{"id":306277,"date":"2017-05-02T14:12:37","date_gmt":"2017-05-02T13:12:37","guid":{"rendered":"https:\/\/rinf.com\/alt-news\/newswire\/the-economics-of-the-future\/"},"modified":"2017-05-02T14:12:37","modified_gmt":"2017-05-02T13:12:37","slug":"the-economics-of-the-future","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/newswire\/the-economics-of-the-future\/","title":{"rendered":"The Economics of the Future"},"content":{"rendered":"<div itemprop=\"articleBody\">\n<p>At first glance Steve Keen\u2019s new book <a href=\"http:\/\/www.amazon.com\/exec\/obidos\/ASIN\/1509513736\/counterpunchmaga\">Can We Avoid Another Financial Crisis?<\/a> seems too small-sized at 147 pages. But like a well-made atom-bomb, it is compactly designed for maximum reverberation to blow up its intended target.<\/p>\n<p>Explaining why today\u2019s debt residue has turned the United States, Britain and southern Europe into zombie economies, Steve Keen shows how ignoring debt the blind spot of neoliberal economics \u2013 basically the old neoclassical just-pretend view of the world. Its glib mathiness is a gloss for its unscientific \u201cdon\u2019t worry about debt\u201d message. Blame for today\u2019s U.S., British and southern European inability to achieve economic recovery thus rests on the economic mainstream and its refusal to recognize that debt matters.<\/p>\n<p><em>Mainstream<\/em> <em>models are unable to forecast or explain a depression<\/em>. That is because depressions are essentially financial in character. The business cycle itself is a financial cycle \u2013 that is, a cycle of the buildup and collapse of debt.<\/p>\n<p>Keen\u2019s \u201cMinsky\u201d model traces this to what he has called \u201cendogenous money creation,\u201d that is, bank credit mainly to buyers of real estate, companies and other assets. He recently suggested a more catchy moniker: \u201cBank Originated Money and Debt\u201d (BOMD). That seems easier to remember.<\/p>\n<p>The concept is more accessible than the dry academic terminology usually coined. It is simple enough to show that the mathematics of compound interest lead the volume of debt to exceed the rate of&#8230;<\/p>\n<\/div>\n<p><a href=\"http:\/\/www.counterpunch.org\/2017\/05\/02\/the-economics-of-the-future\/\">Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>At first glance Steve Keen\u2019s new book Can We Avoid Another Financial Crisis? seems too small-sized at 147 pages. But like a well-made atom-bomb, it is compactly designed for maximum reverberation to blow up its intended target. Explaining why today\u2019s debt residue has turned the United States, Britain and southern Europe into zombie economies, Steve [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[519],"tags":[],"class_list":{"0":"post-306277","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-newswire"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/306277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=306277"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/306277\/revisions"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=306277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=306277"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=306277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}