YouSaid · the spoken record

Steve Keen

lines on the record: 271
first: 2022-07-17
most recent: 2022-07-17
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Well, thank you. You do the same for humanity. I mean, when you When I saw that email from you, my eyes popped out on my head.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and I don't know if they're going to be alive on the other side of that darkness. I think individually, no. But the way you can live on is by what you do to human consciousness.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't think there is another side. I mean, I'm agnostic. I'm atheist when pressed and agnostic. The one thing that I think I can understand why religion exists is the whole thing that something exists is itself a dilemma. You have to take on faith that reality exists, whether it's a simulation or actual reality. It exists. And that itself can't be explained in any scientific manner. I mean, you can talk about antiprotons and protons and the sun being zero and so on. But why did it even happen in the first place? So you simply have to take on faith.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“I think I put us on a spectrum between chimpanzees at one extreme and bonobos at the other. We're too close to the chimpanzees.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“This planet, the warlike side of humanity, that is too much of a defining feature of our species. It's the opposite of Love. It's hate, but it's pleasure in inflicting pain on others when you see people killing others in a warlike environment. They're enjoying themselves. It's rarely, sometimes it's self-defense, but when you've spoken to people who've been involved in combat and been involved in riots and said, when you see somebody rioting, bashing people up, they're enjoying themselves. It's not anger they're feeling, it's pleasure.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“It's vital. I mean, that feeling of passionate. Desire and respect for somebody else. And there's perverted forms of love as well, so I'll leave that out. But somebody having a really deep bond which goes beyond just sexual attraction, like I've had that four or five times in my life with different women at different times, and I've stuffed up the most important one very early on. But that feeling is incredible. And you couldn't have life worth living without that. So it's an essential part of who we are. But what we have to do is to transfer it not just to the rest of our species, but to all the species. And that's, I think, what's vital. And how do we maintain that over generations? And I think that idea that we can actually hang on to that general sense of respect and not lose it again. Because the amount of life we've terminated on.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“He had an idealistic view with Jenny, and he was rejected because he wasn't, not by Jenny, he was madly in love with him as well. So it was a real passionate love affair from the very outset. But then, of course, you have children, lots of them die. There's a huge amount of tragedy in his life as well. He and Jenny were forced out of Chelsea by a cholera epidemic. My vision for London back in the 50s and 60s was Calcutta. in the 1970s. That's really what life was like. So there's a lot of hardship in his life as well. And he was always poor. So only Ingels kept him alive financially. He applied for one job outside of, he never got an academic job. He was pushed out of Prussia as a newspaper author. But he also applied for a job as The clock in the British railway system was turned down because they couldn't read his handwriting.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“All Mox was madly in love with Genevon Washalon and wrote Love Poetry to her long before he wrote Dust Capital. And he was infatuated with her. He ended up also impregnating his housekeeper. So there's a son of Karl Marx, who was the son of the housekeeper, not the Jenny. There are numerous daughters.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Survive us, but there's so much life we're going to take down with us in this whole period. And there's so many of our own lives we're going to terminate for no good reason.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“You should really enjoy that book, The Earth of Odes, because it's got that same beautiful sense to it life will survive whatever we do. I mean, they talk about people, I was actually talking with a good mate of mine, an ex-geologist, and he's now a professor of economics, and he said as a geologist, he really hated people talking about the anthropocene epoch. And I said, well, it shouldn't be the anthropocene epoch. It'll be the anthropocene event because an epoch is millions of years and a huge period of life on the planet. And we might be snuffed out in 10,000 years of human civilization. And that's not much slower than the meteors wiping out the dinosaurs. The dinosaurs lasted for a long time after that event. So we're like, we'd just be a layer in the surface of the planet with plastics and strange metals like that at some point. So we're just neat, but life will abide.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“So that sort of stopped me on the depression, but that's the darkest point when I looked at it and I thought that this arrogance, this stupidity, this Humbug and the economists meant that we were potentially jeopardizing the lives of billions of people and Christ knows how many other life forms. And having that knowledge is the most depressing experience of my life.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“I read that and thought that is so fucking stupid. Because all it's saying is that if there's a 10 degree temperature difference between New York and Florida and a 20% difference in income, then a 10 degree increase in temperature will cause GDP by 4 by 20%. It is so insanely stupid. So when that read that line, I just did this. I just, you know, I was in shock at how stupid it was. My wife, who's Thai and brings in treats for me all day, walks into the room and says, and she speaks in a staccato English and says to me. Why are you like this? And I said, I'm just doing this work on climate change, and she interrupts me and says, Oh, why do you do that stuff? Nobody is interested in climate change. You can't do anything to change it. If we die, we die. Perfect Buddhist grounding. And I thought, well, I can't argue with her again.