The global debt bubble. Steve Keen University of Western Sydney. A booming economy…. Seventeen years of growth…. A booming economy…. Fifteen years of falling unemployment…. A booming economy…. And 43 years of debt rising faster than GDP…. Having the (borrowed) time of our lives….
Steve KeenUniversity of Western Sydney
And Our Generation?
Baby Boomers Follies?
Melbourne Land Boom
What comes next?
Clearly exponential process
Biggest bubble in our history
Heading to equilibrium??
Analysis, or wishful thinking?
Interest flows: bank<―>firm
Wage flows: firm―>workers
Interest flows: bank―>workers
Consumption flows: bank & workers―>firms
New Money/Debt flows: bank<―>firms
Debt repayment flows: firms―>bank
Reserve relending flows: bank―>firms
House prices falling by more than 1% per month!
May you live in interesting times...