed's play book updates! my favorites!

Dr. Econ, what are the costs of deflation?

Arbitrary redistribution of wealth from borrowers to lenders.

Given that the experience of many countries in the recent past has been that of steadily rising prices, many long-term contracts are written with the expectation of continuing inflation. Thus, when unanticipated deflation occurs, these contracts need to be adjusted. It is reasonable to expect that these adjustments will not be instantaneous, since many contracts cover an extended period of time. Without adjustments, unexpected deflation will lead to arbitrary redistribution of wealth from borrowers to lenders* (the opposite of the case of unanticipated inflation**).

* arbitrary but not necessarily bad redistribution of wealth to banksters from debtors as occurred in the early 1930s. deflation is good for banksters!

** better than the evil inflation that results in the terrible and unfortunate... nay, evil!... redistribution of wealth from banksters to debtors.

and...

Loss of government revenue. Since tax provisions are based on nominal incomes, deflation may lead to a reduction in tax rates even in case of no change to spending power (Fuhrer and Tootel 2004).

http://www.frbsf.org/education/activ...2006/0602.html

uhg! reduction in tax rates! how bad can it get!!!

doesn't get any more 'transparent' than that!

[marvenger]

Re: getting pissed off with Steve Keen

they need to be punished becasue they've made bad bedts, so much so that people are worried about they're solvency; people put cash in the bank because they think they are prudently managed and its a safe thing to do, when the banks have been idiots they shouldn't get rewarded with more of the cheapest source of funding they can get. If they get funding because they're solvency is in question, the normal market response is to punish them. I'm not talking about legal punishment for breaking rules and legally at fault negligence, although I'm hoping that will follow.

[marvenger]

Re: getting pissed off with Steve Keen

dude, infaltion/deflation doesn't really matter to the banksters as long as they're still in control of the money; which they most definitely are.