{"id":1680,"date":"2011-10-31T20:36:11","date_gmt":"2011-11-01T00:36:11","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=1680"},"modified":"2011-10-31T20:36:11","modified_gmt":"2011-11-01T00:36:11","slug":"nothings-changed-steve-keens-debtwatch-2009","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2011\/10\/31\/nothings-changed-steve-keens-debtwatch-2009\/","title":{"rendered":"Nothing&#8217;s changed &#8211; Steve Keen&#8217;s Debtwatch (2009)"},"content":{"rendered":"<p>In fact \u201cnormal\u201d for the last half century has been an unsustainable growth in debt, which has finally reached an apogee from which it will fall. As it falls\u2013by an unwillingness to lend by bankers and to borrow by businesses and households, by deliberate debt reductions, by default and bankruptcy\u2013aggregate demand will be reduced well below aggregate supply. The economy will therefore falter\u2013and only regular government stimuli will revive it.<\/p>\n<p>This however will be a Zombie Capitalism: the private sector\u2019s reductions in debt will counter the public sector\u2019s attempts to stimulate the economy via debt-financed spending. Growth, if it occurs, will not be sufficiently high to prevent growing unemployment, and growth is likely to evaporate as soon as stimulus packages are removed.<\/p>\n<p>The only sensible course is to reduce the debt levels. As Michael Hudson argues, a simple dynamic is now being played out: debts that cannot be repaid, won\u2019t be repaid. The only thing we have to do is work out how that should occur.<\/p>\n<p>via <a href=\"http:\/\/www.debtdeflation.com\/blogs\/2009\/12\/01\/debtwatch-no-41-december-2009-4-years-of-calling-the-gfc\/\">Debtwatch No 41, December 2009: 4 Years of Calling the GFC | Steve Keen&#8217;s Debtwatch<\/a>.<\/p>\n<p>Nothing seems to have changed since Steve Keen wrote this in December 2009. Almost two years later and any private sector deleveraging has been compensated by increases in public debt to finance stimulus spending. Greece&#8217;s &#8220;default&#8221; may be the first step in a long journey &#8212; and the jury is still out as to whether recapitalization of European banks (after their &#8220;haircut&#8221;) will be funded out of debt or new equity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In fact \u201cnormal\u201d for the last half century has been an unsustainable growth in debt, which has finally reached an apogee from which it will fall. As it falls\u2013by an unwillingness to lend by bankers and to borrow by businesses and households, by deliberate debt reductions, by default and bankruptcy\u2013aggregate demand will be reduced well &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2011\/10\/31\/nothings-changed-steve-keens-debtwatch-2009\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Nothing&#8217;s changed &#8211; Steve Keen&#8217;s Debtwatch (2009)&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[40,33,34],"tags":[962,993,1416],"class_list":["post-1680","post","type-post","status-publish","format-standard","hentry","category-australia-nz-countries-regions","category-uk-europe-countries-regions","category-us-canada-countries-regions","tag-debt-crisis","tag-deleveraging","tag-fiscal-stimulus"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Nothing&#039;s changed - Steve Keen&#039;s Debtwatch (2009) - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nothing&#039;s changed - Steve Keen&#039;s Debtwatch (2009) - the patient investor\" \/>\n<meta property=\"og:description\" content=\"In fact \u201cnormal\u201d for the last half century has been an unsustainable growth in debt, which has finally reached an apogee from which it will fall. As it falls\u2013by an unwillingness to lend by bankers and to borrow by businesses and households, by deliberate debt reductions, by default and bankruptcy\u2013aggregate demand will be reduced well &hellip; Continue reading &quot;Nothing&#8217;s changed &#8211; Steve Keen&#8217;s Debtwatch (2009)&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2011\/10\/31\/nothings-changed-steve-keens-debtwatch-2009\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:published_time\" content=\"2011-11-01T00:36:11+00:00\" \/>\n<meta name=\"author\" content=\"ColinTwiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ColinTwiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/10\\\/31\\\/nothings-changed-steve-keens-debtwatch-2009\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/10\\\/31\\\/nothings-changed-steve-keens-debtwatch-2009\\\/\"},\"author\":{\"name\":\"ColinTwiggs\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#\\\/schema\\\/person\\\/cb072791ac83e8bae585007c133d54a5\"},\"headline\":\"Nothing&#8217;s changed &#8211; Steve Keen&#8217;s Debtwatch (2009)\",\"datePublished\":\"2011-11-01T00:36:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/10\\\/31\\\/nothings-changed-steve-keens-debtwatch-2009\\\/\"},\"wordCount\":260,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#organization\"},\"keywords\":[\"debt crisis\",\"deleveraging\",\"fiscal stimulus\"],\"articleSection\":[\"Australia &amp; NZ\",\"UK &amp; Europe\",\"US &amp; Canada\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/10\\\/31\\\/nothings-changed-steve-keens-debtwatch-2009\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/10\\\/31\\\/nothings-changed-steve-keens-debtwatch-2009\\\/\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/10\\\/31\\\/nothings-changed-steve-keens-debtwatch-2009\\\/\",\"name\":\"Nothing's changed - Steve Keen's Debtwatch (2009) - the patient investor\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\"},\"datePublished\":\"2011-11-01T00:36:11+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/10\\\/31\\\/nothings-changed-steve-keens-debtwatch-2009\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/10\\\/31\\\/nothings-changed-steve-keens-debtwatch-2009\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/10\\\/31\\\/nothings-changed-steve-keens-debtwatch-2009\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/thepatientinvestor.