Steve Keen's Debtwatch

The Syd­ney Morn­ing Her­ald has a deal for aca­d­e­mics and stu­dents right now that lets aca­d­e­mics pur­chase a year’s sub­scrip­tion for $60 for dig­i­tal and print (deliv­ered on cam­pus) and $40 for dig­i­tal alone.

I think that’s excel­lent val­ue, and I’ve signed up (to the digital–no sense wast­ing the trees). I’d urge oth­er aca­d­e­mics and stu­dents to do like­wise, for sev­er­al rea­sons:

• The val­ue alone. $60 for a year’news­pa­pers is cheap! I’m also pay­ing  $8 a week for the New York Times (dig­i­tal only). That is at the lev­el where I might con­sid­er de-sub­scrib­ing, and putting up with their lim­it of ten free reads a week;

The “From Alpha to Omega” pod­cast record­ed the fol­low­ing inter­view with me about the “Mod­ern Debt Jubilee”. We dis­cuss a lot more than just that–starting with why peo­ple who are inter­est­ed in Hyman Min­sky’s work should NOT read Sta­bi­liz­ing an Unsta­ble Econ­o­my, but should instead start with either John May­nard Keynes or Can “It” Hap­pen Again?

Amer­i­cans aren’t known for irony or sur­re­al­ism, but one of the endur­ing­ly sur­re­al and iron­ic pop songs is The Eagles’“Hotel Cal­i­for­nia”. Writ­ten as a satire of Amer­i­can excess, its lyrics bear an uncan­ny resem­blance to the trap the nations of Europe now find them­selves in – espe­cial­ly its final stan­za:

Last thing I remem­ber, I was
Run­ning for the door
I had to find the pas­sage back
To the place I was before
“Relax,” said the night man,
“We are pro­grammed to receive.
You can check-out any time you like,
But you can nev­er leave!”

To read this post, click here.

Tony Abbott recent­ly pledged him­self to restore the “Gold­en Age of Pros­per­i­ty” that Aus­tralia enjoyed under John Howard’s prime min­is­ter­ship:
“That’s why the longer this gov­ern­ment lasts, the bet­ter the Howard gov­ern­ment looks and that’s why the Howard gov­ern­ment now looks like it cre­at­ed a gold­en age of pros­per­i­ty, which is lost,” Abbott said in a speech to the South Aus­tralian Lib­er­al Par­ty.

Click here for this sto­ry

I gave the talk below last Sun­day at UWS’s Open Day, as an into­duc­tion to eco­nom­ics for prospec­tive uni­ver­si­ty stu­dents. Prepar­ing it made me reflect on the great good for­tune I had to be appoint­ed to UWS.

This might evoke a “Huh?” response from the usu­al sus­pects on such issues–why be pleased about being appoint­ed to a sec­ond-rate Uni­ver­si­ty (and in an out-of-the-way place like Syd­ney to boot)? It’s because the Eco­nom­ics & Finance pro­gram at UWS has been almost unique amongst eco­nom­ics depart­ments around the world in delib­er­ate­ly pur­su­ing a “plu­ral­ist” approach to eco­nom­ics.

Bernie Mad­off, is often the first per­son that comes to mind when you men­tion the words Ponzi scheme these days, in the midst of the ongo­ing finan­cial cri­sis. The Mad­off Ponzi scheme fab­ri­cat­ed almost $65 bil­lion of mon­ey that didn’t exist. The expo­nen­tial rela­tion­ship between find­ing new investors mon­ey to fund­ing the old investors overzeal­ous and unsus­tain­able gains were bound to come crash­ing down as new investors were nowhere to be seen,having lost con­fi­dence in the mar­kets in the after­math of the 2008 crash. One would think that investors would have learnt their les­son on when returns are too high and can not be jus­ti­fied by any legit­i­mate mar­ket­place, but old habits die hard in the cur­rent finan­cial cri­sis!

Below is a great inter­view with Steve and Simon Maude — a pre­lude to Steve’s New Zealand tour, host­ed by talk­sNZ. Steve reit­er­ates how today’s eco­nom­ic envi­ron­ment is the begin­ning of a debt induced depres­sion, how this could give rise to polit­i­cal insta­bil­i­ty, and hits some of his well regard­ed notes on exces­sive bank lend­ing.

We are all speak­ing at the Amer­i­can Mon­e­tary Insti­tute con­fer­ence in September–from Thurs­day 20th till Sun­day 23rd. The full list of speak­ers is here. It’s a chance to hear peo­ple who are all inter­est­ed in mod­el­ing the finan­cial sys­tem and mon­e­tary reform in gen­er­al, but who approach it in very dif­fer­ent ways:

My dynam­ic non-equi­lib­ri­um Cir­cuit approach;

Michael Kumhof’s DSGE mod­el with bank­ing; and

Kaoru Yam­aguchi’s sys­tems engi­neer­ing mod­el (designed in Ven­sim)

As well as hear­ing Michael Hud­son and Eliz­a­beth Kucinich (wife of Con­gress­man Den­nis Kucinich).

By Philip Soos

The Con­ver­sa­tion

The lev­el of sub-prime mort­gages in Aus­tralia may be far in advance of what was pre­vi­ous­ly assumed and pro­vid­ed for by banks. The sto­ry was bro­ken on the ABC, and cov­eredelse­where. The rev­e­la­tions cen­tred around two per­son­al­i­ties: Kate Thomp­son and Denise Brai­ley.

Steve will be tour­ing New Zealand from Thurs­day 6^th Sep­tem­ber through till Mon­day 10^th Sep­tem­ber, at the invi­ta­tion of talk­sNZ, to give 3 exclu­sive sem­i­nars. These will include exam­i­na­tion of eco­nom­ics as a real world con­cern, and analy­sis of the glob­al finan­cial sit­u­a­tion and the New Zealand econ­o­my. Steve will be pre­sent­ing 2 sem­i­nars in Auck­land and 1 in Welling­ton, with the dates/times sched­uled as fol­lows:

Top­ic:   The New Zealand and Aus­tralian Asset Mar­kets

Date:     Fri­day 7 Sep­tem­ber
Time:     8.45am — 3.00pm
Venue:   Bar­rycourt Hotel
20 Glad­stone Rd, Par­nell, Auck­land

Top­ic:   The Glob­al Econ­o­my