Written by John Lounsbury
At the beginning of last year (2018), Steve Keen sat down for a session with Real Vision Finance. A video from that session was just uploaded to YouTube less than two weeks ago (24 August 2018). In this video Prof. Keen summarizes how excessive debt in the private sector will drive the world into a new crisis. His projection then of how Fed Policy would play out has so far come to pass.
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From YouTube:
Steve Keen is a ‘renegade economist’ who has been debunking classical economic theory for decades. Steve argues that ever-rising levels of private debt are unsustainable in the face of rising interest rates, but that the US Federal Reserve will continue to raise them anyway until the credit cycle implodes – at which point the Fed will turn about and inevitably return to stimulative policies. The economist maintains that until the level of private debt is addressed, the Fed will remain intellectually locked in a never-ending cycle of massive asset bubbles and extraordinary busts. Filmed January 23rd, 2018 in London.
Source: YouTube.
Econintersect note: Steve Keen is conducting a Patreon campaign to enlist financial support that will enable him to continue his unique research outside of the academic world heretofore his home. Econintersect strongly endorses this campaign.
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