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Nothing&#8217;s changed &#8211; Steve Keen&#8217;s Debtwatch (2009)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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Steve Keen shows that the economy is not in equilibrium when aggregate debt is rising or falling: Income = Aggregate Demand +\u2026","rel":"","context":"In &quot;Debt Levels&quot;","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/img.youtube.com\/vi\/UzxQcTOs4JA\/0.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":22504,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/11\/07\/asx-and-the-long-run\/","url_meta":{"origin":1680,"position":1},"title":"ASX and the long run","author":"Colin Twiggs","date":"November 7, 2020","format":false,"excerpt":"The ASX 200 is testing resistance at 6200 but declining Money Flow continues to warn of selling pressure. There is a lot of \"noise\" in the market at present -- due to COVID-19 easing, government stimulus, RBA rate cuts and political turmoil in the USA -- so we are wary\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1194,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/10\/06\/americas-debt-crisis-why-europe-is-right-and-obama-is-wrong-spiegel-online\/","url_meta":{"origin":1680,"position":2},"title":"America&#8217;s Debt Crisis: Why Europe Is Right and Obama Is Wrong &#8211; SPIEGEL ONLINE","author":"ColinTwiggs","date":"October 6, 2011","format":false,"excerpt":"American economists, central bankers and fiscal policy makers have reinterpreted British economist John Maynard Keynes's clever idea that government spending is the best way to counteract a serious economic downturn -- and have turned it into a permanent prescription. In their version of the Keynesian theory, declining growth or tumbling\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2618,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/12\/14\/private-sector-debt-growth-warns-of-anemic-recovery\/","url_meta":{"origin":1680,"position":3},"title":"Private sector debt growth warns of anemic recovery","author":"ColinTwiggs","date":"December 14, 2011","format":false,"excerpt":"The cause of current anemic GDP growth is evident from the recently-released Z1 Flow of Funds report. GDP recovery from 2008\/2009 is accompanied by only a modest rise in Domestic (Non-Financial) Debt -- which is now constraining further growth. Domestic (Non-Financial) Debt is made up of Government Debt and Private\u2026","rel":"","context":"In &quot;Debt Levels&quot;","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14124,"url":"https:\/\/thepatientinvestor.com\/index.php\/2016\/09\/13\/rising-debt-not-a-crisis-but-a-serious-problem-brookings\/","url_meta":{"origin":1680,"position":4},"title":"Rising debt\u2014not a crisis, but a serious problem | Brookings","author":"ColinTwiggs","date":"September 13, 2016","format":false,"excerpt":"Testimony by Alice M. Rivlin, Senior Fellow - Economic Studies, Center for Health Policy, before the Joint Economic Committee of the United States Congress on September 8, 2016: .....our national debt is high in relation to the size of our economy and will likely rise faster than the economy can\u2026","rel":"","context":"In &quot;Debt Levels&quot;","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":30600,"url":"https:\/\/thepatientinvestor.com\/index.php\/2022\/01\/25\/dr-lacey-hunt-hoisington-asset-management-the-debt-trap\/","url_meta":{"origin":1680,"position":5},"title":"Dr Lacy Hunt, Hoisington Investment Management | The debt trap","author":"Colin Twiggs","date":"January 25, 2022","format":false,"excerpt":"From Dr Lacy Hunt at Hoisington Investment Management on the declining velocity of money: The Fed is able to increase money supply growth but the ongoing decline in velocity (V) means that the new liquidity is trapped in the financial markets rather than advancing the standard of living by moving\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"M2 Velocity","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-01-28-m2-velocity.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-01-28-m2-velocity.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-01-28-m2-velocity.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-01-28-m2-velocity.png?resize=700%2C400&ssl=1 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/1680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=1680"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/1680\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=1680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=1680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=1680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}