I never understand why economists pretend inflation was low when housing prices literally doubled out of nothing. Just because we decide not to put it in the CPI, doesn't mean there's no inflation. In fact, the housing prices precisely reflect a classic devaluation of money. QE has artificially pushed interest down for years producing huge bubbles and toxic behavior like rent seeking and endless stock buybacks. This mostly benifited the rich, because they got the credit allowing them to buy everything up and push asset prices up. So high interest, low interest, markups. It doesn't really matter, in each case its big capital that profits because it was designed this way. Politics is the only thing that can really change that.
"We belong to the Land", so the holistic Anarchy of tribal territorial boundaries have to include Gaian Planetary Perspective, in researched educational policy programs for Representative Democracy.
Keen persists with an idea that to fight climate change it is necessary or desirable to "Reduce Energy Consumption" and "go into degrowth". He is living in dream world. That is a crazy idea of lower energy would involve lower amounts of production of necessary products and services including that of food production which will impoverish the planet and particularly less well off people. Growth is the only way that people can be brought out of poverty as they have been over the past 100 years and more. Low energy countries are the poorer countries. So what is the answer ? More growth to feed more people who are now suffering from all sorts of deprivation due to low growth.
Putting the perspective on Actuality, we exist in the holistic ecologically resonant probability state between infinite-eternal vanishing-into-no-thing Singularity.., so raising the floor has to be balanced by lowering the ceiling, managing the metastability of WYSIWYG, ecologically. The apparent insanity of economics is directly attributable to the absolute insanity of nuclear weapons, in Totality. The Nuclear Waste problem, like most of the perceived problems of politics, is the waste of non polluting fuel sitting in casks, worth several multiples more than gold, so the real gold standard is absolutely wasting away. We can't fight Nazism by adopting their methodology of mindless attacks on natural differences in behaviour. Fighting fire with fire instead of disempowering false authority is worse than futile, which emphasises the importance of this presentation.
@3:20 it's obvious Stilwell still is trapped by fixed exchange rate mentality. Inflation on a floating fiat currency is infinitely sustainable. What's not sustainable is the political psychology pressure --- most people (stupidly) hate inflation more than unemployment, it's irrational. But also, "inflation" is a catch-all phrase, it's meaningless without talking about distribution. If the lowest real wage is rising and the hoarded savings of the rich are plummeting in purchasing power what's the problem? All that does is redress past injustices. But it's a psychological battle between who gains and who loses from a particular type of price change, and there are always winners and losers. If the real wage rises those on low incomes who have past debts are winners. If profits rise faster than wages it's the profit takers who win in relative terms. What matters is *_not_* "how much $1 buys" but rather *_how much your whole income can buy._*
As if it's only the rich who have savings. The middle class should be capable to save money for a big purchase or retirement without being robbed of it. If you tried saving for a home deposit in recent years you would find that every few years you saved, say 30k, the house would increase 60k, because of QE pushing down interest rates artificially. Forcing you to rent longer and pay someone else's mortgage. In my opinion, asset inflation is also inflation and it benefits the rich tremendously. This is because with their credit they have more access to those cheap loans, which causes this asset inflation and they can let other people pay for it.
Keen says in speaking about bonds "If interest rates double that bond is worth half as much". That is utter rubbish and demonstrates his failure to understand how interest rates on bonds affect their value. The reality is interest rates doubling usually only results in roughly a similar percentage or little more loss in the price someone is willing to pay for the bond if sold. The face value is still what is paid out on maturity with any additional interest.
What a confused title this guy Stilwell has! "Political and Sciences" - Two terms that are diametrically opposed to each other. As if anything like his title that made any sense at all could be dreamed up by any sane person. No two things could be further from each other than politics is from science.
book -- Handbook of Alternative Theories of Political Economy by Frank Stilwell (Ed.), David Primrose (Ed.), Tim B. Thornton (Ed.) HC - 4MAY2022 ISBN-10 : 1789909058 ISBN-13 : 978-1789909050 , Edward Elgar Publishing. This Handbook provides an overview of established and cutting-edge contributions to political economic thought. Chapters by leading and emerging scholars showcase the diverse approaches and productive debates among researchers.
Thank you to all.
Holy cow, Prof Keen has competition for admired critic of standard economics. Lovely!