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Back to that one. So that's where my wife's going to come into this story. So I was reading Richard Toll, a paper from 2009 called The Economics of Climate Change, Journal of Economic Perspectives, I think. And I read this section where he says that one of the ways they tried to calibrate what climate change was due is they assumed that the relationship between GDP and temperature over space would apply over time as well.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“I've had to cope with depression in the last five years since I started reading neoclassical economists on climate change.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“I simply couldn't not do it. Was part of me that I couldn't swallow this economic stuff. Once I was exposed to why it was so wrong, then I was on a crusade to make it right. And that's been part of my nature all through my life. I don't know why. So it wasn't that I made a choice to do it. It's that I couldn't be true to myself without doing it. And I find a lot of people get caught in a life where they're doing it because it works for some financial or other reason, but they're not being true to themselves. And as messy as my life and as much shit I've got myself caught up in. And there's a lot of that in my personal and financial life right now, which is a pain in the ass, I would rather have had that nature than not.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Side of my life. And the bloker was the kingpin of that group, a very innovative bunch of guys in the student revolt. So you said, Steve, we would still all rather have done what you have done. They did accounting because it was safe. Always get a job as anyred shit”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“And then in my about 28 or so, I went to a restaurant one night and I found a bunch of guys, all guys, who'd done accounting at the university but had also been part of the student revolt. So they hadn't seen me for about a decade and they said to what have you been doing, Steve, and I talked about what I'd done. So I'd been a schoolteacher for a while. I then worked in overseas aid. I was doing computer programming at the time and I'd forgotten what else I was doing at that point. So I explained it to all of them. And they were at a bucks night, one of them having a wedding coming up the next week. And one of them said, I wish I'd done that. And there was silence around the table that was obviously silent agreement. And I looked at them and said, hang on guys, look at the downside of my life. You're getting married. I don't have a girlfriend right now. You've all got secure jobs. I'm unemployed. You own a house. I haven't even got a car. Look at the downside.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“But both engineering education, that is far better than doing an economics degree. In terms of life, my life is pretty chaotic in many, many ways. My friends, friends and family will tell me that every opportunity. But the thing is, I once had a, I'll tell you an example of a really funny incident that occurred to me because I led this student revolt at Sydney University, as I mentioned, when I was 20 years old”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Is so So I'd say learn system dynamics. Do a course in system dynamics which you can apply in any field and then apply what you learn out of system dynamics to the issues of economics if that's what interests you.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, because what you learn as an obsolete technology, learning economics at a university is like learning to all make astronomy. The centric equilibrium epicycles being added to make your models fit the data.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“It is, and I think we should take that risk at some stage, but I think to do it with what actually let artificial intelligence involve in an environment in which it fears its own death.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“You give your life to an anarchist. One of my favorite instances in my family life is one of my favorite, I like all my nurses and nephews, but one's got a real quirk to her. And I was standing over her cot when she was literally like about six months old. And she was gurgling away to herself. And her father waved his finger and said, stop making that noise. And this little six-month-old kid goes. And I said, boy, you're going to Issues with that one”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“AI that wants to survive. Because if you think how our intelligence evolved, it's on this planet in a struggle between predator and prey. An intelligent became a survival technique.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Whatever the heck that means, yeah. I mean, we would have had imaginative insights. Your papers on automating motoring between the hyperintelligent machine or the machine-human interface where the standards can be lower for the machine and higher for the human. Okay, that's an insight you would have had at some point. And then you've worked it further. So I've had insights like that as well, and I have no idea where they come from. They just hit me in the head and I sprite them down and they solve the problem that I didn't even know my mind was working on. So how can we get a machine to do that? And I do not know the answer, but one thing I think is the potential is I think we have to create AI that has feelings.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“And I, you know, I know that's one of your interests and one of your potential endeavors. And the Kurtzwell idea that there's some singularity we're approaching is we just get increasing processing power. It's not processing power, it's imagination. And I think...”