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Pastimes : The Philosophical Porch -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (5128)	12/8/2009 8:52:55 AM
From: Rarebird	Read Replies (1) \| Respond to of 26251

"The only sensible course is to reduce the debt levels. As Michael Hudson argues, a simple dynamic is now being played out: debts that cannot be repaid, won’t be repaid. The only thing we have to do is work out how that should occur. Since the lending was irresponsibly extended by the financial sector to support Ponzi Schemes in shares and real estate, it is the lenders rather than the borrowers who should feel the pain–which is the exact opposite of the bailout mentality that dominates governments around the world. Unfortunately, it will take a sustained period of failures by conventional policy before unconventional policies, like deliberate debt reduction, will gain political traction. Implementing them will require both a dramatic change of mindset and probably also a widespread changing of the political guard. It will also require the breaking of the hegemony of neoclassical economics over economic thinking, but I doubt that the academic profession, or economists in Central Banks and Treasuries, are up to the task of changing their spots. Change in economics will have to come from the rebels, and from outsiders taking over a discipline that economists themselves have failed. The second decade of the 21st century promises to be a dramatic one, politically and economically." Steve Keen's conclusion in his latest DebtWatch article. debtdeflation.com