Another big depression is inevitable! – Steve Keen on BBC HARDtalk

Avoiding through: right off the debts, bankrupt the banks, nationalize the financial system – START ALL OVER AGAIN!

 

Sarah Montague talks to Steve Keen, one of the few economists to have predicted the global financial crisis, about the possibility of another Great Depression, and how to avoid it.

‘Another Great Depression is all but inevitable’ – that’s the view of Steve Keen. He’s been called the ‘Merchant of Gloom’, but he’s one of the few economists to have predicted the global financial crisis. While he used to be a lone voice in challenging the economic consensus, more and more people are now listening to him. His way of avoiding depression? Write off the debt, bankrupt the banks, nationalise the financial system, and start all over again. He talks to Sarah Montague.

 

Capitalism is not dead! It has been ill-gotten because of wrong interpretation of what capitalism stood! We have to listen to the evolutionary economists (post-Kenyans to understand that capitalism is still or still has the creativity to resolve itself).

 

We can no longer just relax!

The system has failed, not the individuals!

We need to resolve a financial mistake which has been going on for 40 years…

Debts that cannot be repaid will not be repaid!

Parasitic banks can no longer be kept alive!

The enormous spectacular crisis being build-up and ongoing – non-stoppable – may lead to the unavoidable chaos, unless we stand up, bold enough, and make the changes happen.

As we are missing a political charisma in the current, neither on the horizon, it will be up to the people to stand up and demand for the urgent reform!

 

 

The national debts of a majority of countries will take at least 20 years to be absorbed! Most Western countries have debt/GDP ratios of 90 to 250%. Humanity cannot take this burden anylonger!

Part of the debt jubilee has to include the debts of the individual people, not just governments and financial institutions!

Japan has been the living proof for already 2 lost decades, maintaining debt. We need to write off ALL debt as society can no longer survive, let stand thrive on current ill-gotten debt-capitalism. The CREDIT-system has FAILED!

 

WE SHOULD ALL COME ON THE STREET! global OCCUPY is becoming unavoidable!

Unchain the monsters slipped into capitalism!

 

Instability in capitalism is part of why capitalism is creative – capitalism has to resolve its own down-turn into lasting resolutions, promoting the creative instabilities, avoiding the financial destructive instabilities of capitalism.

 

• the debt ratio has exponentially risen above income levels
• the big crisis may lead to increasing violence
• we can not accept a trap like this for society = a lost generation or more
• very bad social outcomes will be dreadful
• the occupy movement will expand progressively left and right, absorbing the center and across classes, job-categories and across all ages, not just youth
• the occupy movement has to go to the source, such as the university economics departments, financial institutions, …
• for the young and new generations, but also everyone else will more and more feel betrayed by society as is
• opposing to capitalism that parasites itself and draws society into collapse, as we cannot absorb the debt we have and are continuing to create
• old solutions do no longer work as the debt mountain is interconnected across layers of society, not just the financial sector, but also into mutual funds, pension funds, … each civilian is carrying reality of the debt pile – no way out anylonger to ignore!
• good debt approaches to gain on investments, productivity, technological advancements and people’s comfort can remain untouched, but debt creation based on gambling on rising asset pricing (shares, housing, … financial trading instruments) has to be stopped

 

We need to go to a harmonious society (not like the old fashioned socialist style), overthrowing capitalism and regain a society we can all trust in!

 

There is an essential need for political and other leaders to reverse the vision and approach from the creditors to the debtors. Politicians need to start listening to what is really breaking society as we have known it. It is becoming a dead END for politicians to be re-elected at current speed and continuation of the crisis.

 

 

Financial institutions in the future can only focus on the core business of providing loans and funds for industry investments and operational loans and a small portion towards private loans for consumption.

Preventing more asset-bubbles being created, through the marketing process of lending by banks.

 

An intelligent modern jubilee on debt has to happen in a systemic approach, by which to increase government created money and decrease the level of debt finance in the economy! Writing off private debts through raising government money creation and rather than given it to the financial sector (that has been proven ineffective), give it to the debtors. Personal debt is the first to be eliminated!

 

Implementing the systemic working process of debt write-off has to include regulations to no longer allow for banking operations to include Ponzi-scemes – no longer allowing to gamble with money, which has caused assets to rise beyond proportion (= parasitic behaviour of the banking sector in the past 40 years).

 

[Paradigm Shift]: Paddy Ashdown: The global power shift – Institutional Change!

Paddy Ashdown claims that we are living in a moment in history where power is changing in ways it never has before. In a spellbinding talk he outlines the three major global shifts that he sees coming.

Western power has been enough after 400 years ruling!

The existing vertical hierarchical institutions have to be reformed!

 

 

The most important thing you can do is what you can do with others!