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. This is actually part of the, there's two good logical arguments against the labour theory of value one of what becomes machines become intelligent and the other was that if the declining rate of profit applies in socialism it'll apply as a rate of accumulation sorry in capitalism it applies a rate of socialism as well a guy called Khalid made that argument so his argument was just unsound but yeah intelligent machines would completely screw Marx up you know”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“That, I mean, I'm still a sceptic about us ever being able to create a machine which is truly conscious. If I can throw my, it's almost two cents worthy.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Oh, yeah, we have to. I mean, that ends labor. You can't go for your dagger can't be from here to the asteroid belt and back again for dinner with your family. So production would be entirely mechanized. There'd have to be a handful of people who service the machines.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, who cares if we throw a bit of our iron back into the sun again? I'd take a fair bit of it to turn it into what would be the next stage, it'd be a red giant. And we have to get away because as a red giant at some stage, the sun will head out past the orbit of Mars, I think, certainly past the orbit of Earth. So to have longevity of not just human life, life that evolved on this planet, we have to be able to take it off planet ultimately. So if you think in the really long term, then it's our responsibility if we're going to maintain life, is to establish life off the planet.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“I think we can have capitalism in outer space far more successfully than we can have it on the planet because we don't face when we dump the waste it ends up in the sun not a problem so it means the potential we don't undermine our own productive capacity if we're doing it in outer space”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Of the solution, yeah, but if we go through and blame it, which is quite possible. We will blame the technology rather than blaming too much of the technology, and the too much comes down to what economists have told us, that we can just continue consuming infinitely on a finite planet. And Kenneth Balding said that beautifully, said if somebody believes that you can have exponential growth on a finite planet, they're either mad or they're an economist.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“There are. And I think that's why we have to, if we were built around the idea that our role as a species is to maintain and extend life on the planet and if not find it elsewhere, then seed it elsewhere Then that is a vision which makes us creative and confines the worst elements of our capacities to share beliefs. So that's what my hope is that we'll reach that stage. But I think we've overshot it so badly that my real fear is we'll end up blaming technology for the type of world we find ourselves living in in the next 20 to 50 years.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, it is a catalyst, but what it means is We can delude ourselves as much as we can inform ourselves. So because we share beliefs, we can do things in a collective way. And if we believe that, if we take the incantations of the witch doctors and we happen to have a couple of spears and things, we can go and attack the local tribe of lions and drive them out. And we become the dominant species. So it worked at the stage where we were in competition with other species on the planet. Now that we're the dominant species, then our beliefs get in the way.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Individual mind creative individual mind in a collective labor over centuries that led to this level of technology. And that has to be respected. It's incredible stuff. But at the same time, I think what humans are, if you want to distinguish humans from other species on the planet, we don't weave websites. Now”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“It's a chicky tweet I've had from my mind for a long time. It just is one that actually went moderately viral, not enough, but moderately viral for me.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“And you don't get this breakdown. If you try to cause the government running a surplus, then the burden of that is borne by the poor, middle class and poor, and that will lead to the angst we're now seeing.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“I'm not going back to founded first principles. That deficit enables you to provide enough of a decent standard of living for those who don't come out on top in the capitalist game. And with that, you wouldn't have the angst of the young people. Now we still have the climate. Parameters within which we have to survive, but a decent level of government funding would mean the yanks that you get where people say, I want to be a Marxist, and they've got what I call a cardboard cutout version of Marx in their minds, that wouldn't be happening. So it's potential to have a good society where the government runs a deficit that finances the needs of the poor, where the rich get enough to indulge and take care of themselves.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, we could do that by using the insights that come out of modern monetary theory, which I've confirmed just using my simple Minsky models. And that is that to use the term, you see a feature, not a bug, a government running a deficit is a feature of a well-functioning mixed fiat credit economy, not a bug. The government should normally run a deficit because that's how them a government creates money. Now, because we've had this obsession from mainstream economists running a surplus, which is what caused the Great Depression, Calvin Coolidge is doing it for eight years because of that obsession, we've cut back on social services, we've cut back on health, we've cut back on education, we've cut back on infrastructure. Now, all that stuff predominantly affects the poor because the rich can afford to buy it themselves. So if we had Sonombridge realized the government should run a deficit, it's a feature, not a bug, of a fiat money system. And that's where Eon's made one mistake recently.