Should government pay off our debts?

Economist Steve Keen says we are already in another Great Depression. He advocates bankrupting the banks, nationalising the financial system and paying off people's debt

Steve Keen is one of the few economists to have predicted the global financial crisis and now he says we are already in a Great Depression. He says the way to escape it is to bankrupt the banks, nationalise the financial system and pay off people's debt.

He admits what he is advocating is radical but says it is time governments gave money to debtors to pay down debt instead of to creditors such as banks who have held onto it.

Watch him on BBC HardTalk

http://www.democraticund...&address=385x637731

With TASE in red today means Asia opens on selling mode in a few hours. At this rate TASE is headed sub 1000 which it has tested in today's trading.

http://www.tase.co.il/TA...ction=1&IndexID=142

Is national credit rating being downgraded the in-thing now? Everybody seems to be getting it.

Hungary - http://www.finfacts.com/...s/article_1023566.shtml

Egypt - http://www.bbc.co.uk/news/business-15871107

Portugal - http://www.bbc.co.uk/news/business-15873435

The above 3 are now 'junk'

Belgium was cut by one notch from AA+ to AA - http://www.marketwatch.c...redit-rating-2011-11-25

Who's next?

Richard Koo's interview about a 'balance sheet recession' that euroland & US is currently facing. Even with near zero % interest rates, these economies are in dead water (liquidity trap). Japan got stuck for a decade plus trying to get out of mud. Interesting interview this...

http://www.youtube.com/watch?v=HaNxAzLKegU

Didn't see this one coming, but the Kuwaiti PM has resigned. ME region is in a serious boiler room. Bashar of Syria is a cat at this rate for surviving this long...

http://www.bbc.co.uk/new...ld-middle-east-15931526

@ceinz - I'm wondering who'll break the ECB just like Soros almost broke the BoE during the ERM crisis. But based on the scenario, I expect a major last ditch QE attempt in Q1 2012 by Fed, BoE and ECB. If it does happen, I'll buy gold/silver in bucketloads. I wonder how NSE will react to such an event. Since it's oversold, it could rally sharply in the short term e.g. 3 months esp bank stocks. But with the current cbk liquidity squeeze, it's hard to see the 6 - 12 months outlook.