A rational voice breaking through the cacophony of economic propaganda👏✊
I never understand why economists pretend inflation was low when housing prices literally doubled out of nothing. Just because we decide not to put it in the CPI, doesn't mean there's no inflation. In fact, the housing prices precisely reflect a classic devaluation of money. QE has artificially pushed interest down for years producing huge bubbles and toxic behavior like rent seeking and endless stock buybacks. This mostly benifited the rich, because they got the credit allowing them to buy everything up and push asset prices up. So high interest, low interest, markups. It doesn't really matter, in each case its big capital that profits because it was designed this way. Politics is the only thing that can really change that.
👋 @Steve @ProfSteveKeen 👍😁
"We belong to the Land", so the holistic Anarchy of tribal territorial boundaries have to include Gaian Planetary Perspective, in researched educational policy programs for Representative Democracy.
Low inflation helps the rich and corporations - and high inflation helps the rich and corporations. What a coincidence.
Keen persists with an idea that to fight climate change it is necessary or desirable to "Reduce Energy Consumption" and "go into degrowth".
He is living in dream world.
That is a crazy idea of lower energy would involve lower amounts of production of necessary products and services including that of food production which will impoverish the planet and particularly less well off people.
Growth is the only way that people can be brought out of poverty as they have been over the past 100 years and more. Low energy countries are the poorer countries. So what is the answer ? More growth to feed more people who are now suffering from all sorts of deprivation due to low growth.
Putting the perspective on Actuality, we exist in the holistic ecologically resonant probability state between infinite-eternal vanishing-into-no-thing Singularity.., so raising the floor has to be balanced by lowering the ceiling, managing the metastability of WYSIWYG, ecologically.
The apparent insanity of economics is directly attributable to the absolute insanity of nuclear weapons, in Totality.
The Nuclear Waste problem, like most of the perceived problems of politics, is the waste of non polluting fuel sitting in casks, worth several multiples more than gold, so the real gold standard is absolutely wasting away.
We can't fight Nazism by adopting their methodology of mindless attacks on natural differences in behaviour. Fighting fire with fire instead of disempowering false authority is worse than futile, which emphasises the importance of this presentation.
@3:20 it's obvious Stilwell still is trapped by fixed exchange rate mentality. Inflation on a floating fiat currency is infinitely sustainable. What's not sustainable is the political psychology pressure --- most people (stupidly) hate inflation more than unemployment, it's irrational. But also, "inflation" is a catch-all phrase, it's meaningless without talking about distribution. If the lowest real wage is rising and the hoarded savings of the rich are plummeting in purchasing power what's the problem? All that does is redress past injustices. But it's a psychological battle between who gains and who loses from a particular type of price change, and there are always winners and losers. If the real wage rises those on low incomes who have past debts are winners. If profits rise faster than wages it's the profit takers who win in relative terms.
What matters is *_not_* "how much $1 buys" but rather *_how much your whole income can buy._*
As if it's only the rich who have savings. The middle class should be capable to save money for a big purchase or retirement without being robbed of it. If you tried saving for a home deposit in recent years you would find that every few years you saved, say 30k, the house would increase 60k, because of QE pushing down interest rates artificially. Forcing you to rent longer and pay someone else's mortgage. In my opinion, asset inflation is also inflation and it benefits the rich tremendously. This is because with their credit they have more access to those cheap loans, which causes this asset inflation and they can let other people pay for it.
Keen says in speaking about bonds "If interest rates double that bond is worth half as much".
That is utter rubbish and demonstrates his failure to understand how interest rates on bonds affect their value.
The reality is interest rates doubling usually only results in roughly a similar percentage or little more loss in the price someone is willing to pay for the bond if sold. The face value is still what is paid out on maturity with any additional interest.
What a confused title this guy Stilwell has! "Political and Sciences" - Two terms that are diametrically opposed to each other.
As if anything like his title that made any sense at all could be dreamed up by any sane person.
No two things could be further from each other than politics is from science.
book -- Handbook of Alternative Theories of Political Economy by Frank Stilwell (Ed.), David Primrose (Ed.), Tim B. Thornton (Ed.) HC - 4MAY2022 ISBN-10 : 1789909058 ISBN-13 : 978-1789909050 , Edward Elgar Publishing. This Handbook provides an overview of established and cutting-edge contributions to political economic thought. Chapters by leading and emerging scholars showcase the diverse approaches and productive debates among researchers.
Have we the political will? Ha ha ha ha ha! Of course not.
By definition, you can't have an increase in the standard of living without inflation.