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WARNING: You may not like to see Steve Keen’s final prognostication, based on dismissal of the science on climate change. It is even more dire than the forecast of England’s Fred Harrison.
Me? I’m optimistic that we will somehow wake up in time to the economics that will respect people and the planet more than the 0.1% is currently prepared to do.
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I’d argue that taxing away natural resource rents would start to repair the situation, but I agree with Steve Keen that it’s too late now.
Therefore, the hope of the side is how we may turn the financial collapse into imagining how we may incorporate these ideas into a rapid recovery – instead of seeking to return to status quo.
President Xi Jinping tried to legislate it for China in 2022, but was howled down. It’s incredibly difficult, everywhere, but essential for peace and prosperity!
We have people criticise the Bureau of Meteorology for sometimes getting its weather forecasts wrong but, unlike models in economics, meteorological techniques, they are generally valid. Thereby, in these different scenarios, economists are rarely able to foresee those private debt-laden situations that will deliver financial recession.
Yet, we’re told we need to worry about “the national debt”. 🙁
I was happy to have Mason Gaffney support the technique that permitted me to forecast the Global Financial Crisis.
Immediately after Mason Gaffney’s passing at the age of 96 in December 2018, I was also able to call the 2020 COVID-19 recession.
There’s something economists need to acknowledge if they are to return political economy to the science it is.
Well, that’s something!
I came across my 2007 AFR blast from the past letter as the Global Financial Collapse set in. It still has relevance to the tired old “let’s have greater supply” argument. (You’ll need to enlarge the letter.)
An interest rate increase tomorrow will put unbearable pressure on many Australian mortgagors.
CPI is a silly measure of inflation, anyway, when it’s understood that transitory supply and demand imbalances are fairly rapidly repaired by the invisible hand.
It’s ongoing taxes and land prices have done this to world currencies – and they ain’t part of the CPI. [They’re in the other disregarded ‘cpi’: cost-push inflation.]
Here again are Australia’s total land prices and, together with taxes on incomes and purchases, they represent the measure of our true inflation: –
This is a slide from Danielle Wood’s excellent presentation at the Freebairn Lecture last Tuesday.
Let’s do it, Australia!
