Search Results for: debt deflation

Arguments for Deflation: Unemployment, Debt and Deleveraging, the Pension Crisis, Collapse of the Shadow Banking System, and Interest on Reserves

As Absolute Return Partners wrote in its July newsletter: The most important investment decision you will have to make this year and possibly for years to come is whether to structure your portfolio for deflation or inflation. So which is … Continue reading

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How Debt-Asset Bubbles Implode: The Supernova Model of Financial Collapse

When debt-asset bubbles expand at rates far above the expansion of earnings and real-world productive wealth, their collapse is inevitable. The Supernova model of financial collapse is one way to understand this. As I noted yesterday in Will the Crazy … Continue reading

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Inflation Isn’t Evenly Distributed: The Protected Are Fine, the Unprotected Are Impoverished Debt-Serfs

The Consumer Price Index (CPI) measure of inflation is bogus on a number of fronts, a reality I’ve covered a number of times: though the heavily gamed official CPI is under 2% for the past four years, the real rate … Continue reading

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Does the World End in Fire or Ice? Thoughts on Japan and the Inflation/Deflation Debate

Do we implode in a deflationary death spiral (ice) or in an inflationary death spiral (fire)? Debating the question has been a popular parlor game for years, with Eric Janszen’s 1999 Ka-Poom Deflation/Inflation Theory often anchoring the discussion. I invite … Continue reading

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Democracy’s Debt Ladder

Economic ‘Recovery’ Feels Weak Because the Great Recession Hasn’t Really Ended, The Real News Network, October 7, 2016. [embedded content] The IMF foretells of vulnerable banks in US and EU while enabling unsustainable debt-leveraging, says economist Michael Hudson. KIM BROWN, … Continue reading

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Federal Reserve: creating debt-free money out of nothing for Americans is possible. Data show $1,000,000 per US household benefits in ‘Emperor’s New Clothes’ obviousness if Americans simply look

hat tips: Prison Planet, Zero Hedge Last month, Federal Reserve Chair Janet Yellen acknowledged Fed power to create debt-free money for direct payment of public goods and services. This would create money as a “positive number” rather than current practice … Continue reading

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Socrates: debt and the cyclical rise and fall of societies

Last week I attended a wonderful conference in the university town of Tübingen, Germany, on “Debt: The First 3500 Years,” to bring ancient historians together to discuss David Graeber’s book Debt: The First 5000 Years. I was enlightened by two … Continue reading

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Inequality, Debt and Credit Stagnation

This was my keynote speech at the French Association for Political Economy (AFEP) annual conference in Mulhouse, France (the other keynote was given–in French–by my good friend Marc Lavoie, who is now based at the University de Paris 13). In this … Continue reading

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US public education: Bullshit to train stupefied work animals. ‘Economics’ as limited and flawed models while ignoring criminal looting fraud to call debt as ‘money’ and ‘good,’ ignoring game-changing reforms (4 of 12)

“One of the most salient features of our culture is that there is so much bullshit. Everyone knows this… But we tend to take the situation for granted… (the bullshitter) does not care whether the things he says describe reality … Continue reading

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Fed Chair: Creating debt-free money to directly pay for public goods/services is power to ‘legitimately consider.’ Data and history: $1,000,000 benefits for every US household upon our demand to end .01% oligarchy

hat tip: PositiveMoney Federal Reserve Chair Janet Yellen affirmed last Wednesday in a press conference that the power to create debt-free money for direct payment of public goods and services is a legitimate consideration. In a statement parsed with eleven … Continue reading

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Zombies-To-Be and the Walking Dead of Debt

Using the dynamics of credit–which most other economists ignore–I explain why Japan, the USA and UK are among the “Walking Dead of Debt” and why China, Canada, Australia and South Korea are on their way to joining the Debt Zombies. This … Continue reading

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The Seven Countries Most Vulnerable To A Debt Crisis

Tweet Tweet For decades, some of the most important data about market economies was simply unavailable: the level of private debt. You could get government debt data easily, but (with the outstanding exception of the USA—and also Australia) it was … Continue reading

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Why the Black Hole of Deflation Is Swallowing the Entire World … Even After Central Banks Have Pumped Trillions Into the Economy

Deflation Threatens to Swallow the World Many high-powered people and institutions say that deflation is threatening much of the world’s economy … China may export deflation to the rest of the world. Japan is mired in deflation. Economists are afraid … Continue reading

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The Global Commodity Crash Tells Us That A Major Deflationary Financial Crisis Is Imminent

By Michael Snyder, Economic Collapse Blog. If we really are plunging into a deflationary global financial crisis, we would expect to see commodity prices crash hard.  That happened just before the great stock market crash of 2008, and that is … Continue reading

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How the U.S. Treasury avoided Chronic Deflation by Relinquishing Monetary Control to Wall Street

As published in the Social Sciences Research NetworkMichael Hudson University of Missouri, Economics Department, 211 Haig Hall, 5120 Rockhill Road, Kansas City, MO 64110, USA and Peking University, No.5 Yiheruan Road, Haidan District, P.O. Box 1008/71m, Beijing, P.R. China The … Continue reading

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How the U.S. Treasury avoided Chronic Deflation by Relinquishing Monetary Control to Wall Street

As published in the Social Sciences Research NetworkMichael Hudson University of Missouri, Economics Department, 211 Haig Hall, 5120 Rockhill Road, Kansas City, MO 64110, USA and Peking University, No.5 Yiheruan Road, Haidan District, P.O. Box 1008/71m, Beijing, P.R. China The … Continue reading

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Deflation Warning: The Next Wave

The signs of deflation are now flashing all over the globe. In our estimation, the possibility of an associated financial crisis is now dangerously high over the next few months. As we’ve been saying for a while, our preferred model … Continue reading

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Deflation Is Winning – Beware!

Deflation is back on the front burner and it’s going to destroy all of the careful central planning and related market manipulation of the past 6 years. Clear signs from the periphery indicate that a destructive deflationary pulse has been … Continue reading

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Seizing an alternative: Bankster looting: fundamental fraud that “debt” is “money” (5 of 7)

The following is my paper for the Claremont Colleges’ conference, Seizing an Alternative Toward an Ecological Civilization, with open registration to the public on June 4-7, 2015. Paper title: ‘Emperor’s New Clothes’ political collapse: Seizing an alternative to OBVIOUS unlawful … Continue reading

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Debt-damned economics: either learn monetary reform, or kiss your assets goodbye (7 of 7)

The following is my high school teaching assignment for Advanced Placement Macroeconomics students (available as extra credit for other classes) on how money is created. I offer this for non-profit use; divided into seven sections: Instructions (1 of 7) Contextual … Continue reading

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