 

1. The Shift in Power runs vertical

Power is moving into the globalization level, no longer politics, but includes now corporations (through their scale of presence and market) and people (through their connectedness).

The issue: no regulations and no institutions that regulate, monitor, guide nor arbitrate this situation leads to chaos and unwanted disruption. Where power goes, governance must follow! Ashdown suggests through treaty based global organisms similar to G20, WTO, … not by adding more institutional power to the UN.

 

2. The Shift in Power runs horizontal

The upcoming of a multi-polar world – not just directed and orchestrated by Washington.

From fixed alliances to shifting and changing alliances.

From alliances with common values to alliances with common interests.

The end of Western institutions and values is nearing. The West will no longer be able to resolve any situations within its own borders (and/or dump the chaos in its back gardens).

 

3. Interdependence as nations, people, regions, cultures, …

Everything is connected to anything and we are all interconnected

We are interlocked, even intimate locked to think and act together

We can no longer act alone as nation-states or economic or regional power blocks.

We need to collaborate, share and learn to co-exist among nations, regions and people.

Effects of decisions and acts from outside reflect inside and vice versa as well as within the inside.

 

TED Presentation – Paddy Ashdown – The Global Power Shift!

 

The paradigm shift of our era is the

– change of the network = the institutions

– the capacity to network = internally and externally

 

 

The most important thing you can do is what you can do with others!

Each share a destiny with the other – friend or enemy, same or different values!

No Sustainable Economics + No Resilience Build = No Thriving Humanity!

[Economics & Politics](US – world): Further decimation of the middle class and the new gap created! #ecoNable #Econologics

 

Breaking up the Banks!

 

Reading and listening to posts by Robert Reich on US Economics and the political discourse not being able to coop with the situation on a long-term basis through drastic lasting change, is what highlights the need for different leadership in the political arena and many levels of our society.

 

ROBERT B. REICH, Chancellor’s Professor of Public Policy at the University of California at Berkeley, was Secretary of Labor in the Clinton administration. Time Magazine named him one of the ten most effective cabinet secretaries of the last century. He has written thirteen books, including the best sellers “Aftershock” and “The Work of Nations.” His latest, “Beyond Outrage,” is now out in paperback. He is also a founding editor of the American Prospect magazine and chairman of Common Cause.

 

I you like to read the latest article by Robert Reich which has inspired this article:

Showdown Fatigue

 

The below is a viewpoint by ecoNVERGE

 

While the middle class is decreasing rapidly – not just in the US – a new gap is created for future generations, unless some drastic change is implemented in our global financial economic system:

It is an upper middle-class as a minority who are paying for the seemingly never decreasing deficits and the ever-increasing needs for the needed, while the few super-rich keep on gaining and bulking-up financial means.
Continuing to allow the pace of this discourse will further undermine human progress, democracy and capitalism as it was meant to be. Rather then punishing those who work hard for their earned welfare, take away the value of money as we know it today, so the whole political dilemma will be solved and allow for humanity to thrive.
At the current pace, that minority will be discouraged to keep their battle going, as they will notice – if not already – how the non-active growing lower middle-class (willing or not willing) is being supported to equal means as they had/have to work for. The question is: how long can they support the increasing lower middle class, further degrading into true poverty. Capitalism is destroying itself anyway. So why take the long road to destruction, allowing for chaos to truly happen.

Time for real change is the only answer – not the current political debates!

In Europe we see a very similar situation in how society is degrading. The double game played isn’t gonna work either. While the EU and national politicians are trying to keep the known path of economics, society and politics going, those same political ‘leaders’ are implementing sidelines for recovery through the Social Investment Package and other programs. However, these efforts will not take away the growing concerns of the paying higher middle-class.

 

In short, we have not learned from 5 years of financial global crisis (in fact, 5 of those in the last 20 years without no true reform), the widespread occupy movements, the endless debates by politicians, reformists, economists, humanists, … nor did we achieve any improvement in lifestyle, society, hope and/or progress of humanity for the current generations, let stand we are thinking and acting for future generations to thrive.

 

We have to go back to basics and make reform at the very heart of economics, politics and society. That is the battle we all should be fighting.

 

[Economics & Society]: Former World Bank economist expects total collapse civilization! #Econologics #ecoNable #ecoViVaCity

“Two things are infinite: the universe and human stupidity; and I’m not sure about the universe.” – Albert Einstein

A group of experts warns inevitable and simultaneous implosion of energy, food, water and money systems!
Former World Bank economist expects total collapse civilization!
This article has been adapted and translated from the original publication by a Dutch paper – Xander News (the Other News)
http://xandernieuws.punt.nl/?id=662683&r=1&tbl_archief=&
According to a group of experts, the main causes of the inevitable collapse in the coming years are the politicians, who for years have borrowed too much money and spent. The ceiling has been reached!

