by
SagerXX
Podcast
by
Chris Martenson
"Straight Talk" features thinking from notable minds the PeakProsperity.com audience has indicated it wants to learn more about. Readers submit the questions they want addressed and our guests take their best crack at answering.
This week's Straight Talk contributor is Steve Keen, Associate Professor of Economics & Finance at the University of Western Sydney and author of the popular book Debunking Economics and the website Steve Keen's Debtwatch. Steve's research focuses on the dynamics of debt and leads him to believe that debt-deflation is the key issue that will continue to dictate what happens in the global economy.
1. Much of your research is complex. Can you summarize some of the more important conclusions of your work in ‘layman's’ terms for us?
Steve: Sure. My work is complex in part because I reject conventional economic analysis, which has infected how ordinary people think about the world—just as the Ptolemaic view of astronomy infected people’s minds prior to the Copernican revolution. So to explain my work I have to start with where I differ from conventional “neoclassical” economists, who now are rather like Ptolemaic astronomers—who tried to understand what they see in the sky by inventing more and more “spheres” on which heavenly bodies were supposed to rotate, rather than accepting Copernicus’ far simpler model of a solar system centered on the Sun.
The key ways are that I see the economy as being credit-driven, and out of equilibrium all the time. The economy needs an expanding supply of money to grow, and in our credit-driven economy, most of that expansion is driven by rising debt.
Straight Talk with Steve Keen: It’s All About the Debt
by Chris Martenson"Straight Talk" features thinking from notable minds the PeakProsperity.com audience has indicated it wants to learn more about. Readers submit the questions they want addressed and our guests take their best crack at answering.
This week's Straight Talk contributor is Steve Keen, Associate Professor of Economics & Finance at the University of Western Sydney and author of the popular book Debunking Economics and the website Steve Keen's Debtwatch. Steve's research focuses on the dynamics of debt and leads him to believe that debt-deflation is the key issue that will continue to dictate what happens in the global economy.
1. Much of your research is complex. Can you summarize some of the more important conclusions of your work in ‘layman's’ terms for us?
Steve: Sure. My work is complex in part because I reject conventional economic analysis, which has infected how ordinary people think about the world—just as the Ptolemaic view of astronomy infected people’s minds prior to the Copernican revolution. So to explain my work I have to start with where I differ from conventional “neoclassical” economists, who now are rather like Ptolemaic astronomers—who tried to understand what they see in the sky by inventing more and more “spheres” on which heavenly bodies were supposed to rotate, rather than accepting Copernicus’ far simpler model of a solar system centered on the Sun.
The key ways are that I see the economy as being credit-driven, and out of equilibrium all the time. The economy needs an expanding supply of money to grow, and in our credit-driven economy, most of that expansion is driven by rising debt.
by
Chris Martenson
Earlier this week, Chris was invited to appear on Talk Radio Europe, the largest English-speaking radio station in continental Europe. A podcast of the interview has just been made available, which you can listen to by clicking here or on the image below:
The discussion focused heavily on the looming Peak Oil crisis, with a particular slant on implications for the European countries. The subject matter resonated with the host, Richie Allen, particularly because he’s now beginning to hear related sentiment echoed by a small but growing number of concerned European economists.
Chris on Talk Radio Europe: “Gigantic Mismatch” Between World Oil Consumption and Future Supply
by Chris MartensonEarlier this week, Chris was invited to appear on Talk Radio Europe, the largest English-speaking radio station in continental Europe. A podcast of the interview has just been made available, which you can listen to by clicking here or on the image below:
The discussion focused heavily on the looming Peak Oil crisis, with a particular slant on implications for the European countries. The subject matter resonated with the host, Richie Allen, particularly because he’s now beginning to hear related sentiment echoed by a small but growing number of concerned European economists.
by
Chris Martenson
QE II is now out of the bag, ready to alter the course of history.
There are several assessments that I’ve held over the years that have never wavered:
- Thin-air money printing. U.S. monetary and fiscal authorities (the Fed and Congress, respectively) will make every attempt to print and spend their way out of this financial predicament and will not take the path of austerity until forced to by external circumstances.
- Gold and silver are an excellent way to protect your wealth from the form of confiscation that thin-air money printing represents.
- Over the next 20 years, resource issues, especially in energy, specifically in petroleum, are going to fundamentally reshape the economic landscape. And maybe the political and social landscapes to boot.
More than two years ago now, reacting to an increase in the levels of government and Federal Reserve bailouts (The Day Everything Changed), I opined that a course had been set and that we were in all new territory that would lead to a dollar crisis someday.
This was my conclusion on September 19, 2008:
The Slippery Slope
PREVIEW by Chris MartensonQE II is now out of the bag, ready to alter the course of history.
There are several assessments that I’ve held over the years that have never wavered:
- Thin-air money printing. U.S. monetary and fiscal authorities (the Fed and Congress, respectively) will make every attempt to print and spend their way out of this financial predicament and will not take the path of austerity until forced to by external circumstances.
- Gold and silver are an excellent way to protect your wealth from the form of confiscation that thin-air money printing represents.
- Over the next 20 years, resource issues, especially in energy, specifically in petroleum, are going to fundamentally reshape the economic landscape. And maybe the political and social landscapes to boot.
More than two years ago now, reacting to an increase in the levels of government and Federal Reserve bailouts (The Day Everything Changed), I opined that a course had been set and that we were in all new territory that would lead to a dollar crisis someday.
This was my conclusion on September 19, 2008:
by
Chris Martenson
With today’s Fed announcement of $600 billion more in Quantitative Easing purchases, the United States has officially entered “Stage II” of the crisis.
