Thursday, 16 August 2012

Creditism replaced Capitalism during WW 1

Richard Duncan scores many points on the last episode of Capital Account called "Richard Duncan on riding out this depression on a deflationary debt raft". But we do not agree when he says "the only possible policy response is to pump in more credit" (as this is one area where the Fed and the government has pushed policy way too far), him saying "its better to prolong death" based on the Japan model and and a few other things. But decide for yourself.

If you're short of time fast forward to 9:00 and watch the next couple of minutes.

A chart showing the "Total Credit Market Debt Owed" in the U.S. was shown during the show and is shown below, including Year-on-Year (YoY) percentage change in this debt, to demonstrate more clearly what he is talking about.

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