12-05-2009, 07:10 AM
David Guyatt Wrote:Thanks Mark.
I was simply parroting the view of someone else. I don't feel able to share the identity of that person - who is a well known British figure - on a public forum for reasons I care not to go into.
No worries, David.
The media has a lot to answer for. They would probably argue that to tell the public the full extent of the economic chain reaction that is about to occur would cause a large scale panic. But the data from Keen's research is clear--debt (and the subsequent deleveraging) will drive us into deflation and depression, worse than the 1930's because the debt levels are higher. I was surprised to hear Aussie PM Kevin Rudd concede that 10% unemployment by years end is possible but the reality is that it will get much higher.
Look at the bright side---at least traditional economic theory and its advocates will become the object of public derision. The fanciful notion of economic equilibrium now takes its place alongside flat earth theory.