This $600 billion is in addition to the purchases already underway using the proceeds from the maturation of their massive MBS portfolio.
Goodbye dollar; hello future.
Here’s the relevant wording from the statement:
To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to expand its holdings of securities.
The Committee will maintain its existing policy of reinvesting principal payments from its securities holdings.
In addition, the Committee intends to purchase a further $600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month.
The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability.
(Source)
Fed Monetizes Government Debt: $600 Billion QE II Program Announced
by Chris MartensonWith today’s Fed announcement of $600 billion more in Quantitative Easing purchases, the United States has officially entered “Stage II” of the crisis.
This $600 billion is in addition to the purchases already underway using the proceeds from the maturation of their massive MBS portfolio.
Goodbye dollar; hello future.
Here’s the relevant wording from the statement:
To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to expand its holdings of securities.
The Committee will maintain its existing policy of reinvesting principal payments from its securities holdings.
In addition, the Committee intends to purchase a further $600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month.
The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability.
(Source)
by
Chris Martenson
Chris’ latest interview on Financial Sense is now available. It’s a 23-minute podcast that can be listened to by clicking here or on the image below:
Chris and host Jim Puplava discuss the ramifications of Peak Oil on society – basically, essential systems we depend on will start malfunctioning – then dive deeper into specific steps individuals can take in preparation.
Chris on Financial Sense: Preparing for Peak Oil
by Chris MartensonChris’ latest interview on Financial Sense is now available. It’s a 23-minute podcast that can be listened to by clicking here or on the image below:
Chris and host Jim Puplava discuss the ramifications of Peak Oil on society – basically, essential systems we depend on will start malfunctioning – then dive deeper into specific steps individuals can take in preparation.
by
Chris Martenson
Note: This is the final article in our series on personal preparation to help you answer the question, “What should I do?” Our goal is to provide a safe, rational, relatively comfortable experience for those who are just coming to the realization that it would be prudent to take precautionary steps against an uncertain future. Those who have already taken these basic steps (and more) are invited to help us improve what is offered here by contributing comments, as this content is meant to be dynamic and improve over time.
Those who’ve read this full series know that six years ago my family lived in a big house by the sea, where we were completely dependent on outside systems to deliver to us our daily food, water, warmth, and electricity. Perhaps even more worryingly, we engaged with a relatively limited community, defined by the people with whom we worked or knew through our children’s lives and activities.
Today, in addition to running this website and working towards creating a tipping point of awareness around the three Es, we have a garden, chickens, food preservation skills, solar hot water and electricity, local food connections, and a steadily deepening network of relationships around each of these elements. We did not do this all at once, but over a period of years.
What Should I Do? The Basics of Resilience (Part 9 – Your Next Steps)
by Chris MartensonNote: This is the final article in our series on personal preparation to help you answer the question, “What should I do?” Our goal is to provide a safe, rational, relatively comfortable experience for those who are just coming to the realization that it would be prudent to take precautionary steps against an uncertain future. Those who have already taken these basic steps (and more) are invited to help us improve what is offered here by contributing comments, as this content is meant to be dynamic and improve over time.
Those who’ve read this full series know that six years ago my family lived in a big house by the sea, where we were completely dependent on outside systems to deliver to us our daily food, water, warmth, and electricity. Perhaps even more worryingly, we engaged with a relatively limited community, defined by the people with whom we worked or knew through our children’s lives and activities.
Today, in addition to running this website and working towards creating a tipping point of awareness around the three Es, we have a garden, chickens, food preservation skills, solar hot water and electricity, local food connections, and a steadily deepening network of relationships around each of these elements. We did not do this all at once, but over a period of years.
by
Chris Martenson
Today marks the launch of our new and (hopefully) regularly recurring "Straight Talk" series, featuring thinking from notable minds the PeakProsperity.com audience has indicated it wants to learn more about. Readers submit the questions they want addressed and our guests take their best crack at answering. Our hopes are high you'll enjoy the expert insights and alternative perspectives this new series brings.
Our inaugural Straight Talk contributor is Mike Shedlock, author of Mish's Global Economic Trend Analysis, one of the most visited and respected economic blogs on the Web. Mish is an outspoken deflationist and outlines his rationale for being so in his answers to our questions. He is also a registered investment advisor representative for SitkaPacific Capital Management.
1. You’ve gone from mainframe computer programming analyst (in 2005) to being one of the most widely-read econobloggers in the world today. To what extent do you attribute your competitive advantage to holding a non-traditional background vs. the more ‘classically’ trained analysts and commentators?
Mish: It certainly helps not having a background in economics as taught by academia today. Nearly everyone in academia is a Keynesian or Monetarist.
Straight Talk with Mike Shedlock (aka “Mish”)
by Chris MartensonToday marks the launch of our new and (hopefully) regularly recurring "Straight Talk" series, featuring thinking from notable minds the PeakProsperity.com audience has indicated it wants to learn more about. Readers submit the questions they want addressed and our guests take their best crack at answering. Our hopes are high you'll enjoy the expert insights and alternative perspectives this new series brings.
Our inaugural Straight Talk contributor is Mike Shedlock, author of Mish's Global Economic Trend Analysis, one of the most visited and respected economic blogs on the Web. Mish is an outspoken deflationist and outlines his rationale for being so in his answers to our questions. He is also a registered investment advisor representative for SitkaPacific Capital Management.
1. You’ve gone from mainframe computer programming analyst (in 2005) to being one of the most widely-read econobloggers in the world today. To what extent do you attribute your competitive advantage to holding a non-traditional background vs. the more ‘classically’ trained analysts and commentators?
Mish: It certainly helps not having a background in economics as taught by academia today. Nearly everyone in academia is a Keynesian or Monetarist.
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