How Close Are We to New Great Depression?
Posted July 25, 2012
Last week I was in London to promote The New Depression: The Breakdown Of The Paper Money Economy. The week began at 7:30 Monday morning on Squawk Box Europe. Please find the link below. I was told this clip was the most watched segment that day AND the following day.
I’ve read and do agree with Paul Krugman who as you are aware argues counter to the Tea Party types and many Republicans that America needs to reign in spending. Richard you are correct, since central governments are and can print money they need to invest in 21st century technologies including 21st Century infra structure renewal especially in America. The real problem as I see it include not only ‘bad actors’ on Wall Street but the army of Washington lobbiest who do the bidding on those companies investing in 20th Century Technology i.e. coal and oil. With Washington, elected officials, including the Courts, in the hip pocket of big money multi-national corporations and their share holders interests in quarterly earnings, it’s seems a stretch for me to understand whether anyone with influence will listen to Richard.
Here in the UK we’re already in one! Worst for 100 years, apparently – and at the same time, the government is gutting handouts to the needy as that’s the only policy of theirs that’s remotely popular (British people don’t seem to understand that in a recession, they are at risk of losing their jobs).
Our rulers over here are obsessed with privelige and class, and with flaunting their (unearned) wealth in a bewildering array of “celebrations” – Royal Weddings, Royal Jubilees, corrupt Olympics… the list goes on. They’re spending millions of taxpayers’ money on the already extremely wealthy, such as the Royals, and are privatising social provisions just when they’re most needed, handing cash that’s meant to go to hard-up families and disabled people to grubby, corrupt “entrepeneurs”.
They’ve also trashed the job market by creating a system of compulsory “work experience” where unemployed people and prisoners are paid as little as $5 a day to do jobs that would otherwise pay $9 or $10 an hour!
So if you think you’ve got it bad, it could be a lot worse…
It looks like the link you provided is no longer active. I found another link to the video that you may want to post. Here is the link.
Richard I’ve just finished The New Depression. It was a book with loads of insights into the mess the world is in. Your book and views seem to chime a lot with one I read on the Japanese economic experience by Richard Koo.
I read that with QE (but no more fiscal stimulus) you think the US might stagger on for five to ten years yet. What about shocks from elsewhere though? I think Spain could produce a big shock in a year or two. If the US can’t come up with another fiscal stimulus couldn’t something like a Spanish collapse cause a new massive downturn much earlier?