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Debunking Economics by Steve Keen

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The problem being that Prof Keen has lost all credibility with mainstream Australia.
 The pundits will come back with all the trite answers now to any kind of suggestion of a house price fall. ie; All the banks have loaned prudently. Higher house prices create increased equity and therefore the market is self regulating. There is still a supply shortage (despite 10 years of building). There is no bubble in house prices in Australia, so no requirement for them to fall. Non-recourse loans mean that Australians will not allow house prices to fall. etc, etc, etc.....

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2 hours ago, Solomon said:

The problem being that Prof Keen has lost all credibility with mainstream Australia.
 The pundits will come back with all the trite answers now to any kind of suggestion of a house price fall. ie; All the banks have loaned prudently. Higher house prices create increased equity and therefore the market is self regulating. There is still a supply shortage (despite 10 years of building). There is no bubble in house prices in Australia, so no requirement for them to fall. Non-recourse loans mean that Australians will not allow house prices to fall. etc, etc, etc.....

 

Correct. The man is now the national idiot. 

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7 hours ago, Solomon said:

The problem being that Prof Keen has lost all credibility with mainstream Australia.
 The pundits will come back with all the trite answers now to any kind of suggestion of a house price fall. ie; All the banks have loaned prudently. Higher house prices create increased equity and therefore the market is self regulating. There is still a supply shortage (despite 10 years of building). There is no bubble in house prices in Australia, so no requirement for them to fall. Non-recourse loans mean that Australians will not allow house prices to fall. etc, etc, etc.....

Yep, right on cue the property council were predicting a bumper year for property. Still, Keen in the interview claimed that no country has gone above 140% GDP debt and escaped a reckoning. We're at 120%. I'm not sure how much Keen appreciates how competitive Australians are? We'll beat that 140% or die trying.

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Trump is Hand Grenade Thrown by American Working Class Against the System

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Keen says that globalization will be affected quite dramatically by the imposition of trade tariffs. Also, technological advances mean that the advantage of low wage economies are being reduced. Foxconn, for example, is spending a large amount of money to replace its own labour with robots right now. Universal Basic Income will be the obvious future.

In conclusion, Professor Keen does think the resurgence of identity politics will lead to the reintroduction of trade tariffs.

 

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