The antidote should be more government spending and larger deficits – as well as debt forgiveness.
We are now – and will remain – a debt-fueled economy for as long as the rest of the world permits this to continue.
Everywhere you look, countries have too much debt and are struggling with it.
The current high prices of precious metals, in the face of possibly deep economic recession, indicate that the prospect of a sudden and catastrophic financial collapse is very real.
Higher taxes for those on higher incomes and the wealthy to finance the costs of the crisis and cut budget deficits are being debated in the euro area – including Germany. Several countries have already taken action. If countries decide in favour of the state imposing such taxes, they face a difficult balancing act. Beside the fiscal and distributional targets and hopes, it has to be borne in mind that attention is to be paid to the risks to economic growth, which may result from negative incentive effects, and balance them against the former.
Essays on Fictitious Capital, Debt Deflation and the Global Crisis.
Europe’s sovereign debt crisis in historical perspective.
Draghi and Bernanke know that markets need to be talked up, and they continue to do so unapologetically.
Once it becomes obvious just how many dollars the Fed is prepared to print to stave off recession, people running into treasuries today will likely suffer buyer’s remorse.
Some forms of “austerity” have minimal near term impact yet are crucial for the long run.
Michael Hudson’s presentation for the session “The Challenge of Deleveraging and Overhangs of Debt II: The Politics and Economics of Restructuring” at the Institute for New Economic Thinking’s (INET) Paradigm Lost Conference in Berlin.
A common denominator runs throughout recorded history: a rising proportion of debts cannot be paid.