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“They are definitely misusing the term if they don't understand the use value exchange value dialectic I went through earlier.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Do you reckon You're sending the power supply for it's over there somewhere. The power supply weighs about twice as much as your laptop. Yeah.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“After we talk, but I can show you the data in this. It is just this huge increase in private debt. First of all, caused the boom, but then financing the credit causes ultimately causes the slump. And so if we remove the rate level at which debt can reach and we stop speculative lending and have a lending for both innovation investment and essential consumption items, we won't have the slump on the other side. We can get rid of financial instability. We can't stop financial cycles, but we can stop financial breakdown.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“We have to regard the level of private debt as a target of economic policy just as much as the rate of inflation or the rate of unemployment.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“You had a housing bubble at the beginning of the 1920s which Richard Vague covers beautifully in the brief history of Doom. And then you had this huge rise in margin debt as well, gigantic increase in margin debt. So all this borrowed money was being spent into the economy and this is where credit becomes part of aggregate demand. And it's both not just for goods and services, it's also for shares and houses and so on. So a huge valuation effect. But then when the margin debt turned around, when people would not take out margin debt anymore, the demand from margin debt disappeared and then it was what we call badly a positive feedback loop is actually an amplifying feedback loop. And that caused a collapse.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Much lending, too much bank lending, too much private money creation. And if you take a look at the 1920s, Calvin Coolidge explained the boom of the 1920s on his surplus. He said, my government running a surplus of 1% of GDP pretty much from 1922 through to 1930 is the foundation of our stability. It should be continued. What he didn't look at was that over that same time period, on average, Americans were borrowing 5% of GDP per year from the private banks.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“To try to meet your own debts when you liquidate the price level falls, you will end up having a lower level of monetary debt, but a higher level of debt when you deflate it using the price level. So the biggest danger in capitalism is the debt deflation, far more dangerous than inflation.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“You've got to liquidate everything. Okay. So you said the danger is of a debt deflation is what we have to avoid. And that means you don't want too much private debt to accumulate and you don't want falling prices because the falling prices will amplify the impact of being insolvent to begin with. And that's what we saw in the Great Depression. It's partially what we saw in 2007, but we didn't have anything like the level of margin debt. Margin debt was reduced from 90% to 50% ratio after the Great Depression. So there were limits on how bad it was in 2007. But the danger is still the period of deflation amplifies your debts. I call it Fisher's paradox. He didn't write those terms himself, but he wrote a line saying, the more debtors pay, the more they owe. And this is because you're liquidating.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“So you've got this huge leverage into debt. Now, when the financial crisis hit, the level of margin debt in America had risen from half a percent of GDP in 1920 to 13% of GDP in 1929. It then fell to zero again. That's why the stock market crashed in 29 was so devastating, that scale of margin lending. And everybody was being wiped out. They were selling Rolls-Royces for 20 quid. You literally have photographs showing people doing that because a margin call comes in.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“All debts are repaid, and he assumed that equilibrium through time was an essential part of his assumption. Then the Great Depression comes along. And he has become a major shareholder in rank Xerox because he invented the Rollodex. A tinker. And so he had taken out shares on margin and he was worth about $100 million in modern terms when the Great Depression hit. And 90% of that was share market valuation. He'd taken out margin debt, just like everybody else. And with margin debt, you could put down $100,000 and buy a million dollars worth of shares.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think this is like the Austrian thinking leaves out the debt deflation. And that's, I think one of the most important papers ever written was by Irving Fisher called the debt deflation theory of Great Depressions. Fisher was somebody who accepted the neoclassical vision. He wrote the pre Efficiency Market hypothesis market hypothesis. His own PhD called the Theory of Interest. And in that he argued effectively for supply and demand analysis of the financial system. And he argued for equilibrium. He said, when you're working with a commodity market, then the sale and the transaction and the exchange occur at the same point in time. When you're working with the financial market, then the exchange occurs through time. So he said he assumed that debts are repaid.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, well, you get, I mean, this is where, again, it matters to get money creation right because the government's not the only money creator. Banks are as well, private banks. And And if we obsess too much about limiting government money creation, what we end up getting, if there is money creation going on, it's private banks doing it. And you get an increase in private debt. And fundamentally, private debt and its collapse, collapse of credit when it stops growing. That's the fundamental cause of financial crises.”
2022-07-17 · Lex Fridman Podcast · #303 – Steve Keen: Marxism, Capitalism, and Economics · IDENTIFIED FROM THE TRANSCRIPT · source