It is no longer the single conspiracy and doomsayers who say that the current crisis will never be resolved and that entire Western civilization will collapse.

Richard Duncan, former financial specialist at the World Bank Chief Economist ar Blackhorse Asset Management, told CNBC to see a “death spiral” which will result in a very severe depression which our civilization cannot survive.
Other financial, economic and political experts draw the same apocalyptic conclusions. Duncan spoke in particular about the United States, but the collapse in Europe will be at least of the same magnitude and misery. The official U.S. national debt at $16 trillion has become untenable.

According to Laurence Koktlikoff, once a member of President Reagan’s economic advisory council, mentioned that the actual debt and all financial obligations to the health and social security add another staggering $211 billion.
Simultaneous implosion of money, food, water and energy

A group of scientists, economists and geopolitical analysts see not only a financial and economic collapse coming, but also a social, technological and social. One of them, Chris Martenson, former vice president of a Fortune-300 company, explains that “we have a similar pattern in our debt, total credit and money supply which ensures that they will collapse. This pattern is almost the same as in any pyramid scheme, one that quickly escalates exponentially before it collapses. The main perpetrators are the governments of this world.”

“The fact that this pattern is not limited to the economy is really worrying. We found namely catastrophic same pattern in our energy, food and water. These systems can all simultaneously implode: food, water, energy and money. Everything. ”
Pyramid Game in every critical system

Another member of the team, Keith Fitz-Gerald, head of the eponymous group, notes: “a dangerous countdown that quickly runs towards the zero. And if that happens, the ensuing chaos will crush the Americans.”

Dr. Kent Moors, energy adviser to 16 different governments of the world and a member of two task forces of the Ministry of Foreign Affairs, agrees with his colleagues: “The most frightening is that in virtually every critical system of our society and way of life exactly the same pattern can be seen.”

“This pattern is hard to recognize, unless you understand how a catastrophe as this one gets going. First, it is virtually impossible to detect. Everything seems to be going well, as in every pyramid scheme. The virus grows treacherous quickly and doubles again and again, with ever shorter intervals, until it reached an unsustainable level. And then the system collapses.”

The first doubling took place according to Martenson between the 40s and the 70s. The second doubling took much less time, which is only 7 years (the period 1970-1977). This was also true for the third doubling. The fourth took only 5 years to complete, and then it happened two more times. “In the early 40s, the total credit was about 158% of our GNP, in 2011 it was 357%.”
Savings, pensions wiped

Fitz-Gerald highlights that risky derivatives in the financial system are 20 times higher than the total GNP of the world.

“That is unsustainable and impossible to resolve in an orderly manner. The people can better forget about the guarantees by the government for their (savings) accounts. They give a false sense of security. This also applies to pensions, which may at any time be suspended. A collapse will wipe out all pensions. Social security and health insurance are still kept alive but are already bankrupt. ”

In two years the U.S. government will have no more money for the in many places already crumbling infrastructure. Some cities, such as Trenton, New Jersey had to lay off a third of their police because of budgetary reasons.
Colorado Springs had to turn off a third of the streetlights, slash garbage collection with a third and same for deleting bus routes … all for same reasons.
Skyrocketing inflation

After a period of deflation we will end up with massive inflation in the short term. An average American household will soon need $ 150,000 annually to pay for the basic necessities only, while 52% of Americans now can barely make ends meet.

“Before the economy will become dangerously unstable, people will have to start making preparations for their investments, savings and personal finance” warns Fitz-Gerald.
Europe collapsed even faster

According to opinion polls, 61% of Americans feel that there is indeed a catastrophe in the make. Only 15% say to be prepared for this. Considering that the collapse in Greece, Spain, Italy, Portugal, France and most other European countries runs even faster than in the United States, it is high time that we face the reality that our “way of life” over the next years will drastically and permanently change, and … certainly not for the better.

Note by ecoNVERGE:

One can wonder who is blaming who! Apparently the ones responsible for the current chaos are the ones that lift up their arms to say ‘it wasn’t me!’ A lot of blame is put on the governments, but we believe the same can be said about the ‘leaders’ of the giant multinationals who are continuing to strike money without conscious and have and continue to throw people on the street with the ten thousands. Where is the value for humanity! Have we really gone insane! – Albert Einstein was right and he didn’t know how human society would degrade itself to ZERO!

Thanks for sharing your comments, thoughts, arguments and anything which can help us to avoid and/or recover from – regenerate life after – the unavoidable collapse of our economic and social society as we have known it.
You may deny the facts but make it justified! More essentially, how can we contribute to a better and more humane society, as individuals, families, communities and wider national, regional or global groups and movements.

You can follow the discussion at:

@ ECONOLOGICS – Incisive Knowledge Converged (FB Group)
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Sustainable Balance in Our Social & Economic Circle of Life! WE are Unlimited!
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