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this is an urban program which i think professor steve came to resume
gullickson france at the university of of western sydney
uh... in australia the author of debunking economics is website debt
deflation dot com t-shirt click over to his blah didn't get to as kick-start
minsky now uh... project it's a really good one his twitter is propped steve
kina spelled k_ e_ n_ uh... and professor kenya you pointed out that
while our
our national debt
is is pushing fourteen trillion dollars in
and arguably could pull almost almost three out of that is still social
security money we ourselves in other things like that but
but nonetheless there it is
fourteen trillion dollars that the that the debt level of
private debt in the united states and assuming that is household debt plus
corporate debt
is thirty eight
billion did you say
let's say i a trillion thirty-eight rag a trillion thank you yes if it's
ill-suited to another amounts of more than two and a half times level of uh...
government right and so historically
what has that been relative
to government debt iming me historically like as in over the last since world war
two anyway
and yet and and what constrains that or what should be done about that if it's a
problem
it's a problem may be a certain amount of data is necessary for an economy to
function because people borrow money to invest in new tractor he's i'd borrow
money to buy a house in houses they can't afford to buy their weekly
paychecks so as to the generations to borrow money
and i think if you look at the american economy not entrepreneurship because on
their indeed a substantial amount of debt will suddenly australian economy
and finance entrepreneurial investment
plus a remains at that level of about fifty to seventy five percent of j_f_k_
is probably sustainable and sensible level on the american economy
and i think that level
dissected a canada and latin american debt prosecutor after the second world
war began its forty five percent vijay k
this resume
couple ups and downs for the tourism
just three hundred and three percentage any pain at stake
and is now down to about two hundred and fifty percent of the rebate was that was
their effect if any
was their extended did preserve expecially increase of this
post reagan as opposed to uh... slower increase pre reagan ground change so
many policies that had to do with banking in debt in and and
and or or is this just a has been just a continuous trend ever since world war
two
cantina charlies need to resend it like that and uh... costs
uh... which is getting uh... group you're getting harder and harder on you
simply turn out that the pressure which ideal mission of hip-hop onyx level that
only remove constraints to nightly continue growing and then finally the
pleasant us uk of the trend is fairly close in all the way through
from nineteen forty-five through two thousand and on and then it falls off
cliffs
and that's a real quick advice is a difficult fiscal falls off unless you
mean actually the debt level increases
rebels michael elevated on
when when you buy that in my mind is a major part of my analysis
and this is actually where a lot of economist window and double counting up
and i are wrong on rocks it's uh... completed tickets it
symbol ideally here to republican but an economist will often uh... end up going
up
the pace of logic release of the strike if you and i think now the spending you
can do uses some of what you and money what do you do when you borrowing
just so you want total spending is your income postulate ranjan dey right now
that because the banks can create money back regarding that
and i consider when triple keeping process for them to do it that advertise
through the national level you're increasing debt doesn't mean somebody
else has less money to spend
is more money than korean such titles than in the economy is the son of income
pasta trying to invent
now when that's going on and the and the changing that is rising and of course
this morning and economic activity both in goods and services moccasin also sha
stock markets in housing markets everybody feels good but it relies upon
that they are continuing to rise compared to income some certain point
imperial resources out in a non
it becomes impossible to subsidize you go claims that out of income that's the
catch right you get a certain political content anymore more people is money
that that stops rising and the new plunge author the real class the debt
cliff and that began back in two thousand and i think it's stops
increasing debt right and and therefore the economy slows down because debt is
decreasing incomes remains the same and therefore economic activities decreasing
isn't it's over
if you were to model is telling us is known for makes any sense
he is going to get a musical chairs
only a young abhilash shares everybody thought
too as long as the music is cool you know everybody's walking music starting
it but you can pull one sharad somebody's stuck without a seat
hi centrally
the debt service seems to me you know that the interest on that debt
which is going to the bank stirs it seems to me like that's the missing
sharing musical chairs there is as we are constantly anymore debt were also
adding more interest that has to be paid and there's no way to put that interest
back into the content of mind missing something
using something that you believe you go one point which is rockin elephants
caught up in one of the problem so i don't think about this he will be one
hundred dollars from investment banker charge he thought was an interest
you barnett wanted peregrine far have been possibly do it
that's a logical area because in a bar that hundred dollars
uh... that's that's not good money
you've been concerned either several times and a m i might say three hundred
dollars worth of transactions out of that money and
buying and selling goods and services is immune to monica why wages for six
hundred and fifty mag fifty-something profit by photos of the bank is quite
easy to do progress when you do in dublin combine plan nineteen wasn't
producing goods and services having real sad irony economy is instead you're
speculating on the rising cost of the house
then you will not actually selling the house you are feeling the day until you
sell the house and then you can call you this is an excellent house crosses risen
but it's actually rising levels of their that's causing a house crossroads
manufacturing economy it's safe but in a fire economy and finance insurance and
real estate economy
uh... their wares driven by debt
vende it is more like a big deal musical chairs
you can claim a little solidifying the galleries abortion is enough our economy
really have a babies will drive the economy preelection much back in
nineteen sixty six in just been getting worse than going up and down and there
is wise
bus out of the ninety three on this panel musical chairs um... with first of
all the dot-com bubble and as soon as we know when we do we have less than a melt
inspector it
i think the only way out of the sizzle abolish the death and you conduit noida
damages scientists who really believes in boston is in effect
sort of a local among that you're going to use the is that fail any capacity
government
to pay off a large amount of profit day but the benefits of it is at the same
time so basically say we're gonna pay off our mortgage is a student loans
and get the money and it didn't work and it is well
any and anesthetic randomly at the banks the private sector you create that money
out of the government policy
can get rid of the most likely nine
uh...